The Hidden Costs of New Construction Buyers Overlook in San Antonio

That attractive $285,000 base price advertised for new construction homes in San Antonio’s rapidly growing communities looks perfect on paper—until buyers discover it’s just the starting point. Across San Antonio, Boerne, Schertz, Cibolo, Helotes, and New Braunfels, first-time buyers and military families relocating to Joint Base San Antonio (JBSA) are discovering that the true cost of moving into a brand-new home can exceed the base price by $8,000 to $20,000 or more.

These aren’t optional luxury upgrades—they’re essential items like window coverings, appliances, and landscaping or fencing enhancements that many buyers assume are included. When combined with elevated property taxes, HOA fees, and utility connection costs common in new San Antonio developments, these hidden expenses can strain budgets, deplete relocation allowances, and turn the excitement of a new home into financial stress.

Understanding these overlooked costs before signing a builder contract is critical for making informed decisions when buying a home in San Antonio. This comprehensive guide reveals exactly what builders don’t prominently advertise, why these costs matter for your long-term financial planning, and how working with an experienced San Antonio Realtor can help you budget accurately and negotiate strategically.

Why This Matters for San Antonio Homebuyers

San Antonio’s explosive growth—particularly in eastern and western corridors and Hill Country communities like Boerne and Helotes—has made new construction increasingly popular. Builders are developing entire master-planned communities offering modern floor plans, energy-efficient features, and builder warranties that appeal to buyers seeking move-in-ready homes.

However, the San Antonio real estate market’s new construction sector operates differently than resale homes. While existing homes for sale in San Antonio typically include window coverings and all necessary appliances, new construction properties often provide only what’s specified in the builder contract—leaving buyers responsible for thousands of dollars in “finishing” costs that aren’t reflected in advertised pricing.

For military families on PCS orders to JBSA-Randolph, JBSA-Fort Sam Houston, or JBSA-Lackland, these hidden costs can quickly consume relocation allowances intended for moving expenses and temporary housing. For first-time buyers stretching to qualify for maximum loan amounts, discovering an additional $10,000 to $18,000 in necessary expenses after contract signing can derail financial stability and force uncomfortable decisions about furnishing, completing, or even affording the new home.

Understanding these costs upfront—and working with a knowledgeable San Antonio Realtor who regularly navigates new construction contracts—enables buyers to make realistic budgets, negotiate effectively with builders, and avoid the financial surprises that plague many new construction purchases in the San Antonio area.

The Complete List of Hidden New Construction Costs in San Antonio

Window Coverings

What Builders Typically Include: This varies significantly by builder and community. Some San Antonio builders include basic blinds or window coverings as part of their standard package, while many others provide homes with completely bare windows. When blinds are included, they’re typically basic builder-grade options—functional but minimal. Higher-quality treatments, upgraded materials, or coverings for specialty windows almost always require additional costs.

What You’ll Pay Extra For:

• Upgrade from basic to mid-range blinds: $1,500–$3,000 if builder includes basic coverings
• Complete window covering package (if not included): $2,000–$4,000 for basic blinds throughout average-sized homes
• Enhanced blinds with better light control and insulation: $3,500–$6,000
• Custom shutters or quality window treatments: $5,000–$12,000+
• Motorized blinds or smart home integration: Additional $1,500–$3,000
• Specialty window coverings (large windows, unusual shapes): $500–$2,000 per window

San Antonio-Specific Considerations: San Antonio’s intense sunlight and high summer temperatures make quality window coverings essential for energy efficiency and privacy from day one. Many buyers underestimate both the quantity of windows in modern open-concept floor plans and the cost of outfitting them properly. Even when builders include basic blinds, they may not cover all windows—specialty windows, large picture windows, or certain bathroom windows might be excluded.

Without adequate window treatments, afternoon sun can raise cooling costs substantially and create uncomfortable interior temperatures despite new HVAC systems. Additionally, living without window coverings means zero privacy until they’re installed—a particular concern in new developments where homes are built close together.

Why This Matters: Window coverings represent one of the most frequently overlooked costs when buying a home in San Antonio with new construction. Even when basic blinds are included, buyers often discover that upgrades are necessary for adequate sun control in Texas heat, or that certain windows aren’t covered at all. It’s essential to verify exactly which windows receive coverings and what quality level is provided before assuming this cost is covered in your base price.

Appliances Not Included

What Builders Typically Include: Dishwashers, built-in microwaves, and ranges/ovens are standard in most San Antonio new construction. However, large appliances that aren’t built-in rarely come with the home.

What You’ll Pay Extra For:

• Refrigerator: $1,200–$3,500 depending on style and features
• Washer and dryer set: $1,500–$3,000 for quality units
• Upgraded refrigerator (French door, smart features): $2,500–$5,000+
• Delivery and installation fees: $200–$500 depending on retailer

San Antonio-Specific Considerations: While some builders offer appliance packages as upgrades during construction, they typically charge premium pricing compared to purchasing directly from retailers. However, builder-provided appliances can sometimes be rolled into mortgage financing, reducing immediate out-of-pocket expenses—a consideration worth evaluating when buying a home in San Antonio with limited cash reserves.

Why This Matters: A refrigerator, washer, and dryer represent essential appliances costing $3,000–$6,000 that buyers must purchase immediately. Many first-time buyers don’t budget for these items, assuming all appliances come with a new home as they might in rental properties.

Landscaping and Fencing Enhancements Beyond Builder Standard

What Builders Typically Include: Many San Antonio builders now provide comprehensive basic packages including front and backyard sod installation, foundation shrubs, trees, mulched front beds, privacy fencing, and sometimes irrigation systems. This represents significant improvement in standard inclusions and reduces immediate expenses substantially.

What You’ll Pay Extra For:

• Upgraded or additional trees: $300–$1,000 each for mature specimens providing immediate shade
• Enhanced landscaping design (additional plants, flower beds, decorative elements): $2,000–$8,000
• Complete irrigation system (if not included): $3,500–$7,000
• Upgraded irrigation with smart controls: $1,000–$2,000 additional
• Backyard landscaping enhancements (additional planting areas, raised beds, vegetable gardens): $1,500–$5,000
• Decorative rock, additional mulch areas, or landscape edging: $800–$2,500
• Outdoor lighting (pathway, accent, security): $1,000–$3,000
• Fence staining or sealing for longevity: $800–$1,500

San Antonio-Specific Considerations: While builders now typically include functional basic landscaping and standard privacy fencing, many buyers desire enhancements beyond the standard package—additional shade trees for Texas heat, expanded planting areas, decorative elements, or irrigation system upgrades for better coverage. Texas summers make irrigation essential for maintaining any landscaping investment, so buyers should verify exactly what irrigation coverage is included and whether it covers all planted areas adequately.

Why This Matters: While basic landscaping and fencing are now commonly included, buyers often desire enhancements that better suit their lifestyle—more shade trees, better irrigation, and expanded outdoor living areas. These enhancements, while optional, can add $3,000–$10,000+ to move-in costs.

HOA Fees and Community Assessments

What Builders Typically Include: Some builders offer closing cost assistance or incentives that can cover initial HOA transfer fees, setup costs, or even the first year’s HOA dues as part of their sales promotions—particularly during end-of-quarter pushes or slower sales periods. However, this varies significantly by builder, community, and timing. Most commonly, builders provide nothing toward HOA costs, leaving all fees as the buyer’s responsibility.

What You’ll Pay Extra For:

• Annual HOA dues: $300–$1,500+ depending on community amenities (ongoing expense)
• Monthly HOA fees (in some communities): $25–$150 per month (ongoing expense)
• Initial HOA transfer or setup fees: $200–$500 at closing (unless covered by builder incentive)
• First year’s HOA dues: Often due at or shortly after closing (unless covered by builder incentive)
• Capital contribution or reserve fund fees: Some communities charge $500–$1,000+ at closing
• Special assessments for community improvements: Variable amounts depending on community decisions

San Antonio-Specific Considerations: Master-planned communities throughout the San Antonio area—particularly newer developments in Cibolo, Schertz, Boerne, and New Braunfels—increasingly feature resort-style amenities including pools, fitness centers, playgrounds, walking trails, and community events. While these enhance lifestyle and property values, they’re funded through mandatory HOA fees that add $50–$125+ monthly to housing costs beyond the mortgage payment.

Even when builders offer to cover initial HOA fees as an incentive, this is typically a one-time benefit. The ongoing monthly or annual HOA dues remain your permanent responsibility and must be factored into debt-to-income calculations and long-term affordability assessments. Ask your San Antonio Realtor to verify whether any builder incentives include HOA fee assistance and confirm exactly what’s covered.

Why This Matters: HOA fees represent permanent ongoing monthly expenses that impact affordability just as significantly as mortgage payments. A $100/monthly HOA fee equals $1,200 annually and $36,000 over 30 years—a substantial long-term cost often underestimated during the excitement of buying a home in San Antonio. While builder incentives covering initial fees provide short-term relief, understanding the full long-term obligation is essential for realistic budgeting.

Elevated Property Taxes in New Developments

What Builders Typically Include: Nothing—property taxes are ongoing expenses paid separately from mortgage payments (or escrowed monthly).

What You’ll Pay Extra For: New San Antonio construction developments frequently fall within Municipal Utility Districts (MUDs) or Public Improvement Districts (PIDs) that assess additional taxes to fund infrastructure development—roads, water systems, drainage, parks, and community facilities. These special taxing districts increase effective property tax rates significantly above established neighborhoods.

San Antonio-Specific Tax Scenarios:

• Established San Antonio neighborhoods: Effective tax rates of 2.0%–2.3% of assessed value
• New construction in MUD/PID areas: Effective tax rates of 2.5%–3.0%+ of assessed value
• Annual tax difference on $300,000 home: $1,500–$3,000+ higher in new developments

Real-World Impact: On a $325,000 new construction home in a development with 2.8% effective tax rate, annual property taxes reach approximately $9,100—versus $7,150 on a comparable resale home in an established neighborhood with 2.2% rate. That $1,950 annual difference equals $162.50 monthly, materially impacting affordability when combined with HOA fees.

Why This Matters: Elevated property taxes in new developments represent permanent ongoing costs that significantly impact monthly housing expenses. Many buyers focus only on mortgage principal and interest when determining affordability, not realizing that property taxes can add $150–$250+ monthly compared to established neighborhoods. Working with one of the best real estate agent in San Antonio ensures you understand true monthly costs before committing.

Utility Connection Fees and Deposits

What Builders Typically Include: Basic utility infrastructure to the property, but not account setup or connection fees.

What You’ll Pay Extra For:

• Water/wastewater connection fees: $200–$800 depending on municipality
• Electric utility deposits: $150–$350 for new accounts without credit history
• Natural gas deposits: $100–$250 where applicable
• Internet/cable installation fees: $100–$300 for professional installation
• Smart home system setup (if included by builder): $150–$500 for activation and configuration

San Antonio-Specific Considerations: Some new San Antonio developments require connection to specific utility providers—particularly in MUD areas where new infrastructure serves the community. These providers may charge impact fees or require deposits larger than established neighborhoods served by CPS Energy or SAWS. Additionally, some communities include pre-wired smart home technology or security systems requiring activation fees and ongoing monitoring subscriptions that add to monthly housing costs.

Why This Matters: While individually modest, utility deposits and connection fees collectively add $500–$1,500 to immediate move-in costs—expenses that strain budgets already depleted by down payments and closing costs.

Builder Upgrades Not Included in Base Pricing

What Builders Typically Include: Basic builder-grade selections—standard flooring, basic countertops, minimal lighting fixtures, standard cabinet configurations, basic interior paint.

What You’ll Pay Extra For (Common “Upgrades”):

• Upgraded flooring (wood-look tile, luxury vinyl, enhanced carpet padding): $3,000–$10,000+
• Kitchen upgrades (granite/quartz countertops, upgraded cabinets, backsplash, island extensions): $5,000–$15,000+
• Master bathroom enhancements (separate tub/shower, dual vanities, upgraded tile): $3,000–$10,000+
• Additional electrical outlets and USB charging stations: $300–$1,000
• Ceiling fans (beyond minimal included): $200–$400 per additional fan
• Upgraded light fixtures throughout: $1,500–$5,000 depending on quantity and quality
• Built-in storage solutions (pantry systems, closet organizers): $1,000–$5,000
• Covered patio or extended outdoor living spaces: $5,000–$20,000+
• Additional garage features (workbenches, storage systems, upgraded doors): $1,000–$5,000
• Upgraded interior paint colors (beyond standard selections): $1,000–$3,000

San Antonio-Specific Considerations: Texas heat makes covered outdoor living spaces highly desirable, but they typically represent substantial upgrades rather than standard features. Similarly, while many San Antonio buyers expect garage door openers and ceiling fans throughout, builders often include minimal quantities in base pricing, charging $300–$500 each for additional units.

Why This Matters: The difference between builder-grade standard selections and the upgraded finishes shown in model homes can easily exceed $15,000–$30,000. Buyers touring beautifully appointed model homes often don’t realize they’re seeing thousands of dollars in upgrades beyond base pricing.

Post-Closing Necessities and Move-In Essentials

What Builders Typically Include: The structure itself with standard features and basic landscaping/fencing as specified in contract.

What You’ll Pay Extra For (Move-In Essentials):

• Initial lawn care equipment (mower, edger, trimmer): $500–$2,000 for new homeowners
• Basic tools and home maintenance equipment: $300–$800
• Smoke detector batteries, carbon monoxide detectors, fire extinguishers: $100–$200
• Cleaning supplies and initial household necessities: $200–$400
• Garage door opener remotes (additional beyond included): $50–$100 each

Why This Matters: These seemingly small expenses collectively add $1,000–$3,000 to immediate move-in costs—amounts that strain budgets when buyers haven’t planned for them.

Why These Hidden Costs Matter for San Antonio Buyers

Impact on First-Time Homebuyers

First-time buyers typically maximize their purchasing power based on down payment savings and monthly payment capacity. When buying a home in San Antonio with new construction, they often calculate affordability using the builder’s base price plus selected upgrades, without accounting for the $8,000–$18,000 in additional costs required to make the house truly livable and personalized.

This creates several problematic scenarios:

• Depleted savings: Using all available cash for down payment and closing costs, leaving nothing for window coverings, appliances, and desired landscaping enhancements
• Credit card debt: Charging essential items like window treatments and appliances to cover immediate needs, creating high-interest debt
• Delayed improvements: Living with bare windows (privacy and energy efficiency concerns) or unable to add desired landscaping enhancements or outdoor living features
• Budget stress: Discovering that affordable monthly mortgage payments become unaffordable when combined with higher property taxes and HOA fees in new developments

Impact on Military Families and JBSA Relocations

Military families relocating to Joint Base San Antonio face unique challenges with new construction hidden costs:

PCS Allowance Limitations: Relocation allowances designed to cover moving expenses, temporary lodging, and incidental costs get rapidly depleted by new construction finishing requirements. Even with landscaping and fencing included, families still face $10,000+ in unexpected expenses for window coverings, non-realty appliances, and desired enhancements.

Timeline Pressures: PCS orders include specific reporting dates, creating pressure to make quick housing decisions without thorough cost analysis. Builders emphasizing “move-in ready” timelines may downplay the reality that homes deliver with bare windows and only basic landscaping—requiring immediate additional investment for comfort and privacy.

Financing Constraints: VA loan regulations limit financing to the home purchase price. Unlike conventional loans allowing limited cash-out at purchase, VA loans don’t permit rolling post-closing improvement costs into the mortgage. This means military buyers must have substantial cash reserves beyond closing costs to complete new construction properties with necessary items like window coverings and non-realty appliances.

Long-Term Financial Implications

Hidden costs in new construction aren’t just one-time expenses—some create ongoing financial obligations that impact affordability for years:

Property Tax Escalation: MUD and PID assessments in new San Antonio developments can remain elevated for 20–30 years as infrastructure bonds get repaid. That $150–$200/month tax premium compounds to $36,000–$60,000 over the typical homeownership period.

HOA Fee Increases: Initial HOA fees in new communities typically increase 3%–5% annually as amenities mature and maintenance requirements grow. Fees starting at $600 annually can reach $900–$1,200 within a decade.

Maintenance Requirements: Brand-new systems and finishes require less immediate maintenance, but landscaping enhancements and fencing need ongoing care. Wood fencing in Texas weather may require staining every 3–5 years at $1,500–$3,000 per treatment if buyers opt for this enhancement. Irrigation systems require seasonal maintenance, and any landscaping beyond builder standard needs regular care to maintain the investment.

Expert Insight from Tami Price, San Antonio Realtor®

“After nearly 18 years in San Antonio real estate and approximately 1,000 closed transactions, I’ve guided numerous buyers through new construction purchases—and I’ve seen how even seemingly minor hidden costs can impact budgets,” explains Tami Price, Broker Associate and top real estate agent in San Antonio. “The excellent news is that today’s builders typically include comprehensive landscaping and privacy fencing, which eliminates what used to be major post-closing expenses. However, buyers are still surprised by significant costs like window coverings throughout the home and major non-realty appliances that aren’t included.”

As a 14-time Five Star Professional Award Winner and RealTrends Verified Top Agent in San Antonio, Tami emphasizes the importance of comprehensive cost analysis before making new construction commitments. “I recently worked with a military family relocating to JBSA-Fort Lackland who fell in love with a beautiful new construction home listed at $310,000. The builder included excellent landscaping, irrigation, and fencing, which was fantastic. But during our consultation, we calculated actual move-in costs including window coverings for every window, appliances, and the elevated property taxes in that PID district. The true first-year cost came to $325,000—$15,000 more than they’d budgeted. That reality check helped them adjust their expectations and avoid financial stress after closing.”

Tami’s ABR® (Accredited Buyer’s Representative) designation and extensive experience working with first-time buyers and military families relocating to San Antonio provides crucial advantages during new construction negotiations. “Builders offer incentive packages—particularly during slower sales periods or end-of-quarter pushes—that can include thousands of dollars in upgrades, closing cost assistance, or rate buy-downs. As your Realtor®, I know which builders historically offer the best standard inclusions, which ones provide quality landscaping packages, and how to negotiate deals that might include window covering allowances or appliance credits that reduce your out-of-pocket costs.”

Her MRP (Military Relocation Professional) certification proves particularly valuable for service members relocating to JBSA facilities. “Military buyers face unique timing pressures and financing considerations that require specialized knowledge. I understand VA loan procedures, how to maximize PCS allowances, and how to identify properties that won’t strain military budgets with excessive hidden costs. That specialization makes a significant difference when buying a home in San Antonio as a military family.”

Tami also emphasizes the importance of comparing new construction costs against resale options: “Many buyers assume new construction automatically offers better value because everything is brand new with warranties. However, when you add $10,000–$18,000 in hidden costs to the base price, that ‘great deal’ on new construction may actually cost more than a comparable resale home that already includes window coverings and appliances—plus potentially lower property taxes and no HOA fees in established neighborhoods. It’s important to compare the complete picture, not just purchase prices.”

Working with a knowledgeable San Antonio Realtor becomes essential during the builder contract review process. “Builder contracts heavily favor the builder—that’s their business model. As your buyer’s representative, I review every contract clause, explain implications for selection deadlines, change order processes, and closing contingencies, and ensure you understand exactly what’s included and what’s not before signing. This includes clarifying what standard landscaping and fencing packages include, whether irrigation covers all areas, and what post-closing expenses you should expect.”

For buyers determined to pursue new construction, Tami recommends strategic preparation: “Before even visiting model homes, establish your true budget including post-closing costs. Then work backwards to determine your actual home price limit. If you have $340,000 total budget and need $15,000 for window coverings, appliances, and desired landscaping enhancements, your maximum home price should be $325,000—not $340,000. This prevents the emotional attachment to homes you can’t truly afford to complete comfortably.”

As a U.S. Air Force veteran herself, Tami brings personal understanding to military relocations: “I’ve personally experienced military moves and understand the stresses involved. I also have specialized expertise with VA loans—having personally closed 7 VA loan assumptions in the past year alone. This hands-on experience helps me guide military families through new construction purchases while protecting their PCS allowances and ensuring they understand all costs involved.”

Three Key Takeaways for San Antonio New Construction Buyers

1. Calculate Your True Budget Before Shopping

Don’t Do This: Determine your maximum loan approval amount, then shop for homes at that price point while planning to “figure out” window coverings, appliances, and other costs later.

Do This Instead: Create a comprehensive budget that includes:

• Home purchase price and closing costs
• Window coverings for all windows ($2,500–$5,000)
• Appliances not included ($3,000–$6,000)
• Desired landscaping or fencing enhancements beyond builder standard ($2,000–$8,000)
• Utility deposits and connection fees ($500–$1,500)
• Moving expenses and immediate home supplies ($2,000–$5,000)
• Emergency fund for unexpected issues ($3,000–$5,000)

Practical Application: If your maximum budget is $340,000 total, and you need $18,000 for post-closing essentials and enhancements, shop for homes with purchase prices around $322,000. This ensures you can actually afford to complete and live comfortably in your new home without financial stress.

2. Understand Exactly What’s Included in Builder Standard Packages

Don’t Do This: Assume that attractive model homes reflect what’s included in base pricing, or rely on verbal assurances from sales representatives about included features.

Do This Instead: Before signing any builder contract, request written documentation specifying exactly what the base price includes:

• Specific landscaping details (extent of sod, number/type of plants, irrigation coverage)
• Fencing specifications (height, material, coverage area)
• Which appliances are included and which aren’t
• Window covering provisions (typically none)
• Number and location of included ceiling fans and light fixtures
• Specific flooring, countertop, and cabinet specifications for base pricing
• Garage features and door opener quantities

Practical Application: Compare this itemized list against the model home you toured. Notice the beautiful window treatments, upgraded flooring, enhanced lighting, and decorative landscaping touches? Those are almost certainly not included in base pricing. Ask specifically: “How much would it cost to include everything shown in this model home?” That number represents your true price comparison point when buying a home in San Antonio with new construction.

3. Compare Total Costs Including Ongoing Expenses Against Resale Homes

Don’t Do This: Compare only the purchase price of new construction against resale homes without accounting for hidden costs and ongoing expenses.

Do This Instead: Create comprehensive cost comparisons:

New Construction Total Cost:

• Base price: $300,000
• Selected upgrades: $12,000
• Post-closing essentials (window coverings, appliances, enhancements): $15,000
• First-year property taxes (2.8% rate): $9,380
• HOA fees (annual): $900
• Total first-year cost: $337,280
• Ongoing annual costs (taxes + HOA): $10,280

Comparable Resale Home:

• Purchase price: $315,000 (includes window coverings, appliances, mature landscaping already in place)
• Minor updates desired (fresh paint, fixtures): $3,000
• First-year property taxes (2.2% rate): $6,930
• HOA fees: ~$300(established neighborhood)
• Total first-year cost: $325,230
• Ongoing annual costs (taxes only): $6,930

Practical Application: In this scenario, the resale home costs $12,050 less in the first year and $3,350 less annually in ongoing expenses—despite having a higher purchase price. Over five years, the resale home saves $25,750 compared to the new construction option when accounting for hidden and ongoing costs. Working with one of the best real estate agent in San Antonio ensures you understand these complete comparisons before making decisions.

Frequently Asked Questions About Hidden New Construction Costs

Q: Can I negotiate with builders to include items like window coverings or appliances in the purchase price?

A: Yes—builder negotiations differ significantly from resale home negotiations, but opportunities exist, particularly during specific timing windows. Builders operate on quarterly sales goals and often provide enhanced incentives during the final weeks of each quarter or fiscal year. These incentives might include closing cost assistance, rate buy-downs through preferred lenders, or upgrade credits that can be applied toward window covering packages or appliance credits.

However, builders rarely reduce base pricing the way sellers of resale homes for sale in San Antonio might. Instead, they offer “value adds” that increase your included features without technically discounting the price. An experienced San Antonio Realtor understands these builder incentive cycles and can time your negotiations strategically. Additionally, some builders offer move-in-ready inventory homes—completed spec homes with upgrades already installed—at discounted pricing to clear inventory before new phases begin. These can represent genuine value opportunities since the upgrades are already included at a reduced net cost.

Your Realtor can also negotiate package deals where multiple desired items get bundled at a reduced upgrade cost—for example, getting both upgraded flooring and a window covering allowance for less than the sum of ordering each separately. The key is understanding which builders offer genuine negotiation flexibility and which maintain rigid pricing structures regardless of timing or circumstances.

Q: Are appliances always excluded from new construction homes in San Antonio?

A: Not always, but frequently. Most San Antonio builders include dishwashers, built-in microwaves, ranges/ovens, and garbage disposals as standard features. These built-in appliances are considered permanent fixtures and typically appear in the base pricing package.

However, non-realty appliances like refrigerators, washers, and dryers are rarely included because they’re considered movable personal property rather than permanent fixtures. Some builders offer these as optional upgrades during the selection process, usually at premium pricing compared to retail purchases. The advantage of builder-provided appliances is potential financing within your mortgage—instead of paying $4,000 cash for appliances at closing, you might add $4,000 to your loan amount, spreading the cost over 30 years.

The disadvantage is reduced selection and typically higher prices compared to shopping directly with appliance retailers who frequently run promotions and offer price matching. When buying a home in San Antonio with new construction, carefully compare builder appliance package pricing against retail costs, factoring in delivery fees, installation, and warranty coverage. Sometimes builder packages provide value; other times, you’ll save significantly by purchasing independently after closing.

Q: Why are property taxes so much higher in new San Antonio developments compared to established neighborhoods?

A: The difference stems from Municipal Utility Districts (MUDs) and Public Improvement Districts (PIDs)—special taxing entities created to fund infrastructure development in new communities. When builders develop raw land into residential neighborhoods, someone must fund the roads, water systems, sewage treatment, drainage infrastructure, and sometimes community amenities like parks and recreation facilities.

Rather than builders absorbing these costs, MUDs and PIDs issue bonds that get repaid through elevated property taxes assessed to homeowners over 20–30 year periods. This allows builders to develop new communities without enormous upfront capital requirements while passing long-term infrastructure costs to buyers. Established San Antonio neighborhoods had these infrastructure costs paid off decades ago, resulting in lower base tax rates.

Specific rate differences vary by development and taxing district, but new construction areas commonly show effective tax rates of 2.5%–3.0% compared to 2.0%–2.3% in established neighborhoods. On a $300,000 home, this translates to $1,500–$3,000 additional annual expense—$125–$250 monthly—throughout the bond repayment period. Many buyers don’t discover these elevated rates until receiving their first full-year tax bill, since builders often use estimated tax amounts during the purchase process that prove lower than actual assessments.

Working with a knowledgeable San Antonio Realtor who researches specific tax rates for each development helps you budget accurately and compare true costs between new construction and resale options. Some new developments eventually see tax rates decline as bonds get repaid, but this typically occurs 15–25 years after initial development—well beyond most homeowners’ residency period.

Q: Do all new construction communities in San Antonio have HOA fees?

A: Not all, but increasingly many do—particularly in master-planned communities developed across Boerne, Schertz, Cibolo, New Braunfels, and northern San Antonio corridors. HOAs in new construction communities serve several purposes: maintaining common areas, funding amenities like pools and fitness centers, enforcing architectural standards to protect property values, and sometimes providing additional services like landscaping for common areas or community events.

HOA fees vary dramatically based on provided amenities. Basic HOAs maintaining minimal common areas and enforcing deed restrictions might charge $300–$600 annually. Resort-style communities featuring multiple pools, fitness centers, playgrounds, splash pads, walking trails, and staffed clubhouses might assess $1,200–$2,000+ annually. Some communities use monthly billing ($50–$150/month) while others collect annually.

Additionally, many new construction HOAs impose one-time transfer or initiation fees at closing—typically $200–$500—to establish your homeowner account and provide initial documentation. These fees appear on your closing statement as additional costs beyond the home purchase price.

Before committing to new construction in any San Antonio community, request complete HOA documentation including current fee schedules, amenity access details, architectural restriction guidelines (which govern future modifications you can make to your property), and the HOA’s financial health. Some new HOAs struggle with insufficient reserves if the builder underestimated maintenance costs, leading to special assessments or fee increases that burden homeowners. An experienced San Antonio Realtor reviews these HOA documents as part of your due diligence process, identifying potential red flags before you’re committed to the purchase.

Q: Should first-time homebuyers avoid new construction in San Antonio because of hidden costs?

A: Not necessarily—new construction offers legitimate advantages including modern floor plans, energy-efficient systems, builder warranties, comprehensive landscaping and fencing packages, and no immediate maintenance requirements. However, first-time buyers buying a home in San Antonio should pursue new construction only with clear understanding of total costs and realistic budgets that accommodate hidden expenses.

First-time buyers particularly vulnerable to new construction budget problems include those who:

• Maximize their loan approval amount without cash reserves for post-closing costs
• Haven’t owned homes previously and don’t understand ongoing expenses like elevated property taxes and HOA fees
• Get emotionally attached to model homes without realizing the base-price version differs substantially in finishes and upgrades
• Don’t account for essential post-closing expenses like window coverings and appliances in monthly affordability calculations

Conversely, first-time buyers who successfully navigate new construction typically:

• Work with buyer’s representatives (like ABR®-designated agents) who explain hidden costs upfront
• Budget conservatively, shopping below their maximum approval amount to preserve cash for post-closing needs
• Tour completed inventory homes rather than only model homes to see actual base-level finishes
• Compare total costs (including hidden expenses and ongoing obligations) against resale home options before committing
• Understand that lower monthly mortgage payments on new construction can be offset by higher taxes and HOA fees

The key isn’t avoiding new construction entirely but approaching it with realistic expectations and comprehensive cost analysis. Many first-time buyers find that resale homes for sale in San Antonio actually provide better value when accounting for included window coverings and appliances, established mature landscaping, and lower ongoing costs—even if the purchase price initially appears higher than new construction base pricing.

Q: How can military families relocating to JBSA budget for new construction hidden costs within PCS allowances?

A: Military relocations to Joint Base San Antonio create unique challenges when purchasing new construction due to timing pressures, finite PCS allowances, and VA loan financing requirements. However, strategic planning can help military families successfully navigate new construction purchases without depleting relocation funds.

Pre-Arrival Research: Begin researching San Antonio new construction communities and builders before PCS orders finalize. Understanding typical hidden costs in your price range allows accurate budgeting before departing your current installation. Many military buyers work with MRP-certified San Antonio Realtors remotely, conducting video tours and reviewing builder contracts before physically arriving in San Antonio.

PCS Allowance Allocation: Separate PCS reimbursements into distinct budget categories: moving expenses (household goods, travel, per diem), temporary lodging (if needed before closing), home purchase costs (down payment, closing costs, inspections), and post-closing essentials (window coverings, appliances, desired enhancements). Allocate conservatively to each category rather than assuming leftover funds will cover unexpected costs.

VA Loan Considerations: Remember that VA loans finance only the home purchase price—you cannot roll post-closing improvement costs into the loan amount. This means your cash reserves must cover closing costs, AND all post-closing essentials like window coverings, appliances, and any desired landscaping enhancements. Some military buyers underestimate this requirement and find themselves without funds for necessities after closing.

Builder Incentives for Military Buyers: Many San Antonio builders offer military incentives including closing cost assistance, upgrade credits, or rate buy-downs. These incentives sometimes include specific allowances for window coverings or appliances—items particularly valuable for military buyers with limited cash. An MRP-certified Realtor knows which builders offer the best military programs and how to maximize these benefits during negotiations.

Alternative Consideration: Many military families find that resale homes in established neighborhoods near JBSA facilities provide better value for their PCS allowances. These homes typically include window coverings, appliances, mature landscaping, and fencing at lower price points than new construction alternatives when accounting for hidden costs. Additionally, established neighborhoods often feature lower property taxes and minimal or no HOA fees, reducing long-term financial obligations.

Working with a San Antonio Realtor experienced in military relocations—particularly one who is also a veteran like Tami Price, a U.S. Air Force veteran who understands military family needs—ensures you make informed decisions that maximize your PCS allowances while finding homes that genuinely fit your budget and lifestyle.

Q: What’s the best way to compare new construction pricing against resale homes in San Antonio?

A: Create comprehensive cost comparisons that account for total first-year expenses and ongoing costs rather than simply comparing purchase prices. Follow this framework:

Step 1: Calculate New Construction Total First-Year Cost

• Base purchase price
• Selected upgrades during construction
• Closing costs
• Post-closing essentials (window coverings, appliances, desired enhancements)
• First-year property taxes (use actual tax rate for the development)
• First-year HOA fees
• Utility deposits and connections
• Any immediate modifications needed

Step 2: Calculate Comparable Resale Home Total First-Year Cost

• Purchase price
• Closing costs
• Desired immediate updates or repairs
• First-year property taxes (use actual tax rate for the neighborhood)
• First-year HOA fees (if applicable)
• Home inspection and any negotiated repair credits
• Any immediate replacements needed (roof, HVAC, etc.)

Step 3: Calculate Ongoing Annual Costs for Each Option

• Property taxes (annual amount)
• HOA fees (annual amount)
• Estimated maintenance and repairs (typically higher for older homes)
• Utility costs (sometimes higher in new construction areas without mature trees)

Step 4: Project Five-Year Total Cost of Ownership

• First-year total cost
• Plus: Four additional years of ongoing costs
• Minus: Estimated appreciation (typically similar for comparable neighborhoods)
• Equals: Five-year net housing cost

This comprehensive analysis often reveals that resale homes priced $10,000–$20,000 higher than new construction base prices actually cost less overall when accounting for hidden expenses and ongoing obligations. Additionally, resale homes in established neighborhoods typically offer mature landscaping with shade trees that reduce cooling costs, completed window coverings, all appliances, and proximity to developed schools and shopping—amenities still emerging in new construction areas.

Your San Antonio Realtor can provide specific tax rates, HOA fees, and market data needed for accurate comparisons, ensuring you make cost-effective decisions when buying a home in San Antonio whether pursuing new construction or exploring existing homes for sale in San Antonio’s established neighborhoods.

The Bottom Line

The attractive base prices advertised for new construction homes throughout San Antonio, Boerne, Schertz, Cibolo, Helotes, and New Braunfels represent starting points—not total costs. While today’s builders typically include comprehensive landscaping packages, irrigation systems, and privacy fencing that eliminate what were once major post-closing expenses, hidden costs still remain. Window coverings ($2,500–$5,000), appliances ($3,000–$6,000), desired landscaping enhancements beyond builder standard ($2,000–$8,000), elevated property taxes ($1,500–$3,000 annually above established neighborhoods), and HOA fees ($300–$1,500 annually) can add $10,000–$20,000+ to your true move-in costs.

For first-time buyers and military families relocating to JBSA facilities, these hidden costs can strain budgets, deplete relocation allowances, and create financial stress during what should be an exciting milestone. Understanding these expenses upfront—and calculating comprehensive cost comparisons against resale homes for sale in San Antonio that include window coverings and appliances—enables informed decision-making and realistic budgeting.

Working with an experienced San Antonio Realtor who regularly navigates new construction transactions provides crucial advantages: identifying which builders offer the most comprehensive standard inclusions, negotiating incentive packages that might include window covering allowances or appliance credits, reviewing builder contracts to clarify exactly what’s included, and comparing total costs against resale alternatives to ensure you’re making cost-effective decisions.

Whether you’re drawn to modern floor plans and energy-efficient features of new construction or prefer the established landscapes, included amenities, and lower ongoing costs of resale homes, comprehensive cost analysis ensures you can afford not just the purchase price but the complete lifestyle you’re buying.

Ready to explore new construction options or compare against resale homes in San Antonio? Contact Tami Price, Realtor® with Real Broker, LLC at (210) 827-2626 or tami@tamiprice.com. As a Broker Associate, U.S. Air Force veteran, ABR®-designated buyer’s representative, and MRP-certified military relocation specialist with nearly 18 years of San Antonio real estate experience and approximately 1,000 closed transactions, Tami provides the expertise and advocacy you need to navigate new construction purchases confidently—or find resale homes that offer better value for your specific situation.

Visit www.TamiPrice.com to search homes for sale in San Antonio, explore San Antonio neighborhoods, access current market data, and schedule your personal consultation with a 14-time Five Star Professional Award Winner and RealTrends Verified Top Agent in San Antonio.

Tami Price’s Specialties

Tami Price, Realtor® with Real Broker, LLC specializes in:

• Residential Real Estate: Expert guidance through every aspect of buying or selling homes in San Antonio and surrounding communities
• Military Relocations (MRP): Specialized knowledge serving military families relocating to Joint Base San Antonio (JBSA-Randolph, JBSA-Fort Sam Houston, JBSA-Lackland)
• VA Loan Expertise: Extensive experience with VA loan procedures, having personally closed 7 VA loan assumptions in the past year
• New Construction Guidance: Comprehensive builder negotiation and contract review protecting buyer interests
• Buyer Representation (ABR®): Accredited Buyer’s Representative providing fiduciary advocacy throughout the home search and purchase process
• First-Time Homebuyers (AHWD): Patient guidance helping first-time buyers navigate financing, inspections, and closing procedures
• Seller Representation (SRS): Strategic pricing, marketing, and negotiation maximizing home values and minimizing days on market
• Relocation Services: Comprehensive community orientation and market education for families relocating to San Antonio from across the country

Professional Designations & Certifications:

• Broker Associate (Texas Real Estate Commission)
• ABR® – Accredited Buyer’s Representative
• AHWD – At Home with Diversity®
• ePRO® – Real Estate E-Commerce Certification
• GRI – Graduate, REALTOR® Institute
• MRP – Military Relocation Professional
• PSA – Pricing Strategy Advisor
• SRS – Seller Representative Specialist

Recognition & Achievements:

• RealTrends Verified Top Agent in San Antonio
• 14-Time Five Star Professional Award Winner
• Top 50 Residential Real Estate Agent (multiple years)
• U.S. Air Force Veteran
• Approximately 1,000 closed real estate transactions over nearly 18-year career

Disclaimer

This blog is for informational purposes only and does not constitute financial, legal, or real estate advice. New construction inclusions, builder incentives, property tax rates, and HOA fees vary significantly by builder, community, and municipality throughout the San Antonio area. Readers should conduct independent research, review specific builder contracts carefully, and consult with qualified real estate, financial, and legal professionals before making home purchase decisions.

Standard inclusions such as landscaping and fencing packages vary by builder and specific communities. Property tax rates, MUD/PID assessments, and HOA fee structures mentioned reflect general ranges observed across San Antonio-area new construction developments but may not apply to specific properties or communities. Actual costs depend on individual circumstances, selected options, and builder-specific policies.

Tami Price, Realtor® with Real Broker, LLC provides personalized consultation addressing your specific situation, budget, and goals. Contact Tami directly for accurate, current information regarding new construction options, builder negotiations, and comprehensive cost analysis tailored to your home buying needs in San Antonio and surrounding areas.