If you’re considering relocating to Dallas, you may have noticed that the real estate market is booming. But before you jump in and start looking for a new construction home, there are a few things you should know. From land and building costs to HOA fees and property taxes, let’s look at what makes new construction homes so expensive—and why they might not be the best option for your budget.
Most buyers don't realize just how expensive it can be to build a new construction home. Between the cost of land acquisition, materials, labor, permits, inspections and more, the cost of constructing a single-family home can easily exceed $200,000. That's why most new construction homes are priced at least twice that amount when they hit the market.
New construction homes often come with small lots—or no lot at all! That means less space between you and your neighbors—not to mention fewer trees on your property that provide shade in the summer months. This can make for an uncomfortable living situation if you're used to having some extra privacy.
If you're considering purchasing a home in a planned development or neighborhood association, chances are there will be an HOA fee involved. These fees can range from hundreds to thousands of dollars per year depending on how luxurious and amenity-rich the neighborhood is. So be sure to do your research before signing any contracts!
Property taxes on new construction homes can be higher than expected due to the transition between land value and then land plus home value in the same year. Builders often only pay their share of the property taxes based on the land value which leads to an increase for future homeowners once they take possession of their home. This could add up to thousands of dollars per year that buyers weren't expecting—so make sure you investigate this issue thoroughly before signing any contracts!
While purchasing a brand-new construction home can certainly seem like an attractive option when moving to Dallas, it's important for buyers to consider all of their options carefully before making such an expensive commitment. From high land and building costs to small lots with few trees, HOA fees and unexpected property tax increases – there are many hidden costs associated with buying a brand-new home that could end up costing buyers far more than they originally planned for! Make sure you do your research so you know exactly what kind of financial commitment you'll be making before signing on the dotted line!