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How to buy a new construction home from a builder

Buying new construction means signing the builder's own contract, often before the home is finished. Bring your own agent on your first visit, compare the builder's lender incentives with an outside loan, get your own inspections during and after the build, and read the warranty and any district taxes or HOA dues before you sign.

Updated November 2026. A plain-language guide, not legal advice.

Learn how to buy with a local agent
Who you buy from
The builder, on the builder's contract
Your agent
Bring them on your first visit
Incentives
Often tied to the builder's lender
Inspections
Before drywall and before closing

Step by step

The order most builder purchases go in. Each builder's contract and your market can change it.

See new construction on the mapLearn how to buy with a local agent

  1. Bring your own agent from the first visit

    The sales rep in the model home works for the builder. Many builders require your agent to come with you or register you on the first visit, or they won't work with your agent later.

  2. Pick the home: spec, to-be-built or quick move-in

    A finished or nearly finished home (often called quick move-in or spec) closes sooner, and builders often put incentives on homes they want sold. A to-be-built home lets you choose more, but takes longer and prices can change.

  3. Compare the incentive with an outside loan

    Builders often offer closing-cost help or a rate buydown for using their preferred lender. Get a Loan Estimate from at least one other lender and compare the total cost, not just the rate.

  4. Read the builder's contract closely

    Builder contracts are written for the builder. Check the deposit terms, when it becomes non-refundable, what happens if the build runs late, and what you can change. Ask an agent or attorney to review it.

  5. Get your own inspections

    Hire an independent inspector before the drywall goes up and again before your final walk-through. New homes can still have problems, and a written list gives the builder a clear punch list.

  6. Know the warranty and the ongoing costs

    Ask for the written warranty and what each part covers and for how long. Ask about HOA dues and any special district taxes or assessments, such as a Municipal Utility District in Texas, that add to your yearly cost.

What can go wrong

Losing your deposit

Builder deposits can become non-refundable early. Know exactly when, and what happens if your loan falls through.

Skipping the inspection

City inspections check code, not quality. Your own inspector works for you.

Surprise yearly costs

District taxes, assessments and HOA dues can add a lot to the monthly payment. Get them in writing before you sign.

Who you need

  • Agent who knows new construction

    Knows the local builders, which ones negotiate on price or upgrades, and registers you before your first visit so the builder honors your agent.

    Ask them: Which builders have you closed with this year?

  • Lender to compare against the builder's

    Builder incentives often require the builder's own lender. A second quote tells you what the incentive really costs.

    Ask them: Can you put a competing rate and closing-cost quote in writing?

  • Independent inspector

    New homes have defects too, and the builder's walkthrough is not an inspection.

    Ask them: Do you do pre-drywall and final inspections on new builds?

  • Real estate attorney

    Builder contracts are written for the builder.

    Ask them: What in this contract can I actually negotiate?

Learn how to buy with a local agent

Courthouse or online, MLS or auction site, HUD or bank: a local agent can show you which route a home is on.

Sources: CFPB: the Loan Estimate explained, Texas Water Code 49.452, district notice to purchasers, HUD: buying a home

Experts we work with

Local agents who work distressed and off-market homes, and a lender to call before you bid. Ask through us and we'll introduce you by email.

Recommended lender

Cole Boren, portrait

Cole Boren

Branch Manager, CMG Home Loans

Cole has nearly three decades in mortgage lending. He helps buyers plan a purchase around the bigger picture: the cash they keep, the home they own now and the timing of the move.

  • What you can qualify for now
  • Buying before you sell
  • Which loan fits the home you want

Cole Boren, NMLS #384591. CMG Home Loans, NMLS #1820. Equal Housing Opportunity. Licensing varies by state. Check his NMLS record.

Real Estate Intel recommends people we work with. You're free to use any agent or lender.

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Questions buyers ask

Do I need an agent to buy new construction?

You don't have to have one, but the builder's sales rep represents the builder. An agent of your own can help with incentives, the contract and the walk-through, and builders commonly pay the buyer's agent. Confirm how your agent is paid before you visit.

Do I have to use the builder's lender?

Usually not, but the incentive may depend on it. Compare Loan Estimates and pick the lower total cost.

Can you negotiate with a builder?

Often on incentives, upgrades or closing costs more than on the base price, especially on finished homes the builder wants to sell. It depends on the builder and the market.

What is a MUD in Texas?

A Municipal Utility District is a local district that can charge its own property tax to pay for water, sewer and roads in a new area. Texas law requires sellers to give buyers a written notice about it.

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