These are the biggest pain points for new-home buyers

Hidden costs, timing issues, and pricing confusion top the list of buyer frustrations when purchasing a new home, according to a Homes.com survey.

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.

Hidden costs or unexpected upgrades were the most common pain points during the new homebuying process, with 35% of respondents reportedly experiencing this challenge.

Southwest Michigan residents Kelley Di Martino, a real estate agent with eXp Realty, and husband Pete Di Martino, an operations manager for a wholesale grocer, have purchased three new homes and experienced different additional costs with different builders.

In their newest home, the homeowners were required to pay for and design their own landscaping. If they choose to finish their basement, they must also cover that cost. In past homes, those features were included.

Despite the added expense, the couple enjoyed designing their landscaping but they chose to delay finishing the basement.

"We had to put quite a bit into the irrigation, the planting, and all of that on top of the purchase of the house," Kelley told Homes.com.

Other charges can come in the form of blowing budgets or missing estimates if working to add on upgrades or custom design.

Chicago-area and Quad Cities-based homebuilder Jim Work, founder of Silverthorne Homebuilders, said it’s one of the most common concerns from buyers. Work said some builders can lack a proper system to track their projects, resulting in oversights and additional charges.

“They might be a great builder and might not be so great with the paperwork,” said Work. “Do your research on the front end. … Work with a builder that has a very transparent and accurate way of tracking.”

After hidden costs, buyers often struggle with timing — especially when coordinating the sale of an existing home with the purchase of a new one.

This timeline juggle is one home builders know well. For Fischer Homes, which builds across seven states, a projected closing date is provided at the time of the sale.

But it’s really the drywall stage when builders suggest listing a home. They will notify buyers at this stage or when it is anticipated. Sometimes adjustments can be made between the buyer and builder for a closing date for the new-home purchase, Fischer Homes said in a statement.

The Di Martinos needed to purchase a new home to make room for their baby. Ensuring the home would be move-in ready before the baby’s arrival was critical. They experienced a slightly later completion time than anticipated.

The survey results suggested that determining a fair price for a home is the third-most common purchase challenge, with 29% of respondents experiencing this pain point. It nearly tied with construction delays, which 28% of respondents said they experienced when purchasing a new home.

Work of Silverthorne Homebuilders noted that both of these challenges often stem from misunderstandings about different types of homes.

“We are more expensive than the big, publicly traded companies,” said Work, who specifies higher-priced, higher-quality products than a high-volume builder typically would. “I suggest people compare apples to apples with what you’re getting.”

Builders typically offer products aimed at first-time homebuyers or move-up buyers, with more affordable options with more affordable finishes aimed at first-time buyers. Move-up buyers with more equity might be attracted to a builder’s higher-tier options that could skew larger and include higher-priced products.

Delays are a natural occurrence in homebuilding, too, due to the nature of the job, say builders. With many moving parts and different trades and products, a build time can be extended due to supply chain challenges, weather, or scheduling of tradespeople.

“Sometimes our business is messy, and we are manufacturing homes outdoors,” said Work.

These were the other most commonly cited challenges for buyers of new homes:

• Figuring out what plans and customizations to include (26%).
• Feeling uncertain about or overwhelmed by the process (20%).
• Understanding what the home will look like when completed (19%).
• Having difficulty evaluating the builder (17%).
• Coordinating with builder/agent (16%).
• Finding it difficult to achieve my desired home style and features (15%).
• Discovering there are not enough new construction homes for sale in my desired area (11%).

While customization and location remain top priorities, buyers increasingly value transparency, realistic timelines, and clear pricing — elements builders must address to meet evolving expectations.