Your Guide to Buying
New Construction in Florida.

A CDD is a special-purpose government unit created to finance and manage infrastructure in a new construction community — roads, drainage, streetlights, parks, and sometimes sewer and water systems. The cost is paid through an annual assessment on your property tax bill, typically ranging from $500 to $2,500+ per year depending on the community. CDD assessments last until the bonds are paid off, which can be 20 to 30 years. Unlike HOA dues, a CDD assessment is tied to the property, not optional membership. Always ask: "Is there a CDD, and what is the current annual assessment?"

A deed-restricted community means the property deed includes recorded covenants, conditions, and restrictions (CC&Rs) that govern what you can do with your home and lot. These rules typically cover exterior paint colors, fence styles, landscaping standards, parking (no boats or RVs visible), rental restrictions, and even mailbox designs. Deed restrictions are legally binding and enforced by the HOA or a architectural review committee. Before you buy, review the full set of restrictions to make sure they align with how you want to live.

An HOA (Homeowners Association) is a membership organization that enforces community rules and maintains common areas — pools, clubhouses, landscaping. You pay monthly or annual HOA dues for this. A CDD is a government entity that pays off infrastructure bonds through property tax assessments. You can have one, the other, both, or neither. Many new Florida communities have both: a CDD assessment on your tax bill to cover the roads and drainage, plus an HOA fee for the clubhouse and lawn maintenance. Combined, expect $200 to $600+ per month in total community costs.

Impact fees are one-time charges levied by the county or city on new construction to help pay for the increased demand on public services — schools, roads, parks, emergency services, and water/sewer infrastructure. These fees are typically paid by the builder but are factored into the home price. In Sarasota and Manatee Counties, impact fees on a new single-family home can range from $8,000 to $15,000 or more. Ask the builder whether impact fees are included in the base price or added later.

Florida requires builders to provide a statutory warranty on new homes. The standard 1-2-10 structure covers: Year 1: Workmanship and materials — anything that fails due to defective installation or materials (cracked drywall, leaky plumbing, faulty electrical). Year 2: Mechanical systems — HVAC, electrical, and plumbing systems that fail due to defects. Years 1-10: Major structural defects — foundation failure, framing issues, roof truss problems that affect the structural integrity of the home. Understand exactly what is covered and what is excluded (appliances, landscaping, normal settling). Register your warranty promptly after closing.

A spec home (speculative home) is already built or under construction with a builder's chosen finishes — flooring, countertops, paint, and appliances are already selected. You can move in much sooner (30-60 days), and the price is typically more predictable. A to-be-built (custom build) home means you pick the lot, floor plan, and finishes from scratch. You have more control, but it takes 8-14 months from contract to completion, and the final price can shift with upgrade choices. Many buyers compromise with a "quick move-in" that is nearly finished with limited selection time.

The design center is where you choose every finish in your new home — flooring, countertops, cabinets, backsplash, light fixtures, plumbing fixtures, paint colors, and more. Builders include "builder grade" selections in the base price, and every upgrade costs extra. It is very easy to spend $20,000 to $50,000+ in the design center without realizing it. Strategy: Know your budget before you walk in. Prioritize upgrades you cannot change later (flooring, cabinets) over cosmetic items you can swap yourself (light fixtures, faucets). Get itemized pricing in writing before you make selections.

A lot premium is an additional charge for a specifically desirable homesite — a waterfront lot, a preserve view, a larger lot, or a corner lot with more side yard. Premiums range from $5,000 to $100,000+ depending on the location and community. Homes on the most desirable lots also tend to appreciate faster, but the premium is an upfront cost not included in the advertised base price. Ask for the lot premium sheet so you can compare standard lots vs premium lots and decide what matters to you.

The base price is the advertised starting price for the simplest version of a floor plan on a standard lot. The final price includes: lot premium + design center upgrades + structural options (extra bedrooms, extended lanai, additional bathroom) + closing costs + any community fees. It is common for the final price to be 10-25% higher than the base price. When comparing builders, ask for a "walk-in price" — the total for the home you would actually build, not the starting price. This lets you compare apples to apples.

A Certificate of Occupancy is a document issued by the local building department certifying that a home has passed all final inspections — structural, electrical, plumbing, mechanical, fire safety — and is legally safe to occupy. You cannot move into a new construction home without a CO. The builder must have the CO before closing can happen. Delays in getting the CO (due to failed inspections or backlog at the county) can push your closing date. Always ask the builder for the expected CO timeline and build some buffer into your moving plans.