When buying a new home, the process is different from buying a resale home. Builders use their own contracts and timelines.
- Bring Your Real Estate Agent. The sales agent at the builder’s office represents the builder, not the buyer. Having your own agent ensures someone is protecting your interests, negotiating upgrades, timelines, and contract terms.
- Research the Builder’s Reputation. Look at previous communities they built. Read homeowner reviews and complaints. Verify licensing and past lawsuits or construction defects if you wish to take it to the next level.
- Carefully Review the Builder Contract. Builder contracts are typically builder-friendly and different from standard resale purchase agreements. Pay attention to construction timeline and delay clauses, price escalation clauses, and what happens if materials or finishes change.
- Understand Upgrade Pricing. Builders often offer design centers with upgrades. Builder upgrades can be expensive compared to aftermarket options. Prioritize upgrades that are hard to change later, such as structural changes, electrical and wiring, and extra windows or sliding doors. Avoid overspending on cosmetic upgrades that can be done after closing.
- Consider an Independent Property Inspection (Even Though It’s New). Common inspection stages include: Pre-drywall inspection – before walls are closed, final inspection before closing, and 1-year or 11-month warranty inspection. City inspectors check code compliance, but not workmanship quality.
- Pay Close Attention to the Final Walk-Through. Before closing, do a thorough walk-through with the builder. Check things like doors and windows (they open smoothly), drywall dents or paint defects, plumbing fixtures (they work properly), outlets and lights function, the floors are level and clean, and check the exterior too. The walkthrough is often the last chance to request repairs before closing.
- Understand the Builder Warranty. Most new homes include warranties such as a 1-year workmanship warranty, systems warranty (plumbing, electrical, HVAC), and a 10-year structural warranty.
- Understand HOA and Community Rules. HOAs, architectural restrictions and landscaping requirements.
- Think About Resale Value. Lot location (avoid busy streets, intersections, or backing to commercial areas), orientation and views, functional floor plans, parking and garage size
- Keep All Documentation. Maintain records of upgrade selections, change orders, builder promises, warranty information.