When Buying or Building a New Home
The decision to buy or build a new home is a momentous occasion at any phase in life, but if you’re choosing a new home and a new retirement community it can be especially intimidating. While some of the best retirement communities are springing up everywhere in the United States, Florida remains one of the most popular choices for retirement. That’s because of its favorable climate as well as a variety of active senior lifestyle communities.
When buying or building a home in a retirement living community, the first thing buyers think about are the qualities of the community itself. However, there are many additional factors to consider. After all, you’re making a decision about buying or building a home where you will spend the rest of your life. Knowing what to look for as a potential homeowner in a retirement community can help buyers make better decisions for their golden years.
The Community
Consider the positive things the retirement living community has to offer.
- Does the community promote an active senior lifestyle?
- Does it offer a variety of activities?
- What types of amenities are available to its residents?
- Is the surrounding landscape pleasing?
Consider the location and nearby attractions.
- What is it like getting around the area?
- What is traffic like?
- What are the community's demographics – the type of people who live there?
The best retirement community is a place where you would feel comfortable and be happy living day in and day out.
The Builder's Reputation
Before buying a home in a retirement living community, determine whether the builder is solely responsible for the homes. The best retirement communities use builders who do the work themselves. Some communities will hire several contractors, which can affect the quality of work -- and may even cause the buyers’ home warranty to be held by an outside contractor.
Another important thing for a buyer to consider is the contractor's work history and stability. Will they be around in two years? There are plenty more hints on choosing a builder at How to Find the Right Builder.
Taxes and Fees
Is the community truly resident-owned? Many home buyers are surprised to find that they are paying hundreds or thousands of dollars extra in annual living costs. These additional costs can come from the Community Development District (CDD), which places taxes on homes in the community to cover the costs of public roadways, utilities and other improvements.
Other fees may cover recreational facilities, golf courses and other amenities. The best retirement communities will disclose additional costs you might incur prior to closing. But some builders put these costs on residents' shoulders without disclosure because it allows them to build homes at a lower initial cost. Buyers are often unaware of the additional costs until they receive their first tax bill or association fee statement. Prevent surprise taxes and fees by asking your retirement living community developer to tell you about any additional CDD taxes, leases or other fees up front.
Closing costs
Buyers often get caught up in the excitement of a home purchase and don't think to ask how much it will actually cost to get into the new house. Be wary of additional closing costs, as many developers tack thousands of extra dollars onto closing statements. They will tell you these are “standard practice.” Generally, a contract cannot be closed until these additional fees are paid. Some of the best retirement communities will actually cover all of part of the closing costs themselves, which saves the buyer hundreds of dollars and eliminates the discovery of a "big surprise" in the closing statement.
Construction satisfaction guarantee
Does the builder offer a construction satisfaction guarantee like those available at the best retirement communities? With a guarantee, the builder pledges to fix any issues you are not happy with and may even buy the house back under some circumstances. Choosing a builder who offers a satisfaction guarantee will bring peace of mind in the construction process. (For more information on contracts, see Reading the Fine Print.
Conclusion
When considering buying or building a home in a Florida retirement living community, evaluating the builders and their policies is just as important as evaluating the community itself. Once you've found a community whose location and amenities fit your lifestyle, look for builders who:
- Perform their own work
- Have a good reputation for quality and service
- Offer construction satisfaction guarantees
- Disclose all potential costs up front
You might save thousands of dollars, and you'll be certain to enjoy an easy transition into retirement.
About the Author
Tom Eleazer is a partner and vice president for Florida Leisure Communities, which develops Florida retirement communities for active seniors. Florida Leisure Communities has developed and built more than 4,000 homes the last 30 years. The company is currently building SummerGlen, an award-winning active Florida golf retirement community in Ocala that was recently named one of the 100 best retirement communities in the U. S. by "Where To Retire" Magazine. Florida Leisure Communities also received the Gold Seal Award from the National Association of Homebuilders as "The Best Retirement Living in America."
Name: Tom Eleazer
Email: summerglen@mediumblue.com
Website: http://www.summerglen.com
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