The Hidden Costs of New Construction: What Buyers Need to Know

You found your buyer a brand-new home—no previous owners, modern finishes, energy-efficient features. It feels like a perfect, clean start. But before they start planning upgrades or budgeting for furniture…

There’s something they need to know:

New Build Fees!

 Unlike resale homes, new construction often comes with extra fees that buyers might not expect—costs that aren’t always advertised up front and can throw off their budget just before or even after closing.

Why This Matters

 Buyers are often focused on the base price of the home—but that number can quickly climb. Builders may charge for everything from lot premiums to mandatory upgrades, and some fees don’t show up until the final paperwork.

Even when the sales rep says “no surprises,” you still need to check for:

Lot premiums (especially for corner lots, greenbelts, or larger yards)

Mandatory upgrades or design center minimums

Closing costs not covered by the builder unless the buyer uses their preferred lender

HOA initiation fees or capital contributions

Future assessments for neighborhood amenities or infrastructure

Post-close fees for items not included—like landscaping or fencing

What Should You Do?

Read the Fine Print

 Always review the builder’s purchase agreement carefully. Ask about everything that’s included—and what’s not.

Ask for a Full Fee Breakdown Up Front

Before your client falls in love with the model home, get a detailed list of all associated costs: lot premium, upgrade requirements, and any fees due at or after closing.

Verify With the Title Company & Lender

 Sometimes fees show up late in the process—double-check with the title company and lender to catch anything that wasn’t disclosed early on.

The Bottom Line

 New builds can be an amazing opportunity—but they’re not always as “simple” as they seem. Unexpected fees can add thousands to the total cost if you’re not careful.

By helping your buyers ask the right questions and plan for the full picture, you can save them major stress—and money—down the road.

– Ara Fesperman M. Stagers Realty Partners