Avoid Overspending on a New Home: Watch Out for These Expensive Surprises

Buying a New HomeThink you’re saving more money by buying a new home instead of building one? While this is oftentimes true, you also have to be aware that new homes can come with hidden costs.

General contractor Hogan & Associates Construction, Inc. reveals what to watch out for to avoid costly surprises.

Latent Defects

Commonly known as hidden defects, brand new homes could likewise come with hidden defects like older homes, and these defects will require costly repairs. You could find the electrical wiring outfitted incorrectly, or heavy rains could expose poor grading or waterproofing that could result in leaks or, worse, flooding inside the house. Any experienced municipal contractor will recommend that you thoroughly research the reputation and credentials of the builder and have a home inspector check the house thoroughly.

Missing Features

Not all new homes come with everything you need. Some can lack landscaping, appliances, decks, fences, or window coverings, among others, and every one of these is an extra expense. So before making an offer, check for missing necessities and estimate how these will cost you so you can add them to your overall budget.

Expensive Upgrades

The magnificent model you will be touring will normally present all pricey upgrades offered by the builder – from supersized bathrooms and kitchens to bay windows and granite countertops. Looking at the possibilities might tempt you to spend more than the home’s base price and the difference between a typical model home and a base model could easily be thousands of dollars. Likewise, if you purchase these upgrades, you’ll most likely pay more so consider doing upgrades on your own. You’ll also have to factor in the home’s resale value so choose upgrades that will attract different buyer types, but won’t make the house under or overly improved.

Overall, don’t just expect that you’ll get everything you want to a tee if you’re in the market for a new house. Purchasing a new house could end up being more costly than actually building one from the ground up. However, if you do your homework and watch out for potentially expensive surprises, you can spend your hard-earned cash more wisely and get exactly what you want at a price that you want.