The Pro's & Con's of Buying New Construction

NoCo is still growing at a steady pace, and as you probably experienced a few years ago, inventory for homes has been all over the place! There are many New Construction builders that are developing new communities in NoCo that offer different price points and amenities. I wanted to give you the In’s and Out’s of What Semi Custom and As-Built New Construction is all about:  

 PROS-  

-The Interest Rates and Builder Credits: This is by far the biggest PRO. When you opt to use their preferred lender (will differ between each builder), they offer incentives to make your interest rate lower, to help pay for closing costs, or even pay for upgrades. With interest rate rates as they are, many buyers are opting for a better interest rate with New Con- the lowest I’ve seen some builders offering rates a low as 3%.   -You’ve Got a Brand Spankin’ New House: Nobody has lived in your house before- you get to be the first one! And like I said above, many times you can pick out your finishes from their collection. That new house smell.. it’s like no other!  

 -The Amenities: Most of these new constructions are funded by a metro district (more on that later) which provides money for things such as pools, playgrounds, clubhouses, etc. We’ve all wanted to see inside the fences of the Fancy Timnath Ranch Pool..    -A Manageable Lot Size: The lot sizes can be smaller than a resale property. Easier to mow your lawn, or you can even zero-scape if the HOA allows it. If you’re in a paired home (meaning you share your yard or don’t have a specific yard), your HOA manages and maintains your lawn.     CONS-    ⁃ The Lots are Generally Smaller: I put this as a con as well because some people may want a bigger lawn. New Construction lots are typically 4,356 sqft – 6,534 sqft. In Addition, (generally) the backyard landscaping is not included in your purchase price- so you’ll have to hire out a landscaper (or do it yourself) to do the backyard within 6-9 months of move in.   ⁃ Higher Property Taxes: You have Sweet Amenities, but who pays for it? Short Answer: You do through your Metro District taxes. A Metro district is essentially a small governing authority over your little community - It funds all of the extra amenities in your neighborhood that I had listed above. How it Works: The MD Is paid through a higher mill levy for that particular neighborhood. It’s also important to know how long that metro District tax may last, or when they will revise it.    ⁃ Longer to Sell: When you buy new construction, it’s important to stick around in that house until that community or neighboring communities are fully built out and developed (if possible.) What tends to happen is someone is trying to sell their home in a new construction community and have a hard time competing with that same builder ( or similar nearby builder) because a buyer can just go directly to that neighborhood builder and get a better interest rate and a brand new home that looks just like your (slightly lived in) home. So, if you plan to live in a new construction community, plan to stay awhile!  

 

There are SO many great New Construction Builders out there, but here’s a few I’m Familiar With/ Worked With Before:

 1. Hartford Homes Bloom: Hartford Homes is your locally owned Noco new construction builder. They make a super solid product at an affordable price all over Northern Colorado. They are also the only one in the group that is building ADU’s (Accessory Dwelling Units) so you can make your mortgage more affordable.     https://www.hartfordco.com 2. Toll Brothers Timnath Lakes: Toll brothers is one of the most semi custom of the bunch-. You can build a simple but nice home with them, or dress it up (those builds can come out to the $1.55 million mark in Timnath Currently.    https://www.tollbrothers.com/luxury-homes-for-sale/Colorado/Toll-Brothers-at-Timnath-Lakes 3. DR Horton Hansen Farm: Great builder, and fits into a friendlier budget. Specifically in Fort Collins, you can get a 1,500 square-foot home around $550k. DR Horton has the most traditional vibe of the bunch, which can be really timeless!   https://www.drhorton.com/colorado/northern-colorado/fort-collins/hansen-farm?utm_source=google&utm_medium=cpc&utm_campaign=n-communities-in-state-in-state&gad_source=1&gad_campaignid=22926655615&gbraid=0AAAAAo4oyaoLN9xzpvDmXVVA5iT0sYLQL&gclid=Cj0KCQjw37nNBhDkARIsAEBGI8Ov5ESCifiOS60rFXLbdRhQlejioc2I2zKT3yTgcSbhzpsY79KLC7saArrAEALw_wcB  4. Richmond American Kitchell Lakes: Richmond is historically a spec builder, meaning you can’t pick anything, you just pick a particular model and they build it to exact specifications. BUT- Richmond has just started allowing for more customized builds again on dirt start homes (meaning you start by picking a lot and they build the home with their options.) Richmond’s homes in Timnath are on the bigger side, so be prepared to pay $800k+ for a house in Timnath.   https://www.richmondamerican.com/colorado/northern-colorado-new-homes/timnath/kitchel-lake/ 5. Oakwood Homes Thompson River Range:  Oakwood is currently building Single Family homes in Larimer County Johnstown for under $400,000. No joke. They make a great product that’s affordable. Many of their houses are three or four stories- so plan on a taller build than most.   https://live.oakwoodhomesco.com/trr-homes?utm_term=oakwood%20homes%20thompson%20river%20ranch&utm_campaign=oakwood-denver-brand&utm_source=adwords&utm_medium=ppc&hsa_acc=2071247303&hsa_cam=19754194073&hsa_grp=148217166364&hsa_ad=649861858771&hsa_src=g&hsa_tgt=kwd-469872330386&hsa_kw=oakwood%20homes%20thompson%20river%20ranch&hsa_mt=p&hsa_net=adwords&hsa_ver=3&gad_source=1&gad_campaignid=19754194073&gbraid=0AAAAACgzhL6kJr9y7fwUmPdMJtzhVuKVk&gclid=Cj0KCQjw37nNBhDkARIsAEBGI8OlfE12FMjDgOH3lWGkZrtv3bPZAkCpZdmvCOdWovnQM_xzShKAfHwaAv83EALw_wcB

 

6. Windmill Homes Windsor: Windmill is the most customizable of the bunch, offering homes from $700k all the way up to $1.4 million. The $1.4 million ones even use local Windsor/NoCo Companies for some of the finishes, which is awesome. Windmill Greenspire also just opened a new section on the North Side of Windsor Lake, so that’s cool.   https://mywindmillhomes.com

 

New Construction is a great option in Northern Colorado as long as you understand what you’re getting into! I’ve worked with many of these builders and they all are unique in many ways. Reach out if you have any questions!  

-Ashleigh