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New Construction Homebuyer Guide

What to know before visiting a model home, registering with a builder, comparing incentives, inspecting, and closing.

Contact your agent before visiting the model home

Builder sales representatives work for the builder. Many builders require an outside buyer’s agent to accompany or register the buyer on the first visit. Registering alone, signing in without naming an agent, or beginning negotiations directly can prevent an agent from being recognized or compensated later. That can also eliminate a potential Homebuyer Reward.

Compare the complete offer—not just the advertised incentive

Builder promotions may involve closing-cost contributions, lender credits, temporary or permanent rate buydowns, design-center allowances, lot premiums, upgrade packages, or price reductions. Compare the net cost, loan terms, required affiliate use, and long-term payment. A large incentive tied to a higher rate may not be the best deal.

Understand what is included

Model homes contain options that may not be standard. Obtain a written list of included features, selected options, allowances, substitutions, appliances, landscaping, fencing, window treatments, lighting, smart-home equipment, and lot-specific charges. Oral statements should be reflected in the contract or signed addenda when material.

Builder contracts are different

Builder contracts often contain construction tolerances, broad substitution rights, extension provisions, limited remedies, financing deadlines, deposit rules, arbitration provisions, and warranty procedures. A real estate agent is not a substitute for an attorney when legal interpretation is needed.

Use independent inspections

New does not mean defect-free. Depending on the construction stage, buyers may consider pre-drywall, final, and warranty inspections. Confirm access and notice requirements with the builder. Inspectors should be properly qualified for the property and stage of construction.

Track the construction timeline realistically

Weather, materials, labor, utilities, permits, inspections, lender requirements, and change orders can move completion dates. Avoid scheduling a lease termination, moving truck, or sale of another home without understanding the contract’s flexibility and the risk of delay.

Review warranties and punch-list procedures

Identify the builder warranty, manufacturer warranties, claim deadlines, emergency procedures, cosmetic-item deadlines, and the process for unresolved work. Document the final walkthrough with dates and photographs where permitted.

Taxes can be misleading on a new home

Public records may show a tax bill based only on vacant land or a partially assessed improvement. Use a reasonable post-construction estimate rather than assuming the current tax figure will continue after purchase.

Protect the reward opportunity

Before visiting or registering, submit the builder, community, and property through the reward request. The program can determine whether a participating agent may register you and whether the builder’s compensation arrangement supports a potential reward.