Why do new homes seem that much more expensive than a resale home of comparable size and location? The short answer is that new homes carry the heavy burden of construction costs as development costs continue to increase. Why is this? A huge percenatage of the cost of a new home may come from municipal charges, permits, planning board requirements, etc.
Land development costs have soared in pace with government fees and regulated planning costs. But wait, there’s more! Getting a sub-division approved takes years of effort by teams of expensive professionals. Developers have to engage the services of engineers and civil planners to design the sub-division. There may also be environmental engineers, traffic study engineers, conservation officials and numerous specialists services involved.
With all the approvals in, further expensive requirements follow. Developers are required to install all the infrastructure in for the community before breaking ground for your residential lot. The result? Electrical, water, sewer, gas, telephone, cable, drainage, etc all must be in place. This is quite an expensive endeavor up front by the developer, all before your big, bright, beautiful new-build breaks ground! This is, of course, an effort on your behalf that you will reimburse in the price of your home.