New construction sounds simple:
Pick the lot. Pick the floor plan. Pick your finishes. Build the house. Move in.
But experienced buyers know it's rarely that simple.
The biggest mistake we see is focusing almost entirely on the builder's advertised base price.
Because the base price isn't necessarily the price you're actually going to pay.
The $500,000 House That Becomes $600,000
Two builders can advertise homes at nearly identical prices and deliver dramatically different final costs.
Why?
Options.
Lot premiums.
Structural upgrades.
Cabinet upgrades.
Countertops.
Flooring.
Lighting.
Appliances.
Basement finishes.
Bathrooms.
Exterior materials.
Landscaping.
And sometimes items buyers assumed were included.
A $500,000 base price can quickly become a $575,000 or $600,000 purchase.
And that's where buyers need to slow down.
Compare Builders Like You'd Compare Businesses
Instead of asking:
“Who has the lowest price?”
Ask:
“What do I get for the price?”
You need to compare the entire package.
That includes:
Lot + Base Price + Structural Options + Design Options + Allowances + Included Features + Upgrade Costs + Estimated Closing Costs
Only then can you begin comparing one builder against another intelligently.
There's Another Question Buyers Forget
What happens if something goes wrong?
New construction doesn't mean perfect construction.
The builder's reputation, subcontractors, warranty process, communication and history of completing projects matter.
So does understanding the inspection process.
Yes—you should have a new construction home inspected.
In many cases, buyers should consider inspections at multiple stages rather than waiting until the final walkthrough.
And Here's Where Experience Matters
New construction is a completely different transaction from buying an existing home.
There are construction timelines, selections, allowances, change orders, builder contracts, inspections, financing considerations and deadlines that buyers need to understand.
Our experience with new construction has given us a perspective that goes well beyond simply opening the door to a model home.
We've been involved in the marketing and sale of hundreds of millions of dollars in new-construction homes, and we understand the process from both the marketing and transaction sides.
Before You Sign
Don't choose a builder based solely on the model home.
The model is designed to sell you the dream.
Your job is to understand the contract behind the dream.
Before signing a builder agreement, have someone who understands new construction review the numbers, options, timelines and process with you.
Because the cheapest base price doesn't necessarily produce the best value.
If you're considering new construction in Metro Detroit, talk with Jim & Kim before you sign the builder contract—not after.
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