Creating Property Cards for New Construction

Overview

New construction homes typically aren't listed in MLS with a searchable address, and there's no existing property tax history since the house hasn't been built yet. Deal Details lets you create property cards from scratch by manually entering the builder information, location details, and estimated costs. This is especially useful for preferred lenders working with home builders who need to present financing options before the property is completed.

Before You Start

Requirement	Details
Property type selection	Choose "New Construction" from the property card options
Sales price	Obtain the contracted purchase price from the builder
Location details	Know the state, county, city, and zip code for the property
Builder information	Have the builder name and subdivision name available
Tax estimate	Get a property tax percentage estimate from the closing attorney (commonly around 1.1% of sales price for initial escrow setup)
HOA details	Confirm any initiation fees and annual dues for the subdivision

Step-by-Step: Creating a New Construction Property Card

1. Select the Property Type

From the property card creation screen, choose New Construction as your property type
This option is designed for properties that don't yet exist in MLS or public records

2. Enter the Sales Price

Input the contracted purchase price from the builder agreement
This will be the foundation for all loan calculations

3. Fill In Location Information

Field	What to Enter
State	Select the state where the property will be built
County	Choose the appropriate county from the dropdown
City	Enter the city name
Zip Code	Provide the zip code for the subdivision

4. Add Builder and Property Details

Enter the builder name (e.g., "Adams Homes")
Add the subdivision name (e.g., "Wellington Ridge")
Include a lot identifier if known (e.g., "Lot 77") to distinguish this property card

⚠️ Important: Since there's no existing property tax bill for new construction, you'll need to manually estimate property taxes. Many closing attorneys recommend using approximately 1.1% of the sales price for the initial escrow account setup.

5. Configure Tax and Insurance Estimates

Setting	How to Handle
County Taxes	The system will auto-fill using a factor of value based on location, or you can override with a custom estimate
City Taxes	Add if applicable to your location
Homeowner's Insurance	Accept the area average from the three quotes pulled in, or override with your own estimate (new construction often qualifies for better rates)

6. Enter HOA Information (If Applicable)

Add any HOA initiation fee as a one-time cost
Enter the annual HOA dues amount
Select the payment frequency (annual, semi-annual, quarterly, or monthly)

Working with Estimates

Understanding Insurance for New Construction

New construction properties often receive lower homeowner's insurance quotes because everything is brand new and built to current codes. You can accept the system's area average or input a specific quote if you have one from the client.

Property Tax Considerations

Scenario	Recommended Approach
No tax history exists	Use the closing attorney's recommended percentage (typically 1.0% to 1.2% of sales price)
Builder provides estimate	Enter the builder's projected annual tax amount
County assessor info available	Use the county's published millage rates applied to the expected assessed value

Finishing Up

1. Review the Property Card

Verify the sales price matches the builder contract
Confirm all location details are accurate
Double-check HOA fees and tax estimates

2. Save and Build Scenarios

Save the property card
Begin creating loan scenarios with accurate cost projections
Present financing options to your client based on the new construction terms

Quick Reference

Select New Construction → Enter Sales Price → Add Location (State/County/City/Zip) → Enter Builder & Subdivision → Estimate Taxes (use ~1.1% of price) → Add Insurance → Include HOA Fees → Save Property Card

Tips for Success

Get tax guidance from the closing attorney early. They handle these transactions regularly and can provide the most accurate estimates for initial escrow setup in your area.
New construction often means better insurance rates. Don't assume rates will match older homes in the same neighborhood.
Use lot numbers to stay organized. When working with multiple properties in the same subdivision, lot identifiers help you keep scenarios straight.
Update the card as details firm up. Once you have actual tax assessments or final insurance quotes, come back and refine your estimates for more accurate client presentations.
Builder contact info is optional but helpful. Adding the builder's sales representative contact information makes your property card a more complete reference for your client.