When it comes to new homes, comparison shopping is a must. A new home is the largest financial investment most people make, and it’s natural to want the most for your money. Today’s consumers are more educated than ever before, which contributes to the high level of quality and tremendous features builders offer. But are buyers always fair when they compare?

You’ve heard the cliché “comparing apples and oranges”? It’s totally appropriate in the new home buying process. For example, if you look at two homes from different builders in the same area, and one is priced less than the other for the identical square footage, is that a sound enough reason to go for the lower price? Have you compared features? The cost of upgrades you may be considering? Closing costs? The builder’s reputation for quality, service and integrity?

It would be great if there was a nice, neat formula for analyzing your choices, but it’s up to home buyers to do their homework and take into consideration the many variables that enter the picture. Many homeowners who made decisions based on price and square footage alone are shocked in the end at unexpected negative aspects to their purchase decision.

Sharp consumers consider mortgage rates, check features and finishes on the Schedule A, explore the locations of the homes they’re considering, factor in lot sizes, the materials used on the exterior of the home and the upgrades available. A home with a higher up-front price tag may include features that will make it better built, lower energy costs and add comfort.

You will also want to consider layout, property taxes, street lighting and furniture, sidewalks, the municipality’s future plans for the area surrounding the community, views, whether there will be a hydro box in front of the home, sod and landscaping, the size of the garage and yards, the quality of the heating/air conditioning system, whether there are appliances included, ample storage space, windows, and durability of flooring material.

Take some time to research the builder’s track record with TARION Warranty Corporation. Talk to people who have purchased from the builders you’re considering and find out how they were treated. Ask whether they’re happy with the quality of their home and how well the builder backed the warranty.

And in your list of items to compare, remember closing costs, which can vary greatly from builder to builder and community to community. Before you sign an offer, READ the appropriate documents and ask questions of the builder. Take the paperwork to a lawyer who specializes in real estate. That person should understand the players involved, as well as the standard agreements. A good real estate lawyer can advise you of any restrictions, easements, rights of way and covenants regarding the property that you might not realize.

Find out from your builder, the lawyer and the municipality exactly what is included in your purchase price, and what will be added on at the time of closing. Some builders pass along to the purchaser aspects such as driveways and other fees, where other builders assume those costs. By learning about these costs up front, you can better determine what you can afford, how much mortgage you will require, and how a particular home compares to others you may be considering.

If it’s a condo you’re considering, this process applies as well.  Comparing by how much a condo costs per square foot isn’t the best way to determine value or desirability. Compare locations, exteriors, number of suites per floor, amenities, maintenance fees, etc.

As with most things in life, you get what you pay for. When you shop for a new home or condo, just make sure you know what you’ll paying for, and then compare apples to apples.

Hugh Heron is Principal and Partner in the Heron Group of Companies, President of Heathwood Homes and a Member of the Board of Directors of Canada Mortgage and Housing Corporation, as well as a Past President of the Toronto Home Builders’ Association and the Ontario Home Builders’ Association.