Buying a New Construction Home in Irvine

Irvine has been building new villages for decades, and brand new homes are part of the market most years. That makes new construction a real option for a lot of my buyers, alongside resale homes in established villages like Woodbridge, Turtle Rock and Northwood.

In the photo, my buyer clients Peter and Peggy are pointing out the location of the new home they bought in Jasmine, in Cypress Village. New construction is a different transaction from a resale, and the differences are where buyers either save money or lose it. This page covers what I walk my buyers through before they set foot in a model home.

You will not find prices or inventory counts here, because they change by the week and the builder's own website will always be more current. For how Irvine's resale market is moving, see my Irvine housing market data page, which I update every month.

Key takeaways

• The sales agent at a new home community represents the builder. Having your own agent puts someone on your side of the table.
• Bring your agent, or at least have them registered, on your first visit. Many builders will not work with an agent who was not there from the start.
• Compare builders on standard features, lot premiums, contract terms and warranty, not on the model home, which is usually full of upgrades.
• Get an independent home inspection. New does not mean perfect.
• Read the public report. It discloses the HOA budget and, in many newer villages, a Mello-Roos special tax.
• A quick move-in home and a home in a future phase each have trade-offs. Your timeline should decide.

Who does the builder's sales agent work for?

The builder. The people in the sales office are often helpful and knowledgeable, but their job is to sell the builder's homes on the builder's terms. That is not a criticism, it is simply how the arrangement works.

Your own agent is there to look after you: reviewing the purchase agreement, asking about lot premiums and incentives, pricing upgrades against what they would cost after closing, comparing the home with resale options nearby, and staying on top of the builder's timeline through to the final walk-through. In my experience builders in Irvine usually pay the buyer's agent's compensation, so in most cases having your own agent does not add to your price. We confirm the builder's terms in writing before you visit, and you will sign a buyer representation agreement with me, as California now requires. My guide to the buyer representation agreement in California explains what that agreement covers.

Register your agent on your first visit

This is the step that catches buyers out most often. Many builders have a registration policy: if you walk into a sales office on your own and sign the guest card, the builder may treat you as an unrepresented buyer and decline to work with an agent you bring in later. Policies vary by builder and change from time to time, so call me before your first visit. I will either come with you or register you with the builder ahead of time.

How to compare builders

Newer Irvine villages are often built by several builders at once, each with its own floor plans, standard features, upgrade menus and warranty. The neighborhood can look uniform from the street while the homes behind the doors are quite different. When I compare builders with my clients we look at:

• What is standard. Model homes usually show the most expensive options. Ask for the standard features list and price the home as you would actually buy it.
• The upgrade menu. Some upgrades are worth doing during construction, such as electrical, plumbing and structural options that are hard to add later. Others, like lighting, paint and some flooring, can often be done for less after closing.
• Lot premiums. Two identical floor plans can carry very different prices depending on the lot: a corner, a view, a larger yard, or distance from a busy street or a future construction area.
• Incentives. Builder incentives are often tied to using the builder's preferred lender, and sometimes its preferred escrow or title company. Compare the whole package, and get a Loan Estimate from an outside lender so you can see what the incentive is really worth.
• The contract. The builder writes its own purchase agreement rather than using the standard California resale form. It is usually long, it typically favors the builder on deposits, timelines and dispute resolution, and much of it is not negotiable. Read it with your agent before you sign, and talk to a real estate attorney about anything you do not understand.
• The warranty. Ask what the builder's warranty covers, for how long, and how service requests are handled after you move in.

Quick move-in home or a future phase?

Builders usually sell in phases, and at any point you may be choosing between a home that is finished or nearly finished and one that has not been built yet.

A quick move-in home gives you a firm timeline and a price you can see. Many of the choices have already been made for you, and the surroundings are more likely to be finished. It suits buyers who have to move by a certain date, such as those selling another home or relocating for work.

A home in a future phase gives you more choice of floor plan, lot and options. The trade-off is time and uncertainty: construction can run late, your loan approval and rate have to hold for longer, and you may live next to active construction, with the noise and dust that come with it, for a while after you move in. Parks, pools and other amenities in a new neighborhood are sometimes delivered after the first homes close.

The same choice applies between neighborhoods. A finished neighborhood offers mature landscaping and completed amenities. A newer one offers more selection but more unknowns. If you are also weighing a resale home in an established village, my page on relocating to Irvine explains how the villages differ.

Get an inspection, even on a brand new home

New homes are built under permits and inspected by the city, but city inspections check code compliance, not workmanship, and they are not done on your behalf. I recommend an independent inspection before the final walk-through, and, if the builder allows it, a pre-drywall inspection while the framing, plumbing and wiring are still visible. Anything found goes on the punch list for the builder to correct before closing.

Warranties and your rights under California law

California's Right to Repair Act, often called SB 800, sets building standards for new homes and gives owners a process for construction defect claims. Two points are worth knowing before you buy:

• Builders must provide at least a one-year warranty on fit and finish items such as cabinets, countertops, flooring, walls, paint and trim (California Civil Code section 900).
• For many other defects the law allows claims for up to ten years, but you generally have to notify the builder and give it a chance to repair before taking legal action.

Keep every warranty document, register appliances, and report problems in writing. An attorney is the right person for questions about a specific defect.

HOA dues, Mello-Roos and property tax on a new home

Almost every new home in Irvine is in a homeowners association, and many have two: a master association for the village and a sub-association for the neighborhood. In many newer villages the home also carries a Mello-Roos special tax, which appears on the property tax bill and can run for decades. Older villages such as Woodbridge were largely built before Mello-Roos existed. My Woodbridge homebuyer guide explains the difference, and my guide to HOA assessments versus special assessments in Irvine covers what to look for in the association documents.

For a new home the key document is the public report from the California Department of Real Estate. The DRE requires the builder to give you a copy before you become obligated to buy. It covers restrictions on how the property can be used and the costs of the association and common areas. Read it before you sign. Keep in mind that association dues in a new neighborhood are set from the builder's budget, and they can change once owners take over the association.

Your property tax will be based on your purchase price, and as with any purchase in California the county usually sends a supplemental tax bill after closing for the difference. Budget for it, because it is generally not paid through escrow.

Where new homes are built in Irvine

Most of Irvine's new construction in recent years has been in the newer villages, including Great Park, Portola Springs, Orchard Hills and Cypress Village. Which communities are selling changes from month to month. You can browse current new home communities in Irvine here, and the Irvine villages guide covers every village. For schools, check the specific address with my Irvine school lookup, because school assignments in a new neighborhood are set by the district and can change as it grows.

Frequently asked questions about buying a new home in Irvine

Do I need my own agent to buy a new construction home in Irvine?

You do not have to have one, but the sales agent at a new home community represents the builder. Your own agent reviews the builder's contract, compares the home with other new and resale options, prices lot premiums and upgrades, and follows the builder's timeline to closing. Builders in Irvine usually pay the buyer's agent's compensation, so in most cases it does not raise your price. Confirm the builder's terms before your first visit.

Why should my agent come with me on my first visit to a builder?

Many builders only work with a buyer's agent who was with the buyer, or registered for them, at the first visit to the sales office. If you register on your own first, the builder may treat you as unrepresented. Policies vary by builder, so call your agent before you go.

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

Yes. City inspections check code compliance, not workmanship, and they are not done for you. An independent inspection before the final walk-through, plus a pre-drywall inspection if the builder allows it, lets you put problems on the builder's punch list before closing.

What warranty comes with a new home in California?

Under California Civil Code section 900, builders must provide at least a one-year warranty on fit and finish items such as cabinets, countertops, flooring, walls, paint and trim. California's Right to Repair Act, SB 800, also sets building standards and allows claims for many other defects for up to ten years, generally after notifying the builder and giving it a chance to repair. Builders often add their own warranty on top.

Do new homes in Irvine have Mello-Roos?

Many do. Homes in many of Irvine's newer villages carry a Mello-Roos special tax on the property tax bill, while older villages such as Woodbridge were largely built before Mello-Roos existed. Check the public report and the tax bill for the specific home before you buy.

Is it better to buy a quick move-in home or wait for a future phase?

A quick move-in home gives you a firm timeline and a finished product. A future phase gives you more choice of floor plan, lot and options, but with construction delays, a longer wait on your loan, and possibly living next to active construction for a while. If you have a fixed move date, a quick move-in home is usually the safer choice.

Thinking about a brand new home in Irvine?

I am glad to talk through new construction and resale side by side, and to come with you on your first visit to a builder. Call or text me at 949-537-2079, schedule a free consultation, or fill out the short form below. If you have a home to sell first, start with a home value estimate.

Equal Housing Opportunity. Debbie Sagorin, Sagorin & Associates, Coldwell Banker Realty, CA DRE #01411020. This page is general information, not legal, tax or financial advice. Builder policies, contracts, warranties and incentives vary. Please confirm your own situation with the builder, your lender, a real estate attorney or a tax advisor.