When considering purchasing a home many buyers like the appeal of buying a new construction home. There are many benefits to purchasing a new construction home including:
- You are the original and only owner of the property.
- You have the opportunity to pick finishes, flooring and paint colors.
- You have the option of selecting the layout that works best for your lifestyle
While the base price may look attractive at first glance, it rarely reflects the total cost of the finished home. The base price usually is the cost for the basic home layout with construction grade finishes and basic property lots. The final sales price is the amount you are paying for the home once all customizations, upgrades, and fees are included.
1. Lot Premiums
Many builders charge extra for desirable lots—those with views, extra space, privacy, or better locations within the community. Lot premiums can range from a few thousand to tens of thousands of dollars.
2. Structural Upgrades
Structural upgrades happen when you make a change to the basic layout. Perhaps you would like to add an additional bedroom or include a rooftop terrace. These upgrades will increase your final price.
3. Design Center Upgrades
When you purchase a new construction home you often will have the opportunity to select finishes, colors and enhancements to your home. Once you enter the design center, the price can climb quickly. Common upgrades include:
1. Flooring (wood or tile instead of carpet)
2. Countertops (granite or quartz instead of laminate)
3. Cabinetry
4. Appliances
5. Lighting fixtures
Buyers considering purchasing a new construction home should educate themselves on the cost of any and all upgrades. Ask the home builder about any additional hidden fees that may include landscaping, wifi packages, and extended warranties and service agreements. Most home builders will have a price sheet that shows the cost of the base price and any upgrades. Taking these steps will help avoid any surprises at the settlement table.
Questions? Don’t hesitate to reach out to the FOCUS on NoVA team.
