Definition
A lot premium is an additional charge for premium lots—corner locations, larger sizes, water views, superior positioning. Premiums vary significantly based on demand and desirability.
Where you’ll meet it
How do I pick a lot and a plan I'll still like in ten years?
See it in Buying new construction · Step 2About this term
Lot premiums reflect the value of the lot location relative to standard lots in the development. Corner lots, end-of-cul-de-sac locations, waterfront properties, and lots with premium views typically command premiums. Lot premiums vary significantly based on market demand and location desirability. Understanding lot premiums helps buyers budget accurately for their preferred location.
Pro Tip
Compare lot premiums against actual value. Corner lots may have visibility advantages but also higher traffic and noise.
Example
In a subdivision with standard lots priced at $50,000, a corner lot may be priced at $60,000, a waterfront lot at $75,000, and a standard interior lot at $50,000.