New construction or resale in Elk Grove?

Where new homes and resales sit

Most of Elk Grove was built as planned neighborhoods over the past few decades, so a “resale” here is often a relatively young house. New construction continues in planned growth areas toward the city’s southern and eastern edges. The City of Elk Grove’s planning department publishes the specific plans and policy areas that guide where and how that growth happens, which is worth reading if you want to know what will be built next to a new subdivision.

For a broader look at the city’s areas, see the Elk Grove guide. For the county picture, see the Sacramento County guide.

Compare the full price, not the base price

A builder’s base price usually covers a standard version of the plan. Upgrades, lot premiums and options are extra, and some items buyers assume are included are not. Before comparing a new home with a resale, list what you would have to add to make each one livable:

• Front and back yard landscaping, fencing and irrigation
• Window coverings, ceiling fans, refrigerator, washer and dryer
• Design-center upgrades: flooring, counters, cabinets, electrical and lighting
• Solar: whether it is included, owned, financed or leased

A resale home often comes with these already done, and sometimes with a pool, patio cover or mature trees that would take years and real money to replicate. On the other hand, it may need a roof, HVAC or water heater sooner.

Special taxes and HOA dues

Elk Grove has several community facilities districts (Mello-Roos), some funding infrastructure and others funding services, and a parcel can be in more than one. Newer areas are often in districts formed more recently. Amounts are parcel-specific and may rise each year by a set percentage, so ask the builder for the special-tax disclosure for the exact lot, and for a resale, read the current tax bill. Add HOA dues if the neighborhood has an association. The city’s Mello-Roos information explains each district.

Builder contracts, lenders and representation

1. 01Builders use their own purchase agreements, not the standard forms used for resales. Read the deposit, timeline, cancellation and change-order terms carefully.
2. 02Incentives are often tied to the builder’s affiliated lender. You can still compare a loan estimate from another lender to see which overall deal is better.
3. 03If you want your own agent to represent you, many builders require that the agent be registered at your first visit. Bring Dan along or call ahead before you tour a sales office.
4. 04Ask about the expected completion date and what happens if it slips, especially if you are timing a lease or a sale.

Inspections and warranties

New homes are inspected by the city for code compliance, but code inspections aren’t the same as a buyer’s inspection. Many buyers hire an independent inspector before drywall goes up and again before the final walkthrough. Note every item on the walkthrough list and get the builder’s written response.

California’s construction-defect law sets performance standards and claim procedures for newer homes, generally for up to 10 years, and builders typically add their own limited warranty. Ask for both in writing. A resale buyer may inherit the remaining coverage on a young home, so ask the seller what is left.

Dan’s buyer guidance covers inspections and contingencies, and our guide to comparing homes during your search gives you a scoring method. Already own a home? Read buying and selling at the same time, request a market analysis for your current home, or contact Dan.

Common questions

Do I need my own agent to buy a new home from a builder?

You don’t have to, but the builder’s sales staff represent the builder. If you want independent advice on contracts, upgrades, lot choice and negotiation, have your agent registered at your first visit, as many builders require.

Are special taxes higher in newer Elk Grove neighborhoods?

They can be, but there is no single answer. Elk Grove has several community facilities districts, and amounts depend on the parcel. Compare the special-tax disclosure for the specific new lot with the actual tax bill of the resale you’re considering.

Should I get an inspection on a brand-new home?

Many buyers do. An independent inspector can catch installation issues before drywall and at the final walkthrough, when the builder can still correct them easily. It costs far less than repairing problems after closing.

Official sources

Records and rules are parcel-specific, so look up the exact address with the responsible agency.

• City of Elk Grove: Mello-Roos community facilities districtsDistrict-by-district special-tax information.(opens in a new tab)
• City of Elk GrovePlanning, specific plans and building permits.(opens in a new tab)
• Cosumnes Community Services DistrictParks, recreation and fire services in Elk Grove.(opens in a new tab)
• CFPB: Buying a houseFederal guidance on loan estimates, closing costs and shopping for a mortgage.(opens in a new tab)
• Sacramento County AssessorParcel lookups, assessed values and property characteristics.(opens in a new tab)

Local rules, districts and fees change. This guide is general information, not legal, tax, insurance or lending advice, and it describes places by property, travel, costs and services, never by who lives there.