Buy
Buying new construction in Central Florida
Brand-new homes are everywhere around here, from Clermont to Davenport. Buying one works differently from buying a resale: the builder has its own contract, its own rules about agents, and costs like CDDs that never show up in the price. Here's what I'd tell a friend, in the order you'll run into it.
Why new construction can be the most affordable option
Here's something that surprises a lot of buyers: a brand-new home can cost you less per month than a similar resale down the street, even if the price tag is a little higher. A few reasons why:
- Builder incentives. Builders often offer money toward closing costs or a lower interest rate. A seller down the street usually can't match that. Here's how to compare them.
- Insurance. A new roof built to today's Florida Building Code usually makes a home easier and often cheaper to insure than an older home with an older roof.
- Fewer surprise repairs. New AC, new water heater, new roof, plus a builder warranty. Fewer big checks to write in the first few years.
- Energy efficiency. Newer windows, insulation and equipment can mean lower power bills.
Just make sure you compare the whole monthly cost. Many newer communities have a CDD on top of the HOA, and that can change the math.
| New construction | Resale | |
|---|---|---|
| Help with rate or closing costs | Often, from the builder | Sometimes, if the seller agrees |
| Insurance | Often easier with a new roof and current code | Depends on roof age and condition |
| Repairs in the first few years | Usually few, plus a builder warranty | Depends on the home's age |
| CDD or HOA fees | Common in newer communities | Varies |
| Selling in the first few years | You may compete with the builder | You compete with other resales |
The catch: selling against the builder
Here's what I tell every new construction buyer. If you need to sell in the first few years, while the builder is still selling brand-new homes in your community, you're competing with the builder. And that's a hard fight.
- Buyers can walk next door and get a brand-new home with a full warranty, their choice of finishes, and builder incentives you can't offer.
- If the builder lowers prices or adds bigger incentives to move inventory, your home gets measured against those deals.
- After selling costs, a quick resale can leave you with less than you expect. Sometimes less than you paid.
How to protect yourself:
- Plan to stay long enough for the community to sell out, or close to it.
- If there's a real chance you'll move soon (job, family, military), think hard about a resale or a community that's almost finished.
- Pick your lot and upgrades with the next buyer in mind, not just your own taste.
- Ask how many phases and homes are still left to build before you sign.
None of this means new construction is a bad idea. For a lot of my buyers it's the best value out there. Just go in knowing your timeline.
Before your first visit
Builders often decide on day one whether your agent can represent you. Get this part right first.
Knowing your real monthly cost
Many newer communities have a CDD. It belongs in your budget from the start.
