Discover what makes up the costs when considering purchasing a new construction home.
Here’s what you need to know about how pricing works when you’re considering new construction homes. If you search our blog and you will find dozens of articles we’ve published over the years on the pros and cons and considerations when purchasing new construction. Articles such as:
- New Home or Resale when you relocate to Delaware?
- Ask the Broker: What will that new home cost?
- Thinking new construction? Don’t be dazzled by decorating…
- 10 Things You Must Do Before Buying a New Construction Home
- To Build or Not To Build
Recently, one of my agents brought me an estimate from one of our local builders that impressed me. It is titled “What you need to know; other costs to consider.” Everyone focuses on the Base Price advertised by every builder in their marketing campaigns, but the savvy buyer is like Paul Harvey and asks about “the rest of the story.”
The Rest of the Story
Each builder does things differently and some do it one way in this community and another way in a different location. It depends on the relationship between the developer and the builder.
- Are they one and the same?
- Are they frequent partners in multiple communities?
- Is there more than one builder in the community?
What does the Base Price include?
There are obvious questions like:
- Are all appliances included or just some? Is stainless included?
- What kind of flooring is included in the Base Price? What upgrades/options are available from the Builder?
- If there is public or community water and sewer, is there an impact fee or charge to connect to the systems?
- Is there a charge for a survey or permits?
But other things you need to know are not as obvious unless identified by the builder or your Buyer Agent such as:
- Are there fees to clear the wooded lot?
- If modifications are allowed is there a fee to customize the floor plan?
- If you purchase the lot separately and then contract with the builder, are there additional fees for architectural review by the HOA or to connect cable or electric service.
New construction homes are a great option, but each builder has its own process and business plan. They range from builders that offer Quick Delivery homes all the way up to those that build a semi-custom or custom home. Let us be your guide. Schedule an appointment today.