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Wondering what's included in the purchase price of your new or new-to-you home? In this post, we look at what’s normally included in the purchase price of a home as well as potential hidden costs and basement pricing. Continue below to learn all about the things that are included in the purchase price of a home.
The purchase price is the amount you agree to pay the seller. This may be different than the listing price as you may have had to pay over asking or your real estate agent may have been able to secure a lower price. Meaning, if the listing price was $250,000 but your real estate agent was able to secure a $25,000 discount, the purchase price of your home is $225,000.
What is included in the purchase price of a home can vary from builder to builder. Cory McDonald, Community Manager with Brookfield Residential, says “every builder, every presentation center might be a little bit different depending on what they include as standard specifications.” To find out what is included in your purchase price, you’ll want to ask questions like:
It’s best to ask these questions right away to gauge expectations and note what upgrades you might look to include in your own home. During a walkthrough of the show home, a sales team member or community manager can highlight all upgrades included in the model, and review any other available upgrades that might not be featured. Structural and material upgrades are additional costs that aren't included in a plan's base price.
At Brookfield Residential we pride ourselves on having full pricing transparency, from the cost of upgrades, lot premium fees, HOA fees, available promotions, and anything else that would affect the price of your home.
Yes, typically the price of a new home does include the price of the lot itself as well as the house on top of it. In fact when it comes to property taxes, Cory says “if you are paying for your portion of the taxes for the year, it's based on bare land. Basically, you're paying for the land, you're not paying for the house.” This is because the city originally assessed the property as a bare lot with nothing on it.
Once a house has been built on the land, the city will reassess the taxes to be paid based on the size of the lot and the home. “Depending on the size of the home, that could be a significant chunk of money that's due upfront,” says Cory.
Yes, the basement of a home is included in the purchase price. However, depending on your builders specifications, the cost of finishing that basement may not be included. Meaning, a bare, unfinished basement is included in the purchase price, any costs associated with developing the basement may not be included in the purchase price.
While the purchase price of your home will be the majority of the cost, there can also be additional costs associated with closing that you need to be aware of:
Cory suggests talking with your community manager or sales associate to get “a better idea of what to expect at the closing appointment too.”
If you’re a new homebuyer, it can be difficult to know what exactly is included in the purchase price of your new home. Use the guide above to understand what you are and are not getting. If you’re interested in learning more, check out our articles on how to finance a new home or what escrow is and how it works.