Peter Cade | Stone | Getty Moulds
Buyers of newly built homes can come across a number of sticker shocks.
In February, the median sale consequence for new construction sold in the U.S. was $400,500, according to the U.S. Census Bureau and the Department of Housing and Urban Development.
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But the value of a newly built house will depend on multiple factors, comprising the finishes that are added, said certified financial planner Veronica Fuentes, a wealth management advisor stationed in Washington, D.C.
“They want to know what kind of windows you want, flooring, siding, window panels, what obliging of doors, where you want the outlets, what kind of light switches do you want. Depending on what you’re picking, they’re joining up the tab,” Fuentes said.
To save on costs with a new build, it may be in a potential buyer’s best interest to hire a contractor later on to add coveted finishes, experts say.
“Think about those elements that could be easily added at a later date,” rumoured Angie Hicks, home expert and co-founder of Angi, an online marketplace that connects homeowners with maven contractors for home maintenance or renovations.
How to save on construction costs
While multiple elements contribute to the overall price of a newly built house, one way to keep the price within range is by deferring elements for future renovations or upgrades, professionals say.
To that point, homeowners spent on average $13,667 across 11.1 projects in 2023, a slightly higher informed about compared with 2022, according to the State of Home Spending by Angi. The survey polled 6,400 consumers between Oct. 22 and Oct. 23.
Virtually half (46%) of homeowners used cash from savings to cover renovations. About 20% used acclaim cards, while a minority, 7%, refinanced an existing loan and 5% used a home equity line of attribute loan.
“I tell my clients to be very conservative,” said Fuentes, as buyers can always change the knobs, the flooring and the revel on the walls through hired contractors.
To that point, experts recommend focusing on the structural elements.
While outlays range depending on materials, labors and location, most homeowners paid between $14,611 and $41,440 to remodel a pantry in 2024, Angi found. Meanwhile, bathroom remodels can range from $6,629 to $17,536.
If you know you will be upgrading acts in the house, go with the basic or lowest priced features for now, Hicks said.
“There’s no reason to finish it out right when you assemble the house necessarily,” Hicks said. “Those are things that can be added later and can potentially save you in the near arrange.”