Ask the Broker: What will that new home cost?

Kathy Sperl-Bell, BrokerNew construction homes in communities with lots of amenities have become a popular choice for retiring Baby Boomers in Delaware.

The biggest challenge we face is to help our clients understand the true cost of that new home in different communities.

You should see my spreadsheet with all the columns and rows to help my team of agents help them. This is one of the reasons it is so important to use a Buyer Agent to help you make an informed purchase decision!

Remember, Builder sales people are employees with one mission – to sell you a home! We, as your Buyer Agent, will make sure you have all the information you need so there are no costly surprises.

So what will that new home cost?

New homes starting in the high $200s

This is how builders advertise their new home communities and the goal is to get you to come in so they can sell you a home. So here is how it works:

  • The base model home is listed for $299,990. Does anyone really buy a base model home? And, what exactly is included in a base model home? That totally depends on the builder and their business model. We make sure you compare apples to apples and the base model price often tells you very little about what the final price will be.
  • The home you see when you visit the community will be totally upgraded with just about everything you can do and may sell for as much as $100,000 or even $200,000 more than the base price. Add a basement? Add a second floor loft? Gourmet Kitchen? Hardwood flooring throughout?
  • Does luxury mean anything these days? One builder’s luxury home may actually come with a Gourmet Kitchen featuring all wood comfort close cabinetry while another builder’s base model comes standard with 36” oak cabinets with plastic drawers. On which builder’s home do you think you will spend more in the end?
  • The Community Sales Manager will price out the structural options and estimate certain other upgrades to give you a general idea of the home cost. But that may not be the final price.
  • Some builders have Design Centers and you will be scheduled for a full day to meet with design consultants that help you personalize your home. You will probably spend more than you thought and more than you planned.

The more community amenities that are offered, the higher the “Association Fees”

The range of fees from one community to the next can vary greatly. The cost of the home is only one factor to consider when purchasing a new home. We help you understand the cost to go to settlement and the cost to live in your new home and community. Stay tuned for our continuing series Ask the Broker.

Other articles you may find helpful:

What will a new home cost in a 55+ community in Delaware?

Ask The Broker: REALTORS and New Construction

Got Questions?

It’s not unusual. We are happy to offer complimentary real time, real estate phone consultations. To speak to a REALTOR® and get the answers you seek, call us at 302-424-1890 or email us. We will be happy to assist you and address your concerns.