10 Hidden Costs of Buying New Construction in Jacksonville and St. Johns County (From a Local Agent Who’s Done It Five Times)
If you’re buying new construction in Jacksonville, St. Johns County, or anywhere in Northeast Florida, this guide is going to save you money. Possibly a lot of it.
I’m Austin, a real estate agent in Jacksonville, and I specialize in new construction. I’ve walked buyers through this process for years. I’ve also personally bought five new construction homes myself, and I can tell you with confidence: most buyers are surprised by at least one of the costs below. Many are surprised by several.
Builders are great at marketing. They’re not always great at full disclosure. Your lender, your inspector, and the HOA documents aren’t going to sit you down and protect you from what you don’t know.
That’s what this guide is for.
Below are the 10 hidden costs of buying new construction in Northeast Florida, what they actually run, and how to plan for them before you sign anything.
1. The “Closing Cost Credit” That’s Often Just Giving Back What the Builder Took
Your builder offers $10,000 toward closing costs. It sounds incredible. Generous, even.
Here’s what’s actually happening.
In Florida, when you buy a resale home, closing costs are typically split between the buyer and the seller. As a buyer, your share might be around $5,000. New construction builders throw that split out the window. Every single closing cost lands on you, the buyer.
So instead of $5,000, you’re looking at $10,000 or more just to get to the closing table. Then the builder hands you a $10,000 credit and calls it a gift.
Compared to a resale, that $10,000 incentive might only be saving you $5,000. The rest is giving back what the builder took in the first place.
I’m not saying new construction is a bad deal. I sell it every day and I love it. But before that number dazzles you, have someone run a real comparison against a comparable resale. $10,000 sounds a lot better than it actually is.
2. The Capital Contribution Almost Nobody Mentions Until Closing
You’ve done your homework. You know the monthly HOA fee. You’ve got it budgeted.
What you probably don’t know is that there’s likely another check due at closing, and nobody is going to bring it up unless you ask.
It’s called a capital contribution, and it’s due the day you close.
When you buy into a community, the HOA maintains reserves — money set aside for future repairs, replacements, and big-ticket maintenance. The capital contribution is your one-time buy-in to fund those reserves. It’s not your first month’s dues. It’s not a deposit. It doesn’t come back to you. It’s just gone.
The amount varies widely by community. In St. Johns County, I’ve seen these range from a few hundred dollars to several thousand. Most buyers see the line item on their closing disclosure, have no idea what it is, and just pay it.
When you’re shopping communities, ask two questions:
- What’s the monthly HOA?
- What’s the capital contribution at closing?
Get both answers upfront and budget for them both.
3. The CDD Fee Myth That Costs Buyers Real Money
If you’re buying new construction in St. Johns County, there’s a strong chance your home is in a Community Development District — a CDD. And if you’ve done any research, you’ve probably heard someone say “you can just pay off the CDD.”
That’s true. It’s also misleading.
A CDD fee is actually two separate charges that show up together on your tax bill every year.
The bond. When the developer built your community — the roads, the amenities, the infrastructure — they financed it with municipal bonds. Your CDD bond assessment is your share of paying that back. It typically runs 20 to 30 years. Yes, you can pay it off early in a lump sum if you want to eliminate that portion.
The operations and maintenance (O\&M). This covers the ongoing cost of running the district: landscaping, common area utilities, insurance, the lights at the front entrance, the pool staying clean.
Here’s what nobody tells you. The O\&M never goes away. You can pay off the bond completely and you’ve only eliminated one piece. The O\&M assessment follows the property forever.
And the O\&M number isn’t fixed. The district’s costs go up — and they will — and the board can increase assessments to cover the budget. What you’re paying today isn’t necessarily what you’ll be paying in five years.
So when someone tells you to “just pay off the CDD,” now you know what that actually means. And more importantly, you know what they left out.
4. Your Builder’s Inspector Is Not on Your Side
When you’re buying new construction, your builder has the home inspected. They’ll tell you everything checked out and hand you the keys with a smile.
What they’re not going to tell you is that the inspector works for them, not for you.
Here’s what I recommend to every new construction client: hire your own independent inspector, and use them more than once. I recommend three to four inspections throughout the build.
Pre-pour. Happens before the concrete slab goes down. This is your shot to catch issues with the plumbing and electrical rough-in before it’s buried forever.
Pre-drywall. This is the biggest one. Once the walls close up, you lose visibility into everything behind them — framing, insulation, wiring, plumbing. If something needs to be fixed at this stage, it’s fast and cheap. Wait until drywall is up and the same fix means tearing walls open. Do not skip this.
Pre-closing. Your standard walk-through. Make sure everything is complete, functional, and done right before you sign.
11-month. Most people forget this one. Your builder’s warranty typically covers the first year. At month 11, bring an inspector back in, document everything that needs to be addressed, and submit it before the warranty expires. After 12 months, a lot of that coverage is gone.
Each inspection runs roughly $300 to $500. For a purchase this size, you’re looking at $1,200 to $1,500 total. It’s the best money you’ll spend on the transaction.
5. Two Things Your Builder Almost Certainly Did Not Install
Florida gets more rain than Seattle. More than almost anywhere in the country.
So why did your builder skip the gutters?
Most production builders here don’t include gutters as standard. It keeps costs down. It’s not required by code. But every time it rains — and it rains a lot — water pours straight off your roof and runs along your slab, your siding, and your foundation. Over time, that causes erosion, moisture intrusion, and damage that’s expensive to fix. This isn’t cosmetic. It’s structural.
Budget to install gutters after closing.
The second thing your builder almost certainly didn’t install is a water softener.
Jacksonville water is hard. Really hard. And hard water destroys things quietly over time — your appliances, your water heater, your pipes, your fixtures. You’ll notice it on your dishes, your skin, and your hair.
A water softener isn’t a luxury upgrade in this area. It’s maintenance. Budget for it before you move in, not after you’ve watched your dishwasher struggle for six months.
Neither of these will come up in your walk-through unless you bring them up. Mention them at the structural options phase when you first sign the contract. Sometimes you can work them in there. Most buyers end up adding them afterward.
6. The Maintenance Schedule Your Builder Never Handed You
There’s a feeling that comes with buying new construction. Everything is brand new. Nothing is broken. Nothing needs fixing.
That feeling will cost you.
New construction still requires maintenance, and it doesn’t feel like it should — which is exactly why people skip it. Here’s what nobody hands you at closing:
Water heater. Needs to be flushed annually to clear sediment buildup, especially with hard water. Skip it for a few years and you’re shortening the life of an appliance that costs $1,000 to $2,000 to replace. The first flush should happen within six months on a new construction home, then annually after.
HVAC. Filters need to be changed every 30 to 60 days in Florida. The system runs almost year-round. But filters are just the start — your condensate line needs to be flushed regularly. When it clogs, and it will clog, it triggers a safety shutoff and your AC stops working. In a Florida summer, that’s not an inconvenience. It’s an emergency. A maintenance plan catches this before it becomes a problem.
Pest control. Budget for at least quarterly service. Florida is not the kind of place where you skip this.
Termite bond. Most builders set one up. Keep it. In Florida, termites are not a question of if. They’re a question of when. A termite bond gives you regular inspections and treatment coverage.
None of these are big-ticket on their own. Ignored over time, every one of them can turn into something huge.
7. The First-Time Homeowner Bill That Hits Before You’ve Unpacked
Congratulations. You just bought a brand-new home.
Now buy a lawnmower, a trimmer, an edger, a hose, a ladder, a toolbox, and about 15 other things you never knew you needed as a renter.
This catches every first-time homeowner, not just new construction buyers. But new construction makes it worse because you’re starting from absolute zero.
When you’re renting, maintenance isn’t your problem. Something breaks, you call the landlord. The lawn gets handled. You don’t own equipment because you never needed it. Then you close on a new construction home and suddenly you’re responsible for all of it.
Let’s just talk about the lawn. In St. Johns County, you’re looking at a real yard that needs real maintenance. A decent mower, a trimmer, an edger, a blower — you’re already at $500 to $1,000 before you’ve touched anything else. This isn’t a low-maintenance situation.
Add a hose (probably two), some basic outdoor equipment, a ladder (you’ll need one), basic tools if you don’t have them, and a pressure washer (optional until you see what Florida humidity does to your driveway and siding, then it’s not optional).
You’re looking at $1,500 to $3,000 in equipment just to maintain the home you bought.
This isn’t a reason not to buy. It’s a number that needs to be in your budget before closing, not discovered on the first Saturday you own the place.
8. Your Mortgage Payment Might Go Up — And Rates Have Nothing to Do With It
Your mortgage payment is going to go up. Not because of interest rates. Because of something that happens to a lot of new construction buyers in Florida that nobody warns you about.
Here’s how it works.
In Florida, property taxes are paid in arrears. The taxes you pay this year are actually for last year. When your home is being built, the county still has that lot assessed as vacant land. It’s worth a fraction of what a finished home is worth.
If your mortgage company uses that low tax number to set up your escrow account — and many do — you’ve got a problem coming.
You close, you move in, life is good. A few months later, the county reassesses the property. Now it has a house on it, and the tax bill jumps significantly. Your mortgage servicer does an annual escrow analysis, sees the shortfall, and sends you a letter:
Your payment is going up.
Sometimes it’s $100 a month. Sometimes it’s $300 or $400 a month. Either way, it’s a number you weren’t planning for.
Ask your lender how they’re calculating your initial escrow. Ask for a tax assessment estimate based on a completed home, not vacant land. Set money aside on your own for the difference. Get ahead of it before it gets ahead of you.
9. The Builder’s Preferred Lender May Not Be the Deal It Looks Like
Your builder wants you to use their lender. They’ll make it attractive — closing cost credits, rate buydowns, upgrade incentives. Sometimes the package totals $10,000 or more. It feels like a no-brainer.
Sometimes it is. Sometimes it isn’t.
Before you say yes, get at least one outside quote.
Builder-preferred lenders are convenient for the builder. They keep everything in house. The transaction moves smoothly. And let’s be honest, there’s a financial relationship between the builder and the lender. That doesn’t make them predatory, but it does mean their incentive to give you the absolute best rate is not the same as a lender competing for your business.
Even a small difference in interest rate adds up fast on a 30-year mortgage. We’re talking tens of thousands of dollars over the life of the loan. A $10,000 incentive can disappear quickly when you’re paying a meaningfully higher rate for three decades.
I’ve seen it go both ways. Sometimes the builder’s lender is genuinely competitive and the incentive tips the scales in their favor. Sometimes it doesn’t. You’ll never know unless you compare.
Get a loan estimate from an independent lender. Bring it side by side with the builder’s offer. Compare the rate, the APR, and the total cost of the loan — not just the upfront incentive. Then make the call with all the information in front of you.
The builder isn’t going to tell you to do this. I am.
10. The Move-In Costs That Sneak Up Before You’ve Even Unpacked
You close on your beautiful new home. You walk through the front door, look around, and realize something.
No blinds. No curtains. No privacy. Just a lot of glass and the neighbors walking by.
Good luck getting from the shower to the closet past the front windows.
Window treatments. Most builders don’t include them. For an average-size home, budget $2,000 to $5,000 to cover your windows properly. More if you go custom. It’s one of those costs that feels outrageous until you realize how many windows you actually have.
Fencing. Most new construction lots come with no fence. If you have kids, pets, or value your backyard being your backyard, you’re paying for that separately. Depending on lot size, that’s another $2,000 to $8,000 or more.
Landscaping beyond the basics. Builders put down sod and a few basic shrubs. If you want real trees, privacy hedges, flower beds, or anything that looks intentional, that’s your budget.
Screen enclosure. Very common on Florida lanais. Almost never included. Budget accordingly.
None of these should stop you from buying. They’re costs that should be in your plan before you close — not bills that show up in the first 30 days and catch you off guard.
So What Does All of This Add Up To?
The closing cost shell game. Capital contributions. CDD fees that never fully go away. Multiple inspections. Gutters and a water softener your builder didn’t install. Ongoing maintenance your warranty doesn’t cover. Tools and equipment you never needed as a renter. A mortgage payment that may go up. A builder-lender deal that might not be what it seems. And a house full of windows with no blinds on day one.
None of these are reasons not to buy new construction. I love new construction. I sell it every single day in Jacksonville and St. Johns County.
But you deserve to walk into that contract with your eyes wide open — not find out about these things at the closing table or in your first year of ownership. That’s what a strong agent does. They tell you the stuff nobody else will.
If you’re thinking about buying new construction in Jacksonville, St. Johns County, or anywhere in Northeast Florida and you want someone in your corner before you sign anything, reach out. Let’s talk.
Frequently Asked Questions About New Construction in Jacksonville and St. Johns County
How much should I budget for hidden costs when buying new construction in St. Johns County?
A reasonable buffer is $10,000 to $20,000 beyond your down payment and standard closing costs. This covers inspections ($1,200–$1,500), capital contribution (a few hundred to several thousand), gutters and a water softener (typically $2,000–$4,000 combined), window treatments ($2,000–$5,000), basic homeowner equipment ($1,500–$3,000), and a cushion for the property tax escrow shortfall in year one.
What’s the difference between an HOA fee and a CDD fee in St. Johns County?
An HOA fee funds the homeowners association — community management, common area upkeep, amenities run by the HOA. A CDD fee is a separate assessment that appears on your annual property tax bill and has two parts: a bond (paying back infrastructure financing, which can be paid off early) and operations and maintenance (the ongoing cost of running the district, which never goes away). Many St. Johns County communities have both.
Can you really pay off a CDD fee?
You can pay off the bond portion of a CDD fee early in a lump sum. You cannot pay off the operations and maintenance (O\&M) portion — that follows the property forever and can increase over time as district costs rise.
Do I need a home inspection on new construction?
Yes. Multiple, ideally. The builder’s inspector works for the builder. Independent inspections at pre-pour, pre-drywall, pre-closing, and 11 months (before the builder’s warranty expires) protect you at each major stage. Total cost is typically $1,200 to $1,500.
Why does my mortgage payment go up after buying new construction in Florida?
Florida property taxes are paid in arrears, and during construction, the county assesses the property as vacant land. Many lenders set up your escrow based on that low number. Once the county reassesses with the completed home, the tax bill jumps significantly, and your mortgage servicer raises your monthly payment to cover the shortfall. Increases of $100 to $400 per month are common in year one or two.
Should I use the builder’s preferred lender?
Sometimes yes, sometimes no. The incentives can be real — closing credits, rate buydowns, upgrade allowances — but they don’t always offset a higher interest rate over 30 years. Always get at least one outside loan estimate and compare the APR and total cost of the loan, not just the upfront incentive.
Do new construction homes in Jacksonville come with gutters and water softeners?
Usually not. Most production builders in Northeast Florida don’t include gutters or water softeners as standard. Both are strongly recommended in this region — Jacksonville gets heavy rainfall and has notably hard water. Plan to install both shortly after closing if you can’t get them added during construction.
What’s a capital contribution and is it refundable?
A capital contribution is a one-time fee paid at closing that goes into the HOA’s reserve fund for future repairs and replacements. It is not refundable, not your first month’s dues, and not a deposit. It can range from a few hundred dollars to several thousand depending on the community.
Austin is a Jacksonville and St. Johns County real estate agent specializing in new construction across Northeast Florida. If you’re planning a move to the area, get in touch to talk through your options.