Buying a new construction home involves different costs than purchasing a resale. Understanding these costs upfront helps you plan your budget.
Earnest Money Deposit
Most builders require an earnest money deposit when you sign the purchase agreement, typically 1-5% of the home price. This deposit is usually applied toward your down payment at closing.
Design Center Upgrades
Production builders offer standard finishes included in the base price, with upgrade options at their design center. Upgrades can range from a few thousand dollars for basic selections to $50,000+ for premium packages. Set a budget before you visit the design center.
Lot Premiums
Desirable lots, such as those with views, larger sizes, or cul-de-sac locations, may carry a premium. This cost is typically added to the base price of the home.