New home construction is often something that people go into with hesitation. Many hear horror stories about backed up sewage, cracked foundations, and see scathing reviews on builder Facebook pages. Well, as you guessed there’s many misconceptions, BUT I’m going to give you tips on how to navigate the process, so that the process goes as smoothly as possible.


  1. Pre-planning


Choose A Good Builder –  Just like any business, you want to choose someone who’s been in business for a long time, has a large presence, and has a great reputation (for the most part – there’s always going to be a few haters). In my experience, builders that are “regional” tend to have the best warranties and customer service. They aren’t so big that they’ve lost sight of there “vision” and are bloated, and they aren’t so small that they don’t have the resources to compete with smaller builders.


Re-sale value- A new home appreciates just like any other real-estate asset. I would stay away from luxury homes, UNLESS you go into with the assumption that you can hang on to it if things gets rough.


What steps can I take to make sure my home doesn’t wind up like the horror stories?

Make sure it has a good warranty and that you hire an independent home inspector.


How much more expensive is a “custom” vs a production builder?

With building a true custom home (picking out a lot, modifying floor plans, and building to taste) will be more expensive then a production build. Many regional builders will build on lots outside a subdivision. Most people go the production route because they’re generally in better locations and have amenities.


2. Go on site


Do I need to bring a realtor with me?

It wouldn’t hurt. Many times you can tell the quality of the builder by how well they work with realtors. I’d stay away from builders that will “incentivise” you to not work with a realtor.


What can I do to negotiate the the best deal?

The vast majority of times the builder won’t want you to negotiate on price, but they do want to negotiate on things outside. This when homes 20-30 homes are being sold in a close space, gradual concessions will drag down the property values. Try to negotiate a fence, maybe a fridge, and or exotic granite tops.


How do I actually purchase the house?

You’re going to sign a purchase agreement or what’s called an “Offer to Purchase”. In this document, it will outline the deposit, closing-date, and certain stipulations BOTH parties must abide by. If the offer to purchase is written in the builders favor, that may be a red flag.




Watch out for the closing date – The build date can be postponed, so I’d come to terms with the closing date could be delayed. Make sure that a delay won’t put you out on the street or living with mom & dad.