We have some friends who live in the country and are on the journey of buying a home closer to the city. One of the big opportunities for home-buying in busier markets is often new builds that are a bit “further out.”
Purchasing a new build home can be an exciting venture, but our friends are discovering the surprising additional charges that may arise beyond the initial purchase price. Here are some common costs that can catch buyers off guard.
1. Upgrades and Customizations (the big one)
Many builders offer a range of upgrades, from premium flooring and cabinetry to landscaping and smart home features. While these enhancements can personalize your space, they can also add significantly to your overall cost. Always ask for a detailed list of upgrades and their prices during the selection process.
2. Closing Costs
Like any home purchase, new builds come with closing costs, which typically include title insurance, appraisal fees, and lender fees. These can range from 2% to 5% of the purchase price, so it’s crucial to budget accordingly.
3. Homeowners Association (HOA) Fees
If your new build is part of a community with an HOA, expect to pay monthly or annual fees for maintenance of common areas and amenities. These fees can vary widely based on the community’s offerings.
4. Landscaping and Fencing
While some builders include basic landscaping, more elaborate designs or fences are often not included. Budgeting for these extras can help enhance your home’s curb appeal and privacy.
5. Utilities and Property Taxes
New builds may have different utility rates, and property taxes can fluctuate based on local assessments. Research local tax rates to avoid surprises after moving in.
By understanding these potential additional charges, you can better prepare for your new build purchase and enjoy your new home without unexpected financial stress. Good luck!
