Cost over asking price on new construction (Lee: sales, home sales)

[Leesa0926]

I'm looking at new home builds as a 1st time buyer (for new home)

I'm hearing average add on costs are like 20% to sales price with upgrades, land, etc.

Is that true so if house says 300k I should anticipate 360k?

If so need to rethink this new home build idea!

[JBtwinz]

Originally Posted by Leesa0926

I'm looking at new home builds as a 1st time buyer (for new home)

I'm hearing average add on costs are like 20% to sales price with upgrades, land, etc.

Is that true so if house says 300k I should anticipate 360k?

If so need to rethink this new home build idea!

Last month we pretty much visited about every new subdivision in Nassau County with friends looking to relocate.

Every builder seems to have different pricing, some developments have CDD fees, some will give you a house price minus the lot fee where they will then charge a premium to be on a retention pond or charge a standard lot fee. Most of the models we went into had upgrades. You can get through the design center without breaking the bank but you are going to be getting a basic home package. Sales are really hot right now so the builders aren’t really offering any perks as they had a year or two ago.

If you had explored a bit farther into other subdivisions off of Nassauville Road or Amelia Concourse you would have seen hundreds of house lots in various stages of construction. Sales are red hot right now with new construction running 7-9 months from start to finish. Until things slow down the builders aren’t really willing to deal right now. The sellers market and material prices are also allowing them to keep raising house and lot package prices.

With the wait time going up on new construction existing home sales are moving pretty quickly.

Good luck and welcome

[Scottamemnon]

Originally Posted by Leesa0926

I'm looking at new home builds as a 1st time buyer (for new home)

I'm hearing average add on costs are like 20% to sales price with upgrades, land, etc.

Is that true so if house says 300k I should anticipate 360k?

If so need to rethink this new home build idea!

It depends also on what you need. On my house we spent $214k for base price, $9k for lot. Then added $17k in upgrades, of which $8k was structural and $9k was at the design center. We added some big ticket items in there which we totally could have lived without though. I bet my wife and I would have been perfectly content with spending $5k in upgrades or less even.

When I had a house built in Houston, TX I went with builder standards only, didnt spend a penny outside of base cost. That house was great looking too and we had zero complaints.

We also saved a ton of money by doing a lot ourselves. We took basic lighting, no fans, no pendants etc and just had them prewire them all. One trip to Lowes and a few hours of work and I did it all myself for 1/5 what it would cost at the design center. A little sweat equity goes a long way.

Its important to discuss what is standard and any promos they are offering at the time. Many times the sales people will not tell you about them unless you really ask. I know Dream Finders often has a certain amount of money at design center as a promo that they never tell you about unless you ask. Some of the builders are definitely targeting the massive upgrade crowd. Try to see if there are listings of quick move ins, often you will see the trend in that.

[ShakenStirred]

Originally Posted by Leesa0926

I'm looking at new home builds as a 1st time buyer (for new home)

I'm hearing average add on costs are like 20% to sales price with upgrades, land, etc.

Is that true so if house says 300k I should anticipate 360k?

If so need to rethink this new home build idea!

Find a model home in a neighborhood that's closing out soon. They usually put all the upgrades in them, and you can get them for less than customizing your own. Plus, you won't have to deal with ongoing construction in and out for the next eon.

SS