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How to Buy A New Construction Home: What You Need To Know


So you’ve decided on a new construction home. Buying a new construction home is an exciting time. You get to be part of the design process, and you can choose from many different floor plans. However, it is important to know what you are getting into before making such a major purchase. Here are some things that every buyer should know before buying a new construction home:

Construction homes start when one of two things happen:

You start your own home plan:

If you are starting your own home plan, then be prepared to make the major decisions. This includes choosing where the house will go on the lot or which builder is going to build it for you. The exact process of creating new construction homes varies greatly depending on what type of floor plan that buyer purchases.

Select one of the pre-designed floor plans:

If you are choosing a pre-designed floor plan, then the builder will work with your architectural firm to design and build the house. The buyer won’t need to worry about making all of those decisions. However, it is still important that buyers know what they are getting into when purchasing this type of home because there may be some surprises.

New construction homes can be more expensive than resale homes.

This is because they are often built with the latest technology and architectural trends, so you get what's new without having to wait for it to become a standard in older models.

New construction homes are usually sold as is.

It can be a hassle to have an inspection done on new construction and then negotiate with the builder, so you’ll need extra money for unforeseen repairs.

  • You don't always get a say in what finishes you want inside your home or landscape preference outside.This means that if you want something really specific, you may not have a lot of options.

  • The builder is often the seller, so this can result in an unfair negotiation process (like if they ask for more money than what the property actually cost).

  • New construction homes are usually sold as is and come with all fixtures included. This means that builders won't typically take back the appliances or other fixtures for a service refund.

You should have an idea of how long it will take and what you can expect from the process.

This way, you’ll be able to prepare for delays (which are unfortunately very common). For example, if your builder tells you that they don't anticipate any delays then this is a good sign that there might actually be some surprises.

New construction homes will have an inspection prior to delivery.

This is called “lien free” and means that you don't need to pay for anything other than your down payment until closing day. The home must be finished by this date in order to receive your new home warranty.

More things to keep in mind:

  • You can customize many aspects of the construction process, from deciding on finishes to selecting floor plans and layouts. The more time you take in this step, the better it will be for everyone involved.

  • Construction schedules are often published online or available at a nearby builder's office (usually by appointment only).

  • You are allowed to have a contractor or builder come with you during the construction process. This is for your peace of mind and helps avoid any miscommunications that might arise between builders, subcontractors, and potential buyers.


As you can see, there are a lot of things to consider when buying a new construction home. By educating yourself on the process and what's involved in making this type of purchase, then you will be able to make an informed decision about whether or not it is something that you want. The rewards for investing in your own dream house are worth the effort.

partnered post • cc-licensed photo by Gilbert Mercier