New construction · Free guide
Buyer's Guide to New Construction Homes
Buying from a builder is very different from buying a resale home. Our free guide explains what to watch for, from your first visit to a model home to your one-year warranty, so you can buy with confidence.
What's inside
- Who the model home agent works for, and why to bring your own Realtor on your first visit
- The model is not your home: fully upgraded models, lots, and that empty field across the street
- The design center: where expensive upgrades are sold
- How builders raise prices as a community fills up
- Builder incentives and "low" rates: how rate buydowns really work
- Property tax on a new home: why it can jump after the first year
- Deposits, contracts, delays and selling your current home
- Inspections and the first-year warranty
- Why builders' reputations differ
- What to check on your new home through the year
- A fault log to fill in for the builder's warranty app
A specialist service
Bill McElhill is a Realtor and a licensed mortgage loan originator. He goes with you to the model homes, compares builders, lots and incentives honestly, checks the builder's financing against an independent quote, and coordinates selling your current home with buying your new one, so there's no gap.
Common questions
Do I need a Realtor to buy a new construction home?
You don't have to have one, but it is very wise. The sales agent in the model home works for the builder. Your own Realtor works for you, and many builders only work with your Realtor if they come with you (or are registered) on your first visit. In many cases the builder pays your Realtor's fee; we confirm this in writing before we start.
Why is the property tax on a new home often higher than the listing shows?
New homes are often listed, or first taxed, on the value of the empty lot. Once the home is built and assessed, the tax is on the home and land, which can add hundreds of dollars a month. Budget for the full amount.
Should I get a home inspection on a brand-new home?
Many buyers do: a pre-drywall and final inspection before closing, or at the very least an inspection about 9 months after moving in, so anything found can be claimed under the first-year builder warranty.
Educational information only. This page gives general information to help you learn and plan. It is not legal, tax, financial or other professional advice, or an offer to lend. For advice on your situation, talk to a licensed professional. Terms of use