New Construction vs Resale in Solano County: What to Know | Samuel Vera

This week's three insights from me, two quotes from others, one question to carry with you...

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A model home is the most persuasive room in Solano County. Everything works. Nothing is worn. There's no previous owner's taste to see past. And it's doing exactly what it was built to do, which is make you stop comparing. The question isn't whether new construction is better than resale. It's whether the number you're comparing is the real number.

II.

Three things routinely sit outside the sticker price. The lot premium, because the base price is for the least desirable lot in the phase. The design center, where the finishes in the model are almost never the finishes in the base home, and where the markups are real. And the things that simply aren't included in a new build the way they are in a resale: fencing, landscaping, window coverings. Then there's the one I'd most want you to ask about. Many newer subdivisions carry special district assessments that fund the infrastructure of that development, and they show up on your tax bill every year on top of the regular rate. Two weeks ago I said to budget about one percent plus local assessments. In some new communities that second part is not a rounding error. Ask what the total tax rate is on the specific lot, in writing, before you fall in love with the floor plan.

III.

None of which means buy the resale. New construction genuinely delivers things an older home can't: current systems, a warranty, nobody else's deferred maintenance, and a builder who may be far more flexible on financing incentives than on price. What resale gives you is knowledge. Mature trees instead of sticks. A neighborhood that has already revealed what it's like. Comparable sales to argue from. Room to negotiate, and an inspection that gives you leverage. New homes sell you certainty about the house and uncertainty about the neighborhood. Resale homes are the reverse. Decide which uncertainty you'd rather carry, then go price both honestly. And bring your own representation to the model home, because the agent sitting at that desk is working for the builder.

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"The first principle is that you must not fool yourself, and you are the easiest person to fool."

— Richard Feynman

"The simple believe anything, but the prudent give thought to their steps."

— Proverbs 14:15

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ONE QUESTION TO CARRY WITH YOU:

Which uncertainty would you rather live with: the house, or the neighborhood?

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Thanks for reading,

Samuel Vera

DRE #01911575