Purchasing a newly built home can often bring about unexpected costs for buyers. The median sale price for new constructions in the U.S. in February was reported to be $400,500, a number that can shock many potential homeowners. However, certified financial planner Veronica Fuentes emphasizes that the final cost of a newly built home is influenced by various factors, such as the finishes chosen by the buyer. From windows and flooring to siding and doors, each selection adds up to the total bill for the new construction.
To avoid high price tags when purchasing a newly built home, experts recommend considering the option of hiring a contractor after the initial purchase to add desired finishes. By deferring certain elements for future renovations or upgrades, buyers can potentially save money and stay within budget. Angie Hicks, a home expert, advises homeowners to focus on structural elements which are more expensive to change later on. Considering the average costs of remodeling projects in 2023, it is clear that strategic planning is key to managing expenses effectively.
According to the State of Home Spending survey conducted by Angi, homeowners spent an average of $13,667 across 11.1 projects in 2023. The majority of respondents used cash from savings to cover renovation costs, while some turned to credit cards or loans for financial assistance. It is important for buyers to be cautious and conservative with their expenses when purchasing a new construction, as many elements can be altered or upgraded later on through professional contractors. Focusing on essential structural components and opting for basic features initially can help reduce immediate financial strain.
Cost Comparison for Kitchen and Bathroom Remodels
When planning for future upgrades in a newly built home, it is advisable to start with basic or lower-priced features to minimize costs during the initial construction phase. Kitchen remodels in 2024 cost homeowners between $14,611 and $41,440 on average, depending on materials, labor, and location. Similarly, bathroom remodels ranged from $6,629 to $17,536, highlighting the significant expenses associated with home renovations. By strategically choosing which elements to invest in upfront and which to defer for later updates, buyers can navigate the financial complexities of purchasing a newly built home more effectively.