5 Hidden Costs of New Construction — And How to Avoid Them

If you’re considering buying a new construction home whether it’s a semi-custom build you can personalize or a quick move-in from a national builder — you’re not alone.

Here in the Greenville–Spartanburg area, roughly half of the available homes at any given time are new construction. And with builder incentives, attractive financing options, and modern features that feel move-in ready, it’s easy to see why new homes are so appealing — especially for relocation buyers who need a turnkey solution.

But here’s the truth most buyers don’t realize: the “base price” you see on the sign or the listing sheet is rarely the price you’ll actually pay.

Having guided many clients through the building process — and having built and bought new construction myself — I’ve seen how easy it is to underestimate the real costs involved. Those costs can affect your budget, your financing, and even your long-term return on investment. And unfortunately, many buyers don’t realize where the pitfalls are until it’s too late. The good news? With the right strategy (and the right guidance), you can avoid costly surprises and make decisions that keep you financially confident from contract to closing.

Here are the five most common hidden costs of new construction — and how to stay ahead of them.

1. Design Choices & Feature Packages: 10–20% Over Base Price 

The model home is designed to make you fall in love — but what you see is almost never what you get at the base price. For semi-custom or boutique builders, you’ll often visit a design center where you can choose everything from flooring and cabinets to lighting and countertops. Each selection can push your total cost higher. Even “mid-range” upgrades often add 10–20% or more to the final price.

Production builders (like DR Horton, Lennar, or Meritage) usually offer pre-packaged options rather than à la carte selections, but these can vary significantly by neighborhood. Adding or upgrading features after closing can cost significantly more.

My advice: Go into the process with a clear priority list. Know which upgrades truly matter to you and which ones are “nice-to-haves.” This ensures your selections are intentional — and keeps you from making emotional, costly decisions on the spot.

2. Lot Premiums & Location Variables: $15,000–$75,000+ 

Not all lots are priced equally. Want a larger yard, more privacy, a better view, or a premium location within the community? Expect to pay for it. For semi-custom homes, lot premiums typically range from $15,000 to $75,000+, depending on size, view, and desirability. With production builders, those costs are often baked into the price of “quick move-in” homes — but they’re rarely highlighted.

My advice: Always ask for a detailed pricing breakdown before you commit to a lot or floor plan. A gorgeous model home might look like a deal until you realize that same home on a premium lot costs significantly more.

3. Allowances, Inclusions, and What’s Not Included 

This is one of the biggest sources of buyer confusion — and one that can add thousands to your bottom line. With semi-custom builds, you’ll often receive “allowances” for materials like tile, countertops, or lighting. But these allowances are sometimes based on outdated pricing or basic builder-grade options. Choosing higher-end finishes can mean spending far more out-of-pocket than you expected.

With production builders, it’s common for essential items — like blinds, refrigerators, washers, and dryers — to not be included. The good news is that many of these items can be negotiated as part of your purchase if you have the right strategy and representation.

My advice: Before signing anything, get a detailed list of what’s included and what’s not. Then, discuss opportunities to negotiate extras — particularly if the builder is motivated to move inventory.

4. Timeline, Financing, and Rate Lock Risks 

New construction timelines don’t always go as planned — and that can affect your bottom line. Delays in permits, supply chain issues, or weather can all push your completion date back. That might mean extending your rental, storing your belongings longer, or even
carrying two mortgages. More importantly, if your rate lock expires before closing, you could end up paying significantly more in monthly payments over the life of your loan.

With production builders, timelines tend to be more predictable — especially for homes already under construction — but incentive structures and financing options can change quickly based on inventory and market conditions.

My advice: Build financial flexibility into your plan. Understand what your lender’s rate lock terms are, and work with a Realtor who can communicate with the builder throughout the process to anticipate potential changes early.

5. Livability Costs After Closing: The “Hidden Finish Line” 

One of the biggest surprises for buyers comes after they close: realizing how many finishing touches are still left to complete. For semi-custom homes, plan on an additional 1–3% of the home’s price for landscaping, window treatments, fencing, or other post-closing projects. With production homes, many of these elements (especially blinds, appliances, or upgraded landscaping) aren’t included — but, again, a skilled agent can often negotiate them into the contract.

Also remember: builders typically provide only the landscaping necessary for a certificate of occupancy — not the lush, magazine-worthy yard you might be expecting. Enhancing curb appeal to match the rest of your home’s style can be another significant investment.

My advice: Budget for these “move-in-ready” essentials upfront so they don’t become stressful surprises after closing.

The Bottom Line: Preparation = Power 

Buying a new construction home — whether you’re relocating from out of state or building your dream home here in the Upstate — can be a fantastic decision. It’s an opportunity to personalize your space, take advantage of builder incentives, and move into something brand new.

But it’s also a process that requires strategy. And too often, buyers walk into a model home without understanding the builder’s business model, what’s negotiable, or where the true costs lie.

My best advice? Don’t go it alone. Before you visit a model home, let’s sit down for a New Construction Strategy Session. We’ll talk through builder business models, incentive structures, cost breakdowns, negotiation strategies, and how to make sure you’re investing wisely — not just emotionally. Because when you approach new construction strategically, you don’t just build a house, you build wealth.

Ready to make a smarter move? Click here to schedule your New Construction Strategy Session before you start touring model homes.