10 Hidden Costs Builders Don’t Tell You About When Buying a New Construction Home in Tampa Bay

Thinking about building your dream home in the Tampa Bay area? You’re not alone — and many buyers feel confident going in… until the surprise fees start stacking up.

We’re Keith and Jillian Jamison, REALTORS® here in Tampa Bay. After helping dozens of clients build new construction homes, we’ve seen firsthand the unexpected expenses that catch buyers off guard. Today, we’re pulling back the curtain on the 10 hidden costs builders rarely mention — and how to prepare for them.

Let’s jump in.

1. Lot Premiums Aren’t Always Included in the Price

When you walk through a model home and see the attractive base price, it’s tempting to think you’re right on budget. But that price almost never includes the lot itself.

Builders charge lot premiums based on desirability, such as:

• Backing up to another home (often the lowest cost)

• Pond views, conservation views, corner lots, or cul-de-sacs

• Larger or pie-shaped lots

These premiums can range from a few thousand dollars to over $200,000 on high-demand lots. Before falling in love with a homesite, always request the full list of available lots and their associated premiums.

2. Early Lot Release Fees

Your dream lot may be in a future phase that hasn’t been released yet. Builders often delay releasing the best lots until later.

In certain cases, you may be able to pay extra to secure a lot early — but many times, the builder simply won’t allow it.

If you’re eyeing a premium lot, stay in close communication with your agent so you can act the moment it becomes available.

3. Different Elevations = Different Prices

Once you choose a floor plan, you’ll likely be shown several elevation options

For example:.

• Elevation A = base design, minimal exterior detail

• Elevations B & C = enhanced architectural features like stonework, shutters, upgraded rooflines

Each elevation comes with a different price tag, sometimes adding thousands. Even more surprising: some HOAs prohibit your home from having the same elevation as your neighbor’s, forcing you into a more expensive option.

4. Structural Upgrades Add Up Quickly

The model home you toured probably had:

• A 3-car garage

• Extended lanai

• Gourmet kitchen

• Custom stair railings

• Additional bedrooms or flex spaces

Most of those are structural upgrades — not included in the base price.

Even seemingly small structural changes can add $10,000 to $50,000+.
When we built our own home, upgrades like a 3rd-car tandem garage, wood stair railings, and a living-room floor outlet added thousands.

5. The Design Center: An Upgrade Wonderland (and Budget Trap)

The design center is where your dream home comes to life… and where many budgets go off the rails.

Here, you’ll choose your:

• Cabinets & hardware

• Countertops

• Flooring

• Paint

• Lighting

• Plumbing fixtures

• Backsplash

• And more

Builders often upcharge for items you may expect to be standard — even door knobs, backsplash tiles, or cabinet pulls.
Plus, appliances like refrigerators, blinds, washers/dryers, ceiling fans, and light fixtures may not be included.

Most builders also require an additional deposit at the design center based on your upgrade selections.

Buying a quick move-in home?
These upgrade costs are typically already baked into the price — but the next five hidden costs still apply.

6. Builder Administration Fees

This one hides in the fine print.

Some builders charge a 1% administration fee on the purchase price.
On a $500,000 home, that’s an extra $5,000 just for processing paperwork.

Not all builders charge this, but it’s common enough that you should always ask upfront.

7. Title Insurance & Document Stamp Fees

In most Tampa Bay resale transactions, the seller pays for title insurance and doc stamps.
In new construction? The buyer pays.

These fees can easily total several thousand dollars. For example:

• Title insurance on a $500,000 home: $2,575

• Doc stamps: $3,500
  Total: $6,075

And when you eventually sell your home, you’ll pay them again.

8. Capital Contribution Fees (One-Time HOA Costs)

Most new construction neighborhoods in Tampa Bay are in HOA communities. Many of these HOAs charge a capital contribution fee at closing.

Typically:

• Equal to 2–3 months of HOA dues

• Often ranges from $1,000–$2,000+

It’s a one-time payment to help fund the HOA’s reserves and is rarely discussed upfront.

9. No Appraisal Contingency in Builder Contracts

One of the biggest differences between resale and new construction is the lack of appraisal protection.

In resale:

• If the home doesn’t appraise, you can renegotiate or cancel.

With builders:

• There is no appraisal contingency.

• If you’re under contract for $500,000 and it appraises at $475,000, you must pay the $25,000 difference in cash.

This doesn’t happen often in new construction communities with consistent pricing — but it can happen, especially if you’ve selected many design center upgrades.

10. Third-Party Inspections Are Still Essential

Builders may assure you that county inspections are enough — but those inspections only check for code compliance, not craftsmanship.

We strongly recommend hiring a private home inspector for:

• Pre-slab inspection

• Pre-drywall inspection

• Final inspection prior to your walk-through

These inspections can save you from costly issues once the home is finished. Once drywall goes up, hidden problems become much harder to fix.

How to Reduce These Costs

The good news? Builders frequently offer incentives — including:

• Flex cash

• Interest rate buy-downs

• Closing cost credits

In today’s market, buydowns are incredibly popular, helping buyers secure interest rates under 5%.
Flex cash can often be applied toward design center upgrades or closing costs.

Why Working With a Realtor Is Critical in New Construction

Even though the builder has their own sales representative, remember this:
That rep works for the builder — not for you.

When you work with us:

• We represent your interests only

• We review the fine print and help you avoid costly surprises

• We guide you on which upgrades add long-term value

• We monitor construction and progress

• We coordinate inspections

• We negotiate the maximum incentives possible

• We share insider insight based on years of working with nearly every major builder in Tampa Bay

And the best part?
Builders typically pay the buyer’s agent compensation.

Ready to Build Your New Home in Tampa Bay?

Those are the 10 hidden costs builders don’t tell you about — and now you’re better prepared than most buyers walking into a model home.

If you’re planning to build anywhere in Tampa Bay — Lutz, Odessa, Land O’ Lakes, Wesley Chapel, or beyond — we’d love to help you navigate the process with confidence.

Contact us for more info.