How new construction differs
In a resale, both sides typically use a promulgated contract form and negotiate around a standard framework. With a builder, the contract is the builder's own document, written to protect the builder, and the sales representative in the model home works for the builder. Terms such as the inspection window, delivery date remedies, and dispute resolution can look very different from what buyers expect.
Representation at the model home
Most builders will honor buyer representation, but usually only if your agent is with you or registered on your first visit. Ask about the registration policy before you tour, and bring your agent to the initial appointment. This costs nothing and preserves your ability to have someone reviewing the paperwork on your behalf.
Reading the builder contract
- Earnest money and deposits — how much, when, and under what conditions refundable.
- Whether any inspection or termination window exists, and how long it runs.
- Financing contingency terms, and what happens if the appraisal comes in low.
- Estimated completion date, permitted extensions, and remedies if delivery slips.
- Change-order procedure, pricing, and any escalation clauses.
- Warranty terms, transferability, and dispute resolution or arbitration provisions.
- Required notices for any MUD, PID, or annexation status affecting the property.
If a term is important to you, ask for it in writing as an addendum. Verbal assurances from a sales office are not part of the contract.
Incentives and preferred lenders
Builders frequently offer closing cost contributions or rate buydowns conditioned on using an affiliated lender and title company. These can be genuinely valuable — and they can also be offset by a higher rate or fees. Compare a written Loan Estimate from the preferred lender against at least one outside lender for the same loan amount and date, and evaluate total cost over the period you expect to own the home rather than the incentive headline.
Lot selection and community phasing
| Factor | Why it matters |
|---|---|
| Orientation | Afternoon sun on the main living glass drives summer cooling load and comfort |
| Drainage and grade | Low lots collect neighborhood runoff; ask where water leaves the lot |
| Adjacency | Future amenity, arterial road, commercial pad, or detention pond next door |
| Phase | Early phases live with construction traffic; later phases price differently |
| Premium | Greenbelt and cul-de-sac premiums are paid up front and may not fully return |
Ask to see the recorded plat and the overall development plan, and ask what is planned on adjoining undeveloped land. City and county planning records are public.
Upgrades and design selections
Separate structural options — which must be chosen before framing — from finish selections that can be changed later. Items in the walls, such as electrical, plumbing rough-ins, insulation upgrades, and conduit, are cheap now and expensive after drywall. Flooring, fixtures, and paint can often be done later for less than design-center pricing. Confirm how much of your upgrade spend the lender will allow to be financed.
Delivery timelines and delays
Weather, inspections, and supply availability all move dates. Do not schedule a lease expiration or a moving truck against an estimated completion date. Ask for written progress milestones, and ask what rate-lock extension options exist if delivery slips past your lock.
Independent inspections
- Pre-pour / foundation: before concrete, when reinforcement and plumbing placement are still visible.
- Pre-drywall: framing, electrical, plumbing, and mechanical rough-in while everything is exposed.
- Final: before closing, covering finishes, systems operation, grading, and exterior.
- 11-month warranty: before the first-year coverage expires, so items can be submitted in time.
Municipal inspections verify code compliance; they are not a substitute for an inspection performed on your behalf.
Warranty coverage and the 11-month walk
Builder warranties are usually tiered: a short period for workmanship and finishes, a longer period for systems, and a longer structural term. Read what is excluded, what maintenance you must perform to keep coverage, and how claims are submitted. Keep a written log with photos and dates, and submit items in writing rather than by conversation.
First-year taxes and assessments
A new home may first be assessed as vacant land or partially complete, which makes the initial escrow estimate too low. Ask your lender to underwrite the payment using an estimated completed value, and confirm at the appraisal district which taxing units apply, including any MUD or PID assessment. File your residence homestead exemption when eligible.
Resale considerations
While a community is still selling, your resale competes with the builder's inventory and incentives. Distinctive lots, thoughtful structural options, and later phases usually hold value better than heavy finish upgrades. If your timeline is short, factor that competition in before choosing between new construction and resale. See the buying page and the homebuyer guide for the broader process.