Hidden Costs of New Construction: What Luxury Buyers in Frisco Should Budget For
- Nitin Gupta, CRS, REALTOR
- 1 day ago
- 3 min read

Buying new construction in Frisco sounds simple—until the hidden costs start stacking up.Luxury buyers moving from out of state often underestimate upgrade expenses, lot premiums, and post-closing costs.Here’s what you need to know to avoid surprises and stay in control of your budget.
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Why Hidden Costs Catch Luxury Buyers Off Guard
Unlike resale homes, new construction pricing starts with a base price—but the final number can be 15% to 30% higher after upgrades and premiums.
Even experienced buyers relocating from the East Coast or California are often shocked by:
Lot premiums
Design center pricing
HOA startup fees
Post-close essentials not included (like landscaping or blinds)
Let’s break them all down.
Hidden Costs Luxury Buyers Should Plan For
1. Lot Premiums
Ranges from $5,000 to $150,000+
Factors: greenbelt view, corner lot, cul-de-sac, size, orientation
Example: A corner lot in Fields may carry a $70,000–$120,000 premium
2. Design Center Upgrades
Cabinet style changes: $5,000–$50,000
Flooring (hardwood or LVP throughout): $15,000–$40,000
Kitchen upgrades (appliances, counters, backsplash): $20,000–$50,000
Lighting & electrical: $3,000–$10,000
Bathrooms (tile, frameless showers, vanities): $8,000–$25,000
➡ Budget 15–20% of base price for realistic upgrade costs.
3. HOA & Community Fees
One-time setup fees: $300–$1,500
Monthly HOA dues: $50–$250 depending on amenities
Some master-planned communities have MUD or PID taxes
Add thousands in annual taxes (ask for exact rate)
4. Post-Closing Costs
Landscaping (if not included): $5,000–$25,000
Window coverings/blinds: $3,000–$10,000
Fence (in some cases): $2,000–$8,000
Smart home equipment (security, audio): $2,000–$15,000
Custom closets, garage epoxy, gutters: Additional $5,000–$20,000
5. Builder Escrow Deposits
Most builders require 1%–3% of purchase price upfront
Can go higher for custom builds or upgrades selected outside base package
6. Unplanned Delays = Holding Costs
If you’re relocating from another state, delays in permitting or labor may push move-in
Budget extra funds for temporary housing, storage, and interest rate lock extensions
How Nitin Gupta Helps You Budget Like a Pro
As a luxury-certified CRS®, GRI®, and ABR® agent, Nitin Gupta:
Provides a full cost worksheet BEFORE you sign
Guides you through design center pricing strategy
Reviews community docs for MUD/PID/HOA obligations
Connects you with landscapers, security firms, AV specialists, and blinds installers
Helps negotiate closing cost credits to offset hidden expenses
➡ Explore Nitin’s certifications: https://www.nitinguptadfw.com/dallas-realtor-designations
➡ Hear from buyers he helped budget wisely: https://www.nitinguptadfw.com/reviews
➡ Schedule a consultation to review your total new construction cost plan: https://www.nitinguptadfw.com/contact
About us: Frisco Expert Real Estate Agent
As a Top Real Estate Professional in Frisco , I understand the challenges that arise when buying a luxury home in Frisco.
As a holder of top real estate industry certifications and designations like CRS, ABR & GRI, I can offer my clients experience as a Buyer's Agent and REALTOR®, top Industry Customer Service, in-depth, up-to-the-minute and comprehensive market knowledge; honesty, integrity, dedication, and professionalism in my business.
Whether you are a first time buyer in Frisco looking to buy a home in Frisco or whether you are relocating to Frisco from California or moving your entire family from areas like San Francisco, Fremont, Palo Alto, Los Angeles, San Diego in California due to job transfer with your company, I can help you find a luxury home in Frisco. Our relocation team eases the transition - whether you are moving across town or across the globe. We will work with you to find an area that best suits your professional, family and lifestyle needs. We have all the tools you need to help your home search. Whether it is video previews of homes, extended work hours, digital signatures for documents or more, we can make this process as comfortable as possible no matter where you are located.
What is most important to you in your new home in Frisco? Send us an email at info@NitinGuptaDFW.com or give us a call at (469) 269-6541 to schedule a no obligation consultation. We’ll give you honest advice about Frisco that you can use to help make your home buying decision.
