What Are the Hidden Costs of Buying New Construction in Utah?

New construction feels straightforward, pick your floor plan, choose your finishes, close on your new home. But several real costs regularly catch buyers off guard after they have already signed a contract. Here is what to budget for beyond the base price.

Landscaping Is Almost Never Included

New homes in Utah frequently ship with only basic grading and drainage completed. Finished landscaping, irrigation, patios, and turf are typically buyer-paid upgrades. A simple backyard build-out can easily exceed $10,000, and adding features like a gas fire pit or full turf coverage can push that number into the tens of thousands.

Impact Fees Vary Significantly by City

Many Utah County cities charge impact fees to fund the roads, parks, schools, and utility infrastructure required by new development. In cities like Springville, Alpine, and Spanish Fork, total impact fees for a single family home can run $20,000 to $30,000, and these are separate from standard building permit fees.

Lot Premiums Add Up Fast

Corner lots, larger lots, walkout basement lots, and lots backing to open space or trails commonly carry premiums that are not reflected in a builder's base advertised price. These premiums can range from a few thousand dollars to well over $50,000 depending on the community and specific lot characteristics.

Upgrade Pricing Is Rarely Base Cost

Builder model homes are staged with upgraded finishes throughout, and matching that look typically costs significantly more than the base price advertised. Countertop upgrades, flooring changes, and additional electrical or lighting packages all carry builder markup that often runs higher than sourcing similar work independently after closing.

Utility Connection Fees in Some Areas

If you are building in a more rural pocket of the county, running power lines or connecting to water and sewer can add $15,000 to $45,000 to your total cost if the infrastructure is not already in place at your specific lot.

Construction Loan Costs

If you are financing a custom build rather than purchasing an already-built inventory home, you will typically carry a construction loan with its own interest costs during the build period, on top of your eventual permanent mortgage costs, an expense that inventory home buyers do not encounter.

The Real Total Beyond the Base Price

Altogether, impact fees, landscaping, lot premiums, and construction-related costs routinely add $30,000 to $60,000 on top of what a builder initially quotes. A transparent builder should itemize these costs clearly rather than leaving them as unclear allowances, and it is worth asking directly what is and is not included before signing anything.

If you are considering new construction, I would be glad to help you understand the full real cost of a specific home or community, not just the advertised base price, before you commit to a contract.

Frequently Asked Questions

Is landscaping included when I buy a new construction home in Utah?

Usually not. Most new homes ship with basic grading only, and finished landscaping is a buyer-paid upgrade that can exceed $10,000.

How much are impact fees on new construction in Utah County?

They vary by city, but can run $20,000 to $30,000 in cities like Springville, Alpine, and Spanish Fork, separate from standard building permit fees.

Do lot premiums really add that much to the price?

Yes, premiums for corner lots, larger lots, or lots backing to open space can range from a few thousand dollars to over $50,000 depending on the community.

Should I trust a builder's advertised base price?

The base price rarely reflects the full cost. Ask specifically what is and is not included, and request an itemized breakdown before signing a contract.

Are upgrade prices from the builder a good deal?

Not always. Builder upgrade pricing often carries a markup compared to sourcing similar work independently after closing, so it is worth comparing before committing to every upgrade.

If you want help understanding the true total cost of a specific new construction home before you sign, I would love to walk through it with you. Call or text me at 801-636-3609.

 

If you want to find out or read more, click here.
Is-It-Cheaper-To-Build-or-Buy-House-Utah-2026