Understanding the Costs of New Construction in Arizona

Understanding the Costs of New Construction: What Every Buyer Needs to Know in Arizona

Buying a new construction home in Arizona is an exciting process, offering the chance to own a modern, energy-efficient property tailored to your preferences. However, it’s important to understand the full scope of costs associated with purchasing a new build in communities like Peoria, Gilbert, and Scottsdale.

Here’s a detailed breakdown of the costs buyers should anticipate when investing in new construction homes in the Phoenix metro area:

1. Base Price of the Home

The starting price, or base price, of a new construction home, typically includes a standard floor plan and basic finishes. Communities like Sterling Grove in Surprise and Aloravita in Peoria offer homes at a variety of price points, depending on size, location, and included features. While the base price provides a general idea, expect to pay more for upgrades and customizations.

2. Lot Premiums

Not all lots are created equal, and certain locations within a community may come with an added cost. Homes with larger lots, premium views, or corner placements often require a lot premium. In neighborhoods like Vistancia in Peoria, lots with mountain views or proximity to community amenities may carry an additional price tag.

3. Upgrades and Customizations

One of the biggest draws of new construction homes is the ability to personalize your space. From upgraded flooring and countertops to luxury kitchen packages, upgrades can quickly add up. In many cases, buyers allocate 10–20% of the base price for optional upgrades. Communities like Sonoran Place in Peoria and Layton Lakes in Gilbert offer extensive options to make your home uniquely yours.

4. HOA Fees

Many new construction communities in Phoenix are part of a homeowners association (HOA), which helps maintain shared spaces and amenities. Monthly fees vary depending on the community. For example, master-planned neighborhoods like Desert Ridge in Scottsdale may have higher HOA fees due to features like clubhouses, pools, and golf courses. Be sure to factor these recurring costs into your budget.

5. Closing Costs and Builder Fees

Buyers of new construction homes are responsible for closing costs, which typically include lender fees, title insurance, and escrow charges. Additionally, some builders charge administrative fees for managing the construction process. In communities like Gilbert’s Cooley Station, these costs can range from 2–5% of the total purchase price.

6. Maintenance and Landscaping Costs

While everything in a new build is brand new, buyers should still plan for ongoing maintenance. Desert-friendly landscaping, common in communities like Aloravita, often requires minimal upkeep, but certain features like pools or upgraded outdoor spaces can add to annual costs.

Why New Construction in Arizona is Worth the Investment

While the costs of new construction homes may initially seem higher than resale properties, the long-term benefits—energy efficiency, warranties, and customization—often outweigh the expenses. Whether you’re buying in Peoria, Surprise, or Scottsdale, understanding these costs ensures you’re prepared for a smooth purchase process.

Contact Craig Bennett at Sotheby’s International Realty to navigate the process of buying a new construction homein Arizona. From understanding builder fees to choosing upgrades, Craig’s expertise will help you make the most of your investment.