Should You Consider New Construction in Tampa?
Tampa’s homebuyers face several challenges, including the daunting prospect of carrying two mortgages and stiff competition for move-in ready homes. For many, new construction could solve both those problems.
For one, buying pre-construction lets you avoid carrying two mortgages. While you’ll need to make a deposit, usually between 5%-20% of the sale price, you won’t need to close on the new construction, and therefore won’t have that second mortgage, until the house is finished. This gives you time to line up a buyer for the house you’re selling, and with any luck you won’t ever actually have two mortgages.
For two, move-in ready homes get so many offers: You have to scramble with other buyers, which often drives an existing home’s price substantially over asking, and you’ll need to be prepared for disappointment, and sometimes many disappointments.
Last year, residential contractors in Tampa applied for 19,470 new building permits. Maybe one of them has your name on it!
DO NEW HOMES COST MORE THAN OLDER HOMES?
In the short run, the cost of buying a new home is about 15% more than the cost of buying an existing home. But in the long run, new homes are less expensive in terms of maintenance and utilities.
Newly constructed homes require less maintenance, since everything from the water heater to the roof is brand new. Warranties can protect your new home for many, many years before you’d need to undertake any major repairs.
New appliances and home systems are energy efficient. Combined with today’s modern insulation materials and well-built windows, you’ve got a well-sealed home that’s less expensive to heat and cool, which translates into lower utility bills.
ARE ALL NEWLY-BUILT HOMES CUSTOM HOMES?
Not exactly. Truly custom homes are when you hire a general contractor to build a house just the way you want it. If you go for a custom-built home, you can have the floorplan of your dreams. You’ll work with your architect and contractor to create the layout that’s perfect for you. Always dreamed of a second-floor laundry room? It’s yours. Been imagining yourself getting fit in your own home gym? Get ready to break a sweat. Long lusted for a super-size garage? Time to buy that third vehicle. But all this freedom comes with a price tag in terms of time and money. You, the landowner, are the one running the show, and you may not have experience managing the building of a house—a fact which is guaranteed to slow things down a bit.
THERE’S GOT TO BE AN EASIER WAY TO GET INTO A NEW HOUSE
There is! Pre-construction homes are purchased from the builder before they’re built, or somewhere during the process of being built, with the architecture and interior elements already largely decided. This is a welcome relief to many homebuyers, because it eliminates the requirement to buy the land, research architects, vet general contractors, etc., etc. Plus, you don’t have to get involved in every tiny decision.
If you’re buying pre-built construction, the layout will probably lean modern with an open floorplan. Kitchens in new construction homes flow into family rooms so you can prepare meals while overseeing homework or watching the game. Rooms, especially bedrooms and bathrooms, tend to be large and bright, with lots of natural light. If you connect with the builder before construction is completed, you’ll likely have the option to upgrade many of the finishes.
LOCATION, LOCATION, LOCATION
Buying new construction typically means buying a lifestyle.
Beautifully planned communities like Tampa Palms, Westchase and FishHawk Ranch often include amenities like parks, schools, entertainment and shopping. New construction homes in exurbia tend to be more affordable because land is plentiful. The tradeoff is being off the beaten path and having longer commutes.
In cities, new construction tends to be on small lots where older homes have been torn down to make way for new ones. New homes in South Tampa, for example, are more expensive because it’s waterlocked and land is at a premium. The tradeoff is residing in the heart of the city.
The key is to find a builder who offers what you care about.
WHEN CAN I MOVE IN?!
Like Tom Petty said, the waiting is the hardest part. If you’re looking at new homes that have already been built, waiting is obviously not a factor. But if you’re buying pre-construction from a builder in Tampa, you’re looking at 8-12 months due to the time it’s currently taking to obtain permits.
Carrie Rowland is an Accredited Buyer’s Representative,® Certified Probate Real Estate Specialist,® Military Relocation Professional,® Graduate of the Realtor Institute® and a Realtor-Associate at RE/MAX Alliance Group in South Tampa
