Thinking about building with Toll Brothers? Consider a different neighborhood to save $$

I happen to live in a neighborhood, Riverstone, that has a neighboring master planned community by the same developer. My master planned community is in 2 different cities - part of the neighborhood is in Sugar Land and the other is in Missouri City. If you anything about real estate then you know it is all about location, location, location. The neighboring community is in Missouri City just does not sound as sexy as Sugar Land when you say it out loud.

Several months after I moved in I decided to pay a visit to the Toll Brothers model in the next community - just because I felt like it. Well! As soon as I told the sales person that I had just purchased in Riverstone he gave me a list of reasons why I should have come and spoken to him first. So, since this community is in the less-sexy city, the builder throws in some perks to attract people to the community. The community itself is beautiful, but saying you live in Sugar Land has a certain 'je ne sais quoi.' I was informed that in that neighborhood, the model floor plan, the Sandhaven, comes as shown in the model. Say what?! Yes.

As far as my floor plan, the Vallagio, there was a $60k price difference between the communities when I signed my contract and the lots were a lot larger. In addition, the Vallagio in the less-sexy city comes with a pergola. The tax rate is also slightly less at 3.03% vs 3.3976%. Yes the difference is slight but if you consider the final price difference, then you could save yourself $2k/year.  For those of you who do not live in the Houston area, you are likely appalled that $2k could be saved by such a small tax difference. Houston area property taxes are ridiculous, but there aren't any state income taxes. On a house valued by the appraisal district to be $600,000, approximate taxes could be $18,000 without exemptions. That equates to an additional $1,500 per month; more if you escrow because a cushion is required. So take that into consideration.

With all the statements above, I do not regret choosing Riverstone because the location works better for me. If the floor plan is more important to you than the location or your commute to work, then consider finding a neighborhood where there base price is cheaper and more incentives are given. If location is more important, choice the location that you like and be willing to pay more.

Have a great Memorial Day Weekend!