Buying a New Construction Home in Texas: What You Need to Know
Buying a new construction home can be the PERFECT option for many homebuyers.
From choosing custom finishes to enjoying the latest energy-efficient features, there’s a lot to love about new builds.
(oh and let’s not forget about built-in warranties and low home maintenance costs).
However, it’s important to understand the process, weigh the pros and cons, and know how to protect yourself as a buyer.
First, let’s clarify New Construction VS New Build
MOSTLY interchangeable…one refers to a home already built and the other refers to a home that is not built yet and that the buyer still has an opportunity to add custom features.
Which one you choose depends on several factors… for example, here are a few:
- Is the community mostly finished or do they have lots that they are selling?
- Do you have a specific timeline to be in the home?
- Do you prefer something move in ready with minimal decisions or do you desire to customize some features?
In the grand scheme of things this post is applicable to both options, so here we go.
Why Consider New Construction?
New construction homes come with several benefits that appeal to buyers:
- Customization: If you purchase the lot and work with the builder before the home is built you often have the option to select finishes, layouts, and upgrades to create a home that fits your style.
- Modern Features: From energy-efficient appliances to smart home technology, new builds come with the latest updates, this saves you money on your monthly energy and water bills.
- Low Maintenance: Everything is brand new, which means fewer repairs in the first few years.
- Warranties: Most builders offer warranties for major systems and structural components, giving you peace of mind.
There are really a lot of great reasons why a new home is beneficial, here’s a post with some bullet points: 10 Reasons Why Buying a New Build is a Great Option.
However, there are some possible drawbacks to consider:
- Higher Costs, It Can be Pricey: Customizations and upgrades can quickly increase the final price. Just something to be mindful of.
- Construction Delays: If the home is not built yet or not complete then weather, labor shortages, or material issues can delay move-in timelines.
- Unfinished Communities: Early buyers in a development may deal with ongoing construction and incomplete amenities.
- Basic Landscaping: New homes often lack mature landscaping, requiring patience as plants, trees, and grass grow.
This is a new community with a sales office, I bet I will get a better deal without bringing my real estate agent…right???
WRONG. You need a representative, someone to look out for YOUR best interests.
One critical step when buying new construction is bringing your own real estate agent to represent you BEFORE you go into the sales office.
- The Builder’s Agent Works for the Builder: Builders have sales representatives onsite, but their loyalty lies with the builder—not you. They aim to protect the builder’s interests and maximize profits.
- Your Agent Protects You: A buyer’s agent is there to advocate for you, negotiate on your behalf, and guide you through the process. They’ll help you review contracts, ask the right questions, and avoid costly mistakes.
Builder Contracts, they’re fair, right?
Hhhmmm, sure, as long as you know what they say and what that means for you the buyer.
Unlike traditional home purchases that use standard contracts, builders often have their own agreements with terms that heavily favor them.
- Read the Fine Print: Builder contracts include specific clauses about timelines, warranties, and cancellation policies. It’s essential to know what you’re signing.
- Your Agent Can Help: Your real estate agent will explain the terms, help you navigate the contract and advise you on any, negotiations.
- As in all real estate transactions, your realtor is not an attorney, if you don’t understand something- consulting a real estate attorney.
It’s brand new…Why would I Need a Third-Party Inspection???
Just because a home is new doesn’t mean it’s perfect. Builders are human, and mistakes can happen. A home is only as good as the contractors that build it.
***Inspectors have found mold in attics, drainage issues, grout poured into plumbing drains, etc…
Still think an inspection isn’t important?
For nothing more than peace of mind… get one (see, that’s your agent protecting you right here).
- Catch Issues Early: A third-party inspector ensures that everything meets local building codes and is up to standard. This includes critical areas like the foundation, roof, plumbing, and electrical systems.
- Schedule Multiple Inspections: Key stages to consider are pre-drywall (before walls are closed up) and a final inspection before closing. These inspections can catch issues that might be missed by the builder’s team.
It’s Complete, Time to Close and Move in Right? Wait, there’s one more step…The Blue Tape Walkthrough.
What is a Blue Tape Walkthrough?
Before closing, you’ll have the opportunity to do a blue tape walkthrough with the builder.
- What It Is: During this walkthrough, you’ll go through the home and mark any imperfections—such as paint smudges, misaligned cabinets, or scratches—with blue painter’s tape.
- Why It’s Important: This is your chance to ensure the home is in the right condition before you close. Addressing these items after you move in can be more difficult and time-consuming.
The Buying Process for New Construction
Here’s what the typical process looks like when buying a new construction home:
- Research Builders: Look for reputable builders in your area and read reviews to learn about their quality and reputation.
- Hire a Real Estate Agent: Bring your agent with you when visiting builder communities to ensure you’re represented from the start.
- Choose a Community and Lot: Select a neighborhood and a lot that fits your needs and lifestyle.
- Select Your Floor Plan and Upgrades: Work with the builder to customize your home. Be mindful of upgrade costs—they can add up quickly!
- Secure Financing: Some builders offer incentives for using their preferred lender, but shop around to find the best mortgage terms for you.
- Monitor Construction: Stay in touch with your agent and builder to track the progress of your home.
- Schedule Inspections: Hire a third-party inspector at key stages of construction.
- Blue Tape Walkthrough: Address any imperfections before closing.
- Close on Your Home: Review all documents, confirm repairs, and move into your brand-new home!
Things to Watch Out For
When buying new construction, keep an eye on the following:
- Hidden Costs: Upgrades, HOA fees, and landscaping costs can add up quickly.
- Builder Delays: Be prepared for potential delays in the construction timeline.
- Resale Value: Consider how the home’s features and location will appeal to future buyers.
Final Thoughts
Buying a new construction home in Texas can be a fantastic option, but it’s important to go into the process informed and prepared. With the right agent by your side, a clear understanding of the builder’s contract, and thorough inspections, you can enjoy the benefits of a brand-new home while avoiding common pitfalls.
If you’re ready to explore new construction homes or have questions about the process, let’s connect! As a Texas real estate agent, I’m here to guide you every step of the way and ensure you make the best decisions for your future. 🏡
Jane Askew, Realtor with Keller Willams Ellis County.
Ready to get started? Fill out the form below or contact me directly:
elliscountyareahomes@gmail.com
