Watch This Before Buying a New Construction Home in Coastal Delaware

Buying new construction in coastal Delaware without the right information, well, you could lose 50 to $100,000, and I've seen it happen more times than I can count. In the next few minutes, I'm gonna show you exactly what builder tactics most people won't even mention, and five costs and mistakes that 90% of buyers make, and one timing move that could help save you a lot of money in the end. By the end of this video, you'll know which builders you can trust, which communities have some real value to them, and how to negotiate like a pro even in today's market. So let's get into it. Okay, so first things first, let's talk about the types of builders. If you're checking out new construction homes being built in coastal Delaware, there's really three main kinds of builders that you're gonna run across. You know, knowing how they're different and what makes them different really matters if you wanna make the best choice for you. First on the list, we've got custom builders. Now, these are gonna be the one of a kind, you know, they're completely designing and building a home just for you and the land that your home is gonna sit on. You get to decide pretty much everything about the home, how it looks, how it's laid out, and all the little details. Now, these builders are great at using special features on the lot, like water views or tricky land shapes, and many of them have their own in-house design teams, sometimes including engineers as well, which makes the whole process a lot smoother and more organized. They usually have tons of experience and they focus on getting every single detail just perfect. Now, prices for custom homes can usually start around a million dollars and they can go up well over $5 million depending on how big you want it and what location you're looking for. Now, these homes cost the most of the three types, but they're perfect for the people that have a real clear vision, a special lot or a special place picked out that they wanna build the home and the budget to make it all happen. Now, building your own custom dream home is the best way to get exactly what you want from start to finish, but we understand it's not for everybody. Next on the list, we've got semi-custom builders. They're the middle ground. You get a lot of choices, but within a set structure. You can still make it feel like your own home without starting completely for scratch. You have the ability to pick the general floor plan and they offer a lot of changes and creativity within that floor plan. And these builders stand out because they offer a ton of upgrade options. If you want different floor styles or cabinet styles or some type of finish that you want, you've likely got it as an option. Sometimes dozens of multiple options of those things. Many of those semi-custom builders also build in styles that match the local vibe. You know, things like beachy homes with wraparound porches. Some even focus on cool things like energy-saving designs and homes from semi-custom builders in our area are usually starting around 500 to 550,000. And they can go up to well over 1.8 to 2 million, just depending again on the location. And most buyers we work with tend to spend about a hundred to $250,000 in options and upgrades with these semi-custom builders. These builders are great for people who want more say in the design process. And they're okay with spending a little bit more to get it just right, just so they don't have to mess with it again six months down the road. The final builders we have on the list are the production builders. They're the big name companies that build lots of homes using the same set of plans and systems. And since they build in large numbers, they can offer lower prices and stick to quicker timelines than some of the semi-custom and custom builders. What makes those production builders different is their organized process. They use floor plans that they've already built and tested and improved. And their way of building helps avoid delays. They can pretty much tell you from the day that the first shovel goes in the ground when settlement's gonna be. Because these builders buy materials in bulk, it helps keep the cost down and it gives them the ability to offer a lot of the good stuff that people are looking for. Things like quartz counters and stainless steel appliances and smart home features as standard items in their homes. Now, homes from production builders usually start in our area around the $400,000 mark. You know, since everything is planned out, you know exactly what you're getting and how much it's gonna cost. These builders are perfect for buyers who want a solid move-in ready home without a lot of surprises or a long wait. And those people that don't need a ton of customization options. The fundamental difference between these builder types certainly centers around the trade-off between cost, customization, and timeline. Production builders have speed and value. Semi-custom builders provide more choices at higher cost. Then those custom homes deliver unlimited possibilities at premium pricing, but a much slower timeline. All right, now that you know the different types of builders, let's talk about the common mistakes that we're seeing buyers make. And then the tips that you need to avoid those mistakes. But before we get into it, if we have not met yet, I'm Matt London, a local real estate agent right here in coastal Delaware. And I spend well over 60 hours a week touring inventory, tracking market shifts, looking at data and negotiating offers. And everything I learned from being in the field, I break down right here in our content. So if you are selling or buying in coastal Delaware, make sure you hit that subscribe button down below so you can stay ahead of the market just like all of our other subscribers. Okay, now let's talk about the things that you really wanna avoid. These mistakes can end up costing you thousands of dollars down the road. And honestly, a few of them might catch you off guard. The biggest and perhaps the most expensive mistake that people make when buying a new construction home, it's gonna be skipping those third-party inspections. And seriously, I think this one matters a ton. I tell everybody they should get one. I mean, sure, builders have to pass city or county inspections, but they're really only checking to see if the home meets the bare minimum code. They don't guarantee quality. And as someone who has had work done on their own home and had the county inspector come out, I can tell you it took him longer to get out of his car to my front door than he spent in my house in total. So I don't think they're really in there to inspect things. But here's the thing, in Delaware, independent inspectors often find real problems that most other people would overlook. You know, things like messed up stonework, roofing issues, framing issues, or parts that are broken or just completely missing in general. And that's where professional home inspectors come in. Again, I'm not paid by any inspectors, so I'm not telling you a company to use, but they'll check off things at every stage of construction if you would like them to. Things like framing before closing. They'll even come back and do an inspection right before your builder's one-year warranty runs out just to make sure everything okay. Now, yes, you're gonna pay about $1,200 to $1,500 for those three inspections, but they could save you from tens of thousands of dollars in repair nightmares down the road, which is totally worth it if you ask me. Another common mistake we see buyers make is that they buy a parcel of land on their own thinking that just any builder can just come in and build their dream home on it. I mean, it sounds simple enough, right? But it's really, it's not. The move often leads to expensive problems like no access to utilities. There might be building restrictions where the parcel is, or the land may just be completely unsuitable for building. Now, Coastal Delaware has its own set of rules and challenges when it comes to building, especially in some of our low-lying areas that need special elevation certificates. And there are rules about how high above the flood levels you have to build. So knowing all those things in advance is super important. And not all builders are equipped to handle that. And some might charge way more to prep the site for the build. So it's important to have some of the pieces in place before you move forward with purchasing that lot. Perhaps the one thing that really surprises everyone is that most builders show a low base price, but the real cost to move in often ends up way higher than what that advertised price is. This one surprises just about everyone. And it's the fact that builders show a low base price, but the real cost to move in often ends up much, much higher. The price they're advertising is for the smallest home on a no-premium home site with no upgrades. The reality of building that are not very high. So many of our buyers end up spending way more than what the advertised price is. For example, buyers that we work with that buy with Shell Brothers, for instance, they typically spend about $150,000 to $250,000 on upgrades beyond the starting price. Now, those are gonna be for upgrades that you really probably want. Things like better flooring, better kitchens, extra electrical work, some structural changes, maybe like adding a basement or a screen porch can quickly change the cost. Now, those costs are already calculated in if you're buying a spec home from one of these builders where they pick out all the fit and finishes. But if you plan to pick out everything, just know that there's gonna be some level of cost associated with doing so. Not that it's a bad thing, it just is the way that it is. And sometimes that number that is advertised is grossly different than the one that you are actually paying. And perhaps the biggest cost to not forget about is Delaware's transfer tax. It is 4% of the sales price total. And that's typically split between buyer and sellers and resales. However, there are some builders and new construction that are gonna push that entire 4% onto the buyer. And that's the biggest cost that many first time Delaware buyers are not expecting when they get here because it is one of the highest in the country. Another thing to consider is that home sites in coastal Delaware can be really, really different, even within the same neighborhood. Things like how high the home site is or whether it's in a flood zone or not can change how much it costs to build on and how much insurance is gonna be once you close on it. And the soil matters too because it affects the foundation and how water drains and which way the lot faces also makes a difference. It changes how much sunlight your home gets and how much energy you're gonna use at the end of the day. You know, where the lot is located really matters for your lifestyle and how much the home might be worth later on. And it's smart to ask if you're backing to some open land, if any new developments are planned nearby, you know, you want your views and your privacy to stay. But unless the farmland has been put into some sort of preserve, I can pretty much guarantee you at some point down the line, there's gonna be houses on it. Now, not all builders have the same quality or customer service. Some builders are known for really following through on their warranties. And then on the other hand, some builders have a reputation of not addressing items at all. You know, some builders do get mixed reviews. Most often complaints that we see online are always about quality control or how quickly they respond to problems. And while I do not think that it is possible to build a perfect home, I don't think anybody ever has, the way the builder responds to issues post-closing definitely says a lot. And there are a few out there who would try to wipe their hands clean of anything post-closing if they were given the opportunity to. So now that you know what to watch out for, I'm gonna tell you which builders I would actually recommend working with based on our experience in the market. Knowing these common mistakes, it shows why picking the right builder is really super important. And these builders are gonna be in no particular order. So don't think that just because I mentioned one first or last that that's where they fall in place in my preference list. Because this is just people that we enjoy working with and our customers or our clients have had great experiences with. The first one is gonna be DR Horton. It's the biggest home builder in the country and they have strong customer satisfaction here in Delaware. Their communities often come with great amenities, you know, things like clubhouses, pools, places to hang out and meet your neighbors. Plus they have solid warranty coverage and they let you bring in an independent inspector throughout the process, which is a big plus if you want that peace of mind because not every builder lets you do so. And what I like most about DR Horton is their consistency. When you buy from them, you know what to expect and what you're gonna get. Their floor plans are all tried and true. Their timelines are super reliable and their value is clear. The only downside I see for them is that they offer very limited customization options. So if you are looking for that more custom approach or semi custom approach, DR Horton is not likely the fit for you. Next on our list is gonna be K Hovnanian Homes and they bring over 60 years of solid experience to Delaware's coastal market. Their four seasons communities are specifically designed for active adults or those 55 plus adults who want more than just a house. They want the full lifestyle. Now these neighborhoods come with resort style amenities that make everyday living feel like a vacation. And they do come with age restrictions. However, that can create a friendly close-knit community since most people are all at the same stage in life within those communities. Right now, K Hovnanian is offering some pretty attractive incentives to help buyers save. They're offering things like temporary interest rate buy-downs and flexible cash programs to help with closing costs or upgrades. You can use that money how you wish. I think some of the incentives they have going right now are really pretty awesome. Next on our list is gonna be Shell Brothers. They're one of the top builders in coastal Delaware and they're known for offering great design and flexibility and really capturing that coastal look and personality. And me personally, I think they build some of the best looking homes in the market. They've built a strong reputation locally by focusing on building great communities and keeping their customers happy. And on top of that, they are major philanthropists in the marketplace and they give a ton back to the community, which has earned them several industry awards. Now, what really makes Shell Brothers stand out is how much they pay attention to that coastal design detail and the number of options they give you when you're designing your home. It really is a custom home without the custom home price tag. Their homes feature those classic porches, raised foundations to handle the coastal weather and color palettes that fit right into the seaside vibe. They really get what makes a home feel like it belongs here on the coast. I mean, it kind of makes sense since the company is headquartered here and was founded here. I mean, they're from here, so their homes should fit in here, right? Next on the list, we've got Insight Homes. If saving energy matters to you, Insight Homes is one of the absolute top choices for buyers who care about being energy conscious. Insight partnered with the Department of Energy's Zero Energy Ready Home Program, which means their homes deliver real energy savings and better indoor air quality. And they have to in order to remain part of that program. So if you care about being green and cutting down on your energy bills over time, Insight Homes is definitely worth a closer look. You know, saving around $2,000 a year on energy really adds up over time. The final builder on the list for this video is gonna be Beezer Homes. Beezer is known for solid, reliable construction and thoughtful community design. Their Bishop's Landing development that they built out, it really shows off their skill at creating neighborhoods that can feel like a resort. You know, you got things like pools, clubhouses, plenty of spaces to relax and connect with neighbors. You got tennis courts and pickleball courts, you know, all the kinds of things that you would want in one of those resort communities. Now this kind of setup appeals to a wide range of buyers from families to retirees because it provides more than just a house. It gives you the full lifestyle experience without ever leaving the community. But here's the thing that you might not realize. The community you choose can matter even more than the builder's name that's on the sign. The difference between locations, the amenities and how the neighborhood feels day to day, all of those items really shape your living experience and make all the difference in the world. That's why the communities I'm about to introduce you to are so important. They're carefully planned to give you not just a home, but a place you'll really enjoy living. So let's check them out. Again, knowing which builder to work with is just one small piece of the puzzle. The community you pick out, if you're gonna be in a community, can seriously affect how happy you are with your home and even how much it's worth later on down the road if you ever choose to sell. So let me show you the communities that are really worth your attention right now. We're gonna start with those luxury or those higher end options. The first on our list is gonna be Welch's Pond, which is a community from Shell Brothers. It's one of their premium communities with 247 homes spread over 256 acres of protected wetlands and beautiful natural surroundings. Now it's just minutes away from Downtown Lewis and Rehoboth Beach. So you really get the best of both worlds. You got peaceful nature right in your community, but then you have easy access to the beaches and everything that the area has to offer just a short drive away. The community has plenty of great amenities too, like a clubhouse that's got an outdoor pool. It's got courts for multiple sports. It's got a dog park for your furry friends and everything in between. What really makes Welch's Pond stand out is gonna be its location. You're living surrounded by a protected wetland area, bathed by nature, but still close to all of the action that is in Lewis and Rehoboth and along Coastal Highway. Now the lots are beautiful and the community is designed to work with the natural setting, not against it. It truly is a special community and one of my favorites. Next up, we've got Black Oak, which is again from Shell Brothers. It's gonna be a small enclave of about 127 home sites and Black Oak is positioned perfectly just on the outskirts of Downtown Lewis, right along New Road. And it's a new community from Shell Brothers and arguably it's in the absolute best location of any of their communities. Although I might be a little bit biased because I also live right nearby. Of any of their communities, especially given its close proximity to Downtown Lewis, the bike trails that run through the area and the Lewis beaches. And because this is a new community, they still have some of their remaining launch incentives left, meaning you could get up to $40,000 towards your build if you happen to move into Black Oak. Now homes in Black Oak start in the low 800s with most of them finishing off at or above the $1 million mark after you factor in things like home site premiums, option upgrades, and all the other items that we discussed before. As we step into the semi-custom world, I'm a big fan of a lot of the things that Shell Brothers has built. But MiraLand by Shell Brothers in Milton is in a great location, tucked away from the tourist areas. Prices there start in the mid 500s. And this community comes with really nice perks and amenities. Got a swimming pool, some walking trails. You got access to the Cape Henlopen School District, which a lot of people put high on their list. And then they've got things like a sauna, a fitness room, pickleball courts, a little clubhouse, some walking trails and more. And MiraLand shows off Shell Brothers' latest designs featuring their signature coastal style. Think things like multiple porches or wraparound porches, coastal color schemes that fit right into the area and so much more. I put MiraLand at the top of my semi-custom list. Next up, we've got the Four Seasons at Scenic Harbor, which is designed specifically for those active adults that are 55 and over. The community is gonna feature a 7,000 square foot clubhouse, pickleball courts, and lots of resort style amenities to keep you busy and relaxed all year round. Homes in the Four Seasons community start around $600,000 and Cahogh Nadian has seven different floor plans that you can choose from within the community. Now, if you want a 55 plus community, the Four Seasons at Scenic Harbor, it absolutely delivers. The great amenities and age restriction really help create a close-knit, friendly vibe that a lot of people really enjoy, especially as they get older in life. Rounding out the list, we got our best value option, which can be Millville by the sea. So if you are after the best value, Millville by the sea is a great option and it's just four miles from Bethany Beach. This DR Hurton community has homes starting around the upper 300s and comes with lots of resort style perks, pools, a clubhouse, fitness center, beach shuttle, bocce ball courts, pickleball courts, pretty much you name it. But what really stands out about Millville by the sea is gonna be the value. You're very close to the beach, you have access to all of those great amenities and you can get in for right around $400,000 and they even have a shuttle that takes you to the beach. I mean, that's just tough to beat in today's market. But now here's where most buyers make their next big mistake. And it's something that I see way too often with new construction. Picking the right community matters a lot, but there are also some insider tips that can save you some extra money and headaches. And these are things that most people don't really know about, but you really should. And we've learned it from selling hundreds of these new construction homes. The first one would be having an agent before you go looking. If you go without an agent at the start, you likely cannot add one later on. Now having a real estate agent you are working with before you even step into the model home is gonna be super important. And again, most of the time you can't fix it later if you want to. Now the builder sales reps work directly for the builder, not you. And most sales reps don't even have real estate license. So a good buyer's agent is gonna give you insights into what communities are available, what floor plans are available across the different builders and make the most sense for what you're looking for. They know how to negotiate contracts and they can protect you throughout the whole building process, especially for people like our clients who most of the time are shopping from out of state and they're not here locally. Plus agents who sell a high amount of new construction, they know builder habits, they know warranty rules, and they can spot a lot of problems early on and help you out. Now here's the catch. Once you walk into a model home and sign in without an agent, you lose the chance to bring one in later. The builder is likely gonna put up a pretty big fight and they're not gonna allow you to hire one after the fact. I think we should dive into how builder incentives work. Right now, builder incentives have started to become quite lucrative as the market has slowed down a little bit and builders are certainly feeling that inventory buildup and that slowdown. So they've started offering buyers more as an incentive to build with them. Now these incentives can come in a variety of different forms. Some lower your monthly mortgage payment with your interest rate buy-down, either for temporary or for long-term. Others may help cover closing costs or give you cash to use towards fees. Some of them are giving you upgrade credits to let you customize your home in a certain amount for free, or they give you a flex cash that you can use in whatever way you want. There are a million different ways that these builder incentives may look. And when you're looking at these incentives, it's important to compare the total cost of the home, including the base price upgrades and incentives to similar homes in the area. I think it's also worth mentioning that just like a new car is gonna cost more than a used one, a new home does tend to come with a slightly higher price tag than resale homes because you're getting to pick exactly what you want in it. Right now, the market favors buyers because there are more homes available. So builders are willing to be a little bit flexible with things. That does not mean that all builders or even all communities from the same builder are gonna be more open to those options. There are some that are gonna be more open than others, just based on their sales pace and where they're at in their year. Now timing your purchase throughout the year can help. Builders often wanna close out deals at the end of the month or at the end of the quarter, at the end of the year. So that's a good time to negotiate, but you need to be serious. If they agree to what you're asking for and you walk away, that will likely mean that that deal is no longer available the next time you walk in. Now it helps to understand what motivates a lot of these builders. You know, they might be eager to close sales for their financial reports, or they might be sitting on a bunch of finished spec homes that is just costing them money that they need to sell. So it really just depends on the builder and the community itself because every single community is gonna be different. Now I wanna stress again how important it is to get a third-party inspection throughout the different stages of construction. We wouldn't recommend you go through it without one. You should have an inspection before the drywall goes up to check the framing, plumbing, electrical, HVAC work, all that kind of stuff before it gets covered up with drywall. Then there's gonna be the final walkthrough before you close. We're just gonna include a detailed inspection. They're gonna test all of the components and systems in the home. They're gonna make sure that nothing was missed by the builder's internal inspector or the county inspector. Again, I don't think that county inspector is looking very hard. Now finally, there is the 11-month warranty inspection which helps catch any problems before your builder's warranty expires and just makes it easy to submit all those as a warranty item and then have the builder come in and address them. Now we have seen inspectors find defects that would cost a buyer tens of thousands of dollars if they were not discovered prior to the home being finished but they only cost the builder a little bit of time since the drywall had not been put up. These types of items are absolutely the reason we recommend inspections throughout the build process because most often it is an easy fix at the start but once it all gets sealed in and drywall goes up and your cabinets go in and everything else, it can be a very costly item to repair down the road. Now let's discuss the best time to buy because this can make a big difference. Timing is everything with new construction but most people don't realize just how long it can take to build a home or they don't understand what the length of time is. So here in coastal Delaware, building a semi-custom home is gonna usually take somewhere between eight to 10 months from the time you sign the contract to the day you get the keys. Production builders or those builders that are giving you less options, some of those can wrap up things a little bit faster. We're probably looking at more like five to six months. And then those custom builders, they often take longer, anywhere from nine to 18 months. A lot of that's gonna depend on how complex and customized your home is. You know, if there's any restrictions on building times and so on, there are a number of variables that can get in the way. So if you wanna be moved in by next summer, you really need to start making decisions now and reach out to our team today so we can help point you in the right direction. Now, understanding the timing leads us into the current market conditions, which are pretty favorable for buyers right now. So let's dive a little bit more into that. Right now, the market is certainly shifting in favor of buyers. Inventory levels are growing, which means you have more choices and more room to negotiate. And a lot of sellers and builders are starting to feel that heat a little bit. You know, builders in coastal Delaware know that the competition is heating up. So they're more willing to offer incentives or stay a little bit flexible to help close those deals. But again, once they give, you need to be ready to sign. Now, even with the broader economic uncertainty, coastal Delaware's real estate market is really holding strong throughout this year. The region's economy is growing five times faster than anywhere in the rest of the state, thanks to steady tourism, rising home values, and our tax-friendly setup that keeps driving people here. Now, looking ahead at the remainder of 2025, there are some important trends to keep in mind. And just to keep your eye on, for one, the luxury market is staying very solid. Rehoboth Beach now ranks number two in luxury home sales across all of the Mid-Atlantic. And nearly half of those luxury buyers are paying cash, which helps them avoid those high interest rates that we keep hearing about. And with more homes hitting the market, buyers have more power to negotiate better deals and better terms. Delaware certainly has some major advantages with no sales tax, low property taxes, and that sought-after coastal lifestyle, while still being in close proximity to all of our major metropolitan areas that are just a few hours away. When you combine that with rising inventory, it's a great time for those smart, informed buyers to make a move today. Now, to make the most of it, you need to know the differences between the builders, avoid the common pitfalls, agent that knows what they're doing, and use the current market conditions to your advantage. And that's how you get the best possible outcome with new construction. So here's the bottom line. Buying new construction in coastal Delaware isn't just about picking a nice model home and signing some paperwork. It's about knowing what you're getting into, what the process is. And right now, the market is giving you some real opportunities. There's more inventory. Builders are ready to make deals, and there are some solid incentives out there, but those benefits only matter if you know how to navigate the process the right way. So skip the traps that cost other buyers tens of thousands of dollars, and you're gonna set yourself up for some real success. Now, if you're ready to start your new construction journey here in coastal Delaware, reach out to my team and I, and let's lock in your opportunity while the market is still working in your favor. 2025 could be the year you land your dream home, and we can help you choose the right builder, avoid those costly mistakes, and find a community that truly fits your lifestyle and long-term goals. All of our contact information is gonna be down below in the description, and me and my team would absolutely love to help you out on your home buying journey. Thanks for watching. I hope to see you on the next.