Buying a New home in Colorado Springs?

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I recently showed a variety of new build homes to a client moving from out-of-state to Colorado Springs.  We looked at properties in Gold Hill Mesa in West Colorado Springs and at homes in Banning Lewis Ranch.  It made me think about all of the things that are different between new build properties and resale homes, perfect for a new blog post.    Here’s my list of 11 things to Ask about ………..

(1)   Ask about the lot premium.   Many new home communities charge a lot premium (an additional charge) for what they consider premium lots.  Lots in a cul-de-sac, larger lots, lots with better views;  all of these are considered more desirable lots, hence they may have a lot premium associated with them.   These prices can range vastly, $2,000 to $50,000 and is added to the cost of the home.

(2) Ask what is the build time?   More and more builders don’t start pulling the building permit hence they don’t start building a home until they have a purchase contract from a  buyer.   Build times can be as short as 4 months, and as long as 8 months.   And, if a buyer signs a contract in the winter for a a new house, the length of the build time can be dependent on mother nature; as many portions of the project can’t be completed or even started in the winter months.

(3) Ask if the builder has a model of the house a buyer can look at it vs. looking at the plans?   Many buyers aren’t comfortable purchasing a home from blueprint drawings; they want something they can walk through, something they can touch and feel.   If a builder has a brand new model, they may only have the blueprint plans to look at, that’s it.   Or, make sure and ask if the model is being built in a different neighborhood; as many builders are building in multiple neighborhoods, so a buyer may need to look at exact model the like in a different subdivision.

(4) Ask about the standard features?   This is a tough question since all builders are different, and within each builder they may have different series of homes.    One builder may have rounded corners, one may charge for them.  Another builder may include fireplaces; another builder may charge $4000.00 for a gas fireplace.   I’ve seen many buyers get carried away with adding to the standard features and they add $40,000 to $75,000 to the cost of the house; then they go to sell the home in 3 to 4 years but they truly have upgraded the home past the neighborhood.   Everyone else in the area may have put $200,000 in their house, but they have upgraded their house to $250,000.  The cost for upgrades don’t necessarily translate into dollar for dollar return on their investment when they resale..

(5) Ask who else is building in the community; what are the long term plans for the community?  Don’t plan on reselling a home for 3 to 5 years in a new community, as the builder may still be building new homes.   It can be very hard for a home owner to resale their home and compete against the incentives offered by builders.

(6) Ask about the vision and philosophy of the community.  Are they requiring standard features on all homes?   Porches, garage placement, fence requirements?    How many houses are going to be built?  How long do they expect to be building in the community?

(6) Ask about the financial stability of the builder?   Are they going to be around 3 – 5 years to honor your warranty?  Check for liens, check the local BBB.

(7)  Ask about what type of warranties you get?   Although it certainly varies, most builders usually offer two warranties.  One for structure and one for quality and craftsmanship.    Structure, on average, can be anywhere from 8 to 10 yrs.  Quality craftsmanship or whatever you may call it, is usually only one year.

(9) Ask about the charges for the extras at the design center?  (wood floors, electrical outlets, telephone jacks, fireplaces, etc.).  This is totally subjective and varies greatly from builder to builder.  Sometimes it may be cheaper to install the extras yourself down the road, but there certainly is something to be said for convenience and having the builder do it.

(10) Ask about an HOA and what it covers?  Who manages the HOA?  Is there a HOA?   What’s does the HOA do?  Are there covenants?  Can you see a copy of the covenants?

 (11) Ask about the Earnest Money?   What happens if the house doesn’t get built on time?

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To find out more information about Colorado Springs, and buying a home in the area, call ….

Kathy (719-287-1049) or email  KTorline@msn.com