What You Need to Know Before Buying a New Construction Home

Buying a new construction home is exciting—everything is brand new, energy-efficient, and customizable to your style. But while the process sounds simple on paper, there are a few key things you need to understand before signing on the dotted line.

Here’s what every buyer should know before purchasing a new build in today’s market.

 1. Not All Builders Are Created Equal

Just like used homes vary in quality, so do builders. Research local builders online and read recent reviews from homeowners. Look into:

• Construction quality and reputation

• Warranty programs

• How they handle repairs or delays

• HOA restrictions tied to the development

Pro tip: Ask your real estate agent which builders they’ve had the best experience with.

 2. The Model Home Is Not the Base Price

The model home you tour is often loaded with upgrades—think higher-end cabinets, luxury flooring, and premium finishes. These are not included in the “starting from” price.

When you're budgeting, ask the builder:

• What’s included in the base price?

• What upgrades are available and what do they cost?

• Can you make changes after signing?

 3. Don’t Skip the Inspection

Yes, it’s a brand-new home—but that doesn’t mean it’s perfect. Mistakes happen, and rushing to close without an inspection could cost you later.

Hire a licensed home inspector to catch:

• Improper wiring

• Incomplete insulation

• Plumbing issues

• Code violations

Builders usually fix legitimate issues before closing—but only if you catch them early.

 4. You Don’t Have to Use the Builder’s Lender

Builders often offer incentives (like closing cost credits or rate buy-downs) if you use their preferred lender. These can be great, but not always the best deal.

Smart move: Compare their offer with an outside lender. Sometimes the “incentive” is built into a higher rate. You might save more over time with an independent mortgage broker.

5. Expect Construction Delays

Delays happen due to weather, supply chain issues, or contractor scheduling. If you're under a tight timeline, ask for a realistic build schedule and get everything in writing.

Also clarify:

• What happens if construction runs past the estimated completion date?

• Can you lock in your mortgage rate long enough to cover delays?

6. Warranties Matter—Know What They Cover

Most builders include a 1-2-10 warranty:

• 1 year for workmanship (nail pops, paint, etc.)

• 2 years for systems (HVAC, plumbing, electric)

• 10 years for structure (foundation, framing)

Get clear on what is covered, who to call for issues, and how quickly they respond.

7. You Still Need a Realtor

You might think you don’t need an agent for new builds, but a real estate agent is your best advocate during negotiations, inspections, and contracts.

An experienced agent can help:

• Negotiate price or upgrades

• Protect you from builder-favored contract terms

• Recommend third-party lenders, inspectors, and attorneys

And the best part? The builder pays your agent’s commission—not you.

Final Thoughts

Buying a new construction home offers peace of mind and modern style—but it comes with unique challenges. With the right team and preparation, you can enjoy the experience without the stress.