1.  Taxes - Have you ever wondered why the property taxes on a new-build are so low? It's not because you are getting a deal! It's because taxes are paid one year in the rear. So the property tax bill being paid this year are for last year's taxes.  Why is this important on new construction, you ask? Because your first year owning your new home, you will be paying taxes on the vacant land before it was improved. This used to be one way a builder's preferred lender could approve you for a higher amount. Couple this with an adjustable rate mortgage (ARM) and you've got yourself the perfect recipe for a recession and foreclosure feast.  Does 2007 ring a bell? Year two of owning their new home, property taxes increased and soon after their rate raised as well. Suddenly, mortgage payments became unaffordable. When those home owners tried to sell, they could not compete with the incentives the builder was providing. Not to mention a buyer could build their dream home down the street with everything they wanted for less money. Which brings me to my next topic….

2.  Resale – Why can it be so hard to re-sell a home in a new build community? Appreciation! Or lack of it, I should say. Not only does a Seller have to compete with the builder incentives (financing or free upgrades) they have to raise the price about 8% to cover the cost to sell. So if you purchased your home for $350,000 you would have to turn around and sell it for $378,000 to break even. New communities typically do not see substantial appreciation until the building is about over and the supply is low. Which is why I tell my clients if you want to build new, plan on staying a while. Depending on the community it could mean 5-7 years or 10-12 before appreciation takes hold. If you are a person who knows being transferred out of town is a possibility, you may want to re-think your idea of building new, unless you have a generous corporate relocation package that would cover the loss or a buyout; which are few and far between these days.

3.  Community Development Charge - Never heard of this before? New to Ohio about 12 years ago. This is not your property taxes. This is in addition to your taxes! Under Ohio Revised Code 349, a developer is able to recover a portion of their development costs for things such as sewer, roads or parks; by creating a New Community Financing Authority and implementing a Community Development Charge. According to Ohio Revised Code 349.07, "an unpaid community development charge is a lien on the property against which it is charged from the date the charge is entered on the tax list and shall be collected in the manner provided for the collection of real property taxes." So it might look like real property taxes but it is not. Another interesting piece of information is that the community development charge is not assessed by the value of the land, but assessed on the total value of the land & home. So it is subject to how many bells and whistles you add to your new home. But that's not all, they can also add an income charge anywhere from 1-2% more or less, depending on the community. This fee is based on the income of the residents and businesses located within the boundaries of the Community Authority. Finally, let's not forget the "Community Center Charge". This charge is typically based on the operating expenses of a community center.

How much are we talkin' here? According to Dublin's new Jerome Village community, technically in Plain City but Dublin School District.

Community Development Charge

• A property value at $350,000
• Assessed value: $350,000 x .35 = $122,500
• Annual Millage Charge: $122,500 x .0095 = $1,163.75
• Semi-annual Millage Charge: $1,163.75 /2 =$581.88

Income Charge 1-2%

• Income at $100,000
• Income charge: $1,000-2,000
• Currently this charge is not in effect. According to their website, this charge "can only be levied after all appointed members of the Jerome Village Community Authority are replaced by the community."

Community Center Charge

• This is based on operating expenses. Although this charge can be increased annually it may not exceed CPI. The charge for 2016 is $362.63.

Pay on time, otherwise the Union County Auditor has the right to add an additional processing fee currently at 3%. Learn more about JVCA here

4.  Representation -The salesperson in the model home represents…..the BUILDER! As a Realtor, I don't have a product to sell you on. My job is to provide you with solid information and sound advice, whether you are looking for a new build home or an existing home. So I know you are wondering, when buying new who covers the Buyer's Realtor Fee? The answer is, the builder does. In most cases, the builder has already priced the Realtors fee in. Most home builders in Central Ohio will not reduce the price of the house without a Realtor for a couple of reasons. First, they do not want Realtors to avoid bringing their clients to them. Second, most builders see the value a Realtor provides in making sure the Buyer is guided through the process, relieving them of any perceived liability for only representing the Builder's interest.

A Realtor is your resource and your advocate. There is nothing more important than my client's money. Growing and protecting my client's wealth and finding the right home for them is all we care about at Galbreath Real Estate. It is a long term relationship and notjust about the sale. Our job is to serve our community. We treat everyone as family. We work to be your real estate advisors for life and look forward to working with those dearest to you because you know, no one will have their back like Galbreath Real Estate.

When building a new home, you are have the opportunity to choose what type of home will fit your lifestyle. Have you really thought this through?

5.  Floor Plan - Do you know which type of floorplan gets the most complaints about noise travel? What is the most important room in your home is besides the Kitchen and Master Suite? Most people don't even think of it until after they have moved in! Where is the worst place to locate a half bathroom on the main floor? What upgrades are worth doing now and which can be done later for less?

As Realtors, we've seen and heard it all. What you love about your home and what you hate. What you would keep and what you would change in a heartbeat. Over the last 15 years, I not only help people protect their wealth by making a sound real estate investment, I help them find a place that lives the way they live. Don't make a mistake and build the home you think you want, build the home you REALLY want. You don't know what you don't know!

For answers to the questions above, click "Things to consider when looking for the RIGHT home".

If you are looking for an experienced, trustworthy, knowledgeable Realtor that is excited as you are to find your new home. Call me to chat, no obligation.