New Construction in El Paso Texas

New Construction in El Paso Texas

Hi and welcome to Living in El Paso. My name is John Peña and I'm a real estate agent with EXP And this station is all about El Paso eat sleep work play and in this episode We are going to talk about new construction in El Paso I've been working with a lot of clients on this and as you can imagine a lot of folks love new construction because

You're moving into a home that nobody else is owned. There's no Nobody else's dead skin in the carpet, right and Essentially everything's brand new for you. And so new construction is a fantastic option in El Paso but

Currently and this is February 2021 currently there are definitely some things that you need to know about new construction in El Paso and number one There's not a lot of it to be had and what I mean by that is that

Currently the inventory of new construction is pretty much taken meaning that it's already bought up Even a couple of months ahead. So you're you might look on Zillow or the MLS and you might see pictures of Really beautiful new homes in El Paso for unbelievable prices, right?

Anywhere from 150 to $300,000 is basically the gamut of new construction and you might look and it might look like there's a ton of new construction available That is actually deceiving. That is not the case

Builders like to try to entice buyers And they'll put up images that are actually Images of homes that they they've built but they're model homes and they're not actually built

The address is actually a dirt lot and there's nothing there yet There's going to be a home there in six to twelve months, but not yet So it's a little bit deceiving. I have I've had so many people Entering into this this situation where they're like, hey John we saw this beautiful new construction house for

$200,000 in this area or that area we want to go on it and I have to tell them, you know, hey, I'm so sorry But unfortunately, that's just a lot that a builder owns and the builder intends to build this beautiful home there But they're at least you know six months out. So new home construction is awesome, but

The demand here is so strong. The inventory is so low that the builders are having a hard time just keeping up, right? They have so much business coming in that they quite honestly I've said this before but it's really true now They cannot build them fast enough And this is one of the reasons why it might not be a bad idea to have a real estate agent

working on your behalf to help you understand these things and Kind of direct you down the path so that you know exactly what you're getting in the time frame But new builds are awesome we have a lot of great builders and after this little spiel here We're gonna actually feature a model home by Saratoga homes, and it's it's it's beautiful

But here are some things that I think as a real estate agent Trying to provide you with as much value as possible. Here are some things that I really want you to know about new construction If you want to get into new construction You are going to you're gonna first want to kind of know the location because we have new construction in Horizon City

Socorro the Far East the west side, you know all over the place And so you really need to know what area you want to live in Alright, the next thing you want to do is you're gonna have to decide what builder you want to go with and I'm going to I don't I don't work for I I do not work for any builder

Okay, I am NOT beholden to any builder. Okay disclaimer, so I'm telling you just you know the the facts what's happening with new construction is due to kovat a the

Prices of materials are starting to to really climb What the builders are saying is that due to kovat increased transportation costs and the like Lumber especially is getting more expensive So what some builders are doing is they are adding in what's called a kovat 19?

Addendum and this addendum essentially says that Yes, if you decide to purchase this model of this home on this lot Let's say it's going to cost you two hundred thousand dollars just to make the math easy Now they're saying that

Okay, we're gonna sign a contract and it's gonna be about six to nine months before your new home is ready It's gonna be awesome. You're gonna be able to pick the colors. You're gonna be able to pick some of the trim You're gonna be able to pick some of the fixtures It's gonna be amazing and I'm sure it is

but If our prices increase this kovat 19 addendum Essentially says that your price may increase up to 5% of the sales price, right? So this home isn't gonna cost two hundred thousand dollars

it's gonna cost you know up to five percent more of two hundred thousand dollars and lately Not only up to five percent, but now we're hearing up to ten percent, right? So This is a pretty substantial amount

So instead of two hundred thousand dollars you thought you were under contract on a new home for now They're saying hey this home might cost two hundred and twenty thousand dollars right, so the tricky thing about it is that also some of these builders the way that

Legal contracts are worded. It's not that even you know, ten percent you're locked in It's the language is such that they can change that number on you and you know You're gonna have to either decide. Okay, I'm willing to go up more than ten percent or no I'm gonna have to back out or no the builder could terminate or no. You were already pre-approved for

$200,000 and now with this price increase all of a sudden now your pre-approval is no good because now the price is more so This is one of the reasons dare. I say that it can be useful to have a real estate agent working on your behalf Especially if you're looking to buy new construction from out of state, right?

This is where you really want somebody on the ground There's going to be on top of these builders making sure a they're doing what they need to do in a timely manner You can have a real estate agent here to help you choose what lot and what location is best for you And you can have a real estate agent

Making sure that contractually you're you're getting what you expect to get for your money. So New construction is awesome. I know that people love it. I even love it I go into some of these model homes and I am blown away by

By the detail by the quality I'm jealous right my home here was built in 1984 and it's not like the new homes So I understand that new construction is awesome And it really is and I have not heard too many horror stories about

The builders here in El Paso for the most part I have only really heard good things people who have gone through the process and have great things to say However, I just wanted to do this little intro to really explain to you one You know, you're not going to move to El Paso right now and buy a brand new home

If you want to buy a brand new home in El Paso right now, you can expect you know Six to six to nine months right before the home is actually move-in ready So I want you to know that because that's the reality of the situation now sure, sometimes people will back out of contracts and you might be able to roll into that, but

It's highly unlikely chances are if you want to do new construction in El Paso in the winter of 2021 You're looking at about a six month window or more And then the other thing that I wanted you to be aware of is you got to be careful Builders aren't going to just assume increased costs

They are going to pass those increased costs along to you the buyer And so, you know, it's important that that you know that some builders are doing that COVID-19 addendum Some builders are not, you know, some builders are saying hey We're not going to do that addendum the price that you you know

That we quote you today if you sign this contract So you really want to be careful You maybe want to reach out to a real estate agent like myself who can help you navigate some of this terrain But with all of that said

The next part of the video is going to be a beautiful example of a model home And generally prices for a new builder are going to be a little bit higher I've seen advertisements saying starting at the $130,000 Quite honestly, you know, dare I caution you that if you go for the absolute bottom dollar

Chances are the quality is not going to exactly be there And the, you know, maybe the level of craftsmanship is not going to be what it's going to be with some of the other builders What I see is a lot of the best builders are going to be in the $100,000 range What I see is a lot of the best new construction lives between $200,000 to $300,000

Which, you know, in my humble opinion is still a pretty good price So thank you so much We're going to go ahead and show you an example of the model homes If this is something that people want to see

By all means please consider reaching out in the comments And there are no shortage of builders to showcase No shortage of beautiful model homes to show you If you are interested

I'm talking fast because I kind of wanted to I kind of wanted to capture the El Paso sunsets You know, I spent a lot of time in Sheboygan, Wisconsin Which is right on Lake Michigan

And I was thinking that today the main draw for me There was the water And all the activities that you can do on the water And, you know, here in El Paso

You know what it is? It's the sun It's the sunsets We are the sun city

It makes our climate pretty awesome And the other thing is the mountains I'm smiling because I'm looking at almost a full moon over the mountains Which I'm going to show you right now

And then I'm going to show you this beautiful model home Woof, woof Hi everyone, this is Priscilla Lopez with Saratoga Homes And today you are tuning in to Living in El Paso, Texas

And thank you so much for coming out to see one of our homes It's more of our traditional floor plans, the Morgan It's 1397 square feet, 4 bedrooms, 2 baths And I take great pride in working for this company

Because we've been here for over 38 years Helping many families out here get into their homes So come check out our house, thank you