Short answer: A lot premium is an extra charge a builder adds for a lot that's more desirable than the standard lot in a phase, such as a walkout, a pie-shaped lot, a corner, or one backing onto a pond, park or green space. It's added on top of the home's price, so always ask for it separately. Whether it's worth paying depends on how long you'll stay, how you'll use the yard, and whether the feature is likely to matter to the next buyer.
By Jay Lewis, REALTOR® | RE/MAX Excellence · Updated October 5, 2026
This article is part of my Edmonton New Construction Buyer’s Guide.
Free download: my New-Construction Buyer Checklist. Two printable pages, from your first show home visit to your one-year warranty, including what to check on the lot before you sign.
I've worked in new construction for more than 25 years, on the trades side (framing new homes, renovations and full contract builds around Edmonton) and the sales side. I've built on just about every lot type there is, and the lot is the one thing you can't change later. Here's how lot premiums work and how I help buyers decide.
What is a lot premium?
When a builder prices a floor plan, the price usually assumes a standard lot. Lots with features buyers pay more for carry an extra charge, the lot premium. Premiums are set by the builder or developer and vary by community, phase and market conditions, so the same kind of lot can cost very different amounts in different places.
Which lots usually cost more?
Walkout and partial walkout lots: the land slopes so the basement opens to the backyard, with more natural light downstairs. They often need extra foundation work and a deck.
Pie-shaped lots: narrow at the street and wide at the back, giving a bigger backyard.
Backing onto a pond, park, ravine or green space: no neighbours directly behind, and a view.
Corner lots: more space and light, but also more sidewalk to shovel, less privacy and sometimes extra fencing.
Backyard orientation: in some communities, lots with a south- or west-facing backyard carry a premium for afternoon sun.
Larger or wider lots: room for a wider home, a bigger garage or a larger yard.
Illustrative image.
What should I check before paying a lot premium?
The exact amount, in writing: separate from the home price, and whether GST applies to it.
What the premium includes: for a walkout, whether the extra foundation work, larger windows, a deck and stairs are included or extra.
Grading and drainage: how water is designed to move on and around the lot. This matters most on walkouts and lots next to ponds.
What's planned next door and behind: future phases, roads, parks, walkways, utility boxes and easements. The quiet green space behind you today may be a school or a road later. Ask for the community plan.
Restrictions: architectural guidelines, fencing rules on ponds and parks, and easements that limit where you can build a deck or shed.
Sun and wind: stand on the lot at different times of day if you can.
All of this should be reviewed alongside the purchase agreement. My Alberta builder contract checklist covers what to confirm in writing.
Is a lot premium worth it?
It depends on you and on the lot. A premium tends to be easier to justify when:
You'll use the feature every day, such as a bigger yard for kids or a dog, or a bright walkout suite
You plan to stay long enough to enjoy it
The feature can't easily be added later (you can't add a view or a walkout after the fact)
Similar lots in the area have tended to attract buyers when they resell
It's harder to justify when the premium stretches your budget, or when the same money would buy a better location, a larger home or upgrades you'd actually use. For help weighing upgrades, see which new home upgrades are worth it.
Lot premiums, like all new-home prices, change often with market conditions and world events, so compare current written pricing rather than past examples.
Can I negotiate a lot premium?
Sometimes. Builders may have more flexibility on lots that have been available for a while, at the end of a phase, or when the market is slower. Ask, but get any change in writing in the agreement.
How do lot premiums affect my total cost?
A premium raises the price you finance and can add costs you don't see on the price sheet, such as a larger deck on a walkout, extra fencing on a corner, or landscaping for a bigger yard. Add these to your all-in budget with GST, upgrades and closing costs. See new construction cost per square foot in Edmonton for how to compare builders' pricing.
Get my free New-Construction Buyer Checklist
The lot is one of the biggest decisions in a new build. My free, printable checklist covers what to check on the lot, in the contract and at every stage through your one-year warranty.
Frequently asked questions
What is a lot premium on a new home?
An extra charge on top of the home's price for a more desirable lot, such as a walkout, pie lot, corner, or one backing onto a pond or green space.
Is a walkout lot worth the premium?
Often, if you'll use the basement as living space or a suite, because of the extra light and backyard access. Ask what the premium includes, since walkouts usually need more foundation work and a deck.
Are pie lots better?
They give you a bigger backyard but a narrower frontage. They suit buyers who want outdoor space more than a wide front yard or driveway.
Do lot premiums include GST?
Ask the builder. GST generally applies to new homes, and how the premium is taxed and shown should be clear in your agreement.
Can I negotiate the lot premium?
Sometimes, especially on lots that have been available for a while or late in a phase. Get any change in writing.
Choosing a lot in the Edmonton area?
If you're comparing lots in Edmonton, Sherwood Park, Fort Saskatchewan, Devon, Spruce Grove or Stony Plain, text me first at 780-220-8449, or book a 20-minute call. I'll walk the lot with you and help you weigh the premium against your budget. My area guides for Spruce Grove and Sherwood Park list communities building now. I also list homes for some builders; if you're interested in one of my listings, I'll tell you up front and explain how representation works. I'm not a home inspector, engineer or lawyer, and I'll tell you when you need one.
Jay Lewis | REALTOR® | RE/MAX Excellence
This article is general information, not legal, tax or financial advice. Confirm pricing and terms in writing with the builder.
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