Buying a New Santa Clarita home directly from the New Home Builder maybe bad
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Buying a New Santa Clarita home directly from the New Home Builder maybe bad
Connor “with Honor” MacIvor - January 18, 2025** Tags: [new homes](/-/Blog/tag/new homes), [Santa Clarita](/-/Blog/tag/Santa Clarita), [new construction homes](/-/Blog/tag/new construction homes), [Santa Clarita Valley](/-/Blog/tag/Santa Clarita Valley), [new home builders](/-/Blog/tag/new home builders), [energy-efficient homes](/-/Blog/tag/energy-efficient homes), [Santa Clarita real estate](/-/Blog/tag/Santa Clarita real estate), [modern homes](/-/Blog/tag/modern homes), [new developments](/-/Blog/tag/new developments), [Toll Brothers](/-/Blog/tag/Toll Brothers), [Richmond American](/-/Blog/tag/Richmond American), [luxury homes](/-/Blog/tag/luxury homes), [double-pane windows](/-/Blog/tag/double-pane windows), [central air](/-/Blog/tag/central air) ** 0 Comments | Add Comment Top 3 Concerns When Buying a New Santa Clarita Home From a Builder
Why Having Your Own Agent Is the Ultimate Shield
Table of Contents
1. Introduction: The Landscape of New Construction in Santa Clarita
Hello there, my friend. Sit down, get comfortable, and let’s talk about the adventure that is buying a newly constructed home in Santa Clarita. It’s an exciting time—you’ve dreamed about it, maybe even driven through some of these sparkling communities, marveling at brand-new model homes. The floors are pristine, the walls are freshly painted, and that new-home smell can be intoxicating. But as someone who has traveled the globe and seen many a real estate market, I can tell you that brand-new construction comes with its own unique set of challenges and pitfalls.
Because the dream of “new” often overshadows practical concerns, I want to offer a heartfelt, fatherly chat about why you should be informed. After all, being excited for something doesn’t mean you go in blind. Too many times I’ve watched unsuspecting buyers sign on the dotted line at a new-home builder’s office—often with the builder’s friendly sales rep at their side—only to discover hidden fees, contract gotchas, and illusions of endless upgrade possibilities that can quickly turn into money pits.
Perhaps you’ve run across my YouTube video about this very topic:
But if video’s not your thing, keep reading. I’m here to guide you on a comprehensive, 5,000-word journey into the top three concerns you need to have on your radar. We’ll break down hidden costs and fees, highlight builder contracts and their differences from standard resale purchase agreements, and then we’ll dive into customization pitfalls—where the big money can either be lost or made.
By the end of this article, you’ll know why it’s crucial to have your own agent (i.e., not the one who’s on the builder’s payroll!).
So, fasten your seatbelt, friend. Let’s go for a ride.
2. Concern #1: Hidden Costs & Fees
When you step into a new-home community, you’re greeted by big, colorful banners advertising thousands of dollars in builder incentives. “Get $25,000 toward closing costs!” or “Free Upgrades!”—the signage can be a siren’s song. Don’t get me wrong, these incentives sometimes work out to your advantage. But the key word is “sometimes.”
Let’s unravel the typical hidden costs that often slip under a buyer’s radar.
2.1 Mello-Roos Taxes and HOA Fees
Mello-Roos is unique to California (and a few other places). It’s a special property tax typically used to fund infrastructure improvements—think roads, schools, and parks. In many new Santa Clarita communities, especially those built in the last decade or two, Mello-Roos can add a substantial extra sum to your annual property tax bill. You might walk in expecting to pay something closer to the standard 1% of the property’s assessed value, only to realize you’re looking at 1.5% (or even 2%) once you add Mello-Roos.
Then there are HOA fees. While these aren’t exclusive to new homes, builders often create robust community features—clubhouses, pools, well-manicured walking trails—that come with monthly dues. Sometimes a new community that looks like single-family homes is actually classified as detached condos, which also come with HOAs, plus some financing quirks.
Action Step: Before you fall in love with that perfect new-home model, get a breakdown of the Mello-Roos, property tax percentage, and HOA fees for the community. You can also check out the local neighborhoods and their tax rates by visiting Santa Clarita Homes For Sale to see different property types and their associated costs.
2.2 Builder Incentives: Are They Really Good Deals?
The builder might say, “We’ll give you $20,000 toward closing costs if you use our preferred lender!” Hey, it sounds like free money, right? But guess what? Builders often tie these incentives to an in-house or preferred lender. It might be a good deal if the terms are competitive. Or it might not be, if that lender’s interest rate or fees offset the so-called “free” money.
Reality Check: Incentives can reduce your out-of-pocket expenses, but they sometimes limit your freedom to shop around for better mortgage rates. For a better sense of where rates are at, do a quick comparison by checking this page: Mortgage Rates in Santa Clarita. That way, you’ll know if the builder’s lender is in line with the market—or if you’re being sold a higher rate with sparkly marketing.
2.3 Budgeting for the Unknown
Hidden costs don’t always emerge just from Mello-Roos or HOA fees. Sometimes they pop up in:
It might be wise to set aside a “surprise fund” (maybe 2–3% of the home’s price) for these unforeseen costs. If you end up not needing it, more power to you. But if you do, you’ll be glad you planned ahead.
“Blessed is the buyer who budgets for the unknown,” my old fatherly wisdom would say. Don’t let the dream overshadow practical planning.
3. Concern #2: Understanding the Builder Contract
It’s time to address that thick stack of paperwork the builder’s sales rep is eager to put in front of you. Not all contracts are the same. In fact, builder contracts often differ significantly from standard resale contracts, especially in California, where we have the beloved California Residential Purchase Agreement (RPA) for standard deals. Builders typically craft their own versions that favor their timelines and responsibilities—and they may limit your rights if you’re not careful.
3.1 Why Builder Contracts Differ from Standard Deals
A typical purchase contract in a resale scenario might give you multiple ways to exit if contingencies (financing, appraisal, inspections, etc.) aren’t met. Builder contracts often:
I’ve seen some contracts where the builder reserves the right to extend the delivery date for six or more months if faced with construction or supply chain delays. That can be tough if you’re trying to time the sale of your existing home or coordinate a move.
TIP: Make sure you understand the ramifications of any delay clauses, and ask for them to be adjusted if they feel too open-ended. Not everything is negotiable, but it never hurts to ask.
3.2 The Importance of Having Your Own Agent
The builder’s sales rep is typically a lovely human being, but they represent the builder’s interests, not yours. They’re on the builder’s payroll. Imagine heading into a boxing match without a trainer in your corner—that’s akin to going into a builder’s sales office without your own Realtor.
A good agent will:
Wondering how to find the best agent for your needs? You can read more about how I operate as a First Responder Realtor here (I proudly served in law enforcement, so trust me, I know how crucial it is to have a protector in your corner). Also, feel free to reach out for a chat anytime at
Phone/Text: 661.400.1720
Email: connor@santaclaritaopenhouses.com
I’m a father at heart, who’s walked many miles around this world—literally and figuratively—and I always remind folks: Never forget that you have a right to representation. Don’t let the builder’s rep tell you otherwise.
3.3 Negotiating Upgrades and Contingencies
Builders often have a design center loaded with optional upgrades, from fancy countertops to top-of-the-line flooring. Depending on the market, you might have some leeway to ask for certain upgrades to be included at no additional cost—or to request a closing cost credit. This is a key area where your agent can help.
By the way, if you want to see how different property types in Santa Clarita stack up in price and style (including new construction), have a look at the Quick Search or the Advanced Search. Doing a quick reconnaissance on the area’s resale homes can give you leverage when talking upgrades with a builder.
4. Concern #3: Customization Pitfalls
Who doesn’t love the idea of customizing a brand-new space to your taste? We’re talking backsplashes, cabinets, flooring, perhaps even structural add-ons like an extra den or extended outdoor living area. However, caution is key.
4.1 Upgrades That Actually Add Value
Generally, kitchen and bathroom upgrades yield the highest returns at resale. The reason? These are typically the most used and most scrutinized areas in a home. High-quality cabinets, durable countertops, modern appliances, and up-to-date fixtures can make your home stand out.
Another potential big draw is energy-efficient features. Solar panels, top-tier insulation, or double-paned windows can attract eco-conscious buyers down the road. If the builder offers them at a competitive price, these are worth considering.
4.2 Common Money Pits
4.3 Considering Resale Value
Even if you plan to live in the new home for a decade or more, it’s still wise to approach upgrades with resale in mind. Will the average buyer in that community appreciate the $15,000 custom mosaic tile in the foyer, or does it narrow your buyer pool? If you plan on customizing the home to the moon and back (and you can afford it), by all means—live your dream! Just don’t be surprised if the market won’t pay you back for those highly personalized touches later on.
5. Why You Should Never Go Unrepresented to a Builder’s Sales Office
You waltz into the builder’s sales office. The rep is friendly, offers you bottled water, sits you down in a cozy chair, and says, “If you don’t have an agent, we can help you with everything you need!” This sounds lovely, but keep in mind:
Sometimes buyers assume that not having an agent will reduce the home’s price because the builder won’t pay the agent commission. This is generally not the case. Most builders have built-in commission structures that don’t affect the final sales price for the buyer. If you don’t bring your own agent, the builder often pockets that commission difference or reallocates it for marketing. Simply put, you don’t save money; you lose protection.
If you’re even thinking about new construction, bring an agent on your very first visit or let the builder know you have an agent. Otherwise, they might deny your agent the right to represent you, leaving you with no advocate.
Have more questions about representation and commissions? I break it down in detail on my Blog.
6. Key Takeaways for a Smooth New-Home Purchase
7. Connor With Honor’s Worldly Advice: A First Responder Realtor’s Perspective
I wear a couple of hats, friend. I’ve been a first responder, a police officer, and now I proudly serve as a Realtor, dedicated to the good folks of Santa Clarita. I’ve seen how important it is to trust and to verify. When I say I want to protect you, I mean it in the truest sense—like a father who wants only the best for his child. My entire approach is about safeguarding your interests, just like I used to safeguard the community in uniform.
If you want to chat with me directly, maybe test out a bit of fatherly sarcasm and see if we’re a good fit, I’m always a phone call or text away: 661.400.1720. Or email me at connor@santaclaritaopenhouses.com. Or simply Contact Me Here.
8. Additional Resources for Santa Clarita Homebuyers
Also, if you love hearing real stories and experiences, my Testimonials Page is where you can read about how I’ve helped others navigate this sometimes tricky path.
9. Conclusion: Your Next Steps Toward a Successful Purchase
Buying a newly constructed Santa Clarita home is both thrilling and nerve-racking. Remember, the “new home smell” and the glossy marketing brochures can sometimes distract from real-world concerns like Mello-Roos, builder contracts, and the pitfalls of certain upgrades. But you’re not in this alone.
Here’s the short version:
“If you want your new-home dreams to stay sweet, bring an agent whose loyalty is to you, not the builder.”
Feel free to watch the full video breakdown I put together:
Video Link: https://youtu.be/8xuu1hm_lOM
If you have any lingering questions, don’t hesitate to reach out. I’m Connor with Honor, your First Responder Realtor, dedicated to “Saving the world one honest real estate sale at a time.”
Contact Details:
I know this was a lot of information, but knowledge is your armor. And hey, you’ve got this. I’m just the fatherly friend on the sideline with an extra flashlight, showing you some of the pitfalls before you walk into them. Thank you for letting me guide you today, and I look forward to helping you find the perfect new home in Santa Clarita—or wherever your path leads.
Go forth, dear reader. Make informed decisions. Let’s lock arms and walk toward that dream home together, fully protected and ready for the next chapter of your life. Safe travels and happy homebuying!
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