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What is Lot Premium that New Home Builders Charge in Northern Virginia?
The word "Lot Premium is becoming a synonym for many of the home buyers in the Northern Virginia area when they visit new construction/homes for sale at the builders' office.
What is a Lot Premium?
Additional premium($) purchaser pays on top of the base price to purchase a home on a particular home site.
Why a Lot Premium is Charged?
Premium lots/home sites have something that sets them apart from the other basic home sites within a community. They may be larger than the other lots, but size is not the only consideration for a premium. Premium home sites might cost more because they have a treed view. Corner lots often come at a premium price, as do those in a cul-de-sac or in an area which offers additional street parking, privacy and other unique exterior features.
How is the Lot Premium calculated?
Premiums are calculated based on various statistics builders has. For example builder may have higher lot premium for a home site that backs to woods but is a smaller yard compared to another home that has large yard but backs to street. Market demand for the home site is also considered when charged to the buyers. Another factor that I have ... more

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