Questions on buying a new build in Irvine

Hello!

I'm currently looking to move to Irvine early next year for a new job opportunity and am looking at a new home purchase (first home purchase for our family). Reading these forums have been really helpful and I would very much appreciate some guidance from all the long-time Irvine real estate gurus. I've been doing a bunch of research online but have yet to make a physical trip - which I hope to do in the coming months.

We are looking for a 4 bdrm 2800-3200 sqft home with a decent view from the back yard. We've been gravitating towards developments like Terra and Como in OH as we find the large open windows combined with an elevated view to be really attractive and like the idea of customizing a new build to our specific preferences.

As we start speaking with builders, we were wondering:

1. How do the listed prices for new builds compare to actual sold prices? It seems like we would need to add a decent amount on top of the "starting from" prices for upgrades but was wondering how much room for negotiation there is, generally speaking

2. For an equivalent comparable property in terms of sqft, lot size, furnishings, what would be the expected premium needed to pay for a new build? And what would be the premium for a lot with a view vs. an enclosed yard? (% or $ terms?)

3. How on-schedule are new home builds by the likes of Irvine Pacific? Any major differences in reputation for other builders?

4. How does the payment schedule work for new builds? Initial deposit and then lump sum upon completion?

Would really appreciate your help! We are really hoping the news of the slowdown in foreign buyers translates to some level of reasonableness in negotiating as we are really excited for the potential move to Irvine.

Buy resale. More room to negotiate.

Answers to your questions:

1. Really depends what you want in terms of builder upgrades. Since you are visiting Como and Terra, the following is a fairly standard list of upgrades commonly selected: double insulation, recessed lighting, pre-wire for wall-mounted TV's in master bedroom and great room. Upgraded paint. Tile or hardwood floors in first floor and upgraded carpet on second floor. Upgraded countertop/spash package in kitchen, powder room, master bathroom. For these upgrades, I'd estimate about $60k-75k for a home size of Terra/Como, through Irvine Pacific. Obviously cheaper if you do it post-escrow. 

2. For Como and Terra, I believe the lot premiums are $50k-$100k. Resales will likely have a landscaped backyard, some appliances, and completed window treatments. New construction homes are delivered without these.

3. They're pretty accurate on build timeline. Winter rain could delay them though.

4. Give your initial EMD to open escrow and then you'll be asked to contribute additional deposits in each phase of upgrades. The deposits are directly related to the options you select. If you don't choose options, you don't need to contribute options. Make sure you ask about rate locks - lenders will require a fee to lock your rate if it's longer than 30-60 days.


Regarding negotiating price on new construction, I'd expect Como and Terra to be willing to do at least $25k in design center credit. Maybe even more. Just depends on how long they've been trying to sell the home you're looking for. Obviously, if you're searching for a premium lot that is in demand, your negotiation power reduces significantly. Best of luck.

regarding landscaping for a new build.

I don't know how big the lots at Terra/Como are. But if you're looking for a lot with a nice view, I'm assuming you'll want to do more than the bare minimum in the yard so you can use it to entertain/hang out. Expect to spend prob at least 100K to be commensurate with the value of the homes in those tracts. 

Lot premium for view lots are $300K+ in Irvine.

The new SFH in Portola Springs have premiums between $350K and $500K for view lots.

For the size of home you are looking at I would expect at least $60/80K for upgrades after closing (window coverings, appliances and landscaping).