When buying a new construction home, several costs come into play beyond just the base price of the house. We’ve put together a comprehensive breakdown of the various expenses you might encounter. Check it out and see if a new construction home is right for you!

Base Price of the Home

·      Initial Cost: The fundamental cost of the home as per the builder’s standard pricing.

Upgrades and Customizations

·      Design Choices: Costs for additional features such as higher-end finishes, custom cabinetry, upgraded flooring, and appliances.

·      Structural Changes: Any alterations to the floor plan, such as adding rooms or changing layouts.

Lot Premiums

·      Location and Size: Extra charges for desirable lot locations, larger lots, or premium views.

Construction Costs

·      Change Orders: Costs for any changes made to the initial plans after the contract is signed.

·      Delayed Construction: Potential additional costs if construction is delayed.

Closing Costs

·      Title Insurance: Protects against issues with the title of the property.

·      Appraisal Fees: Costs associated with appraising the home’s value.

·      Inspection Fees: While new homes are typically inspected by the builder, you might still want a third-party inspection.

·      Attorney Fees: Costs for legal review, if applicable.

·      Escrow Fees: Fees for holding funds until closing.

·      Recording Fees: Fees to record the property transfer with local authorities.

Homeowner's Association (HOA) Fees

·      Community Fees: If the home is in a community with an HOA, there will be monthly or annual fees for maintenance and community services.

Property Taxes

·      Initial Taxes: Pro-rated property taxes for the time you own the home in the current tax year.

·      Future Taxes: Anticipated property taxes based on the value of the home.

Homeowners Insurance

·      Insurance Premiums: Costs to insure your new home against damage or loss.

Utilities and Services Setup

·      Utility Deposits: Deposits for setting up services like electricity, gas, water, and sewer.

·      Service Installation: Costs for installing or setting up services like internet and cable.

Landscaping and Exterior Enhancements

·      Landscaping Costs: Expenses for any additional landscaping or exterior features not included by the builder.

·      Fencing, Driveways, and Patios: Costs for adding fences, driveways, or outdoor living spaces.

Moving Costs

·      Moving Services: Costs for professional movers or rental trucks.

·      Packing Supplies: Expenses for packing materials and supplies.

Warranty and Maintenance Fees

·      Extended Warranties: Optional extended warranties or service plans beyond what the builder provides.

·      Maintenance Costs: Ongoing costs for maintaining the home and its systems.

Inspection Fees (Optional)

·      Pre-Closing Inspection: Costs for an independent inspection before you close, to ensure everything is up to standard.

Each new construction home and builder can have different pricing structures and additional costs, so it’s essential to review your contract thoroughly and discuss potential costs with your builder and real estate agent. If you’re considering a new construction home this season, reach out to Metrowest – we’d love to discuss your options!