Compare Radius versus Jordan Court
Quick close of escrow, and lower expenses.
Homes that Radius offers for sale today are not expected to be completed and ready to move into until the summer or fall of 2019. In contrast, Jordan Court can close escrow immediately. You can move in right away, and avoid having to pay rent and other expenses for several more months.
Lower mortgage interest rate.
Homes at Radius will not close escrow until well into 2019, which means that most buyers can’t lock in an interest rate with their lender today (or are not willing to pay significant charges to lock in an interest rate for 6+ months). Mortgage rates have already increased significantly in 2018 (hitting a 7-year high), and are expected to rise above 5% in 2019. With Jordan Court, you can lock in an interest rate today, and avoid further rate increases.
Lower closing costs.
Pulte Homes uses its own sales contract, rather than the standard California Association of Realtors (CAR) contract. As you might expect, the Pulte contract favors the builder, and requires you (the buyer) to pay significant closing costs that are usually paid for by sellers in Santa Clara County. Those costs include an escrow fee, and the fee for an owner’s title insurance policy, each of which can run several thousand dollars. In contrast, the sellers for Jordan Court are following Santa Clara County conventions, and paying for both the escrow fee and the title insurance policy for the new owners.
No price premium for new construction.
Buyers pay a premium for new homes, just like for new cars. With Jordan Court, you can avoid paying this premium, while still getting a modern and relatively new home. Jordan Court was built in 2007 (also by Pulte Homes), and features many amenities and conveniences you can expect to find in new homes, such as an open floor plan, large windows, tall ceilings, dual-zone heating and cooling, Ethernet wiring, and good insulation. In addition, the sellers for Jordan Court completely remodeled the kitchen in 2018 – the new kitchen features shaker cabinets, quartz countertops, a large island with wrap-around storage, a high-end sink, and premium appliances. You can get all these features at Jordan Court without paying the premium for new construction at Radius.
If you’re thinking about buying one of the new homes in the nearby Radius development, consider several significant advantages you get with 174 Jordan Court:
No charges for upgrades.
New homes like the ones at Radius include only basic “builder grade” finishes. Buyers typically spend $20,000 to $60,000 on top of the purchase price for their new home to get upgrades such as new appliances, hardwood flooring, painted cabinets, blinds or shutters, and countertops. With Jordan Court, all of those upgrades are included in the purchase price.
Radius is a high-density community of 198 homes. In contrast, Bedford Square has about half the number of homes (106), and offers many “user friendly” community features not found at Radius, such as a pool and hot tub, a community room with a barbecue/recreation area, and mature trees that provide shade and enhance privacy. Not only that, but the HOA fees at Bedford Square are lower than at Radius, despite these additional community features.
The Radius disclosures state that the homes in the Radius development are built on top of a site that was previously used for “manufacturing, warehousing, chemical laboratories, and repair operations,” and that “operations … for tenants such as GTE, Catalytica, Line Lite Laser, and General Dynamics … included the use of hazardous chemicals.” In addition, the Radius homes are adjacent to a cell phone tower and 6 diesel fuel powered generators run by Cisco (see photos below).
Compared with Radius, the total savings you get with Jordan Court can really add up:
$21,000 less for closing costs and monthly expenses
$60,000 less for upgrades
$4,920 less for mortgage payments per year due to a lower interest rate (that adds up to $147,600 less over the course of a 30-year mortgage)
Note: The figures above are estimates, and are based on specific assumptions. Consult with your real estate, tax, and accounting professionals to determine the potential savings for your specific situation.