Buying new construction
What's different when the builder is the seller?
What's different when the builder is the seller?
You're buying plans and a reputation, not a finished house, and the friendly person in the model home works for the builder. Bring your own agent (the builder usually pays them), read the builder contract before you sign anything, and understand the warranty: what's covered, for how long, and how claims work.
Model homes are designed to sell. The homes people are happy in five years later were chosen for the builder's quality and the lot, not the model's décor.
- How long
- Most people spend about 2 weeks here.
How to: Have my own agent
Bring your own agent before you register at any community
How to: Talked to recent buyers of this builder
Research each builder's reputation and talk to two recent buyers
How to: Read the contract and warranty
Read the builder's contract and warranty terms
How to: Know the deposit and delay terms
Ask about deposits, timelines, and what happens if the build runs late
How to: Know my inspection rights
Understand who can inspect the home and when
Go deeper
- Registering at the sales office without your agent. Many builders won't pay your agent after that, and then nobody works for you.
- Choosing on the model's finishes. You can change finishes; you can't change build quality.
- Assuming the timeline is a promise. Delays are common; know what the contract says about them.
From the Thrive team
- Ask the builder for references from owners who closed a year ago, not last month. Warranty service shows up after the first winter.
How do I pick a lot and a plan I'll still like in ten years?
How do I pick a lot and a plan I'll still like in ten years?
The lot is the one thing you can never change: its sun, its slope, what backs up to it, and the premium the builder charges for it. Walk the lot at different times of day. Then choose a plan by how you actually live: where the light falls at breakfast, where the noise goes at night, whether there's a first-floor room that could be a bedroom later.
Lot premiums add thousands quietly. Corner and cul-de-sac lots cost more and trade privacy for space.
- How long
- Most people spend about 2 weeks here.
How to: Walked my lot at two times of day
Walk the available lots at morning and evening
How to: Know the lot premium and neighbors
Ask what the lot premium is and what's planned behind and beside it
How to: Chose a plan for how I live
Pick a plan for your daily routine, not the brochure
How to: Considered the ten-year needs
Think about the next ten years: office, guests, aging parents, stairs
How to: Pre-approved with a total budget
Get pre-approved so you know your total budget before the design center
Go deeper
- Choosing a lot from the site map. Slope, drainage and what's behind the fence only show up on foot.
- Underestimating upgrades. The standard finishes in the model are often not standard at all.
- Not planning for later. A first-floor flex room costs little now and a lot to add later.
From the Thrive team
- Ask what is planned for the empty land nearby. Today's view can be next year's retention pond.
Which upgrades are worth it, and which will I regret?
Which upgrades are worth it, and which will I regret?
Set an upgrade budget before you walk into the design center, and spend it on things that are hard to change later: structural options, electrical, plumbing rough-ins, insulation, cabinets and flooring. Light fixtures, paint and hardware are cheaper to do yourself after closing than through the builder.
The design center is built to be exciting. Go more than once, and never decide everything in one visit.
- How long
- Most people spend about 2 weeks here.
- What it costs
- Buyers often spend about 5%–20% of the base price on options, and more with premium finishes. Some builders want part or all of the cost of options paid when you order them, and that money is often nonrefundable.
How to: Set my upgrade budget
Set an upgrade budget separate from the base price
How to: Prioritized the hard-to-change items
Prioritize structural and hard-to-change items first
How to: Have pricing on every option
Get pricing on every option before you choose
How to: Cut the cosmetic upgrades
Skip the cosmetic upgrades you can buy cheaper later
How to: Reviewed the list a second time
Sleep on the list and come back once more before signing
Go deeper
- Deciding everything in one emotional afternoon. Spread selections over weeks.
- Upgrading everything because it's financed. It's still money, and it's often marked up.
- Choosing trendy finishes that a future buyer will want to rip out.
From the Thrive team
- Kitchens and baths are used daily and are expensive to change. That's where builder upgrades earn their price.
How does financing a home that doesn't exist yet work?
How does financing a home that doesn't exist yet work?
With a production builder you usually close when the home is done, with a normal mortgage; the builder's preferred lender may offer incentives worth comparing. With a custom build you'll need a construction loan that pays the builder in draws as work is completed and converts to a permanent mortgage at the end. Either way, lock the rate at the right time and budget for what you owe during the build.
Timelines slip, so rate locks and lock extensions matter more here than with an existing home.
- How long
- Most people spend about 2 weeks here.
How to: Know which loan type I need
Ask whether you need a construction loan or a standard mortgage at completion
How to: Compared the builder's lender with another
Compare the builder's preferred lender against one outside lender
How to: Understand draws and conversion
Understand draws, inspections and conversion if it's a construction loan
How to: Have a rate-lock plan
Plan the rate lock around a realistic completion date
How to: Total budget includes upgrades and premiums
Include upgrades, lot premium and closing costs in the total you finance
Go deeper
- Assuming the builder's lender is best because of the incentive. Compare the full offer; the incentive can hide a worse rate.
- Locking the rate too early on a build that runs long. Extension fees add up.
- Financing upgrades without noticing the total. Base price plus upgrades plus premium is the real number.
From the Thrive team
- Ask the builder what the average completion time has been for this community in the last year, and plan your lock around that.
- How to Compare Mortgage Offers Like a Pro9 min read
- Mortgage Points: When Buying Down Your Rate Makes Sense8 min read
- The Mortgage Underwriting Process: What's Happening Behind the Scenes8 min read
- Manufactured and Modular Homes: Modern Options and Financing8 min read
- Fixed-Rate vs. Adjustable-Rate Mortgages: Which Is Right for You?8 min read
What should I watch for while it's being built?
What should I watch for while it's being built?
Visit often, take photos every time, and hire your own inspector for the two moments that matter: before the drywall goes up (when framing, wiring and plumbing are visible) and at the end. Keep a written list of anything that doesn't match your selections and raise it with the site supervisor the same week.
Months of waiting punctuated by bursts of progress. Delays are normal; silence about them is not.
- How long
- Most people spend about 4 months here.
How to: Pre-drywall inspection booked
Schedule a pre-drywall inspection with your own inspector
How to: Photographing each visit
Visit at different times and photograph progress
How to: Keeping a mismatch list
Keep a running list of selection mismatches and raise them immediately
How to: Know my site supervisor
Stay in regular contact with the site supervisor
How to: No changes after start
Avoid change orders once construction starts
Go deeper
- Skipping the pre-drywall inspection. It's the only time anyone can see inside the walls.
- Making changes mid-build. Each one costs money and weeks.
- Not documenting. Photos settle disputes that memory can't.
From the Thrive team
- Visit at different times of day and week. You'll see different crews and different phases of work.
What happens at the final walkthrough and closing?
What happens at the final walkthrough and closing?
The final walkthrough produces a punch list: every scratch, gap and unfinished item, in writing, before you close. Get a completion date for those items in writing too. Collect the warranty paperwork and every manual, and understand the warranty windows; most builder warranties have a one-year workmanship period with a deadline for submitting the list.
It's tempting to rush to the keys. Take the two hours; it's the last time the builder is highly motivated to fix things.
- How long
- Most people spend about 2 weeks here.
How to: Punch list documented with photos
Walk every room with a checklist and photograph each punch-list item
How to: Completion dates in writing
Get the punch list and completion dates in writing before closing
How to: Upgrades verified
Confirm every selection and upgrade is installed as ordered
How to: Warranties and manuals collected
Collect warranties, manuals and the list of subcontractors
How to: Warranty deadlines on my calendar
Calendar the warranty deadlines, especially the one-year list
Go deeper
- Closing with an oral promise to finish items. Get it in writing with dates.
- Missing the one-year warranty deadline. Most builders want one consolidated list; calendar it.
- Not keeping the manuals and sub list. You'll need them the first time something breaks.
From the Thrive team
- Bring a phone charger, a marble (for level floors) and a notebook. Test every outlet, window and faucet.
That's the whole path.
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