What Will This New Home Actually Cost?
Advertised base price ≠ contract price ≠ cash to close ≠ true cost to move in. See every step from the builder's sign to your true cost.
Calculate the True Cost →Build Your True Cost
Results update as you change any input. Builder/community fields are optional.
SOURCE The advertised price for the base configuration — not necessarily your final contracted cost.
Corner lot, larger lot, cul-de-sac, walkout basement, view, or location within the community.
Finished basement, extra bedroom/bath, extended family room, garage bay, fireplace, deck, etc.
Financing, Taxes & Closing Assumptions
% of contract price
New construction taxes recorded during/right after construction often understate the stabilized tax once the county reassesses the completed home — an important new-construction budgeting risk.
Builder Incentives
"Reduces Cash to Close" applies to closing-cost/lender-style credits. "Value Only" is for things like an appliance package — real value, but it doesn't lower the cash you bring to closing. Neither is assumed to be usable toward every cost — confirm restrictions with your builder.
Construction Deposits Already Paid
Deposits reduce your remaining cash due at closing — they are not counted twice.
Post-Closing Costs
Estimates are for educational purposes only · Builder pricing and incentives can change
From Base Price to Reality
Base Price, Contract Price and True Cost are three different numbers.
Upgrade Creep
Estimated Monthly Ownership Cost
ESTIMATE Using estimated stabilized property taxes ($7,013/yr) rather than current recorded taxes ($2,500/yr) — the more realistic figure to budget against once the county reassesses the completed home.
Total Transaction Economics (True Cost above) treats the full contract price as a cost regardless of financing. Actual Cash Required is the smaller, near-term cash you personally need — down payment, net closing costs, and required post-closing spend. These are different concepts; don't confuse them.
Post-Closing Costs
Only "Required Immediately" items are included in True Cost and Actual Cash Required above — "Can Wait" spend is shown for awareness, not folded into either total.
Appraisal Gap Scenario
Model a possible appraisal outcome — this is a scenario you enter, not a prediction.
Assumes the lender caps the loan at the lower of contract price or appraised value, holding your down-payment percentage constant. Reaixo cannot predict what an appraisal will actually come in at.
Delay Cost Scenario
Not a claim the builder owes these costs — for your own budgeting only.
Rate-Lock Payment Comparison
Reaixo does not predict future rates — compare your entered rate against a scenario rate.
For a full lock-vs-float decision framework, see the Rate Lock Calculator.
Builder Lender vs. Outside Lender
A larger builder incentive doesn't automatically mean lower financing cost — compare the full economics.
| Builder Lender | Outside Lender | |
|---|---|---|
| Interest Rate | 6.25% | 6.50% |
| Closing Cost Credit Applied | $8,000 | $0 |
| Monthly P&I | $3,140 | $3,224 |
| Total Monthly Housing Cost | $3,858 | $3,941 |
| Estimated Cash to Close | $127,500 | $141,500 |
| Total Interest (full term) | $620,457 | $650,477 |
The builder-lender credit above is only applied to the builder-lender column, since it's typically conditioned on using that lender. Confirm your own incentive's specific requirements.
Builder Upgrade vs. Doing It After Closing
Builder pricing for an upgrade is not automatically more expensive than an aftermarket contractor — it depends on the item and your local contractor market. Before deciding, weigh:
- Financing — a builder upgrade is rolled into your mortgage; an aftermarket project is usually paid separately or with its own financing.
- Convenience & timing — done before you move in vs. living through construction later.
- Warranty — builder work is typically covered by the home warranty; aftermarket work carries its own separate warranty.
- Construction disruption & removal/rework costs — e.g., ripping out builder-grade flooring after closing.
- Builder restrictions — some builders restrict outside contractors on site before closing.
- Contractor availability in your area.
Get your own contractor quote for any item you're considering doing after closing — Reaixo doesn't have reliable aftermarket pricing data to compare against your specific builder's quote.
Do Upgrades Add Equal Value?
No — a $20,000 upgrade does not necessarily add $20,000 to your home's value. Some upgrades (kitchens, primary baths) tend to hold value better than others (highly personal finishes). See the Remodel ROI Calculator for cost-recovery context on specific project types.
New Construction Decision Snapshot
Educational Use Only: Reaixo is not a lender, mortgage broker, financial advisor, or loan originator. Calculations are estimates for informational and educational purposes only and may not include every cost associated with a mortgage. Rates, APRs, fees, taxes, insurance, mortgage insurance, eligibility, and loan terms vary by borrower, property, lender, loan program, and market conditions. Verify all figures and loan terms with a qualified lender and review your official Loan Estimate before making a financial decision.
Need Help Evaluating This Builder Deal?
Get a second opinion on this builder, community and configuration.
Start a New Construction Deal Check →Advertised Price ≠ Actual Price ≠ Cash to Close ≠ True Cost
New construction pricing unfolds in stages: a builder advertises a base price for the least-upgraded version of a model, then adds a lot premium, structural options and design-center selections to reach your contract price. From there, closing costs, financing terms, incentives and post-closing spend determine what you actually pay and what you actually need in cash. This calculator walks through every stage using the same shared engine as Reaixo's other mortgage and cash-to-close calculators — never a second set of formulas.
Frequently Asked Questions
Why is the base price not what I'll actually pay?
Builders advertise a base price for the least-upgraded version of a model. Lot premiums, structural options (finished basements, extra bedrooms, extended layouts) and design-center selections (flooring, cabinets, countertops, fixtures) are added on top — and buyers commonly spend tens of thousands of dollars beyond base price by the time they sign a contract.
How much do builder upgrades typically cost?
It varies enormously by builder, community and how much you select — from a few thousand dollars for minor selections to $50,000+ for a fully upgraded design-center package. Use the Design Center section below to build your own itemized or quick estimate rather than relying on a generic percentage.
What is a lot premium?
An additional charge for a specific homesite — a corner lot, a larger lot, a cul-de-sac, a walkout basement, a premium view, or backing to open space, among other factors. It's added on top of the base price and varies by community and lot.
Are design-center upgrades cheaper than doing them after closing?
Not always — it depends on the item, the contractor market in your area, financing, warranty coverage, and construction disruption. This calculator does not assume either option is cheaper; compare your own builder quote against a contractor estimate for the specific item.
What are new construction closing costs?
Similar categories to a resale purchase — lender fees, title/settlement, recording and transfer costs, prepaid interest, and initial tax/insurance escrow — but new construction can also include construction deposits already paid, which reduce (not add to) your remaining cash needed at closing.
What hidden costs come after closing on a new construction home?
Blinds, appliances not included by the builder, a washer/dryer, landscaping, a fence, a deck or patio, and other items many resale homes already have. The Post-Closing Costs section below separates what's typically needed right away from what can wait.
Will my property taxes go up after the house is built?
Often, yes. Taxes recorded during construction may reflect land value or a partially completed home. After the county reassesses the completed home, taxes commonly increase to a "stabilized" level. This calculator lets you compare a current recorded tax figure against an estimated stabilized tax so you aren't underbudgeting your monthly payment.
What happens if the appraisal comes in below the contract price?
Lenders generally cap the loan amount at the lower of the contract price or the appraised value. If you keep the same down-payment percentage, that typically means more cash due at closing to cover the gap — model this in the Appraisal Gap section below. This is a scenario you enter, not a predicted outcome.
Does a bigger builder incentive always mean a better deal?
No. A large incentive tied to using the builder's preferred lender can come with a higher rate or fees that offset the credit. Compare the full economics — rate, points, fees and credit together — in the Builder Lender vs. Outside Lender section, not the incentive amount alone.
What if construction is delayed?
A delayed closing can mean extra months of rent or your current mortgage, a rate-lock extension fee, and possibly storage or temporary housing. Model a scenario in the Delay Cost section below. This does not imply the builder is responsible for these costs — check your specific purchase agreement.
How accurate are these estimates?
These are educational estimates based on the numbers you enter. Builder pricing, options, incentives, taxes, financing terms and appraisals vary by builder, community, model, contract date and market conditions. Verify final figures with your builder's contract, your lender's Loan Estimate, and your Closing Disclosure.
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See how a rate change would affect your payment and work through the lock-vs-float decision.
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See your true economic break-even — not just a lower payment from resetting your loan term.
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Compare 5%, 10%, 15% and 20% down side by side — loan amount, PMI, monthly cost, cash to close and PMI timeline.
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Model property tax and insurance changes, escrow shortages, and your current, temporary and stabilized mortgage payment.
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Educational Use Only: Reaixo is not a lender, mortgage broker, financial advisor, or loan originator. Calculations are estimates for informational and educational purposes only and may not include every cost associated with a mortgage. Rates, APRs, fees, taxes, insurance, mortgage insurance, eligibility, and loan terms vary by borrower, property, lender, loan program, and market conditions. Verify all figures and loan terms with a qualified lender and review your official Loan Estimate before making a financial decision.