Buying a new construction home is an exciting experience. The thought of moving into a brand-new home, built just for you, with no previous owners, is a dream for many. However, new construction purchases come with unique challenges, and many buyers make costly mistakes that could have been avoided with the right knowledge.
What a lot of people don’t realize is that the cost of having their own real estate agent is already factored into the price of the home—whether they use an agent or not. This means that if a buyer chooses not to have their own representation, they’re essentially paying for a service they’re not receiving.
Even more importantly, the builder’s sales agent is legally obligated to represent the builder’s best interests, not the buyer’s. If you don’t bring your own agent, the agent handling your paperwork has a fiduciary duty to the builder—not you. This means their priority is protecting the builder’s profits, not negotiating the best deal for you.
Having your own agent costs you nothing extra but ensures:
✅ You have someone advocating for your best interests—not the builder’s.
✅ You get guidance on contracts, pricing, and negotiations.
✅ You have an expert helping you avoid common pitfalls and hidden costs.
Skipping representation in a new construction purchase is one of the biggest mistakes buyers make. Make sure you have an expert on your side!
If you’re considering a new build, avoid these ten common mistakes to ensure a smooth process and a smart investment.
1. Not Having Your Own Agent
Many buyers assume they don’t need an agent when purchasing new construction, thinking the builder’s sales rep will help them. However, the builder’s representative works for the builder, not you. It is the builder fiduciary duty to look out for the builder.
Having your own agent ensures:
✅ You have someone negotiating on your behalf to get the best deal.
✅ You understand the contract, pricing, and potential hidden costs.
✅ You get expert advice on lot selection, resale value, and financing options.
Pro Tip: The builder already ads the cost to pay the buyer’s agent commission regardless if you use a realtor or not, meaning having an agent costs you nothing but gives you valuable protection.
2. Skipping the Inspection
Just because a home is new doesn’t mean it’s perfect. Construction defects happen. Some builders rush jobs or use subpar materials, leading to:
• Structural issues that could cause major headaches later.
• Electrical, plumbing, or HVAC mistakes that could go unnoticed until after move-in.
• Code violations or unfinished work that could delay your closing.
To protect yourself, schedule:
✔ A pre-drywall inspection to catch issues before walls are sealed.
✔ A final inspection before closing to identify last-minute problems.
Pro Tip: It’s much easier to get the builder to fix problems before closing than to fight for warranty repairs later.
3. Ignoring the Contract Fine Print
New construction contracts are written by and for the builder. Unlike standard home purchase agreements, they often:
• Make deposits non-refundable, even if financing falls through.
• Limit your warranty coverage, leaving you responsible for unexpected repairs.
• Give the builder more flexibility with deadlines while penalizing you for delays.
Pro Tip: Never assume the contract is standard—have an agent or real estate attorney review it before signing.
4. Not Negotiating Upgrades
Many buyers assume the model home reflects the standard features, but it’s often filled with premium upgrades. If you’re not careful, you could end up paying full price for costly add-ons that may not be worth it.
To get the best value:
✔ Ask for free or discounted upgrades—builders are often more flexible with incentives than price reductions.
✔ Prioritize structural upgrades (like extra rooms or higher ceilings) over cosmetic ones that can be done later.
✔ Compare builder upgrade prices vs. hiring a contractor after closing—sometimes, it’s cheaper to upgrade later.
Pro Tip: If the builder won’t budge on price, negotiate for free appliances, closing cost assistance, or landscaping credits.
5. Paying for Lot “Premiums” That Don’t Add Value
Builders charge extra for “premium” lots, but not all premiums are worth it. Some buyers overpay for lots that actually hurt resale value.
Mistakes buyers make:
❌ Paying extra for a lot that backs up to a busy street (harder to resell).
❌ Choosing a small premium lot that doesn’t offer additional functionality.
❌ Paying for a view that might be blocked by future development.
Pro Tip: Ask your agent if the lot premium will add real resale value or if it’s just an unnecessary expense.
6. Assuming the Builder’s Lender Is the Best Option
Many builders offer incentives (like closing cost assistance) if buyers use their preferred lender. While this might seem like a great deal, it’s not always the best financial move.
Why?
• Builder-affiliated lenders don’t always have the best interest rates or terms.
• Some lenders inflate fees to offset the builder’s incentives.
• You might find a better deal elsewhere by shopping around.
Pro Tip: Always compare multiple lenders before making a decision. If you want the builder’s incentives, ask if they’ll still honor them if you use an outside lender.
7. Not Budgeting for Post-Closing Costs
Many buyers focus on the base price and upgrades but forget about expenses after move-in.
Common post-closing costs include:
• Landscaping and fencing (often not included in new builds).
• Window coverings (most homes come with bare windows).
• Light fixtures, ceiling fans, and appliances (some builders don’t include refrigerators or washers/dryers).
Pro Tip: Factor these costs into your budget before signing the contract so you’re not caught off guard.
8. Underestimating Construction Delays
New construction often takes longer than expected, and delays are common due to:
• Weather conditions
• Material shortages
• Labor issues
If you’re renting or selling your current home, don’t assume the builder will finish on time. Have a backup plan for temporary housing or lease extensions.
Pro Tip: Ask the builder for a realistic timeline, and check if there are any penalties if they delay your move-in date.
9. Failing to Get Everything in Writing
Verbal promises from the builder or sales rep mean nothing if they’re not in writing. Many buyers assume they’re getting certain features or upgrades only to find out later they weren’t included.
To avoid surprises:
✔ Get all agreements in writing before signing the contract.
✔ Double-check your final contract and selections before closing.
✔ Keep copies of all communications in case there are disputes later.
Pro Tip: If it’s not in writing, it doesn’t exist—never assume a builder will honor a verbal promise.
10. Not Researching the Builder’s Reputation
Not all builders are created equal. Some have a track record of quality construction, while others cut corners or have poor customer service.
Before committing:
✔ Read online reviews and check builder ratings on sites like the BBB.
✔ Visit previous communities built by the same developer.
✔ Ask about warranty response times and homeowner satisfaction.
Pro Tip: If multiple homeowners have complained about a builder’s quality or warranty service, consider looking elsewhere.
Final Thoughts
Buying a new construction home is a big investment, and avoiding these common mistakes can save you money, stress, and frustration.
✅ Work with a trusted real estate agent.
✅ Read the contract carefully before signing.
✅ Always get inspections, negotiate upgrades, and shop for the best financing.
If you’re thinking about purchasing a new construction home, let’s talk! I can help you navigate the process, avoid pitfalls, and get the best deal on your dream home.
📩 Contact me today to get started!
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