The Hidden Costs of New Construction Homes

By Steven Thomas, Refind Realty

Introduction

Buying a brand-new home sounds like a dream, right? No repairs. No updates. Everything is fresh and built just for you. But here’s the reality most buyers don’t see coming—new construction homes come with a long list of hidden costs that can surprise you after you sign the contract.

As someone who has walked dozens of clients through this process, I want to break it down. My goal is to help you go in with your eyes wide open and your budget intact.

Neighborhood & Lot Premiums: The Price of Location

When you tour that shiny model home, it’s easy to get excited. But what the builder doesn't always highlight right away is the lot premium. This is an extra charge just for choosing a desirable homesite—maybe it backs up to green space, has no rear neighbor, or sits on a corner.

Lot premiums in Dallas-area communities can range from $5,000 to over $50,000 depending on the builder and location.

Then there's the neighborhood itself. Gated entries, community pools, and golf courses sound great. But they come with higher HOA fees, property taxes, and special assessments.

Looking in North Dallas, Frisco, or Prosper? You’ll want to check out this guide first.

Upgrades & Customizations: What’s Really Included?

That gorgeous model home? It’s decked out with top-tier upgrades. The base model your contract covers is often much more basic.

Here’s where upgrade costs can sneak up:

• Cabinets and countertops

• Flooring and tile work

• Lighting and plumbing fixtures

• Appliance packages

• Smart home features

• Structural upgrades (extra rooms, covered patios, bay windows)

You could easily spend $50,000 to $100,000 in upgrades just to make the home look like the one you toured.

I walk every client through the design center process to help avoid going overboard. Plus, with my Refind Realty Rebate Program, you may get cash back at closing.

Closing Costs: More Than Just the Down Payment

Yes, builders often offer incentives toward closing costs. But they usually only apply if you use their preferred lender, which might not offer the best rate.

Here’s what you may still be responsible for:

• Title policy

• Owner’s title insurance

• Lender fees

• HOA transfer fees

• Survey and appraisal

• Prepaids (taxes, insurance, interest)

Expect to pay 2 to 5 percent of the purchase price in closing costs.

Before you write an offer, get a real cost breakdown. Start the pre-approval process here.

Landscaping, Fencing & Appliances: Often Not Included

Most builders only sod the front yard. You’re usually responsible for the back.

Also, backyard fencing is not always included. That’s an extra $5,000 to $15,000, depending on the size of the yard and material used.

And don’t assume your new home will come with:

• A refrigerator

• Washer and dryer

• Garage door openers

• Window blinds

These are often sold as add-ons or left for you to purchase later.

Check available new construction listings here to compare builder inclusions.

Delays & Carrying Costs: Time is Money

Builders give you an estimated completion date. But bad weather, labor shortages, or supply delays can push your move-in back by weeks or even months.

If you’ve already sold your home or ended your lease, that could mean:

• Paying for temporary housing

• Storage unit rentals

• Double mortgage payments

I help clients structure smart timelines so they’re not stuck paying extra to wait.

Warranty Service & Long-Term Maintenance

New doesn’t mean perfect. Warranty requests can take weeks to process, and not every issue is covered.

Plus, newer homes are built tighter for energy efficiency, which means:

• HVAC systems run harder

• Maintenance schedules matter more

• Tech upgrades become outdated faster

That's why I always recommend a full walkthrough and inspection—even on new builds.

FAQs: Hidden Costs People Ask Me About

1. Can I negotiate upgrade costs with the builder?

Yes, in many cases. I’ve helped clients get design credits or specific upgrades included for free.

2. Do I need a home inspection on new construction?

Absolutely. I recommend at least two: pre-drywall and final. Builders miss things, and inspectors catch them.

3. Are appliances included in the base price?

Usually just a basic oven, microwave, and dishwasher. Refrigerators, washers, and dryers are often extra.

4. What about HOA fees and MUD taxes?

HOA fees are common in master-planned communities. MUD (Municipal Utility District) taxes can significantly increase your yearly property tax bill.

5. Can I bring in my own lender or do I have to use the builder's?

You can always use your own lender. Builder lenders may offer credits, but rates aren’t always the best. I help clients shop and compare.

6. What’s the benefit of buying new if it costs more?

New homes offer warranties, energy efficiency, and customization—but it’s critical to understand the full picture up front.

Final Thoughts: Build Smarter With Help

Buying a new construction home can be a great decision—as long as you know the real numbers. I guide buyers through every stage, from choosing a lot to navigating the design center to final inspections.

Let’s make sure you avoid surprises and build smarter.

Download the Lone Star App to browse current new construction listings across DFW.

You're Always Home With Refind Realty.