Buying a new construction home can offer a number of benefits. These homes are usually more energy-efficient with eco-friendly innovations in windows, insulation, cooling and heating systems, and appliances.

It is critical to have an expert real estate agent represent you during negotiations, as builder contracts differ from existing homes sale contracts. An experienced agent can also help you navigate the mortgage process.


Buying a new construction home requires a lot of planning, and is a process that is much different than buying a resale home. It is crucial that buyers have their own Realtor representing them to ensure they are getting the best possible price and terms. A Realtor can also help navigate the often complex builder contracts and ensure that they are not being taken advantage of.

Typically, a new construction home will require a large down payment, often up to 20% of the purchase price. This is not unusual for builders to require a deposit of this kind in order to keep the project on schedule, but buyers should always review their contract carefully to ensure that they are aware of all of the terms and conditions.

When it comes to financing a new construction home, buyers should find out who will be doing the lending and whether the builder has preferred lenders with which they have relationships. Buyers should not feel obligated to use the builder’s preferred lender, and instead should shop around to find out who is offering the best terms.

Additionally, buyers should be sure to ask the builder about any extras and whether these are paid upfront or at closing. Some builders will make buyers pay for these extras upfront, while others will allow the buyers to pay for them at closing. Lastly, buyers should find out what energy-saving features will be included with the new home. This is a common feature in many new homes today, and it will likely save the homeowners money over time.

In addition to these questions, new construction buyers should also be prepared for delays, as the home is still under construction. Depending on the size of the home and the complexity of the project, it can take months to move into a newly built home. In addition, buyers may encounter restrictions from a homeowner’s association or other restrictive covenants that can be a significant challenge. Lastly, new construction homeowners should find out the tax estimates for the property and be aware that taxes can increase significantly once an official appraisal is conducted by the local county.


Many buyers prefer new construction homes because they don’t have to worry about the age of the roof, or whether the air conditioner will break down in the middle of the summer. But there are some disadvantages to buying a new home, as well.

One is that new construction houses aren’t as customizable as existing homes. Buyers usually have to settle for a pre-determined floor plan, and may have to compromise on the size of their backyard. However, builders can often make allowances for a buyer’s specific requests. For example, they can include a designated office space or upgraded kitchens in their floor plans.

Another concern is that new construction homes aren’t usually as energy-efficient as existing homes. Builders have a tendency to use lower-grade insulation and appliances in their new homes, which can increase utility bills. Buyers should always ask about the energy efficiency of a home before purchasing it, and request for upgrades to boost its efficiency.

In addition, buyers of new construction homes should be aware that they might not get the same benefits as existing homeowners when it comes to home warranty coverage. For instance, some builders only offer a home warranty for a year, whereas others offer warranties for much longer. Buyers should always ask about this coverage, and be sure to choose a builder that offers extended home warranties.

Another issue with buying new construction is that it can be difficult to find information about the builder and its previous work. Searching online is an excellent way to do this, but buyers should also ask friends and family about their experiences with builders in the past. This will give them a sense of the builder’s reliability, and help them avoid unpleasant surprises down the road.

Finally, buyers of new construction should always get everything in writing. Verbal assurances from builders are not legally binding, and they can be easily forgotten. Buyers should ask for a written contract, and have their own real estate agent negotiate with the builder to ensure that all of the terms are clear.


New construction homes can be built in a variety of ways. They can be single-family, multi-family, condos or townhomes. They can also be part of a planned community where you’re involved in the design and decision-making process, according to real estate agent Jen Horner of RE/MAX Masters in Salt Lake City.

One of the biggest considerations with new construction is deciding on a floor plan. Many builders have dozens of floor plans to choose from, and matching those with the specific requirements on your wish list can feel like searching for a needle in a haystack. And since you’ll have to live with this layout for a long time, it’s important to take your time.

When you find the right floor plan, it’s time to start thinking about your options for upgrades and custom features. Most builders will offer a few standard features, but you’ll want to ask about any additional charges. In some cases, you might be able to get away with simply upgrading the existing features of the home. However, it’s important to keep in mind that builders don’t often drop prices, especially when they’re trying to maintain a specific value for their neighborhood and future buyers.

It’s also important to make sure that any promises made by the builder are in writing. This will help to avoid misunderstandings or mistakes. In addition, written agreements are binding, and they can be used as leverage in negotiations. Verbal assurances can be easily forgotten, and they’re not as strong as a signed contract.

It’s also important to hire an experienced buyer’s agent who specializes in new construction. Not only will they know how to handle the complex negotiation process, but they’ll also be able to ensure that your needs are met. You’ll want to find an agent who is willing to be honest and will tell you the truth, even if it’s not what you want to hear. This is because they’ll be working for you and your best interests. They’ll help you negotiate a deal that is fair for both parties.


When choosing a new construction home, it’s important to consider the location. Whether it’s because of traffic, access to public transportation, schools, or proximity to work, you want to make sure that the neighborhood fits your lifestyle. In addition, you should research local builders to see what their reputation is like. You can do this by searching for local business reviews, looking at their websites, or even interviewing past buyers of their homes.

Another factor to keep in mind is resale value. Although it shouldn’t be your primary concern, it’s always good to have an idea of what the resale value will be for the area in which you’re interested in buying. This will help you understand how much your home will appreciate in the future and whether it’s a good investment for you.

Lastly, you’ll want to choose your mortgage lender carefully. Most new construction home purchases require mortgage financing, so it’s important to find a lender who is familiar with this type of transaction. You’ll also want to make sure that the lender can offer you a variety of loan options and provide excellent customer service.

New construction home purchases can be complicated, and it’s important to have a buyer’s agent who will represent your interests. Your agent should be knowledgeable about the process and able to explain each step in detail. You should also choose an agent who is transparent and willing to share their opinions, even if they’re not what you want to hear.

Finally, you should make sure that any promises or agreements made by the builder are in writing. This will prevent any misunderstandings or mistakes in the future and ensure that you’re getting what you paid for. It’s also a good idea to have an inspector check the home during the building process and after it’s finished. This will help ensure that the home is as described and that it’s free from any serious problems.