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Real Estate

8 Building costs to consider during new construction

A breakdown of the building costs we factor to determine our all-in guaranteed pricing. 

Welcome Homes
/ Aug 29, 2022 / 4 min read

Understanding the cost of building a new home versus buying a home can be confusing. Unlike traditional builders, Welcome Homes provides you with a guaranteed, locked-in price and timeline upfront, and we streamline the entire home-building process from end to end.


                                         

Land 

In real estate, land (also known as buildable property) costs vary according to location, land supply, topography, and size. The final land price is negotiated between the land owners and buyers. Welcome’s all-in locked-in price includes the final price of your land plus the cost of your mode, which include any additional upgrades and add-ons. 


Land prep and excavation 

Land preparation is the first phase of any major construction project and involves clearing the building site of any trees and debris, leveling the ground, moving materials, as well as excavating if the home plan includes a basement. 


The associated fees can include the cost of surveying, site planning, land leveling, tree removal, and septic system installation. All of these fees are covered in your total, locked-in price with Welcome. If managing the project on your own or outsourcing a traditional contractor, this process can involve lots of sub-contractors and hidden fees. Welcome determines this cost upfront and includes it in the overall home price before any work has begun. 


                                                     

Architecture floor plans 

Designing a plan for your home with an architect typically requires many iterations and back and forth. Each revision to a plan costs an additional fee. Even after designing your dream home, the floor plans still have to be approved by an engineer who determines the feasibility of your design. Our home models are pre-approved, saving you the expense of architectural plan fees. Easily explore different home layouts and semi-customize your home through lifelike 3D renders on our online platform as you decide which home and design best suits you. 


Permits

A permit is a certificate of approval by a local governmental authority that certifies that work meets a certain standard. As permission to build a structure, a permit needs to be secured before work can begin. The permitting process is complex and varies across municipalities. When you work with Welcome, you never have to file a permit. We save you time and money, as each round of permitting requires application fees and participation in meetings and calls, which you never need to attend.


Building materials

All building materials are not made the same, and fluctuations in material costs can result in additional expenses that complicate your budget and overall end product. Welcome can secure preferred pricing due to our build volume, and you never have to pay more for fluctuations in price.


Finishes and fixtures

Building the home of your dreams also includes selecting the exterior siding, window frame finish, door knobs, cabinet materials, lighting, appliances, and more. Our in-house interior architects and designers have curated design packages of high-quality materials, which save you the guesswork.. With Welcome, save time and select various design themes for each room via real-time, lifelike renderings in our online design studio.


                               


New major appliances

All Welcome homes are outfitted with Energy-star rated appliances and cover all necessities: an oven, refrigerator, stove, microwave, washer, and dryer unit with premium appliance upgrades available. We also offer a total coverage warranty on each home. 


Labor 

Managing a construction crew can be time-consuming and challenging. Welcome takes care of this and ensures quality control and on-time completion of your project. Our in-house construction management team has collectively built over a thousand homes across their years of experience. You will never worry about needing to find an accredited general contractor or having to join a waitlist for your project. Welcome guarantees that your home will be built within seven months after permitting is approved. 



Other costs to keep in mind

At Welcome Homes, we replicate the singular purchase price experience buyers benefit from when buying an existing home while offering our customers a new home tailored to their needs. Similar to purchasing an existing home, there are upfront and ongoing costs to keep in mind when budgeting for your new property.


Some key upfront costs include:

  • Downpayment: A portion of the home’s purchase price you pay upfront before financing. 

  • Closing costs: an upfront fee paid to finalize a real estate transaction, typically ranging from 2-5% of the mortgage balance.  

  • Reserves: Lenders may require borrowers to show that they have additional cash at their disposal as a form of assurance that they can pay the mortgage payments. Typically a borrower is required to have two months’ worth of mortgage payments as reserves.


Ongoing costs include mortgage payments, property taxes, homeowners and mortgage insurance, HOA, and home maintenance fees. 


Building a home is an exciting experience, however, it is important to be prepared and fully informed of the financial investment. Welcome Homes supports customers through securing financing; We connect buyers with our mortgage consultant to get a full breakdown of costs so they can plan effectively, as well as preferred lenders for the best rates and streamlined approval process. 




Ready to get started? 

Our approach is simple and direct, from transparent pricing through construction. When you work with Welcome, we are not just building another house, we are building a home. 


Learn more about our streamlined process 


                            


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