The Homebuyer’s Guide to NEW HOMES

10 Tips to Save You Time and Money

Read This BEFORE You Visit Your First Model Home!

When shopping for a home, most buyers view resale properties—but did you know 1 in 4 actually purchases a new home?

Both new and resale homes offer benefits. Here's a quick comparison:

New Homes

Existing Homes

✅ Modern style and layouts

✅ Typically less expensive

✅ Greater energy efficiency

✅ Located in established neighborhoods

✅ Choose your upgrades and finishes

✅ Homes have already settled

✅ Everything is brand new

✅ Mature landscaping and community features

If you're considering buying a new home, read these 10 essential tips before stepping into a model home.

 Top 10 Tips for Buying a New Home

1. Start with Your Agent

Before visiting a builder’s model home, meet with your real estate agent. They’ll help you:

  • Define a realistic budget and price range

  • Understand how your home sale proceeds (if applicable) impact your purchase

  • Calculate an accurate down payment and monthly payment comfort zone

2. Know the Role of the Builder’s Agent

The agent at a model home represents the builder, not you.
 Hire a buyer’s agent (at no cost to you) to:

  • Represent your interests

  • Help compare builders, pricing, quality, and value

  • Advise on lot selection, construction details, and negotiation

3. Choose the Right Builder

Not all builders are the same. Some focus on:

  • Craftsmanship

  • Space design

  • Energy efficiency

  • Customer service or pricing

🛠️ Know what matters most to you, then shop for a builder that meets your priorities.

4. Research the Builder Thoroughly

Before signing anything:

  • Check the builder’s reputation and financial stability

  • Review “spec sheets” on home features

  • Ask about lot availability and expected completion timelines

5. Evaluate the Neighborhood

Do your due diligence:

  • What amenities are planned or nearby?

  • Are schools, parks, or community centers funded?

  • What’s the traffic like?

  • Will a homeowners association (HOA) exist? What are the rules?

📍 Also, consult local officials about potential nearby developments.

6. Understand Options and Upgrades

The lower the base price, the more room you have for upgrades. There are two main types:

  • Options (e.g., added sunroom or powder room) – built during construction, boost resale value

  • Upgrades (e.g., premium flooring, fixtures, or cabinetry) – higher-end choices

💡 Builder incentives often include free upgrades or credits—ask what’s available!

7. Don’t Be Afraid to Negotiate

Many buyers don’t realize there’s flexibility in:

  • Price

  • Lot premiums

  • Options or upgrades

If a builder has completed but unsold homes, you may have more negotiating power. Always inquire about possible discounts or financing deals.

8. Review the Contract Carefully

Your builder agreement should protect you. Make sure it includes:

  • Deposit held in escrow

  • Detailed list of upgrades

  • Access to the construction site

  • 30-day notice of closing

  • Clear warranty explanations from both builder and manufacturers

🧑‍⚖️ Have your agent and lawyer review all documents before signing.

9. Shop Around for Financing

Builders may offer attractive loan options—but you’re not limited to them.
 Compare:

  • Interest rates

  • Closing costs

  • Appraisal, attorney, and inspection fees

💡 You may find better deals with outside lenders.

10. New Doesn’t Always Mean Perfect

Even brand-new homes can have flaws. Always:

  • Hire a licensed home inspector

  • Create a "punch list" of issues before closing

  • Budget for improvements like decks, landscaping, or finishing a basement

BONUS TIP: Consider Immediate Delivery Homes

Some builders have move-in-ready homes—often available within 30 days. These homes may be:

  • Model homes now for sale

  • "Spec" homes built on unsold lots

  • Properties where prior deals fell through

 Advantages include:

  • Incentives or discounts to close quickly

  • Quick move-in options

  • Ability to walk through a completed home before purchase

Don’t assume a builder will advertise these options—ask directly.

 Final Thoughts

Buying a new home can be an incredible experience—but only if you go in prepared.

By following these tips and working with the right professionals, you can:

  • Save time

  • Avoid costly mistakes

  • Negotiate better value