Buying a new construction home in Illinois, especially in desirable Northern Chicagoland suburbs like Hawthorn Woods, Lake Zurich, and Kildeer, can be an exciting opportunity. You get to customize your space, enjoy modern features, and move into a brand-new home built to current standards. But alongside the excitement, new construction comes with unique costs that many buyers don’t anticipate until late in the process.
At Helen Oliveri Real Estate, we’re committed to helping you navigate the full financial picture. Understanding these often-overlooked expenses upfront empowers you to budget wisely and avoid surprises.
Here’s a detailed guide to the hidden costs involved in buying new construction homes in Illinois, so you can plan smartly and move confidently.
1. Upgrades and Customization Costs
While base home prices often seem attractive, builders usually charge extra for popular upgrades, such as:
Premium flooring like hardwood or luxury vinyl plank
Enhanced cabinetry and countertops (granite, quartz)
Higher-end appliances or fixtures
Lighting upgrades, smart home tech, and custom paint
Even small additions can add thousands to your final price. It’s important to clarify what’s included in the base price and get a detailed list of upgrade costs before signing.
2. Lot Premiums and Site Preparation Fees
Location matters even within new developments. Builders may charge more for premium lots featuring:
Larger yards or corner lots
Better views or proximity to amenities
Enhanced landscaping or grading work
Additionally, costs related to clearing, grading, or preparing the site for construction can sometimes be passed on to buyers.
3. Impact Fees and Permits
Municipalities in Lake County and surrounding areas often require impact fees or permits related to:
Roads, sidewalks, and infrastructure improvements
Water and sewer connections
School district contributions
These fees can vary significantly by community and may be added to your closing costs.
4. Utility Hookup and Connection Charges
Connecting to essential utilities, like electric, gas, water, and sewage, sometimes incurs fees beyond the builder’s base contract. Verify what is included and budget for any additional charges.
5. Interim Housing or Carrying Costs
If construction delays occur, or if your current home sells before your new one is ready, you may face temporary housing expenses. Planning for possible interim costs like rentals or storage helps avoid financial strain.
6. Property Taxes on Increased Home Value
New construction homes typically have higher assessed values than older homes. This can mean higher property taxes starting the year after you move in. It’s wise to research tax rates in your desired Northern Chicagoland community and factor this into your ongoing budget.
7. Homeowner Association (HOA) Fees
Many new neighborhoods have HOAs that maintain common areas and provide amenities. Monthly or annual HOA fees vary but should be reviewed carefully before purchase.
8. Maintenance and Warranty Coverage Limitations
While new homes come with builder warranties, they often cover limited periods and specific components. Buyers should budget for routine maintenance and potential repairs once warranties expire.
How Helen Oliveri Real Estate Helps New Construction Buyers
Navigating the complexities of new construction requires specialized expertise. Helen Oliveri Real Estate partners with trusted local builders and guides buyers through every step, from contract review to budgeting for soft costs to final walkthroughs.
We provide:
Transparent breakdowns of all costs to expect
Comparisons between builders and communities
Negotiation support for upgrades and contingencies
Coordination with lenders familiar with new construction financing
Our goal is to make your home-buying journey smooth, transparent, and successful.
Key Takeaways for New Construction Buyers in Illinois
Don’t just focus on the base price; understand upgrade and lot premiums
Budget for impact fees, utility connections, and HOA dues
Plan for potential interim housing and higher property taxes
Work with an experienced agent who knows local builders and market nuances
Ready to explore new construction options in Hawthorn Woods, Lake Zurich, or nearby?
Contact Helen Oliveri Real Estate today to schedule your personalized consultation. Let’s build your dream home with full confidence and clarity.
