We have new builders enter the Santa Clarita Valley real estate market all the time. Some years - we see builders that we have never heard of before.
Of course, you will always have the "big dogs" competing with new homes and new builder communities in the Santa Clarita Valley cities, some of the "smaller dogs" are more affordable.
In most cases - a majority of the new home sites and new builder communities in the Santa Clarita Valley Cities sell homes, condos, and townhomes that have associated mello roos.
Mello roos are an extra tax which is to be paid by the individual homeowners to pay for things such as streets, street lighting, schools and public safety.
Back in the day, the new home builders used to pay this fee in order to build new homes. Back in the late 1980's they have an epiphany and thought a new home buyer may be willing to pick up this cost in the form of extra taxes, aka mello roos.
History indicates - those home buyers for new homes were willing to pay what was originally the builder's price of admission to build new homes, the mello roos tax, and still are!
When we represent Santa Clarita and Southern California home buyers with new homes and new builder communities, the inevitable question comes up, "Where are the homes that don't have mello roos?"
This question comes up from our resale buyers. They also want to know if the homes we are going to be viewing have mello roos and special assessments before they walk inside and fall in love!
The cost of Mello Roos:
In some Santa Clarita new home builder communities, the mello roos are as much as an additional 1.25% on top of your property taxes. Property taxes in Los Angeles County are approx 1.25%. That is like Paying Double Taxes!
We were in South Orange County a while back showing our clients some new homes that we had sent them the link of. While viewing we found that their mello roos amounts were 1.8% - but Orange county collects less in property taxes - However it did cause our new home clients to not move forward and now we are looking at Orange County resale homes!
Communities without mello roos
Currently, there are four new home builder communities that don't have Mello Roos. Two are with KB home builders - Canyon Heights is about to be built out and Canyon Crest is opening soon. Van Daele homes, which is privately owned is built out. Toll Brothers is in process of building and selling. Here are the links to their new inventory and prices:
- Canyon Crest New Homes in Santa Clarita
- Canyon Heights New Homes in Santa Clarita
- Van Daele homes in Plum Canyon (privately owned) (built out)
- Toll Brothers - off of Plum Canyon
With all the new home representation that we do, I will tell you to Never Sign Anything before we are able to be with you at the new home center or new builder community. Here is what every new home center should display for the public to see. The cost - the commission to be paid to your Realtor to represent you is always paid by the new home builder. Therefore, it costs you nothing to have your own hired Realtor on your side. Remember the new home builder has theirs on their side.
New Home Mello Roos Update for Santa Clarita Valley
Don't think for a minute that the Santa Clarita Valley has the only new home communities that have the special assessment and mello roos taxes. They are not. I have sold new homes, representing our new home clients in cities as far as Lake Elsinore where those communities have mello roos tax.
Most of the new home centers and new Santa Clarita home builder communities have the special assessment and mello roos now. This is due to them not paying for the infrastructure, the schools, public safety, streets, lighting and other communal items.
When builders used to build before 1998, at least in the Santa Clarita Valley, the mello roos taxes were not a thing. That did not start until Stevenson Ranch was starting to build up and really flourish. Tons of home buyers wanted to make Stevenson Ranch and the Santa Clarita Valley their home. They were willing to take the hit on their taxes to live here. The builders found that out and the rest has been history.
There is no argument that a home without mello roos sells faster than a home with mello roos. This is true. The same goes for selling a home with mello roos. The price per square foot takes a hit and the home takes longer to sell if they have mello roos, at least in the higher figures.
For those homes, such as with Stevenson Ranch, most of those special assessments are getting paid off or are low, such as $36.00 a month and will be paid off soon.
Some of the new communities in the Santa Clarita Valley have exceptionally high mello roos tax and create a lot of heartburn for home buyers and the sellers wanting to offload them and move.
Some of the questions I have pertaining to the new home agent are asked directly in front of my client related to the mello roos taxes if the community has them, or if I think they do. Either way, I want to know if a home has them?
Do I want to know what the mello roos pay for? Do I want to know how long the mello roos are to be paid? Do I want to know if the mello roos can increase? - (most cases they can - I betcha they did not tell you that!) Of course I do because it benefits my home buyers and keeps them safe and able to make best decisions with all of the related information - I want to know other things when representing my new home clients at new Santa Clarita homes with or without mello roos.
I ask those questions but it would be unfair for me to complete the list here. I don't like it when other agents scalp my content, I'll be here for you when you are ready for my assistance with any new housing.
There are other issues that mello roos can create for a homeowner, related to future home value and resale. I'll go into a bit more detail regarding the effect that mello roos can have for a home that a seller wants to sell.
Even at the forefront, with new housing in the Santa Clarita Valley, I will venture to say, from the intel that I get from my new home rep friends, that it does take longer to close out phases with homes in the Santa Clarita Valley that have high mello roos and special assessments.
Those same homes pose a bit of a problem when the sellers want to sell them. However, the impact directly corresponds to the amount of the mello roos tax. While most buyers aren't asking the right questions at the new home center, having the new home agent's statement backed up in writing, I do. There are additional disclosures that are given at the new home centers, but in most cases, these come a bit too late. They enter into the buyer's digestion after the contracts are signed and escrow is opened.
When wanting to buy a new home, treat it the same exact way that you would if you were going to buy a home that is being sold as a resale home. Find your own realtor. Have a Realtor with a new home is no different than using your own Realtor at a resale home. There is no cost to you and believe it or not, most home sellers, including the new home builders, would rather have their own agent and the buyer have their own and "different" agent. This is so hardball negotiation can be played between the parties.
Think of it this way, the home builders agent knows the home builders bottom line. They know what they will potentially take in the way of an offer. They know the inner workings and may offer too much to the home buyer who is not represented by another. The new home builder knows this and that's why they offer a commission, at no cost to the home buyer, to any agent who brings their home buyer into the new home center, wanting to buy a new home.
The same applies to the savvy home buyer, new or not, wanting to have their own agent. They are on their side 100%. They are not on the side of the home seller and they are there to play hardball on the defensive string.
Buying a new home involves a lot of questions and should be as concerning, if not more to a new home buyer. There are so many questions that have to be explored. Remember, the new home community has not been built. It is new - there has never been housing, at least of the type being built, on that land. Most new homes are built on vacant, never occupied, raw land - at least within current historical records.
That is why new homes need to be looked at and digested at different levels. How is the area going to be impacted? How are many future new homes going to be built? Will the new homes of the future impact traffic? How is traffic currently with the new homes being built? What about shopping? Will the new homes be too many to allow to ease of shopping with the current infrastructure? Will parking ever pose to be a problem? Questions such as these are extremely important and are the reason you need your very own guide when wanting to buy a New Santa Clarita Home.
First Step. Go to SCVnew.com - that is my new home site for Santa Clarita Valley - SCVnew.com
When there, you will be able to search for all the new homes in the Santa Clarita Valley.
Step 2 - when you have an idea that they could be a fit for you and yours, call me directly at 661.400.1720
I'll set up a new home tour at the new home builder communities within the Santa Clarita Valley Cities. And we will take it slowly from there and I will approach each individual home builder's agent as I stated on this "Does it have mello roos" page in SCVnest - our New Santa Clarita home Blog.
I'm Connor MacIvor, will be here when you are ready for me to serve your new home and resale housing needs.
Please make sure you visit often my SCVblog.com site. That is where we write about the local Santa Clarita housing market and share our tips, opinions, and facts about the local Santa Clarita real estate housing market.
I'm Connor and I hope this helps answer the question if there are any new home communities in Santa Clarita without Mello Roos. I will keep updating this page when we get word of Santa Clarita New Homes building new communities that don't have mello roos or special assessments.
Enjoy some of our youtube videos and radio show posted up for your viewing pleasure. SCVtube.com and HousingRadio.com are your access points to other information that I produce related to the current Santa Clarita new home market