In my experience, builders will readily tell you what their lot premiums are, and can break those down by location when looking at a map. Builders also are very good at getting buyers into a development by advertising low prices ("From the low $200's) when in reality when you start adding lot premiums, charges for walk-out basements and upgrades, this probably doesn't represent the reality of what the buyer will actually pay.
Hope this was helpful. .
By the way, a Realtor can help you with the purchase of new construction as most builders belong the BRC and will pay commissions. These builders will not lower your price if you DON'T use a Realtor. A Realtor can help you negotiate with the builder, and explain the costs and fees involved in buying a new home.
Keller Williams DTC
As far as the legality of when they disclose a lot premium, hopefully you knew about it before you signed a purchase agreement contract. If the contract specifies a certain lot, and no premium is mentioned in the contract, then they try to add a fee after the contract is signed, you should speak with an attorney.
A lot of people believe they don't need a real estate agent if they're buying new construction, but having someone go through the contract with you and point out red flags, and to interpret the builder's lingo, can save you thousands of dollars.
the typical definition of lot premium is: a premium paid by the buyer for a special, unique home site that may be either larger or in a more desirable location.
typically this amount is 'built in' to the price of the home. individual builders/sellers may choose to 'add' it to the price of the home so that it can be highlighted to potential buyers. of course any charge including lot premiums should always be disclosed up front.
also, don't forget that EVERYTHING is negotiable in real estate. you and/or your agent have to the right and ability to negotiate the price, terms and inclusions (via the contract) right up until both sides have signed.
keller williams realty, dtc
The luxury of owning a premium lot is normally accompanied by a sizable additional fee.
Thanks for all your answers. I don't know why its being presumed that I have already signed a contract or its late. I have not signed any papers or contracts yet. I am shopping around extensively and trying to learn as much as I can about seller, lender and even real estate agent's strategies so when its time for me to find a Realtor, a seller and a lender/broker, I can an informed decision. I never heard of lot premium and wanted to get personal thoughts from good folks like you than just google it.
I do agree with everyone's comments below regarding the legality of the lot premium. LOCATION, LOCATION, LOCATION there is a reason you want the particular lot and your new home will most likely sell easier and possibly at a premium for the LOCATION
A lot premium is a charge on a lot that is more special than others in the subdivision. It may have a wooded or scenic view, etc.
If it is something your builder is trying to sneak by you in contract negotiations, do not sign! Everything is negotiable, especially a lot premium.
Like everyone else said, if you're new to the process I'd definitely recommend enlisting the help of a buyer's agent or a real estate attorney
OR if the lot is larger than any others in that particular area