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Building a new home is all about choices...a whirlpool tub versus hardwood floors or brass bathroom fixtures versus chrome fixtures. There are choices that you and your builder can make in nearly every step of the building process. Even the basics of a new home require your decision. You and your builder can decide what type of framing method will be used as well as what type of heating and cooling system and windows and doors you want in your home.
The choices are numerous. For example, technology has changed conventional framing methods. Today, you can choose to use truss joists or other modular framing methods when building your home. You may even choose to opt for a more energy efficient heating and cooling system over a standard system.
Two homes that look exactly alike with the same square footage can vary in price significantly based on the products you choose for your new home. One of the two homes could be built with the standard features while the other one contains upgraded features.
Also affecting the price of your home are the choices that are made by governmental entities that assess each new home. These are usually hidden costs that do not reflect a corresponding added value to your new home. Some of these costs, such as excise taxes for street improvement, water and sewer connect fees and specific code requirements, can add up to thousands of dollars that will affect the ultimate cost of your new home.
These fees, which vary throughout the metro area, are enacted by government entities to ensure that new growth pays for itself.
When shopping for your new home, it's important to realize that these fees affect housing affordability. It's not an issue of whether these fees are good or bad, because without these fees, new growth may not occur. Without citywide funding for these needed improvements, your new home would probably not even get built at all.
With so many choices to consider, it's no wonder that many decisions are made based upon finances.
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