7 Reasons for Buying New Construction Homes

by Hamid Hakimi | Buying Real Estate, Pre Construction

7 Reasons for Buying New Construction Homes

7 Reasons for Buying New Construction Homes

New Construction Homes

Buying new construction homes offers a number of benefits, which generally are not available when purchasing resale homes. However, when you’re in the market to purchase a home, you have to compare the advantages of purchasing new construction homes versus pre-owned homes. This entails comprehensive research on builders, the costs associated with the construction of a new home, wait time and putting up with contractors. But if home buyers do their homework, they could enjoy the latest design on construction methods in most stylish homes offering a comfortable lifestyle.

Advantages of Buying New Construction Homes:

Builders Warranty – Most builders offer 10 years warranty on major structural defects and 2 years on plumbing, electrical and HVAC system.
Location – You can choose the location by either purchasing a lot in your favorite area or, if gated community, pick one of builders lot that suits your needs and requirements the best.
Incentives – Most builders offer incentives for the purchase of their ready to move-in new construction homes or lower prices o the pre-construction homes.
Design – The new home buyers have the option of designing their future home layout or chose from builders’ models
Energy Saving – The latest construction methods emphasize more than ever on energy efficiency and safety.
High-Performance HVAC and Appliances – Today’s advanced technologies have resulted in the most energy efficient HVAC system and appliances, which weren’t available even five years ago.
Smart Homes – This latest trend it’s here to stay and improve on a daily basis. Builders are adjusting to the latest innovations covering all aspects of home constructing. Some of the features of smart homes include double to triple pane safety windows, smart HVAC, lights and alarm systems controlled from cell phones from any place in the world.

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Buying New Homes in Port St Lucie

by Hamid Hakimi | Pre Construction

Buying New Homes in Port St Lucie

Pre-Construction or New Homes in Port St Lucie

55+ New Homes in Port St Lucie

With the demand for more inventory 0n the rise, builders are struggling to construct more homes to feed the market of buying pre-construction or new homes in Port St Lucie. While the resale market is seriously affected by the shortage of inventory, the construction of new homes in Port St Lucie and neighboring communities is rushing to match the demand. The lower prices along with a great lifestyle in Port St Lucie has been enticing many out of area buyers to look for homes in this area. In recent months, we have witnessed a major shift in port St Lucie home sales with such buyers who are willing to commute to their work in the surrounding Palm beach and Martin Counties in return for a more amenities and better homes in Port St Lucie. These home buyers would never be able to afford such properties in their old neighborhoods and are more than happy to take on the 45 minutes drive to their work.

With such a surge in the buyer’s pool, the question remains on whether to buy resale homes or take advantage of the perks that the new homes in the pre-construction stage offer to homebuyers. The third option for the new home buyers is to purchase move-in ready new homes from developers inventory. Although the savings in purchasing of these new homes might be less than the homes in pre- construction phase but there is no waiting period for the delivery of the completed homes.

Zero Energy Smart Homes

Considering the sharp increase in the rental prices, buying homes in most cases offers less monthly mortgage payments than renting. With the abundance of new home communities for out of area home buyers, they can find a home in Port St Lucie area to please any discriminating taste without breaking the bank. Buyers of new homes in Port St Lucie and especially in Tradition can choose from high-efficiency smart homes equipped with GE Zero Energy@, EcoGreen@ in Estates to age restricted 55+ new homes in Vitalia at Tradition.

For Active Adult, 55 and over, new home buyers the obvious choice is Vitalia at Tradition. This wonderful community has been a hit since the project was picked up by AV Homes, who changed the name from Seasons at Tradition to its current name Vitalia at Tradition. Levitt and Sons started the project in 2006 under its previous name, which later was purchased by Avatar Home, which changed the company’s name after 80 years to AV Homes. The new phase of construction under the name of Vitalia at Tradition started in 2012 with plans to build 1,200 homes as an age restricted 55++ community. The sales of the homes in Vitalia at Tradition proved to surpass the expectation and in 2014 Av Homes presented the city of Port St Lucie with plans to build 1,500 more homes in the community. The homes in Vitalia are comprised of 2 and 4 bedroom homes in sizes approximately 1,600 to 2,600 square feet.

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Buying Smart Homes

by Hamid Hakimi | Pre Construction

Buying Smart Homes

New Homes in Port St Lucie

With the introduction of pre-construction smart homes in Westcliffe Estates at Tradition development in Tradition to the Port St Lucie Real Estate market, buying new homes in Port St Lucie has become smarter than ever. The so-called smart homes are generally equipped with the latest security-related distance controls through the computer or smart phones. With a simple app on your cell phone, you can change the thermostat, lock/unlock the doors and monitor inside and outside of the house by installing cameras that connect directly to your phone. While this technology has been around for a while, the process of developing Zero Energy Home is fairly new and a welcome addition to smart home technologies.

The Zero Energy or Greenergy@ Homes, developed by GE@, promise to eliminate the electricity costs for good. Just imagine not having a bill from your power company ever and perhaps even getting paid for the overage in electricity produced by your house. The Zero Energy Home Technology is primarily based on solar energy. During the daylight, the system is creating more electricity than the usage in your house and the overage put to use during the night time. The way this works is simple. Your house is connected to the power company grid as other homes are, but the excess energy produced during the day is transferred to the grid and return to your home during the night. In most markets the power companies use and pay for the access energy not completely depleted during the night. This is a wonderful scenario in which not only you do not have to pay for electricity but you will get a check from power company as well.

Westcliffe Estates is a pioneer in bringing Zero Energy Technology to a Planned Unit Community in (PUD) Florida and the US. The homes in Westcliffe Estates are equipped with the latest Smart Home Technologies as well as solar energy, the Ecomagination@ developed by GE@. The pre-construction homes for sale in Westcliffe Estates are also built using the latest innovations in pre-construction industry, which results in the development of the most energy efficient homes in the market. The developer of homes in Westcliffe Estates, Homecrete Homes, also equip each home with the latest appliances by GE@ ranked as some of the highest energy efficient appliances available in the industry.

For more information on visiting the model homes and available Zero Energy Homes in Westcliffe Estates please contact our experts at:

Phone: (772) 323-6730

Email: info@portstlucie.city

About Author:

Hamid Hakimi – Realtor

Hamid Hakimi is a broker associate with Coldwell Banker Thomas J white Realty in St Lucie West serving Tradition, St Lucie West, Port St Lucie and surrounding area. He holds bachelor degrees in industrial engineering and business administration and is a former licensed property appraiser. He was the 2014 speaker for Florida Association of Realtors at their annual convention. Email him at info@portstlucie.city attention Hamid.

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Pre-Construction and New Homes in Port St Lucie

by Hamid Hakimi | Pre Construction

Pre-Construction and New Homes in Port St Lucie

Pre Construction Opportunities in Port St Lucie

Pre-Construction Homes While the construction of new homes in Florida is promising the start of new pre construction opportunities in Port St Lucie, some areas of the state have been experiencing different impacts of this new era of home construction. Based on the data collected from US Bureau of Census the number of the permits issued for St Lucie County for the construction of single-family homes is 1,651. Florida Association of realtors has analyzed this data along with an interactive graphics demonstrating the number of residential permits issued for different counties in Florida. The graphics are extremely user-friendly, just hover the mouse over each county and a data-box will open indicating the number of permits issued for that specific county.

Although the collected data seems reliable but in our opinion, there is some discrepancy between the numbers shown for St Lucie County. The main reason for our doubt is the number of the new single family homes announced by different developers. For example, Vitalia at tradition alone has announced a new phase with 1,500 single family homes in addition to the existing new construction homes as well as the remainder of the homes planned to be built under the previous phase. If we add the 1,500 new units in Vitalia at Tradition to the construction of more homes in other preconstruction communities such as Victoria Parc (GHO Homes), LakePark at Tradition (Minto homes), Westcliffe Estates at Tradition (Greenergy Communities by Homecrete Homes) and the continuation of construction in PGA Village Verano (Kolter Homes).

No matter which stats you want to rely on the fact remains there is an undeniable benefit of buying pre construction homes in any on-the-rise market. Regardless, if you are an investor or buying a new home as your residence the earlier you enter the purchasing of pre-construction homes in Port St Lucie, there is an increased financial gain.

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Pre Construction Homes in Vizcaya Falls

by Hamid Hakimi | Pre Construction

Pre Construction Homes in Vizcaya Falls

Vizcaya Falls Clubhouse After the transfer of rights to development of Vizcaya Falls project from Centerline Homes to Kotler Homes, a new opportunity in purchasing pre-construction homes in Vizcaya Falls have entered the market. Kotler Homes is not a stranger to the area and with grand projects such as PGA Village or PGA Village Verano the company has already established as one the premier home builders in Port St Lucie area.

Advantages of Purchasing Preconstruction Homes

There are many advantages to purchasing pre construction homes in Vizcaya Falls. The first rule for taking advantage of pre construction opportunities in any project is doing your due diligence. Many investors and home buyers that fail to perform this task lost their deposit and more during the real estate boom of the last decade. The reliability of the builder should be the number one concern before the temptation of the incentives offered by Developer takes over your judgment.

One the positive note, pre construction homes in Port St Lucie could offer many advantages if you can wait and not in a rush to move. The financial bonuses offered by developer along with the chance to choose the lot, amenities, floor plans are some of the advantages for home buyers purchasing pre-construction homes in Port St Lucie, FL. For more information on taking advantage of pre construction homes in Vizcaya Falls Port St Lucie or any other pre-construction opportunity in St Lucie, Indian River and Martin County please contact our new construction homes experts at:

Phone: (772) 323-6730

Email: info@portstlucie.city

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Preconstruction Programs

by Hamid Hakimi | Pre Construction

Preconstruction Programs

Preconstruction Sales programs Save & Exit

One of the main reasons for owner occupants to shy away from buying preconstruction properties is the time of the delivery of their new home. For a typical homeowner, it becomes very difficult to wait for few years to take possession of their property or qualify for two mortgages. The other group of the pre-construction investors are renters who are looking to see their home ownership dream come true in the near future. Since this group is used to living in temporary residences they could easily accept the waiting time required for delivery of their pre-construction homes. Another point that makes renters good pre-construction buying candidates is the fact that since they do not have to qualify for a mortgage at the time of the contract, this gives them time to clean up their credit history in order to qualify for mortgage and favorable interest rates.

During our extensive work with new-home developers, we have always advised them to create a campaign aimed to reach the renters. We have also implemented many such campaigns targeting the renters based on their income and the proximity of their residences to the projects and many other factors to narrow down to the best possible prospects. In some cases, a special program that is tailored to the specific needs of these prospects has also proven successful. Such programs could include an easier down payment program, perhaps through an installment plan and other financial strategies designed to pave the road for obtaining a mortgage. The primary purpose of such programs is to demonstrate that to own a home is much easier and at time cost less than renting for this group of people. We have experienced that most renters could easily afford the monthly mortgage payments, but the qualification for a mortgage, down payment and closing costs, are the main hurdles that are stopping them from reaching their dreams. By purchasing a pre construction property under special Renters’ Homeownership Programs, they could pay the down payments in installments and also have an ample time to save for closing costs as well as the qualifying for a mortgage.

We invite developers to contact us for consultation on design and implement a Renters’ Incentive Program as well as many other proven solutions for the sales of the preconstruction homes to qualified buyers at the shortest time possible.

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Pre Construction Investment by Foreign Investors

by Hamid Hakimi | Pre Construction

Pre Construction Investment by Foreign Investors

Foreign Home Buyers and Pre Construction Investment

In the past few years, the pre-construction investment by foreign investors was mainly fueled by the rock-bottom prices and a weak dollar that combined have created a feast for the cash buyers. While a large segment of these investments has been directed toward the bank-owned REO properties but some foreign investors, as absentee owners, are staying away from such properties that are in need of repair and maintenance. For those investors, the pre-construction opportunities have become the second best option in taking advantage of the currency atmosphere that makes the acquisition of these pre-construction properties a bargain for residents of EU region and other countries with the stronger currency.

The foreign pre-construction buyers are from all over the world, but we could divide them into the buyers from the neighboring countries, European countries, and the rest of the world. In the neighboring countries, the segment of the population that have the financial means to afford a property in the US are attracted to the pre-construction market for the reasons of safety, security in investment and climate. The states like Florida, California, and Texas have been a Mecca for most of the foreign home buyers.

When it comes to European pre-construction investors, besides the mentioned reasons there are also social factors that separate them from the rest of the pack. Even before the formation of the European Union, the people of Europe were accustomed to travel to the neighboring countries for their vacation. While the most European travelers speak more than one language they also feel comfortable traveling or living abroad, which in their case could be the country next door. This is in contrast to most Americans that prefer to venture around the good old USA and feel out of water in foreign countries especially if the primary language is not English. Unlike in the US that most people are limited to one or two weeks of vacation, most European enjoy at least a month vacation along with some long holidays and also prefer owning a second home instead of staying in hotels. While only in recent years, and by the influx of the retiring baby boomers, owning a second home in has become popular with American retirees, the European on the other hands have been more accustomed to that for many years.

In these challenging days for pre-construction sales, the developers need to reach out to the foreign buyers whom thanks to their strong currencies, find the US properties and prices much more attractive than the average American or South American home buyers or investors with weaker currencies. The Canadians also have been a great target for the developers in the states with a warmer climate specifically the Florida. Tapping to the foreign investors could become a survival factor for many developers in this volatile market and while most seasoned developers are doing that, the rest could reach out by contacting real estate professionals with experience in international real estate.

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Pre Construction Investments in Condo

by Hamid Hakimi | Pre Construction

Pre Construction Investments in Condo

Buying Pre-Construction Condos

Does buying a pre-construction condo make sense in today’s market? This has been the most asked questions in the recent weeks and the answer is not that complicated. To explore the opportunities in the pre-construction investments of the post-recession era, we briefly examine how the pre-construction properties could create quicker equity and how they enjoy more equity than the resale properties.

Even though the pre-construction properties historically are offered at a price range below the prices of the completed units, but there are some exceptions to the rules. For example, the condo markets that were not affected by the real estate meltdown of the last few years, like in Toronto Canada, the prices of some resale condos are the same, and sometimes even lower than the prices of the compatible pre-construction condos. Now, the question is if buying pre-construction condos in such markets are wise and how could a preconstruction investor create equity under most circumstances?

In our view, there is nothing wrong with entering into the pre-construction markets when there are no initial discounts offered by the developers. As we all know the main objective of investing in pre-construction projects is simply to acquire more equity, quicker. In a healthy market, this equity is attainable even without any initial pre-construction discounts, although having the discount wouldn’t hurt! The equity gain is reached in different ways. First, most developers will eventually adjust their pre-construction prices in order to offset the inflation. This price increase becomes like a discount for a pre-construction investor who had already locked in the initial prices.

The second way to look at the equity is through computing the total money put into a pre-construction investment against the final profit. To explain this better consider the following simple example that compares the purchase of a resale condo with the similar pre-construction condo at the same price in the same market after 3 years:

1) Resale Condo Unit= $1000,000 +

Annual market appreciation 3% $90,000 for 3 years

Total Gain $90,000

2) Pre-construction Condo $1000,000+

Annual developer’s price increase 4% $120,000+ for 3 years

Annual market appreciation 3% $90,000 for 3 years

Total gain $210,000

If the initial investment amount for the pre-construction investors is the typical 15% deposit, then by investing $150,000 he has a return of $210,000. This is a simple illustration to show the possibilities and as most seasoned pre-construction investors will tell you the 12% developer price increase in 3 years is a conservative number and attainable in most markets. In most cases there are many price hikes during the construction, which starts at a base, or the lowest price for pre-ground breaking, then an increase in time for the ground-breaking and the next increase is when the foundation is completed/ Market permitting this could continue until the completion of the project.

In another word by purchasing a pre-construction condo the investor locks the price and when the project is completed he buys it at the prices of 3 years ago and resells it at the current market value. In the above example when the investor closes on the property at the $1000,000 locked-in price, the developer is selling the exact condo for $1,210,000. In the past, we have witnessed many unforeseen factors had forced the developers to resort to substantial price increases in many pre-construction projects that were not in their initial projection. Perfect examples were the shortage of the cement or dry walls that resulted in an increase in the prices of both items which affected the developers’ costs of the construction that is eventually transferred to the home buyers. While this was a misfortune for the developers and consumers it became a windfall for the preconstruction investors.

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PreConstruction Investments

by Hamid Hakimi | Pre Construction

PreConstruction Investments

Investing in Pre-construction

In many ways, the pre-construction investments in 2015 possess the same characteristic as before the crash of the real estate market. Some parameters of how to invest in pre-construction properties might have changed but as far as the investors are concerned the foundation of the investment and the main objective remains the same. The days of the crazy, overnight price increases in the sale of the pre- construction condos might be over, but the opportunities to enjoy a good return on investment are still out there. While the seasoned pre-construction buyers need to be more vigilant in choosing the right project, the newcomers on the other hands have to do their homework by either joining a REIT with good track records or acquiring the help of a real estate professional specializing in all aspects of the pre-construction deals. In order to help both types of investors, we will attempt to share some of our experiences that we have gained with the handling of over half a billion dollars in pre-construction contracts and hope to shed some light on the risks and rewards of the investing in pre-construction projects in 2015.

First, the rules pertaining the purchase of a typical resale property would not necessarily apply to the acquisition of a pre-construction unit. Unlike a resale condo or home buyer, the main purpose for a preconstruction investor is to gain profit rather than to seek a residence, a homestead and a roof over the head. When residing in a property is the primary focus, the home buyer would look more to the commute between the residence and his work, the schooling for the children, the space, the number of the rooms and many other factors that will make them choose one home over the others. On the other hand, the preconstruction home buyer is seeking the highest return on the investment regardless of the location, size, number of the rooms or any other goodies that a typical homeowner might be interested in.

Please follow up with more upcoming articles in explaining the real difference between the resale properties or more specifically resale condominiums and pre-construction properties or pre-construction condos as well as tips on choosing the right preconstruction opportunities and more.

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New Construction Home Market

by Hamid Hakimi | Pre Construction

New Home Builders are Optimistic

Coastline Model

As one of the largest employer of the skilled and unskilled workers, the preconstruction home builders have been the backbone of the US economy on a larger scale than perhaps auto manufacturing or any other sectors in the nation. The economic meltdown had the most adverse effect in the industry that went from having lines of the buyers for the pre construction units outside their office to the fire sale of their inventory along with discounts and incentives that ate the bottom lines and forced some to the bankruptcy.

The new survey conducted by Ernst & Young, LLP meanwhile indicates the growing optimism among the home builder with a whopping 95% projecting the end of the downturn and the beginning of the profitability in 2013. According to the same report the new home builders’ concern of the past two years about the interest rate and the ability of the home buyers in obtaining loan have been diminished but they believe that they will reach the benchmark of one million home sold in 2015 or 2016 instead of once considered 2014 or 2015.

This is in line with our prediction for 2012 being a start point for new home construction and improving from there on. The only reason that 2012 could not witness better days for new home construction was the lingering foreclosure filings by the banks that came to a halt after the Robo-Signing scandals force the financial institutions to stop all filling. Absorption of the deeply discounted bank owned homes or REOs will be the deciding factor on when and how the construction of new homes would see a real start. Construction of new homes would not make any economic sense, as long as there are homes at below the market prices out there.

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Pre Construction Opportunities

by Hamid Hakimi | Pre Construction

Pre Construction Opportunities

Pre-construction Opportunities for 2015

The pre-construction real estate opportunities are growing in Port St Lucie, but look for many new construction projects to start by the next year along with great incentives for the buyers of the preconstruction units. As we reported in previous articles the construction business should get a fresh start in 2014 and improve from there on. While the foreclosure fiasco has dumped many homes in the market that are below the market value but there are still those home buyers that prefer a new home with builders warranty over the foreclosed homes that need work. One main contributing factor is the higher initial cost of today’s loans with larger down payment requirements that most consumers don’t have cash leaving little to spend on any home improvement or repairs.

As one of the hardest hit sectors during the housing industry collapse of the last decade, the construction industry and specifically the construction of single-family home were poised to make a comeback in 2014 in Port St Lucie and enjoy a steady growth in the years to come. While some of the prominent home builders have weathered the storm by converting the unsold units to rental opportunities, most have cut their expenses to the bare minimum which resulted in fueling the unemployment rate in the nation. These companies have barely made it and if lucky they might have broken even in 2011 and still trying to survive far into 2013. ALL the gloomy days, however, are coming to end and there is a new optimism in the air that although carries a cloud of cautiousness, but just the talk of the profitable 2013 is a feel good story that we have long waited for.

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How to Buy Pre Contsruction Homes

by Hamid Hakimi | Pre Construction

How to Buy Pre Contsruction Homes

Veranda Gardens Model Homes

Buying Pre-Construction Home

While many home buyers debate on buying pre-construction or settle for the purchase of existing homes, they should first weigh the pros and cons of both types of properties. Buying new homes in a today’s market has many advantages for today’s home buyers that also would help the ailing construction industry. As the novelty of buying a foreclosed home gradually fades away, the home buyers will turn to buying the hassle-free new homes, some with many free upgrades, free HOA and at a discounted price.

In the past, the home buyers and investors concentrated in the acquisition of the pre-construction units in order to receive any discounts. In the current market, however, there are more opportunities for the purchasing move-in-ready new homes but without the waiting period for the completion of the units purchased during the preconstruction. This is a sign that the smart consumers have turned from the instant gratification of the discounts offered by foreclosed homes in favor of more stable new construction homes. Most new construction homes are offered in great price structures while promising a solid equity just a few years down the road. If home buyers not in a rush they could add even more discounts and free upgrades to the already low prices of new homes by finding pre-construction opportunities. There is a peace of mind that today’s pre-construction homes offer through a built in equity along with a builder’s warranty, more energy efficient homes, and appliances. These advantages should be enough incentive for many home buyers to reignite the slumping new home construction.

There are other perks and advantages to purchasing a new home that could outscore the discounts offered by the banks for dumping their foreclosed properties. Choosing a home that you like versus a home that is cheap but doesn’t match your requirements could be enough reason to consider purchasing new homes. This option allows home buyers to choose the floor plan, the neighborhood even the safety that otherwise could be sacrificed in the name of saving a buck or two. Today’s new home construction employs the latest technologies and construction materials in building a safer home with efficiency in mind that were not available in the past.

The new codes for homes in hurricane-prone Florida have been in enforcement for many years but would not be imposed on homes that were constructed prior to these codes. There are literally thousands of these homes in the foreclosure home market. On order to perform a minor repair or alteration to the exterior of these homes, one has to go through extra expenses to comply with the required Miami-Dade County Building Codes. In some cases, the compliance and permitting could result in substantial costs and exceed the original cost of the repair.

The more serious downfall of acquiring older foreclosed homes could be the safety issue during a powerful hurricane. This is while the new homes in the State of Florida and the coastal region are constructed to withstand the force of winds in 110 and more miles per hour and some new impact windows could be resistant to missiles from the debris of up to 160 miles per hour. When it comes to a category 2 and up hurricane these perks become much more valuable than the money saved buying a home that was built prior to Hurricane Andrew, which was the start of the implementation of now famous Miami-Dade County Construction Codes.