1. Do I need a Realtor to buy a new construction home?

No, you can purchase a new construction home without a Realtor. However, choosing to go without your own representation means the builder's sales representative is the person guiding you through the builder's process and representing the builder's interests.

2. Why should I use my own Realtor when buying from a builder?

The builder's sales representative is there to sell the builder's homes. Your Realtor's job is to help you make an informed decision.

A good new construction Realtor has experience with many different builders. Without a Realtor, you will be working with a sales person which can make you feel uncomfortable, pressured, and might cause you to leave money on the table without proper negotiations. New construction can look simple from the outside, but there are many decisions between choosing a floor plan and receiving the keys.

3. Does the builder's sales representative work for me?

Generally, no. The builder's sales representative represents the builder and is responsible for selling the builder's homes.

That doesn't mean the sales representative won't be helpful. They know their communities, homes, construction process, and incentives extremely well. But their responsibility is to the builder.

4. Does using a Realtor cost more when buying new construction?

In my experience, no. Builders are just as motivated to sell a house to someone who is represented by a Realtor as someone who is not. I have never had a builder increase their price because I was there. In many cases, we actually negotiate their prices a little lower.

5. Who pays the buyer's Realtor commission on new construction?

Typically, the builder pays the buyer's agent commission. However, not all builders offer the same compensation. Therefore, you need a Realtor you can trust that will steer you to the right builder for you, not just the builder with the highest compensation.

At Ember Realty, we recommend discussing compensation before you visit a community or begin negotiating with a builder, so you understand exactly how your representation will work.

6. Do I have to register my Realtor with the builder?

Yes—and this is one of the most important reasons to involve your Realtor before your first visit.

Many builders have specific registration requirements for buyer's agents. Some require your Realtor to accompany you on your initial visit or require your agent's information to be provided when you first register.

If you're considering new construction, call your Realtor before walking into the model home.

7. Can I bring my Realtor to the first visit with a builder?

Yes, and you generally should.

Your first visit is often when the builder establishes the buyer's registration and agency information. Having your Realtor with you from the beginning helps make sure everyone understands who represents whom and reduces the possibility of complications later.

8. What does a Realtor actually do during a new construction purchase?

At Ember Realty, we help throughout the entire process—not just when you choose the house.

We help you:

The biggest misconception is that the builder's sales representative makes a Realtor unnecessary. A good new construction Realtor adds value precisely because the buyer has so many decisions to make and the Realtor gives inside experience and advice.

Builder & Contract Questions

9. Can my Realtor negotiate the price of a new construction home?

Sometimes, but don't expect every builder to negotiate the same way.

Many builders use structured pricing, particularly in high-demand communities. However, there may be opportunities involving incentives, upgrades, closing costs, financing, lot premiums, or other terms.

10. Should I take a builder's interest-rate incentive or a price reduction?

It depends on your individual situation.

A lower interest rate can reduce your monthly payment and potentially save significant interest over time. A price reduction lowers the amount you finance and can benefit you differently. There is a breakeven formula to use that tells you after how many months it is more financially beneficial to take the rate reduction.

11. Should I use the builder's preferred lender?

Not automatically.

Builders frequently offer incentives for using their preferred lender, and those incentives can be substantial. But you should compare the builder's lender with at least one outside lender based on the complete cost of the loan, not just the advertised interest rate or incentive.

Compare:

The right question isn't “Who has the lowest rate?” It's “Which financing option gives me the best overall financial outcome?”

12. What happens if the builder changes the price after I sign?

Your purchase contract controls what happens, so this is an important reason to understand the contract before signing.

Generally, a builder can't simply change the agreed purchase price without regard to the contract. However, new construction contracts can contain provisions addressing changes, construction delays, substitutions, financing, completion dates, and other circumstances.

Your Realtor should help you understand the contract and point out provisions that deserve additional attention.

13. Can I negotiate upgrades with a builder?

Everything is negotiable in real estate. But that does not mean the builder will agree to it. Builders may offer different pricing or incentives for upgrades depending on the community, stage of construction, inventory, and current sales strategy.

14. What happens if construction is delayed?

Construction delays are common enough that buyers should plan for the possibility.

Weather, materials, labor, inspections, permitting, supply issues, design changes, and other factors can affect completion.

Your contract will determine the builder's obligations and your rights if the projected completion date changes. But being flexible helps avoid stress during the home building process.

15. What happens if the builder misses the closing date?

There are a lot of moving parts when building a home. Occassionally there are delays with materials and contractors. This can push back closing a couple days or a couple weeks. The builders contract usually states the close date is an estimate. The best thing to do is remain as flexible as possible and know ahead of time that it could fluctuate.

16. What should I look for in a new construction contract?

Having a strong understand and familiarity with contract law is one of the major reasons you should have an experienced agent to represent you. It helps if that agent enjoys reading contracts. You should understand the provisions covering:

Builder contracts are often written to protect the builder, so don't assume a new construction contract works exactly like a resale contract.

For legal advice or interpretation of legal rights, consult a Texas real estate attorney.

Inspections & Construction

17. Should I get an inspection on a new construction home?

Yes.

A new home is not automatically a perfect home. An independent inspection gives you another set of eyes on the property and can identify issues that need attention before closing.

The builder's quality-control process and warranty are not substitutes for an independent inspection.

18. How many inspections should I get on a new construction home?

There are at least 4 phases in which an inspection is a good idea.

1 - Pre-Pour - This is after the rebar and plumbing has been placed but before the foundation has been poured. This is your last chance to check everything before it is covered with concrete.

2 - Pre-Sheetrock - This is a critical phase and the last chance to inspect the guts of the home before it's covered with sheetrock. Systems like electrical, plumbing, HVAC, and structural are just a few of the things to inspect. Pest and moisture treatment, waterproofing, and sealing is also important to be inspected.

3 - Final Inspection - This is less structural and more functional and cosmetic in nature.

4 - Warranty Inspection - Most builders have a workmanship warranty period. Before that period is over, you can hire an inspector to see if you need to file a claim before it expires. You can do the same for mechanical and foundation warranty periods as well.

19. What is a blue-tape walk through?

Builders call this different things. Sometimes they do an orientation and walk through at the same time. This is when you learn about the systems in your home. Where is the water shut off? How do you run the sprinklers? etc. You can also walk the property to find any imperfections like damage, missed caulking, door stops not installed, missing hardware, texture missing, etc. Your builder will create a punch list to complete before closing.

20. What problems do new construction inspections commonly find?

My own buyers purchased a new construction home. They did not hire an inspector for phase inspections. The drain line from the HVAC was never installed into the sewer line of the house. Water was constantly running in the middle of the wall. The builder had to come back and rip up flooring, cabinets, and walls to dry the water and install the drain line. Then install everything again.

21. Who pays for new construction inspections?

The buyer typically pays for an independent inspection. Some inspectors might have a discount if you hire them for all phase inspections.

While that is an additional expense, it is relatively small compared with the financial commitment of purchasing a home.

Think of an inspection as an opportunity to identify problems before they become your problems.

Long-Term Considerations

29. What should I know before buying a new construction home?

Look beyond the model home.

You should evaluate:

The model home is designed to sell you the possibility of the home. Your job is to evaluate the actual financial and practical reality of owning it.

30. What are the advantages of buying new construction?

Some of the biggest advantages can include:

New construction can be particularly attractive for buyers who want a home that fits their lifestyle without taking on a major renovation project.

31. What are the disadvantages of buying new construction?

New construction isn't automatically the better choice.

Potential drawbacks include:

The right question isn't “Is new construction good?”

It's “Is this particular new construction home, community, builder, and price right for you?”

32. Is new construction actually more expensive than an existing home?

Not necessarily.

The purchase price may be higher or lower depending on the community, location, builder, incentives, home size, features, and condition of comparable resale homes.

But buyers should look beyond the advertised base price. Lot premiums, structural options, design upgrades, landscaping, window coverings, appliances, HOA costs, taxes, and financing can significantly affect the final cost.

Compare the complete cost of ownership, not just the starting price on the sign.

33. How much should I budget for upgrades?

There isn't a universal number.

Your upgrade budget depends on the builder, floor plan, base specifications, design options, and what you consider essential.

Before visiting a design center, determine your overall housing budget and separate must-haves from nice-to-haves.

It's easy to fall in love with upgrades when you're sitting in a design center making decisions one at a time. A $1,500 upgrade may seem reasonable until you've made ten more decisions.

34. What new construction costs do buyers often overlook?

Buyers sometimes focus heavily on the base price and overlook expenses such as:

Your $400,000 advertised home can become a very different financial decision once everything is added together.

35. What should I know about HOA fees in new construction communities?

HOA fees vary significantly from one community to another.

Before purchasing, find out:

Also remember that the HOA isn't necessarily your only community-related expense. Some developments may have MUD, PID, or other assessments that affect the overall cost of ownership.