Hidden Costs of New-Construction Homes

A brand-new home with energy-efficient features and modern layouts customized to fit your lifestyle — what’s not to love? While new construction offers plenty of perks, it’s not without its surprises. Builders focus on selling the dream, which means important details are often glossed over.

Before you commit, it pays to fully understand what you’re getting into. Here are four things builders may fail to mention:

1. Your taxes will likely increase after you buy the house. 

Many first-time homebuyers experience sticker shock after their first year of ownership. Why? Because their initial tax bill was based on the land value or a lender’s estimate, not the finished home. Once the value is reassessed, the property taxes can increase considerably.

2. Customizations come at a cost. 

New-construction homes come with plenty of upgrade options, many of which are showcased in the model home. But every upgrade comes at a cost — sometimes a steep one. Builder upgrades are often more expensive than hiring a contractor to add features later, so choose carefully.

3. “Built to code” doesn’t mean high quality.

When a home is “built to code,” it meets the legal standards for safety and quality. While that might sound reassuring, it really just means the builder did the bare minimum required. It might be worth your while to look for homes that go beyond the bare minimum — ones with better materials, more efficient systems and higher construction standards. The long-term benefits can far outweigh the upfront costs.

4. You should hire your own inspector.

Builders perform their own quality control inspection to ensure new construction is compliant. An independent inspector will likely be more thorough. This includes identifying code violations, construction flaws and overlooked issues that could result in costly repairs further down the line.

Ready to take your home search to the next level? Reach out to discuss your financing options.