First-time homebuyers seek more transparency from builders

Buying a new home comes with hidden costs and upgrades that can surprise even seasoned buyers—expenses often overlooked in the sticker price.

A new Homes.com survey found 35% of respondents cited hidden costs or unexpected upgrades as the top pain point during the sales process. Builders who offer clearer information may be better positioned to attract homebuyers. The survey found that nearly nine in 10 buyers would like clarity on the total home costs and fees, while eight in 10 demand information on the floor plan they want, calling it either very or extremely important.

For its New Construction: What Buyers Want Survey, Homes.com partnered with YouGov in May to poll more than 1,000 people age 25-plus who have incomes of at least $50,000 and either purchased a new home in the past two years or plan to buy a newly built property in the next two. See the full methodology.

First-time buyers experience this anxiety more acutely than repeat buyers and tend to have more non-negotiables when evaluating homes.

"Builders can provide upfront itemized pricing sheets for standard features and upgrades. It also helps to share realistic construction timelines with milestone updates and use homeowner portals for progress tracking," said Camelot Homes' director of sales, Leela Smith.

Builders who address buyer concerns with transparency, robust digital tools, and targeted messaging are better equipped to convert interest into sales, the survey suggests.

While clarity on costs and floor plans is a top priority for all buyers considering new construction homes, the survey found that the biggest gap between intenders and current owners lies in the use of interactive floor plans, site plans and 3D tours — features rated as very or extremely important. Homes.com found intenders to value this information 11% more than those who currently own a new construction home.

Scottsdale-based Taylor Morrison looks to direct prospective buyers toward its online reservation system to personalize their future home and view pricing and upgrade costs to get a truer sense of the all-in total. The nation's eighth-largest homebuilder says it also offers interactive site maps and floor plans, high-quality 3D tours, mortgage calculators, detailed home descriptions and community features and amenities.

"Taylor Morrison understands the importance and the opportunity to help educate buyers as they move through such an exciting, significant purchase," Kelly Iacovacci, Taylor Morrison's senior director of digital products, told Homes.com.

Camelot Homes, a custom builder, gives buyers the chance to personalize everything inside the home — from flooring and lighting to backsplashes and sound systems — through its design studio but also offers basic interactive visualization software. This allows buyers to "build" their home online using floor plans and upgrades, Leela Smith, Camelot's director of sales, said in an interview with Homes.com.

"It’s essentially like taking a digital walk through the home," Smith said.

Buyers' first questions are typically related to the final cost, upgrades needed and the timeline for completion, Smith noted.

The survey found 58% of buyers and 67% of first-timers prefer full customization as they look to complete their purchase. Ninety-two percent want some level of customization, but that comes at a cost. Danny Kallay, an agent with Compass who represents builders like Ashton Woods and Starlight Homes, told Homes.com that builders provide the basic wall paint and appliances as they turn over the keys. Backyard landscaping and upgrading the quality of finishes are generally separate costs after closing, with Kallay estimating these costs to start around $10,000 and up.

Charlotte resident Carol Tamayo went into the design process with open eyes as she moved to purchase a home in the Lakeside Pointe community in Sherrills Ford, North Carolina, but had to scale back as the price tag grew bigger and bigger and focused on the basic needs for her and her husband.

"It's kind of that champagne taste on a beer budget," Tamayo said in an interview with Homes.com. "I want to do this, this, this, and this. And then you would kind of get your price sheet back of all your selections, and it was like, 'OK, maybe not.'"

"We had to go through some rounds of adjustments to get us where we needed to be. But at the end of the day, we're so happy with where we landed."

Tamayo’s experience reflects a broader trend: Buyers want personalization, but transparency and realistic budgeting are key to satisfaction.