What NO ONE Tells You About Buying a New Construction Home
The North Metro Atlanta area is teeming with new construction homes, drawing many homebuyers seeking the allure of a brand-new, move-in-ready space. Let's unravel the intricacies of buying a new construction home that often go unmentioned. Perks of New ConstructionNew construction homes offer a host of advantages, from the appeal of everything being brand new to the ability to customize your design preferences. One significant advantage that often goes unnoticed is the potential for better deals compared to resale homes. Builders frequently provide generous incentives, allowing buyers to use funds for upgrades, additional features, or even lowering the home's purchase price. Navigating Builder's Preferred LendersUnderstanding the dynamics of Builder's preferred lenders is crucial. While these lenders often offer incentives, it's essential to compare these offers with local lenders to ensure you're getting the best deal. Be aware that some incentives might be offset by fees and upcharges, emphasizing the importance of exploring all options. USDA Loans for Rural Area BuyersFor those considering homes in rural areas, the USDA loan can be a game-changer. This government-backed loan doesn't require a down payment, making it possible to cover closing costs with builder incentives. While not everyone qualifies, the incentives and rate buy-downs provided by builders remain valuable. Rate Lock Challenges in New BuildsBuying a new construction home, especially one being built from the ground up, introduces challenges with interest rate uncertainties. Unlike purchasing an already started home, where the rate can be locked in closer to the closing date, those building a custom home might face a longer period without a locked interest rate. This exposes buyers to potential fluctuations in interest rates and monthly payments. The Importance of Having Your Own AgentA critical aspect often overlooked is the necessity of having your own agent when buying a new construction home. While builders have their agents, those agents represent the builder's interests. Having your agent ensures someone is advocating for you, especially in unexpected situations. An agent can stand up for your agreed-upon terms and protect your interests, as demonstrated in a real-life scenario shared. Quality Varies Among BuildersThe final truth to acknowledge is that you get what you pay for. While larger builders might offer more affordable homes due to their production volume, the quality might not match that of a smaller, reputation-centric builder. Personal experiences vary, and it's crucial to recognize that not all builders are equal, emphasizing the importance of research and understanding the builder's reputation. KeyPointAs you embark on the journey of buying a new construction home, consider these often untold truths. From navigating incentives to understanding the intricacies of rate locks and the importance of having your agent, being well-informed ensures a smoother home-buying process. Whether the pros outweigh the cons is subjective, and your preferences will guide the choice between new construction and resale. If you're considering a move to Georgia, don't forget to subscribe to our newsletter for valuable insights. And if you're ready to make Georgia your home, reach out, and let's start this exciting journey together.
Why People hate Living in 55+ Communities
Imagine living in a neighborhood with top of the line amenities, clubs to occupy your time, and several hundred residents similar in age to you. Sounds pretty nice, right? Well, not everything in a 55+ community is going to appeal to everyone. Some people are chomping at the bit to turn 55 so they can move into one of these communities, but of course there are people who are adamant about avoiding them at all costs. So why would you NOT want to consider living in a 55+ community? If you are considering moving to Georgia, I want to be your real estate agent! If you are searching in an area that I can’t help with, I can put you in touch with someone who I know and trust will help you make this move as seamlessly as possible. We have several of these huge, amenity filled neighborhoods here in north Georgia and have seen a big increase in retirees to the area, so why would you not want to live in a 55+ community? One of the first things that might keep you from living in one of these retirement communities is the cost to do so. You are going to pay a premium to live in a 55+ plus community, both for the price of the home, and for the HOA fees. Let’s take a look at house prices in some of the most popular local 55+ communities. At the time of filming this video, the average sales price of a home in Village at Deaton Creek is $504 thousand dollars, Cresswind at Lake Lanier’s average was $627 thousand, and Del Webb Chateau Elan was $568 thousand. In Village at Deaton Creek, you’re going to pay $3,300 a year in HOA fees, $4,068 a year at Cresswind Lake Lanier, and $3,456 in HOA fees at Del Webb Chateau Elan. In Cresswind at Lake Lanier, you can find properties ranging all the way up to just shy of one million dollars right now… crazy! You’re paying a pretty steep price per square foot most of the time in these communities, like almost double what you would in some cases. Now, the caveat to this is that you don’t have to take care of your own lawn and you have amazing amenities right at your fingertips, not to mention all of the clubs and social committees that come with these neighborhoods. You’ve got access to indoor pools, outdoor pools, pickleball courts, tennis courts, book clubs, community gardens, coffee groups, art clubs- all kinds of different activities to help keep you active without ever having to leave the community. Someone made a really great point about the cost of these fees if you look at it over the course of your life. If you move into Cresswind Lake Lanier when you’re 55 and pay $4,068 a year- that’s $40,680 over the span of 10 years. By the time you’re 75, you’ve spent over $81,000 in HOA fees just to use those amenities and have someone cut your grass. They made the point that they would rather live in a non-55+ community with smaller amenities and HOA fees and put away the money they save to leave to their kids one day. If this is not applicable and you want to spend the money you have worked hard to earn now, go for it. Some folks felt like their money was going to waste paying for amenities that they didn’t use, but if you don’t think you will take advantage of them, it would be a better idea to look in another neighborhood that didn’t have such steep fees and would just pay someone to come maintain their yard. In the grand scheme of things, it’s not that expensive compared to some 55+ communities in other states where you can pay a thousand dollars a month in HOA fees. Or, if you’re in a townhome community here in north Georgia paying $1,000 a year and that only covers yard maintenance and one small pool, the HOA fees don’t sound that crazy based on the amenities that you get. Another downfall to these expensive HOA fees is that they are going to be very strict. I get comments just about anytime I mention HOA’s from people who say they would never live in a community with an HOA because they don’t want to be told what to do with the house that they own. In most neighborhoods in Georgia, you are going to have a bit more relaxed HOA’s, but in 55+ communities, you can expect them to be more on the strict side. You’ll have board members that live in the community and spend their time cruising around on their golf carts patrolling the neighborhood and making sure everything is just as it should be. These communities are absolutely beautiful to drive through- never a blade of grass out of place or a weird colored house because the HOA is keeping close tabs on everyone. Something we also hear complaints about in these communities is just that- members that drive around patrolling the neighborhood and keeping an eye on everyone. I helped a client move into one of these neighborhoods and she said one of her biggest complaints is the nosey neighbors. It is a retirement community after all, most people are retired and their new passion when moving into these neighborhoods is checking up on everyone because they have nothing better to do with their time. They’re quick to tell you if your trash bin was at the bottom of the driveway for too long, or ask you where you were if your car was gone overnight or who was at your house if there’s a different car in the driveway. Again, some people love this about these neighborhoods. People like to feel seen, so having someone check in on you is a perk to them. Some retirees thrive in a community with set rules because they don’t want to hear people outside at night having company and being loud, they want everyone to wheel their trash can back to the garage an hour after the truck comes through the neighborhood, and they want to know who is coming in their neighborhood to visit you. Like all things we’ll talk about today, it’s all about perspective. If you find yourself being annoyed by nosey neighbors, you might want to reconsider. If you are the nosey neighbor, you will most likely thrive. Most of these neighborhoods have around 80 to 100 different clubs. That’s a ton of opportunities to learn a new skill, spend time working on a hobby, or meet new friends. However, some residents complain that these groups can feel very clique-ish and hard to infiltrate. They complain that these communities can feel like high school all over, with everyone broken up into groups like the jocks, nerds, and cool kids. Other people love being able to find people with the same set of interests right in the area you live. One thing that some people really struggle with in these communities is the lack of diversity. People will often make the comment that they don’t just want to be surrounded by other old people. There is still quite a range of ages from 55 to however old the oldest member of the neighborhood is, but someone made the comment that they did not like living in a neighborhood where it felt like someone you knew was dying regularly. They also missed seeing kids playing in yards and like having families of all ages around them, as they felt it helped them stay young. In most of these communities, people under the age of 55 can only visit for a capped amount of time, typically two weeks. This means if there was a major life event that took place and someone needed to move in with you, this is going to be a problem. On the other hand, someone said they were glad to not have to listen to kids outside playing all the time. Grandchildren are allowed to come over and visit and use the amenities while they are there, but someone said they felt like they were doing something wrong by bringing their grandkids to the pool one afternoon, that they could feel some of the other residents’ annoyance with them being there. It all depends on what you enjoy!
Pros and Cons: Living in 55+ Community in Georgia
I can’t wait for the day when I can seriously consider a retirement community. Crazy, right? Or is it these retirement communities are now affectionately called 55+ communities? Or, as I like to say, 55 and better communities. In the season of downsizing, I’ve heard from countless clients that they do not want to be in a 55+ community. And yet, many end up buying in those communities. What are the pros and cons of these communities? Let’s check it out! The most obvious pro to a 55+ community is the low maintenance living typically; you’re going to find all single-level houses, which is perfect when considering stairs. However, you are going to have options. Let’s say that you want a bonus room upstairs or if you want a finished or an unfinished basement, and we do have those here in the Northeast Georgia area. Now, a majority of these communities cover exterior maintenance on your home. Unless that’s your thing, you are no more cutting your grass, pruning your bushes, etc. Then, well-cut away, but most clients look forward to the ease of living in these communities. HOAs also take care of the exterior maintenance of the home. So, think about things like house painting, stuff like that. You never have to do it anymore if you’ve never been in a 55+ community. You are in for a treat; most communities excel at resort-style amenities, which is a pro in my book. Think indoor swimming pools, outdoor pools, tennis and pickleball courts, dog parks, fitness facilities, and even classrooms equipped for cooking and art classes. These communities have typically thought of everything, and most of them even have beautiful walking trails and even a playground for visiting grandkids. I’ve even seen a community garden; they would kick me out of that. Another benefit to these communities is the relative peace that you will find. You are typically not going to have to worry about your neighbor throwing any ragers. I would like to see that, though, teenagers, toilet papering trees, or even an abundance of kids. Now, this doesn’t mean that you’re not going to see kids. Kids, children still do visit their grandparents Afterall, but it won’t be a common occurrence or lots of kids that you’re going to have to dodge. While going to the grocery store, these communities offer a quiet atmosphere that many people enjoy but don’t mistake calm for non-active. Every time I’m in one of these communities with clients, I am amazed at the number of neighbors taking advantage of everything the neighborhood offers. I passed countless residents walking their dogs or out on their morning or afternoon jog; heck, my hand got tired from waving. They’re constantly waving as you go through these communities, warm folks. Now, let’s talk about location. For obvious reasons, you will find that many active adult communities are conveniently located near interstates and with easy access to health care. You can find two active adult communities in Braselton on the same road as the hospital. We aren’t expecting this to be a necessity for you, and at the same time, many residences love being so close to doctors’ outpatient facilities and emergency care. If needed, it certainly gives your loved ones peace of mind, so these are some of the great things about these active adult communities. Now let’s talk about things that aren’t so great. The most obvious one that people always bring up and consider is the HOA fees. Those resort-style amenities like lawn care and exterior maintenance, and you know all of the facilities that they offered that I mentioned earlier, well, those do not come cheap on average. You can expect to pay about 325 dollars per month for these HOA fees, but when you consider all the things that those fees cover, like trash service, lawn service, gym membership, and classes clubs, that 325 dollars don’t seem so bad after all. Right, it is crucial to learn about the health of the HOA whenever you’re doing your due diligence because the maintenance of homes and amenities facilities can be pricey. You want to make sure that the home is in good financial standing. After all, you don’t want to be in a position where the HOA has to increase rates substantially or impose hefty special assessments to cover poor financial planning. It’s no surprise that one of the cons of an active adult community is going to be the lack of diversity now, you do have to be 55, of course, and most people will be on the better part of that off-putting. After speaking with clients who live in these communities, I have found that they see their community well because of the great amenities, clubs, and things to do. You’re going to find your tribe, and you’re going to find yourself among your people who share common interests and things that you want to do. My most recent client, who’s only been in the community for a couple of weeks, is already ingrained in two different book clubs, and another client found a new love of pickleball. There are pickleball instructors, for heaven’s sakes; another potential con can be the size of the homes. Most homes in 55+ communities are designed for two adults to live comfortably, and as such, they tend to be smaller than homes on the broader market cater towards families. Many see this as an advantage so that the houses are easier to maintain clean on the inside. But if you like having the whole family over for thanksgiving, you may find space a bit tight. It’s also tricky when you find yourself coming from a 3000-4000 square foot home to a home that’s, you know, 1800-2400 square feet; most of these homes were designed to offer ample spaces for entertaining, and most of them have great open floor plans, but it would be a challenge if you’re hosting gigantic groups. one thing that you’re going to love though is that in the North Georgia area many of these communities offer homes on a basement and this lends itself to the perfect solution. If you are downsizing from a much larger house, speaking of sizes of homes, let’s discuss the yard size. I see this con come up much more frequently when looking at communities when clients are used to coming from a much larger home. With that larger home comes a much larger yard, and well, because 55+ communities have smaller homes, the yard lot sizes are much smaller as well, and with that, you’re much closer to your neighbor. Look on the plus side; if you fall in your yard, your neighbor will hear you calling for help in all seriousness. This is something to consider, yet many neighborhoods offer plenty of homes that offer privacy, a lot of them back up to wooded areas. You’ve got great landscaping, so you can find homes that provide that privacy. So as with all homes, if that is something vital to you, seek it out, you’re going to see it, and we can help you find that private yard. Need more videos about moving to Georgia? Follow and subscribe to our Youtube Channel!
Categories
- All Blogs (129)
- 55+ Community (3)
- Alpharetta (6)
- Atlanta (11)
- Braselton (2)
- Buford (7)
- Cumming (8)
- Dacula (1)
- Dawsonville (1)
- Duluth (2)
- Florida (3)
- Flowery Branch (4)
- Gainesville (12)
- Georgia (34)
- Grayson (1)
- Housing Market (2)
- Jefferson (2)
- Johns Creek (3)
- Lake Hartwell (1)
- Lake Lanier (13)
- Lawrenceville (2)
- Loganville (1)
- Milton (1)
- Monroe (1)
- New Construction (5)
- Real Estate Market (5)
- Snellville (1)
- Sugar Hill (1)
- Suwanee (3)
- Townhomes vs Houses (1)
- Townhouse (1)
Recent Posts