New construction homes are exciting — everything is fresh, clean, and ready for your next chapter. But many Arizona buyers assume new builds are automatically the cheaper or easier choice. In reality, they often come with costs and considerations that don’t show up in the model home tour.

As someone who helps buyers navigate both resale and new construction in Gilbert, Chandler, Mesa, Queen Creek, Scottsdale, and Phoenix, I walk clients through the full picture so they can make confident, well-informed decisions.

Before assuming a brand-new home will save you money, here’s what you need to know.

1. Base Prices Don’t Include Most Upgrades

Model homes are beautifully staged and fully upgraded — and none of that is included in the base price.

Most buyers pay extra for:

• Flooring

• Kitchen finishes

• Cabinet upgrades

• Lighting

• Backsplash

• Landscaping

• Appliance packages

• Electrical upgrades

A home that starts at $480,000 can easily reach $550,000–$600,000 with standard upgrades.

2. Lot Premiums Can Add Thousands

Not all lots are equal, and builders charge premiums for “preferred” locations, such as:

• Corner lots

• Larger yards

• Homes with mountain views

• Homes near green space

• Lots with more privacy

These premiums often range from $5,000 to over $40,000, depending on the community.

3. Landscaping Costs Are Usually Not Included

Most Arizona new builds come with a dirt backyard.

This means buyers must budget for:

• Pavers

• Turf

• Plants

• Irrigation

• Lighting

• Shade structures

It’s typical for backyard completion to cost $8,000 to $30,000+ depending on size and design.

4. Window Coverings and Fixtures Often Cost Extra

Small things many buyers expect to be included… aren’t.

Often missing in a new build:

• Window blinds

• Ceiling fans

• Pendant lights

• Garage shelving

• Washer and dryer

• Refrigerator

These hidden costs can add thousands right after move-in.

5. Builders May Require Their Preferred Lender

While this can offer an incentive, it can also limit your options.

Buyers should always compare:

• Interest rates

• Closing costs

• Incentives

• Long-term financial impact

The “discount” from using a builder lender may not outweigh a higher interest rate.

6. Construction Timelines Can Change

Delays are common due to:

• Labor shortages

• Material availability

• Weather

• Supply chain constraints

A home projected for completion in August may shift to October or later — which affects planning, moving, and temporary housing.

7. Warranties Don’t Cover Everything

Yes, builders offer warranties — but they vary greatly.

Some common exclusions include:

• Landscaping

• Cosmetic issues

• Grading problems

• Wear and tear

• Certain electrical or plumbing items after the first year

Understanding the warranty is critical before committing.

8. New Construction Communities Often Have Higher HOA Fees

HOA fees fund the development of:

• Landscaping

• Community amenities

• Infrastructure

• Future maintenance

Early phases may have lower fees, but they often increase as amenities roll out.

9. Property Taxes May Rise After the First Year

Initial tax estimates for new builds can be artificially low because they’re based on land value only.

Once the home is complete and assessed, taxes can increase significantly.

10. Resale Homes May Offer Better Immediate Value

A resale home often comes with:

• Completed landscaping

• Window treatments

• Established neighborhoods

• Mature trees

• More negotiating power

• No upgrade packages

• Faster move-in timelines

For many clients, these factors make resale homes a stronger financial choice.

FAQs: New Construction vs. Resale in Arizona

Q: Is new construction ever the cheaper option?
A: It can be — especially when incentives are strong and upgrades are minimal. It depends on your priorities.

Q: Can I negotiate with a builder?
A: Sometimes. It depends on demand, inventory, and current promotions.

Q: Are upgrades worth it?
A: Some are — like flooring and structural options. Cosmetic upgrades can often be done later for less.

Q: Should I work with a Realtor when buying new construction?
A: Absolutely. The builder represents their interests. You deserve someone representing yours from contract to close.

Q: Do new construction homes appreciate slower than resale homes?
A: Early on, sometimes yes — because the neighborhood is still developing. Over time, appreciation stabilizes.

The Bottom Line

New construction has incredible benefits — but it isn’t always the cheaper choice. When you understand the true costs, the timeline, and the long-term financial impact, you can choose the home that fits your goals without surprises.

My role is to guide you through both options with clarity so you know exactly what to expect.

Thinking About Buying a Home in Gilbert, Chandler, Mesa, Queen Creek, Scottsdale, or Phoenix?

Whether you're exploring new construction or resale, I’ll help you compare your choices clearly — and negotiate with confidence.

📞 480-980-4400
📧 [email protected]
🌐 www.denisehurd.com

Let’s find the home that truly fits your next chapter.