New Construction Homes: What You Must Know Before Signing a Contract

Between January and February, I was extremely busy.
Interestingly, I handled more new construction contracts than resale homes.

Today, let’s talk about: “Where do you start when buying a new construction home?”

1. Floor Plan – The Most Important First Step

Model homes are beautiful.
But builders usually offer 4–5 other floor plans in addition to the model home.

• If your preferred floor plan hasn’t been built yet, review the blueprint first.
• If it’s still hard to imagine, visit another community with the same plan.

⚠ Note: Standard features may vary by location — focus on the floor plan itself.

– Why Floor Plan Matters

• It should fit your daily lifestyle.
• It should be appealing for future resale.

You’ve probably seen homes on the market and thought:
“Why is the layout so awkward and cramped?”
These homes often stay on the market much longer.

For example, let’s assume the Base Price is $570,000.

2. Structural Options

Structural options involve changes to the home’s framework, such as:

• Adding a sunroom
• Covered patio
• Deck extension
• Changing stair rail from knee wall to open rail
• Converting a bathtub to a shower

If these upgrades cost about $50,000,

Base Price $570,000 + Structural Options $50,000 = $620,000

⚠ These choices usually need to be made at contract signing, so discuss them with your family in advance.

3. Lot Selection

No matter how beautiful the house is, a poor lot can be disappointing.

Check for:

• Living room orientation
• Backyard layout
• Pond location
• Power lines
• Privacy concerns

Also, slab vs. basement is important.
Especially for single-story homes or Master-on-the-Main layouts, larger lots may be needed.

Premium lots often carry a Lot Premium.
Example: $10,000

Base Price $570,000 + Structural Options $50,000 + Lot Premium $10,000 = $630,000

4. Elevation & Exterior Color

Elevation refers to the home’s exterior style.
You cannot choose the same elevation as your neighbor.
Upgraded elevation example: $7,000 → New total: $637,000

Exterior colors are builder-approved and registered with the HOA.

• You cannot change them arbitrarily.
• Brick samples can look different in real life, so compare homes in different lighting: sunny, rainy, cloudy.

5. Design Selection – Fun but Stressful

Design selection is exciting but expensive — all the nice options cost more.

• Some builders do it in one 4–5 hour session, others split it into two.
• Recent client: 9 AM to 2:30 PM straight — everyone got tired by 1 PM!

💡Tips:

• Review reference photos in advance
• Think about your preferences

⚠ Important: Design upgrades may not fully reflect in appraised value.
If the appraisal is low, the difference becomes the buyer’s responsibility.

Example: $60,000 design upgrades → Final Price: $697,000
Base Price difference: ~$127,000

6. Construction Process & Safety

Buying a new home is exciting!

• Visit weekly for photos and progress checks
• Notify me of any issues — I’ll help

⚠ Never enter the construction site without builder approval.
Accidents are hard to claim.
Safety comes first.

Buying a new construction home is a mix of excitement and stress.

One client said, “I feel like I aged 5 years building this home!”
But receiving the keys at the end brought the happiest smile you can imagine.

I hope this guide helps anyone considering a new construction home.
If you have questions, click the below button!