Staring at a builder price sheet and wondering why two identical homes are thousands apart in cost? You are not alone. New builds in Aurora come with two big variables that shape your bottom line: lot premiums and upgrades. This guide breaks down what they are, how they affect financing and taxes, where to push for value, and what to verify before you sign. Let’s dive in.
Lot premiums explained
A lot premium is an extra charge for a specific homesite. Builders price these lots based on perceived value or extra site costs. You will often see premiums on larger lots, cul-de-sac or pie-shaped lots, walkout or view lots, and sites backing to open space, parks, or golf.
Lot premiums sit on top of the base price. Your total contract price will reflect the base home, the lot premium, and any upgrades you choose. Understanding that structure helps you compare across communities.
What makes a premium lot
- Extra privacy or unique shape, like cul-de-sacs or pie lots.
- Location benefits, such as proximity to trails or open space.
- Topography that allows a walkout basement or better natural light.
- Orientation that improves solar exposure or energy performance.
Why Aurora lots vary
Aurora and Adams County sites differ in grading, drainage, and soils. Some lots require more site work, like retaining walls or drainage solutions, which can influence premiums. Local zoning and subdivision standards also affect lot sizes and setbacks, which changes supply and demand for certain lot types.
Upgrades vs. structural options
Upgrades are finish choices that elevate the standard home. Think countertops, cabinets, flooring, and appliances. Structural options change the floor plan, like adding a bedroom, finishing a basement, or framing for larger windows.
Builders may sell upgrades in packages or as individual selections. There is usually a specific selection window when you make your choices and pay option deposits. Make sure you have the standard features list and an itemized price sheet so you know what is included and what costs extra.
Cosmetic upgrades that matter
Cosmetic upgrades cover surface finishes and fixtures. You can often change these later, but it may cost more post-close due to labor and rework. Prioritize materials you do not want to replace soon, like flooring in main living areas and kitchen countertops.
Structural options to decide early
Structural changes are easier and cheaper to do during construction. Examples include adding a bedroom, expanding a garage bay, or choosing a walkout. If you want larger windows or a finished basement, decide before framing when the builder can integrate the changes efficiently.
Incentives and timing
Builders may offer incentives, closing cost credits, or rate buydowns. These can offset your out-of-pocket costs or make certain upgrades more affordable. Compare incentives against the cost of upgrades so you use the savings where they help most.
Aurora local factors that impact cost
Local rules and services shape what you pay both upfront and over time. In Aurora and Adams County, you will want to verify zoning, permitting flows, utilities, and any special district assessments tied to a community.
Zoning and building permits
The City of Aurora sets zoning and subdivision standards that influence lot sizes and setbacks. Building permits and inspections run through the city or the county, depending on location. Some lots require more grading or stormwater work, which can affect the premium or the feasibility of certain options like a walkout basement.
Metro districts and taxes
Many new communities sit inside metro or special improvement districts that fund roads, water lines, and parks. These districts levy separate taxes or assessments that add to your annual carrying costs. Ask for the subdivision’s special district disclosure and the mill levies so you can estimate total taxes on your finished price.
Utilities and tap fees
New builds are typically served by municipal or regional utilities. Developers often fund core infrastructure, but you can still see usage fees, hook-up or tap fees, and district assessments. Request the utility disclosure and fee schedule for the specific lot you are considering.
Energy codes and rebates
Aurora enforces current energy code standards, so new homes already meet higher efficiency baselines. If you are considering higher-efficiency HVAC, heat pump water heaters, EV charger prewiring, or all-electric options, ask about available rebates and who applies for them. Some incentives may come from utility programs or state-level initiatives.
Financing, appraisal, and taxes
Lot premiums and upgrades influence your mortgage and your appraisal. Knowing how lenders view these costs helps you plan for closing and avoid surprises.
How lenders view your contract
Your mortgage is based on the total purchase contract, which includes the base price, the lot premium, and the upgrades you select. Lenders finance upgrades that are part of the builder contract. If you plan post-closing improvements, those are typically paid in cash or financed later with renovation products.
Appraisal risk and solutions
Appraisers compare your completed home to recent sales of similar homes. If there are few comps with the same lot traits, the appraisal may not fully capture a premium for a view, a walkout, or unique siting. Ask the builder for recent closed contracts on similar lots and share those with your lender and appraiser. Keep an appraisal contingency in your contract and have a plan to bridge a shortfall, such as buyer cash or builder credits.
Taxes and assessed value
Property taxes are based on assessed value, which reflects your final purchase price. Lot premiums and builder-installed upgrades that are included in the contract price will be assessed. Mill levies and assessment ratios change, so verify the current rates and any special district taxes before you finalize your budget.
Your selection timeline
New construction follows a predictable path. The more organized you are during each phase, the smoother your build and closing will be.
From contract to closing
- Contract and lot hold: Sign the purchase agreement with the base price and lot premium clearly itemized.
- Options selection window: Choose finishes and structural options within the builder’s deadline and pay deposits.
- Pre-drywall walkthrough: Confirm selections and inspect framing and systems, request corrections in writing.
- Final walkthrough and closing: Create a punch list, confirm warranty coverage and response timelines.
What to lock early
- Structural options that affect framing or foundation, like a walkout or extra bedroom.
- Electrical and low-voltage locations that are costly to change after drywall.
- Key finishes that impact livability, such as main-level flooring and kitchen surfaces.
Negotiation strategies that work
You have more levers than you might think, especially if the builder is targeting sales goals or has inventory to move.
Compare lots and models. Different builders include different features in the base price. A lower base may mean more paid upgrades.
Ask about incentives. Closing cost credits, rate buydowns, or package discounts can be more flexible than base price cuts.
Bring comparable sales. For high lot premiums, request comps for similar lots to support pricing and appraisal.
Time your offer. You may see better flexibility near the end of a sales cycle.
Clarify warranty terms. Nail down coverage for structural and cosmetic items and the timeline for punch list work.
What to prioritize for value
Not all upgrades deliver the same payoff. In this market, kitchen and primary bath improvements, energy-efficient systems, and finished basements often show stronger resale appeal. Structural choices that add usable space tend to help appraisals and long-term value more than highly personal finishes.
Energy and electrification upgrades may qualify for rebates, which can improve the cost-benefit equation. If you plan to finish a basement later, weigh the builder price against post-close renovation financing and timeline.
Builder questions and documents checklist
Use this list when you visit sales centers or compare communities. Get everything in writing.
Questions to ask
- Is the lot premium included in the posted price or separate on the contract? Can I see an itemized breakdown of base price, lot premium, and included features?
- What are the standard features and the options price list, with brand and model names for major items?
- Do you have recent closed sales for similar lots that support this lot premium?
- Which school district, special district, and taxing jurisdictions apply to this lot? Can you provide estimated annual property taxes on the finished price?
- Are there HOA dues, special assessments, or metro district taxes? May I review the CC&Rs and the HOA budget?
- What utilities serve the property, and are there any tap or impact fees due at closing?
- What is the builder warranty coverage for structural and cosmetic items, and what are the response timelines?
- For energy upgrades, which rebates are available and who submits the paperwork?
Documents to collect
- Itemized purchase agreement with all allowances, credits, and deadlines.
- Standard features list and the full options price sheet.
- HOA documents, CC&Rs, budget, and any special district disclosures.
- Construction timeline and milestone schedule, including the options selection deadline.
- Builder warranty document and punch list procedure.
- Comparable sales used to set pricing for similar lots.
Common pitfalls to avoid
- Waiting too long on structural decisions, which can trigger costly change orders.
- Assuming the model home features are standard. Verify every finish in writing.
- Overinvesting in highly personal finishes that may not help appraisal or resale.
- Ignoring metro district taxes or special assessments when calculating your monthly costs.
- Skipping an appraisal contingency in a community with few comps for premium lots.
Final thoughts
You can buy new construction in Aurora with confidence when you separate the base price from the lot premium and upgrades, verify local taxes and districts, and plan for appraisal and financing. The right strategy is a mix of smart timing, documentation, and choosing upgrades that fit how you live today and how buyers will value the home tomorrow.
If you want a second set of eyes on a builder contract or help comparing lots and incentives across communities, connect with The Real Estate Experts of Denver. We will walk you through the numbers, the fine print, and the strategy so you get the most from your new build.
FAQs
What is a lot premium on Aurora new builds?
- A lot premium is an added charge on top of the base price for a specific homesite, often tied to size, location, views, walkout potential, or proximity to open space.
Are lot premiums negotiable in Aurora communities?
- Lot premiums can be more negotiable when builders need to meet sales goals or move inventory, so timing and comparable sales support can improve your leverage.
How do upgrades and options affect my mortgage and appraisal?
- Lenders finance upgrades that are part of the builder contract, and appraisers consider the completed home, but unique lot traits may not fully appraise without strong comps.
What are metro districts and why do they matter?
- Metro districts fund community infrastructure and levy separate taxes or assessments, which raise your annual carrying costs beyond standard city and county taxes.
Should I finish the basement with the builder or later?
- Structural work is often more efficient during construction, but compare the builder price, appraisal impact, and any renovation financing if you plan to finish later.
Do energy-efficient upgrades pay off in Aurora?
- Energy upgrades can reduce utility costs, may qualify for rebates, and improve buyer appeal, but confirm available incentives and integrate choices with current energy codes.
