Lot Premium
Also known as: Lot Upgrade, Premium Lot Fee
An additional charge added to the base price of a home for a more desirable lot location — such as a corner lot, cul-de-sac lot, lot with a view, or lot backing to green space.
Detailed Explanation
In a new construction community, not all lots are priced the same. Lots with desirable features — better views, more privacy, larger size, or preferred locations within the community — command a premium.
Lot premiums can range from a few thousand dollars to $50,000 or more, depending on the market and the lot's features.
The lot premium is added to the base price of the home and increases your total purchase price. It is typically non-refundable if you cancel the contract.
In Your Contract
Look for "lot premium," "lot upgrade," or "site premium" in the pricing section of your contract or in a separate lot selection addendum.
Key Points
- 1Added charge for desirable lot locations or features.
- 2Can range from a few thousand to $50,000+.
- 3Increases your total purchase price and may affect property taxes.
- 4Typically non-refundable if you cancel.
- 5May be negotiable in slower markets.
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