We are frequently asked what is the cost of a new home? There are two ways to purchase a new home.
You can buy a move-in ready home where the home is already built on a lot and you move into the home once the purchase is finalized at settlement. The price for a move-in ready home includes the cost of construction, lot and site development. You would have some decorating cost such as window treatments but it is pretty much a total cost.
The other scenario in purchasing a new home is to have a home built for you. You select the home design, modify it to meet your needs and select the materials and colors.
While the price is provided on the website for a move-in ready home, it is difficult to list an exact price on a home to be built since there are variables including options you may want to add and changes to the final home design.
It is extremely important to know what features and materials are included in the price of the home. Using cheaper materials will reduce the initial cost of a home but could end up costing far more in maintenance and replacement cost in the future since many people live in their home several years.
Quality name brand materials such as Tyvek HomeWrap, Therma Tru Doors and Schlage Locks will normally perform better, last longer and include a warranty for peace of mind.
You will want to know if the materials are included or if the builder is providing allowances for material. The danger with allowances is you may find out later that the quality materials you desire cannot be covered with the allowance amount meaning you either pay the additional cost to get what you want or accept a lesser quality material to stay within the allowance.
You do not typically know the allowance amount will not cover the cost of the products until after the mortgage amount is approved so it can be challenging coming up with additional money at that time. View a short video on potential pitfalls of buying a home with allowances.
We find customers appreciate viewing the selection of included materials and popular options displayed in the Design Center conveniently located in the model home and office. They know up front what material will be used in the construction of their home before they purchase or construction begins.
You are probably beginning to understand the challenge of showing prices on the website for a home to be built on your lot.
We believe transparency with pricing is important and suggest you contact your Housing Consultant who can provide a printed Price List with base prices on each home.
The published base price is a no haggle price consistent for everyone. It is not fair that some would receive a better price based on their negotiating skills. A published price is important so you know a builder is not raising their price so they can offer “a discount”.
Our homes are turnkey meaning they are built including basement and painting and pretty much ready for you to begin enjoying living in the home when it is finished.
As mentioned earlier, in addition to the house cost you would have the cost of the land and site development cost. Once you have the lot picked out or purchased, our Housing Consultant can review site development cost and help you come up with an appropriate budget to cover this expense.
A Housing Consultant can provide a free written estimate. Once a decision is made regarding the house and options, a Purchase Agreement is then provided to give the lender when applying for financing.
Site development cost can be added to the Purchase Agreement for financing purposes.