Just like you would research the general areas you want to live in, it is critical that you do some research on the community home developers in the area. You want to choose the one that most closely fits your needs and your budget. Read this article for the key questions you should be asking that new home building developer.
1. Do they charge CDD (Community Development District) Fees and if they do, how much?
A Community Development District is created and organized under Florida Statute to provide infrastructure for a new community. It is responsible for things like roads, street lights, storm water management areas, walking trails and sidewalks. Once the infrastructure is built the CDD is required to maintain these public facilities. Therefore these fees are ongoing to the new home owner and any subsequent home owners. Remember these are going to be in addition to your county taxes and HOA fees.
2. Do they charge HOA (Home Owners Association) Fees? How much? Does the Developer have majority control and if so, how long or what will the criteria be for the developer's HOA interest to be dissolved?
Home Owners Associations are a good thing because their goal is to maintain the value of the homes in the neighborhood. They are usually initially set up by the developer who maintains control over certain aspects of the community while it is being developed. The developer will control the architectural style of homes, the landscaping, and even the colors the homes are to be painted. They also maintain any public areas that have been developed for the home owners in the community to use. Each time a lot is sold to a new home owner they become part of the HOA and are required to pay monthly or annual dues to the HOA. The developer will usually have majority of the control over the HOA until such time that a certain percentage of the lots in the community are sold. The developer then turns over control of the community to the homeowners and they run the HOA.
The only drawback to the developer maintaining control is that sometimes the fees can get out of hand because the developer hasn't sold all his lots. There have been questionable fee hikes in the last few years in Florida.
3. How large is the average size lot?
You want the lots to be consistent in size so the styles and prices of homes are consistent. This is one way to maintain values of homes in the neighborhood. What you don't want to have is a million dollar homes on a half to one acre lots next to little houses on eighth of an acre lots.
4. What are the local schools rated at?
If you have children this is a very important question, unless you plan to Home School your children.
5. Will they allow you to sign a contingency contract based on you selling your home? What is the contingency period? Will you get your deposit money back if you don't sell your home?
If you currently own a home and need to sell it in order to build a new home it is critical that you know the answers to these questions.
Now that I have given you some key things to think about when choosing a community home development, you can make an informed decision on where you want to build your new home that you will never regret.
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