New construction has real advantages: everything is brand new, so you should see very few surprise repair costs in the first few years, you may get to choose your own finishes, and builders sometimes offer financing incentives through their preferred lender. But there are a few things worth understanding before you sign with a builder.
Understand all the costs
The price a builder advertises is usually their lowest base price. By the time you make finish selections at the design center and add lot premiums, landscaping, and items that aren’t included (like window treatments or certain appliances), the final cost can land well above what you initially budgeted.
Expect higher property taxes
New communities are often part of a metro district (an entity formed to finance infrastructure like roads, water, and parks), which typically results in meaningfully higher property taxes than a comparable home outside a metro district.
Be aware of the timeline
Getting the model, lot, and finishes you want can take patience: typically 6 to 12 months from start to finish, sometimes longer if the builder falls behind schedule. Move-in-ready spec homes are usually available on a shorter timeline if flexibility matters more to you than customization.
Know the builder’s terms
The sales representative at the model home works for the builder, not for you, which is why it’s important to bring your own agent on your first visit. Many builders won’t allow an agent to represent you if you visit the model home without them present the first time. Builders also typically use their own contracts, which tend to be less buyer-favorable than the standard state contract, with limited ways to back out without losing your deposit. It’s worth reading the terms closely before you commit.
Thinking about new construction and want a second opinion before your first builder visit? Let’s talk before you go. It’s easier to have representation in place from the start.
Keep reading
Metro district tax rates and builder terms vary by community. Confirm current figures for any specific property. Questions? Reach out to Marla directly.