Buying a Brand New Home: Understand the Terminology!

So, it's time for  a new home. A brand new, never-lived-in home. Great! Exciting! Wonderful!

Confusing.

What is a "Base Price"?  How much of what you see in a Display Home is considered "Extra"? Wait... does the price shown include the land?  Are taxes included in advertised pricing, or is that an unexpected additional expense?

Make sure you compare apples to apples. 

Base Price is the cost the Builder charges to build a Base Model house, that is, a house built as per the minimum specifications the Builder sets out. The key is to understand exactly what you get for Base Pricing. 

"Extras" are just that: items or features added to the home at an additional cost.

Land: Your final home price can vary greatly, depending on the cost of your lot. Be prepared for roughly 30% of your purchase price to be allocated to land. 

Stay tuned for more critical information.