Alright, so this video is all about buying new homes in the city of Menifee, California. There's definitely some really great deals to be had. Right now. We're gonna go over what the builder doesn't tell you and what I think are some really important things to know. If you are considering a new home, let's go ahead and get into it.

Hey guys. Hey again. My name is Justin Short. I'm a realtor and team leader with a short real estate team here at Keller Williams in Temecula. And this video is all about buying a new construction home here in the city of Menifee. There's a ton of options that are out there. There's a ton of incentives, and especially if you've never purchased a new construction home, I think there's some really important things that you should know before you decide to purchase one.

So I'm gonna get into all the information before I do. You know, if you are liking real estate videos like this, please do me a favor. Please hit like, please sit, subscribe to the channel. Obviously it helps me, it helps my channels. We try to continue to grow it. And then if you guys have any specific real estate questions.

You know, of course I'd love to hear from you. So you're gonna see my information either down below or at the end of the video. You can feel free to reach out anytime. You can call, you can text, you can email me, you know, happy to answer any questions you may have help point you in the right direction. Or of course if I can help you out through home search, you know, would love to do that as well.

Um, but we're gonna get into the video here, kind of talk, start talking about some new construction in the city of Menifee. So, um, I think this will be really helpful if you are looking at new construction because the city of Menefee is really one of the leaders in as far as having the most available new builds in the area.

So anytime if I'm working with a client and they are specific and they want new construction, right now, your best bets are gonna be the city of Menifee or the city of Winchester. Uh, there are a couple others. You know, there are still a couple, you know, in Temecula, there's a couple in Marietta. Uh, there are also a lot in Lake Elsinore.

But Menifee and Winchester definitely have the most options. So I, I took a look right now, I found a total of seven communities that are out there and a total of 45 different homes that are currently for sale. So, and honestly, I think there's even a couple more that weren't, that weren't pulling up for me.

I think it's closer to nine different communities that are out there and they have, you know, sub communities as as well. So there's a lot of. There's a lot of options, you know, and even with those 44 homes, that's just what's posted for sale right now in the MLS I know there's, there's a lot of inventory that's constantly coming from new build, uh, you know, new builders.

And it is just, they're just constantly, constantly popping up. So. Because there is so many communities and they have so much inventory. The market on a new build today is so much different than it was a couple years ago. So, you know, say two or three years ago, if you went to go buy a new, uh, you know, a new construction home, you're probably have to put your name on the list.

You're probably gonna have to wait a month, 60 days, 90. Sometimes I waited personally, like six months to get my name called off of a list, and that's just not the case anymore. Um, now they have a standing inventory. A lot of 'em are gonna have standing, standing inventory. So homes that are moving ready right now.

So homes that you can move into within 30 days, um, or you know, they have another. Five or six different lots that you can pick from, that'll be ready to move in anytime in the next 60 to 90 days. So there's a lot of availability in new construction right now. And you know, with the builders, you know, when they're buying, you know, this plot of land, they're subdividing and they're trying to sell, you know, these 500 different homes, they know as the market has slowed down a little bit.

They still have a lot of 'em have another 100, 200, 300 homes to sell. And so they're trying to offer a lot of incentive 'cause they need to start getting these, these homes sold. They don't want 'em sitting and they all, they all need to sell. So, um, we are seeing more incentives now than I've ever seen on new construction, you know, in the last 10 years for sure.

Um, really across the board. It's a very, very. Easy rule of thumb to know that all builders are gonna cover your closing costs, like escrow fees, title fees, all that, all that type of stuff. Um, it would be very uncommon for a new construction to not cover your closing costs. So that's kind of like your Annie just going in.

That's kind of, you know, it's a bare minimum, uh, but. On top of that, there's a lot of other incentives that are out there. So I pulled three up. So this is just three different communities I mentioned. There's, there's quite a bit more than that and each community is gonna have something similar, um, or if not more incentive, depending, depending what's out there.

So, uh, number one, the first one that I pulled up, so it's, it's in ee, it's. The River Rock Village. Uh, these are detached condos that are being built by Richmond American. Um, so right now they're having homes that are, so, they're condos technically, but they're detached. So, which means, you know, you have a, you have your own private yard.

Um, you are not at, you are not attached. You are detached from your neighbor, so you're not touching, um, they're just typically gonna be smaller lots. Usually not super huge. Maybe, you know. 3,500 square feet, 4,000 square foot lot. But you do have a little yard space. Um, usually more than a patio in, you know, kind of, a lot of people think of 'em as town homes, but um, they are typically considered detached condos.

So those are gonna start right about $530,000 so they can go up from there, you know, depending on lot and, you know, model and size and all that type of stuff. Um, but right now the incentives they're, they're offering I think are really great. So. They're offering an interest rate down to 3.75%. Uh, that is a temporary rate, so it's an adjustable rate mortgage, if you guys are familiar with that.

So it is on a 30 year loan, but that interest rate, that 3.75 is only good for five years. So they consider that it's called a five one adjustable rate mortgage. So basically for the first five years, your interest rate is locked in at that 3.75, and then from there, once a year, your interest rate can adjust to whatever the market.

Rate is, uh, but that is still a really good incentive because right now, like if you're gonna go buy your typical home, uh, with say, a conventional loan, your mortgage interest rate's probably gonna be about 6%, maybe 6.25%. So, um, you're getting, you know, a really good incentive for the 3.75, although that is only good for five years.

The idea being, you know, in, in the future, you know, ideally, hopefully you can refinance and do a better rate at something that's locked in and fixed for 30 years. Um, so. But they are offering that really great rate for the first five years on the adjustable. And then in addition to that, you know, different lots are gonna have more price, incentive and savings.

So most of the ones that I saw when I got information on are anywhere between 10 to $50,000 in price savings. So whether that's gonna be upgrades that they're giving credits for, whether that's gonna be just true discounts, whether it's gonna be lot premiums that they're giving credits for, uh, there, there's a lot of incentive that's there.

So, um. The rate, interest rate buydown and between 10 to $50,000 in price savings. Uh, and then, so we'll go over the next community. So its community number two is Arbor at Cimarron Ridge. Uh, this is by Dell Web. And then right now they're also offering a rate Buydown. So again, you have your interest rates covered, or I'm not, you have your closing costs covered, and then you're also having an interest rate buy down.

So they're doing a 3.99 and that's a, they call it a seven six. Arm. So what that means is your interest rate for the next seven years is at the 3.99. Uh, but that six means it can adjust every six months. So seven years locked in, and then after that, every six months, the rate can adjust to whatever the market rate is at that time.

So there's pros and cons to that. Ideally, the less often it adjusts, it's more beneficial for you as, as the buyer. But you are locked in for those seven years. So that gives you a long time to hopefully be able to refinance into a. 30 year fixed rate, uh, because that's really gonna be the, the, the best solution.

So usually, what I'd recommend to my clients is you, the goal is you want to get to a 30 year fixed rate. If you can't do it upfront because the incentive's too great, like, like this or, you know, maybe just you're a little more risk tolerant. I guess the goal is to be able to refinance to a fixed rate 30 year mortgage at some time, you know, sometime, hopefully as soon as possible would really be the goal.

So, um, for those, that's really the only incentive that they're, that they're offering right now is the buy down. But, uh, or the, the, the lower adjustable rate. But it is a really good rate that they're offering. Um, and then those homes are, are being, are starting at $520,000 and up from there. Um, I think they do have, they have a little bit of inventory, so it probably could be a situation where you can go in, make an offer, you know, that is something that a lot of people don't realize is just 'cause a new build, you know, has a.

Has a list price, especially in a slowing market like this, that doesn't mean that you can't go in and offer less. So definitely, you know, many a times have, I had my clients go in, we offer a lower price, be able to get it accepted and be able to get the builder, you know, to accept a lower price than what they are advertising.

You know, just like a new car or, or something like. All right, so community number three that we're gonna talk about is the Banner Park community by Pulte. Uh, this community's been being built for, for a really long time now, so they're kind of towards the, towards the end of their build out. Uh, but again, they are offering a rate by down, same exact thing as the last, as the last one.

So they're offering a 3.99. Percent adjustable rate mortgage on that 7, 6, uh, 7, 6 terms. So again, you're locked in for seven years and then every six months after that it could adjust. Those are true single family homes, so definitely a higher price point. Right now they have started. Pricing starts at about $667,000.

Um, so, so that's kind of where that's coming in. And, and again, because they're getting towards the end of their build out, you know, they want to get finished up, I think it's something you could probably get a little more incentive if you are ready to go and, and ready to move forward on something as well.

So, um, those are the types of incentives that are pretty much across there, you know, out there across the board. So, closing cost, covered rate, buy downs, and then, you know, really some price incentives, you know. Different communities will have more and different lots are gonna have more, right? Depending if the house is already built or if it's just getting released.

But there is a lot of incentive out there. Um, and then the other thing that I wanted to mention to you guys is that when, if you are buying a new construction home, there are some things that you should know, especially if you've never purchased a new construction home before. So let's go ahead and get into those.

All right, so when you are looking at new construction, there's always gonna be pros and cons, right? And there, there's a lot of good things about buying new homes. Um, you know, I, myself personally and my family, we have purchased two different new homes over the last, I guess, five years or so now. So, uh, I think a lot of times in, when I'm talking with clients, they.

They ask me like, oh, do you not like new homes? Do you think they're a bad idea that that's not the case? I think they can be a good idea for the right person in the right situation, but I, there's just, there's a lot of fine print and a lot of things that people don't necessarily think about and a lot of hidden costs that you, you really should consider to make sure it's gonna, that buying a new home is the right fit for you.

So, so the pros, I mean, those, I think those are easy to see for most people, but you know, when you walk into a new home, you walk into the model. They're beautiful, they're new, they're what's in style. So right now, right, most people want that big great room, that big open concept layout, you know, no walls, you know, so where you have the kitchen, the family room, the dining rooms, all, all combined, you know, it's kind of, it's what you see in HGTV, it's what's in the magazines, it's et cetera.

So that is a big, a big plus, right? When you go to a new construction, you're gonna get what's in style now, what most people want. So that, that, that's a big thing. Uh, number two, you also get to pick out all the finishes, right? So Mo. I would say 95% of the time in a new construction home, you're gonna be able to go in, pick the cabinets that you want, the color, you want, the style, you want, the, you know, the, uh, the trim on 'em that you want.

You could pick the countertops that you like, you know, you could pick the sink that you like, the appliances, you know, they, I remember going and they had like five different toilets to choose from and, you know, so like you can get as picky as you want. Uh, you know, different builders have different rules with some of that, but in general, you could pick a lot of the finishes and you get a lot of.

Say, and kind of how, how things are, how, how things look. And that's usually not the case in a, in a resell home to where, you know, whatever's there is there, whatever the previous owner put in, whatever they liked and they bought or they paid for their budget was that's what's gonna be there. So, um, there are some pros with, with the, with new construction.

And then, the third big one is just the fact that nobody's ever lived there. Right, it's brand new. Um, no one's ever been there. No one's ever, you know, taken a shower there. No one's ever used anything. It's all just brand new. They're all new appliances, you know, it's all squeaky clean. No one's ever made a stain in, on the counter or anything like that.

I mean, that is a big pro for people, but that doesn't mean new construction is gonna be necessarily perfect for everybody. So there definitely are some cons. Alright, so cons. So there definitely are some cons to buying a new home and really what, what I would consider them to all be is really just extra costs and costs that most people don't think about when they are buying a new construction home.

So, uh, number one, most people don't realize that when you buy a new construction home, the backyard is completely bare. It's a big piece of dirt. You know, you get like a little pad of concrete that's probably two feet by. Two feet, you know, just a little square, just something for you to stand on. Um, but other than that, it's pure dirt.

So especially if you buy, if you're buying a single family home and you have a good size lot, you know, it is, it's expensive nowadays to hire contractors, hire, you know, landscapers, you. Hardscapers, if you want to do especially a pool or anything super crazy like that, like it's all just super, super expensive, I would tell you like an average size lot.

So say something that's about, you know, 7,000 square feet or so, kinda your average size backyard. The average cost to hardscape and landscape, if you're gonna hire a company, is gonna be between 20 to $50,000. And we're, we're not talking about anything fancy, you know, we're talking about, you know, some, some concrete, some grass, a couple shrubs in the corner, and that's about it.

Right, so, so the contractor's just so expensive nowadays. It is. It is way more than it used to be. So. That's a big ticket item that a lot of people don't think about when they're buying a new construction home is the cost to develop the backyard. And, well, the home does come with a front yard, so usually it's some type of like a drought tolerant, you know, setup if you want anything fancy or to swap it or put some turf in or anything.

You know, there's some really big cost there as well. So that's something to think about. Uh, number two are window coverings. So when you buy a new home, I would say 95% of the time they do not come with any type of window covering. They're bare windows. It's just, you know, it's glass, drywall and glass in the middle.

So it means you're got to go down and buy some blinds if you want. You know, shutters that are, those are pretty expensive. You can do that. Any type of window coverings you're gonna have to put in yourself. So those could cost anywhere from, you know, 1500 bucks on the low end, up to 10,000 for, you know, high end shutters, just kind of depending.

You know what it is that you like. Uh, number three is paint. So, uh, the builder does give you a coat of paint on the walls inside. But I mean, I can tell you from experience, you know, it is very, very thin, flat paint, especially if you have kids that like I do it. The paint does not last at all. It's very, very low quality.

Um, you know, if you've ever lived with flat paint before, especially with kids, anytime, you know, they're walking down the halls and they're, they're dragging their fingers, right? They're leaving. Food, you know, black marks and food marks everywhere anyway, because it's flat, it does not wipe up. So it's definitely a pain to take care of.

So most people are gonna have to turn around and paint their home relatively quickly, put some type of eggshell or, you know, whatever, you know, their preferences, uh, to make it something that's easier to clean. Um, but just 'cause that, that, uh, flat paint is so thin and it's just one coat. It's just very, very low quality.

Um, and then, uh, number four are, you know, a lot of the different details that, uh, most homes are gonna have that do cost quite a bit more than, than most people think. So, you know, if you like some of the fancier features, like, you know, having some type of built-in cabinets or, you know, floating shelves or barn door or feature wall, you know, in the primary bedroom, anything like that, all that stuff costs money, you know, and when you.

When you're starting with nothing, you just have plain white drywall. It definitely can add up, you know, it's 500 bucks here, a thousand bucks there. Um, you do that 10 times over, right? It's a lot of money. So now those are definitely things to keep in mind. Uh, number five would be the higher property taxes.

So new construction homes. Tend to have higher property taxes in the form of special assessments. So for example, you might have two homes, say they're both 600,000, uh, that older home might have a lower tax rate, right about 1.2%, and that new home might have a higher tax rate, about 2.2%, right? And that 1% difference is a big deal.

When you're looking at 600,000, it could be up to an extra $6,000 each year. That's $500 a month in extra property tax. Uh, just. Because it's new versus the old one. And that, that's, and that's really the difference, right? So, um, you, even though you're just looking at prices. You know, you have to factor in that extra property tax for that extra cost, and that's something you're gonna pay each and every month.

Right? And that a lot of times I've had clients where they can't qualify if they're getting a mortgage, they can't qualify for that more expensive home or that 600,000 home with that higher interest rate because that monthly payment is so much higher because of the higher taxes. Um, and then the last one, and this is something I actually forget to mention quite a bit in a lot of these videos, 'cause it's newer over the last few years, but all new construction homes now must come with solar.

That's a California state law. Um, but what the fine print is, is when you're looking at those sales price or we talked about, you know, the $530,000 our home, that home did not come, does not come with solar. So in order to. You know, to purchase it, you must either lease a solar system or pay cash for, or you can finance it in your mortgage, that solar system.

So, um, that solar system could cost, if you're gonna pay for it directly, that might be, you know, $15,000, $20,000 for the solar system. I'd say it's pretty typical between, I would say between 12 to 20,000. Um, that you're gonna have to pay for, or if you decide to lease it, you know you can do that. And they'll pitch it as, you know, like a cost savings as opposed to your Edison bill.

But, um, you're still, you're still taking that on if you ever sell your home. Someone's gotta assume the lease if you can do that. Like, there's just, there's just, there's definitely some, some challenges there. Um. And some costs that a lot of people they don't think about. So is that because that is now a law that you have to have solar.

So, um, anyways, I hope those are things that help as far as costs go and some things to think about and maybe, you know, just kind of open some eyes about what you know. Um, how it actually works and, you know, some things that you will have to take care of if you do purchase a new construction home.

And then the last thing to talk about is, you know, your real estate agents. This is a conversation I have with clients quite a bit, but if you want your real estate agent to help you with the purchase, that typically can happen. I would say probably 95, 99% of the time. So I can help clients and I do help clients buy new construction homes.

Um, typically the order for that to happen. The agent must, it's very important, we must go with you on your first visit to the new construction community. So, uh, we would make an appointment, we'd go down there, we'd be with you. We must help you sign in. And if we are not there on your first visit to help you sign in, we are probably not gonna be able to be a part of the transaction.

So, um, that they are. Typically very strict. Some communities might waver a little bit, but that is a very, very, uh, constant rule, you know, for across the board is that if your agent is not with you, they're not gonna let you be a part of the transaction. So it is important. So if you want me or your agent to help you, you gotta make sure they come with you that first time.

Um, but typically if we do, if we do come with you, the builder will pay our company's fee. Um, so that is important to know. It's not like it's an extra cost or anything like that for you, but we just have to be there with you when you go to register the first time around. Uh, but, and, and a lot of times, you know what, what we're, what we're doing, what I'm doing, if I'm helping clients buy new construction homes, we're helping negotiate the incentives, right?

We're helping, you know, price wise, rate wise, closing cost wise, other, uh, upgrades or, you know, um. Yeah, I guess upgrade credits and things like that that you can use in the design center. Um, all those things your agent is there to help you with and, uh, they would, uh, can definitely assist you throughout that process, but we gotta be there with you the first time around.

So, um, anyways, I hope that's good information for you guys. If you have questions, feel free to reach out. You can call, you can text, you can email, and hopefully talk to you soon. Thanks.