New Construction Costs: Closing Costs, Property Taxes & HOA Fees

Three separate costs that get lumped together and shouldn't be. What each one actually runs in Vancouver, WA & Clark County, and why new construction handles all three differently than resale.

⚡ Quick Answer

On new construction in Vancouver, WA and Clark County, expect closing costs of 2–5% of the purchase price, property taxes that often run higher than a comparable resale home because new builds are assessed at their full completed value, and HOA fees that vary significantly by community, some charge none at all. These three costs get bundled together in casual conversation, but they're governed by different rules and worth understanding separately.

"What does it actually cost, after the purchase price?" is a fair question, and the honest answer has three separate parts that don't always move together. Closing costs are a one-time expense at purchase. Property taxes and HOA fees are ongoing, and they can meaningfully change your real monthly payment compared to what the sticker price implies.

This covers all three specifically for new construction, since each one works a little differently than it does on a resale purchase. For the cost of the build itself, see what it typically costs to build a house in Vancouver, WA & Clark County.

What Are Typical Closing Costs on New Construction?

A one-time cost, paid at purchase

Closing costs on new construction typically run 2% to 5% of the purchase price, in line with what the CFPB's own guidance on budgeting for a home purchase states generally. That range covers things like loan origination fees, title insurance, escrow fees, and prepaid property taxes and insurance. The specific line items and amounts appear on your Closing Disclosure, which the CFPB's Closing Disclosure explainer breaks down section by section if you want to know what you're actually looking at before you sign.

What's Different About New Construction Closing Costs?

Builders will sometimes offer a closing cost credit as part of an incentive package, especially if you use their preferred lender, which can meaningfully offset this expense. See builder incentives and what to know before you sign for how to verify whether that credit is a real discount.

Prepaid property tax and insurance reserves at closing on new construction are sometimes based on an outdated or incomplete assessment, since the home may not be fully assessed at completed value yet, which can understate your true ongoing costs. Covered in more detail in the property taxes section below.

Ask early what's included versus what you'll be expected to cover out of pocket, since this varies by builder and by community, and isn't always advertised up front the same way the base price is.

Are Property Taxes Higher on New Construction Than Resale?

An ongoing cost, and yes, often meaningfully higher

Property taxes in Clark County run around 1% of assessed value annually, but new construction gets assessed at its actual built value, which is usually higher than an older resale home nearby with the same square footage, since older homes are often assessed below current market value until they sell. The Clark County Assessor's office confirms this directly: new construction is physically inspected and valued each year, while most existing homes are only adjusted based on prior-year sales data. That means a new build's property tax bill can come in noticeably higher than a similarly priced resale home in the same neighborhood.

Real Estate Excise Tax (REET)

Washington's real estate excise tax also applies on the sale itself, on a tiered scale from 1.1% to 3% based on price. This is a one-time tax at the time of sale, separate from your ongoing annual property tax bill, and worth budgeting for alongside your closing costs.

Why Loan Estimates Sometimes Get This Wrong

Because the home doesn't exist yet at the time a loan estimate is prepared, lenders sometimes base the property tax figure on land value alone or an outdated assessment, rather than the home's full completed value. Once the county assesses the finished home, the actual tax bill can be significantly higher than what was estimated, which can increase your monthly mortgage payment once escrow adjusts. I cover a real client example of exactly this happening in builder incentives and what to know before you sign. Always ask a second, independent lender to sanity-check the property tax line on a new construction loan estimate before you lock in.

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If you're 61 or older, or have a qualifying disability, you may be eligible for a real reduction in property taxes through Clark County's Senior and Disabled Persons Property Tax Exemption Program. Worth checking before you assume your new build's tax bill is fixed.

Do New Construction Communities Have HOA Fees?

An ongoing cost that varies more than most buyers expect

Whether a new construction community carries an HOA fee, and how much, varies significantly by community and directly affects your ongoing monthly costs, not just your purchase price. Some communities typically don't carry HOA fees at all, while others do, often tied to shared amenities like parks, entrances, or landscaping in larger master-planned communities. Two communities at a similar price point can have very different real monthly costs once HOA dues are factored in.

What Do HOA Fees Typically Cover?

Shared amenity maintenance: entrance landscaping, community parks, walking trails, sometimes a clubhouse or pool

Common area upkeep, snow removal on shared streets in some communities, and reserve funds for future shared infrastructure repairs

In some communities, exterior maintenance on the home itself, though this is less common in single-family new construction than in attached or townhome-style communities

What to Ask Before You Assume the Cost

Always confirm the current HOA cost and exactly what it covers before signing, ask whether the fee is likely to increase once the community reaches full build-out, and ask to see the HOA's reserve study if one exists. A community with a suspiciously low fee and no meaningful reserves can mean a special assessment down the road.

How Do These Three Costs Add Up to a Real Monthly Number?

Putting closing costs, taxes, and HOA fees together

Closing costs are a one-time hit at purchase. Property taxes and HOA fees are ongoing, and together they can shift your real monthly payment noticeably compared to just principal and interest. Two homes at the same list price, in different communities, can have meaningfully different true monthly costs once taxes and HOA dues are factored in, which is exactly why comparing on price alone is incomplete. Run your own numbers with the new construction home affordability calculator, and factor in what you learned above about your target community's specific tax and HOA situation, not just a citywide average.

Bottom Line

Ask About All Three Before You Compare Communities on Price Alone

Closing costs, property taxes, and HOA fees each follow different rules, and each one can shift your real cost of ownership more than the base price difference between two communities. Ask about all three specifically, in writing, before deciding one community is more affordable than another based on the list price alone.

📌 Related Guides

Buying New Construction? Start Here

Overview

New Construction in the PNW

Cost to Build

Cost to Build a House

Incentives

Builder Incentives Guide

Warranty

What Does the Warranty Cover?

Budget First

Affordability Calculator

Representation

Do I Need a Realtor?

Frequently Asked Questions

New construction closing costs, property taxes & HOA fees, common questions

What are typical closing costs on new construction?

Closing costs generally run 2% to 5% of the purchase price, covering loan origination fees, title insurance, escrow fees, and prepaid property taxes and insurance. Builders sometimes offer a closing cost credit as part of an incentive package, which can help offset this.

Are property taxes higher on new construction than resale homes?

Often, yes. New construction gets assessed at its actual built value, while nearby older resale homes are frequently assessed below current market value until they sell. Property taxes in Clark County run around 1% of assessed value annually, so it's worth factoring this into your monthly budget comparison.

What is the real estate excise tax in Washington?

REET is a one-time tax applied to the sale of real estate in Washington, on a tiered scale from 1.1% to 3% based on the sale price. It's separate from your ongoing annual property tax bill and is typically paid at closing.

Why do new construction loan estimates sometimes underestimate property taxes?

Because the home doesn't exist yet at the time the loan estimate is prepared, lenders sometimes base the property tax figure on land value alone or an outdated assessment, rather than the home's full completed value, which can mean a higher actual tax bill once the county assesses the finished home.

Do new construction communities in Vancouver, WA have HOA fees?

It varies significantly by community. Some don't carry HOA fees at all, while others do, often tied to shared amenities like parks, entrances, or landscaping. Always confirm the current HOA cost and exactly what it covers before signing.

What does an HOA fee typically cover in a new construction community?

Common coverage includes shared amenity maintenance like entrance landscaping and community parks, common area upkeep, and reserve funds for future shared infrastructure repairs. Ask to see the HOA's reserve study to gauge whether the current fee is sustainable.

Are there property tax exemptions available for seniors in Clark County?

Yes. Homeowners 61 or older, or with a qualifying disability, may be eligible for a reduction in property taxes through Clark County's Senior and Disabled Persons Property Tax Exemption Program. Eligibility depends on income and other factors, so check current requirements directly with the Assessor's office.

Comparing the Real Cost of a Few Communities?

Let's run the actual numbers, closing costs, property taxes, and HOA fees included, before you decide on price alone.

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Costs, tax rates, and HOA fees vary by community and change over time. This page provides general planning information, not financial or legal advice; confirm current figures directly with your lender, the Clark County Assessor's office, and each community's HOA.