Understanding the Cost of Building a New Home in Evansville
Base price, options, lot premiums, closing costs — here's what actually makes up the price of a new home.
New construction pricing can look confusing at first — there's a base price, then a list of options, then closing costs, and it's not always clear what's included. Here's how to make sense of what you're actually paying for.
Base Price: What's Included
A builder's base price typically covers the home's structure, standard finishes, and the homesite itself (or a homesite allowance). It's worth asking specifically what's standard versus what's considered an upgrade — flooring type, countertop material, and appliance packages vary widely between builders.
Structural Options vs. Design Selections
Structural options — like a bumped-out garage, extra bedroom, or finished basement — are typically priced separately and locked in early, since they affect the build itself. Design selections (cabinets, countertops, fixtures) are chosen later at a model home (visit us on the Lake in Daylight!) and can range widely in price depending on tier.
Lot Premiums
Not all homesites are priced equally. A larger lot, a walkout basement site, a cul-de-sac location, or a wooded backyard often carries a premium over a standard interior lot. This is worth budgeting for early if a specific type of site matters to you.
Getting a clear, itemized breakdown before you sign helps avoid surprises later.
Closing Costs and Financing
Beyond the purchase price, plan for closing costs, which typically run a few percent of the loan amount, along with any rate lock or construction-loan-specific fees your lender outlines. Ask your builder whether they have preferred lenders who understand new construction timelines.
Why This Matters
- Base Price: What's Included: A builder's base price typically covers the home's structure, standard finishes, and the homesite itself (or a homesite allowance).
- Structural Options vs. Design Selections: Structural options — like a bumped-out garage, extra bedroom, or finished basement — are typically priced separately and locked in early, since they affect the build itself.
- Closing Costs and Financing: Beyond the purchase price, plan for closing costs, which typically run a few percent of the loan amount, along with any rate lock or construction-loan-specific fees your lender outlines.
Getting a clear, itemized breakdown before you sign helps avoid surprises later. Sterchi Homes provides transparent pricing on base homes, options, and available homesites so Evansville-area buyers know exactly what they're budgeting for.
Want a transparent, itemized breakdown for a home you're considering? Browse our neighborhoods or see available homes.
