There’s a lot to consider when you begin your new home search, and many Buyers will look at both resale and new construction opportunities. A brand new home in a beautiful community may offer a ton of appeal, but to better understand your options, you’ll need to first wrap your head around the price of a new home. While cost may seem like a straightforward number, there are actually several elements that make up the Total Purchase Price when building a. Here’s some helpful insider’s guide that makes understanding New Construction pricing more navigable.
Step One in your guide to understanding new construction home pricing is understanding the home’s Base Price. The Base Price is the price associated with the home plan, including the builder-chosen, included features. The Base Price may or may not include a lot or homesite. Any upgrades to your home’s structural elements, interior features, or a premium homesite will be added to the Base Price of your home.
While many builders include nice standard features, you’ll more than likely want to upgrade some things. Each builder will offer a handful of structural options to add to your home. These include additional features like adding a bonus room, screening in the back patio, or extending the front porch. Because of their structural nature, these options are often the most expensive selections available for your new home. These options must be selected at the time you contract for the purchase of your new home and are not changeable at any point during the construction process because they must be permitted before your home’s construction can begin.
Consider these the Bells and Whistles of your home. In addition to the structural upgrades you select, you’ll likely want to modify your flooring, countertops, cabinetry, and other elements that dress up your home and make it fit your personal style. The average Buyer will spend anywhere from 10 to 20 percent of the Base Price on interior upgrades so budget accordingly.
It’s becoming more and more uncommon to find a builder that includes a Base Homesite in the Base Price of the home, which means you need to account for an expenditure here. Homesites come in all shapes and sizes and, therefore, prices. The more attractive features a home site has, the more expensive it will be. Consider the homesite’s total square footage, shape, and what it backs directly up to (protected woods, private lake) when evaluating its added price. Prices can really range here, from just a few thousand dollars to over $100,000.
Builder Incentives are promotions that builders offer to get you to purchase a new home from them. Incentives typically change from month to month and can vary substantially based on the market conditions. If the market is softer and builders are vying for more sales, they may more heavily incentivize you, so you’re more likely to purchase a home. In a low inventory market that favors the builder, there may be no incentives offered at all.
In the end, making investments upfront to upgrade your structural elements, interior finishes, and your homesite will result in a higher price tag. Be sure to prioritize your “wants” from your “needs” to help you end up with a home you love without breaking the bank. It’s also important to know where you can save. The Martin Freeman Group attends each step of the contract and building process with our clients, including their Design Center consultation, so we can provide localized information on what items you can possibly save on by doing them after the home is complete rather than purchasing them through the builder. In the same tone, there may be some upgrades that save you substantially on by doing them as your home is being built rather than waiting.
Are you interested in some of the Charleston area’s beautiful resale home opportunities, building a new construction home, or unsure which better suits your needs? The Martin Freeman Group is here to help you find your dream home. We understand this process can be overwhelming, with many elements to consider, and we are prepared to help every step of the way. Contact us today by submitting a form online or calling (843) 619-7292.