What the Builder Won’t Tell You: Hidden Costs in New Construction Homes

Jun 3

Buying a brand-new home is exciting—and often more appealing than dealing with the quirks and repairs of a resale property. With new paint, modern finishes, and the promise of builder warranties, it’s easy to assume you're walking into a perfect space.

But here’s the truth that many builders won’t advertise:
New construction often comes with hidden costs that catch buyers off guard, especially after closing.

From essential upgrades to surprise repairs, understanding what’s not included in your builder’s base price can save you thousands. And knowing how to protect yourself with a professional inspection helps ensure you’re getting the quality you paid for.

Let’s break it down.

Common Out-of-Pocket Expenses After Move-In

Builders typically promote attractive starting prices—but that number only includes the base model, not the actual home you toured in the model center. Once your contract is signed, the upgrades, finishes, and necessities start to add up.

Here are some commonly overlooked post-close expenses:

Landscaping (front and back)
Many new builds in Arizona come with dirt lots. Even basic rock and desert plant installations can cost $5,000–$15,000+.
Window coverings
Most homes are delivered without blinds or curtains—leaving you exposed (literally) and needing to invest immediately.
Ceiling fans and lighting fixtures
Basic wiring is provided, but fixtures often aren’t included—or the builder’s options are limited and pricey.
Appliances
Dishwashers are usually included, but refrigerators, washers, and dryers are not. Expect to spend $2,000–$4,000 on a full set.
Garage door openers or smart tech
These features might be shown in the model but not included in the base home.
Backyard fencing or walls
If the property backs up to a wash or open space, buyers may be responsible for completing side or rear barriers.
Security systems and mesh Wi-Fi
Most builders don’t include these modern essentials, and adding them after can be an unexpected investment.

Why “Builder Standard” Doesn’t Always Mean Functional or Long-Lasting

Builders have to meet code minimums, but those standards are exactly that—minimums. Many base-level features are chosen to save the builder money, not to provide durability or long-term performance.

Some examples:

Thin carpet with low-grade padding
Base-model HVAC units that may not be sized properly for extreme Arizona heat
Hollow-core interior doors that warp or wear faster
Plastic plumbing fixtures that look nice but break easily
Flat paint that marks and stains with the lightest touch

Buyers often find themselves upgrading or replacing builder-grade features within the first few years, especially when they realize they’re not holding up to daily life.

How Inspections Reveal Unfinished or Lower-Quality Installations

One of the most surprising ways buyers lose money in new construction? Skipping the inspection—because they think “new” means “no problems.”

At Dwellinspect Arizona, we regularly find defects and oversights in brand-new homes, including:

Loose roof tiles or improperly sealed flashing
Inconsistent insulation coverage in attics
Crushed or disconnected HVAC ducts
Plumbing leaks behind brand-new cabinetry
Doors and windows that don’t close properly due to framing misalignment
Poorly graded soil that slopes toward the foundation

Even small issues, when left unnoticed, can lead to big repair bills just months into homeownership—bills that buyers mistakenly think would be covered by the builder.

A professional inspection helps you:

Document flaws before you close
Hold the builder accountable for repairs
Avoid paying out-of-pocket for what should have been fixed before move-in

Pro Tip for Agents: Set Realistic Expectations Early

Buyers often get swept up in the excitement of a new build. As a real estate agent, one of the best services you can provide is educating your clients about these hidden costs up front.

Here’s how you can add value:

Review upgrade packages together and identify which items are essential
Encourage a pre-close inspection, even if the builder tries to discourage it
Help budget realistically for landscaping, appliances, and finishing touches
Schedule an 11-month warranty inspection to catch problems before coverage expires

Your clients will thank you for saving them stress—and unexpected expenses—down the road.

Final Thoughts

A new home can be a great investment—but only when you know what you're getting into. Between upgrades, add-ons, and post-close repairs, buyers often spend far more than expected.

The good news? With a bit of planning and a thorough inspection, you can avoid most of the financial surprises that come with new construction.

At Dwellinspect Arizona, we specialize in new construction inspections that help buyers protect their investment from the very beginning. Because new homes deserve just as much scrutiny as old ones—if not more.

Sean Garvey