Buying a newly built home? How to avoid pitfalls?
A home is a huge investment. You owe it to your self and everyone in your house to make sure you’re making the right decision. You’ll be happy that you did.
So, here are a few very important things you may not have thought of when buying a home from a builder.
1. Make sure you read the Arizona Department of Real Estate Public Report provided to you. By law this document must be given to you before you sign a purchase contract and you must sign a receipt for it. The public report will tell you such things as:
· Flooding and drainage disclosure
· A description of adjacent land uses
· Who provides electricity, telephone, gas, water and sewage disposal
· Common community and recreation facilities
· Assurances for completion of improvements
· Local services and facilities, including schools, shopping facilities, public transportation, medical facilities, fire protection, ambulance service, police protection and garbage services
· Taxes and assessments
· Property owners association details
If you have questions about the public report you can call the Arizona Department of Real Estate 602-468-1414 extension 400. The public report has a disclaimer by the Department of Real Estate. Read it carefully.
2. Read your purchase contract carefully. Note that if the builder or developer in not placing your earnest money deposit in escrow or a trust account, the funds may be placed in the builder’s or developer’s general funds account, and may be used for any purpose. You could loose the money if the builder declares bankruptcy or goes out of business. If the funds are not going to be placed in escrow or trust account, that fact must be stated in a separate paragraph. Make sure you know where your earnest money is going to be deposited.
3. Before you sign a purchase contract, drive around the property for at least a mile or more in each direction to see how the surrounding area appears to you and what nuisances and hazards might be around the area. Is there a storm drain or canal nearby that could be a hazard to your kids? Visit the area at different times of the day, on weekends and evenings. Disturbing noise and odors can travel farther at night. In areas where there is a lot of vacant land nearby, check city or county zoning maps to see if nearby property is zones for apartments, industrial or commercial use. The city and county planning and zoning departments are listed in the blue pages of your phone book. Also check the Arizona Department of Transportation maps to find the nearest future freeway routes, and whether there are plans for road widening. For info on viewing the maps call 602-255-7011.
4. Call the school district that serves the subdivision to find out if the schools are accepting new students. Some school districts, especially in the northwest part of the Phoenix area, have a cap on enrollment. You might find out that your kids can’t attend the school nearest you and you’d have to take your kids to another community for school.
5. Read the deed restrictions, also called the CC&Rs (covenants, conditions and restrictions). You might find that some of the CC&Rs are very strict, especially those regarding landscaping, RV parking, play equipment, satellite antennas and other common amenities – especially when the subdivision is run by a home owner’s association.
6. Check the home builder with the Arizona Registrar of Contractors. You can find out the number of complaints customers have filed against the contractor, whether any are unresolved and whether the builder’s license has ever been suspended or revoked. You can call the Registrar of Contractors at 602-542-1525.
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By the way, if you'd like to discuss how you can take advantage of all the great opportunities in this market give us a call at (480) 430-9761or click here and let's talk.