The Las Vegas real estate market offers many real estate opportunities, whether you are buying a home or an investment. But if you have your eye on a new build, there are many exciting developments going on in Sin City that can be easily overwhelming, especially for first-time home buyers. In particular, you have many questions about new home construction and what it entails.
Well, this guide is about informing you about important questions you should be asking a builder before you sign any contract. Prospective buyers must ask the right questions to ensure that you have taken all considerations before you make a final purchase and that it aligns with your needs.
There are seven questions you should focus on when making an inquiry about a new construction home in Las Vegas. When you get the answers to these questions, you can proceed with confidence knowing that you have the information you need to make the right decision.
New home construction models have built-in features and amenities that you can choose from. But in most cases, you will have unique preferences on the look and customization of your new home. Therefore, it is best to ask before you make your purchase about the average cost of upgrades.
The upgrades can vary from structural (adding extra bedrooms or stacking sliders) to design (countertops and cabinets), so it is best to have a ballpark idea of how much you have to spend for those upgrades. In addition, it is crucial to know the structural options upon signing so you know how much you have to pay upfront. If you don’t ask, you typically won’t be aware of the pricing until you meet for a design appointment. Asking beforehand will save you from the shock of the cost of this project, plus it also helps you consider the budget when choosing your design.
Traditionally, lot premiums are only available to the “premium” lots but they are becoming more widely available now, especially in Las Vegas. The cost of the lot premium could vary from one community to another. But you can expect this cost to range from $10,000 to $40,000. The cost can go up to $1 Million if you’re buying lots at higher-end communities like MacDonald Highlands.
Asking about the build time is a practical consideration when buying a new construction home in Las Vegas. The answer to this is that it varies from builder to builder. Certain factors come into play in determining how much time it takes to build a new home in Las Vegas.
Understandably, there were significant delays to the build times in new construction homes in Las Vegas during the pandemic. But construction is now in full swing such that many builders can deliver new builds in four months, but some can go up to 18 months. It is important to ask builders about build time upfront, especially if you are planning to move soon. But make sure to allow some allowances to the build estimates.
SID stands for Special Improvement District while LID stands for Local Improvement District. It is crucial that you ask a builder about SID or LID before buying a new home in Las Vegas because it determines if you have to pay extra costs for basic utilities, such as lights, road improvements, and sidewalks.
Depending on which applies to your specific community, it could mean an extra added cost you must consider with your purchase. The typical range for this fee is from $7,000 to $20,000, which is paid over to 20-year period.
Speaking of extra cost, the HOA dues are another additional cost you must consider when buying a new home construction in Las Vegas. Most master-planned communities collect HOA fees from homeowners to pay for the maintenance of basic utilities, services, and amenities. That way, you will be able to enjoy the lifestyle and convenience offered within that particular community.
While HOA dues are a must, it pays to know what’s included in your fees to be able to maximize your investment – and help you determine if it’s worth buying.
Asking about the builder incentives will help you enjoy the extra perks that are offered by the builder, especially if you pay in cash. But even if you choose financing, you can also get incentives if you choose to take out a loan from the builder’s lender.
The incentives offered can vary from builder to builder. For example, some builders give you an option between a quick-move home or premium lots when you buy the home in cash. Feel free to negotiate these incentives to your advantage.
The deposit is one of the most important things that home buyers consider when purchasing a new home. It is crucial that you ask a builder about the deposit so you can consider it in your budget for the home purchase.
Quick moves have a straightforward deposit, but it can be tricky when you are building your home from scratch. Some will require upfront payment when the cost of building your new home exceeds a specific amount (based on the structural or design you have chosen).
Buying a new home in Las Vegas is exciting! But don’t let your excitement make you overlook the important questions listed above. It is important that you get all the information you need from the builder before signing any contract to ensure that it is the best option for your needs and budget. Asking these questions also eliminates any surprises about the agreement you’ve entered with the builder.