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Researching a new-construction home means checking the contract, builder, lot, inspection access, warranty, and total cost—not just choosing finishes in a sales office. Before you pay a deposit or sign, get the complete agreement and attachments, learn when your deposit can be returned, and verify that you can arrange an independent inspection. This U.S.-focused guide follows the decisions from early research through closing; contract rights, inspection rules, permits, and required occupancy documents vary by state and locality.
What should you check before signing a new-construction contract?
Get the complete written agreement and every attachment before committing money. A sales brochure, sample home, or verbal promise is not a substitute for the signed plans, specifications, options, allowances, and contract terms that describe what the builder must deliver.
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Ask for time to review the documents, and consider having a real-estate attorney familiar with local new-construction contracts examine them. The important question is not only what the home is supposed to include, but also what happens if costs change, construction is delayed, you need to cancel, or the home is not complete as expected. Contract rights depend on the agreement and local law.
Make a document checklist
- Plans and specifications: Confirm the version, materials, dimensions, finishes, fixtures, appliances, and equipment that form part of the deal. Ask which items shown in a model or illustration are not included.
- Options and allowances: Get a written list of selected upgrades, their prices, and any allowances for items you will choose later. Find out what happens if your selection costs more or less than the allowance.
- Change orders: Check how changes must be requested and approved, how prices and schedule effects are documented, and who is authorized to approve them. Keep signed copies of every change.
- Deposit and payments: Note the amount and timing of each payment, where the money is held if the contract says so, and the precise circumstances in which funds are refundable or may be forfeited.
- Contingencies: Look for financing and satisfactory-inspection contingencies, their deadlines, and the steps required to use them. The CFPB says it is a good idea to make an offer and sales contract contingent on financing and a satisfactory inspection when possible; whether that protection exists for you depends on the signed contract and local law.
- Completion and delay: Identify whether the completion date is an estimate or a binding deadline, how delays are handled, what notice the builder must give, and what remedies or cancellation rights may apply if work is late or incomplete.
- Disputes and cancellation: Read the terms for dispute resolution, default, termination, and unfinished work. Do not assume that a deposit is refundable simply because you change your mind or a projected date is missed.
The CFPB’s guidance for finding a home specifically recommends asking about conditions for getting a builder deposit back and notes that buyers may shop for a mortgage rather than use a builder-associated lender. Get any explanation of contract terms in writing; if a clause is unclear, resolve it before signing rather than relying on a salesperson’s summary.
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How can you vet the builder and the development?
Ask about the builder’s record and the place where the home will sit. A well-presented model does not tell you how the builder handles corrections, whether fees will add to the price, or whether the neighborhood fits your needs.
Questions to ask the builder
- Can you provide references from recent buyers or occupants? Ask to speak with people whose homes were completed recently, and ask how the builder handled delays, defects, and follow-up requests.
- How long has the business operated locally, and where can you contact it after closing? Look for a permanent business address and check reputation and complaint history. The NAHB’s builder-hiring checklist offers questions for evaluating a contractor; it is a starting point, not a guarantee of future performance.
- What features are included in the base price, and which are upgrades? Ask about customization deadlines, fees, landscaping, and who is responsible for replacing or maintaining landscaping after completion.
- What warranty applies, and who is responsible for honoring it? Request the complete warranty and homeowner manual before you commit, not just a summary in a sales presentation.
- Are there additional fees connected with the home or development? Ask for a written list of one-time and recurring charges, including any homeowners association (HOA) dues and what services they cover.
The NAHB’s questions for home builders also prompts buyers to ask about references, warranty programs, and additional fees. Use its questions as a starting point, then verify answers that affect taxes, schools, services, or future construction with the relevant local authority or provider.
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Ask for the HOA budget or fee schedule, the services dues cover, and the governing documents or restrictive covenants that apply. Review rules that could affect parking, exterior changes, landscaping, pets, rentals, or other household plans. Do not treat a general description of HOA services or restrictions as a substitute for the governing documents.
Ask about estimated property taxes, nearby services, schools, emergency facilities, and planned development. These answers are leads to verify, not guarantees: tax assessments can differ from estimates, school boundaries and services should be confirmed with the responsible local agencies, and future development plans can change. Check utility providers, likely connection arrangements, and any fees relevant to the specific lot.
How do you estimate the real cost of a new build?
Compare the expected cost of owning each property, not just the advertised base price. The final figure can include options, allowances that prove insufficient for your selections, fees, HOA dues, taxes, insurance, utilities, landscaping, and ongoing maintenance.
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Make a written budget with separate lines for:
- Contract price, selected upgrades, and potential costs above allowances.
- One-time development, utility, or other fees disclosed by the builder or local providers.
- HOA dues and the services, if any, they cover.
- Estimated property taxes, verified with the local taxing authority where possible.
- Homeowners insurance, with an early estimate based on the actual address and hazard exposure.
- Utility costs and the energy-efficiency features documented for the home.
- Landscaping responsibilities and likely maintenance after closing.
Ask the builder which energy-efficiency features and building-code standards apply, and request available documentation rather than relying on a broad efficiency claim. Building codes and efficiency can affect utility and insurance costs, but the available data does not establish a universal savings figure; do not assume a particular reduction without evidence for the specific home.
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Can you have a new-construction home inspected before closing?
Usually, you should arrange an independent inspection, but the access you can require and the effect of findings depend on your contract and local rules. New construction can still have defects, and a final walkthrough is not a substitute for an independent professional inspection.
Before signing, check whether the contract allows inspections, whether it makes the purchase contingent on a satisfactory result, and what deadlines and notice procedures apply. The CFPB’s home-inspection guidance explains that findings may give a buyer grounds to negotiate repairs or credits, while a satisfactory-inspection contingency may preserve cancellation rights under its terms. Neither outcome is automatic: follow the actual contract and applicable law.
Choose an inspector with relevant experience and references, and verify licensing or other requirements with the local authority because rules differ by area. Ask the inspector what the inspection covers, how findings will be reported, and whether the inspector has experience with new construction. Attend if possible so you can ask questions and understand the written report.
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Ask about inspection access while work is underway
If the home is not finished, ask the builder in writing what access is permitted at each stage and how much notice is needed. Possible stages to discuss include foundation, framing and rough-in work, and the final inspection. Access and timing vary by project and contract; an inspection schedule should be agreed rather than assumed.
Some construction issues are easier to see before walls and finishes conceal the work. Ask your inspector whether staged visits make sense for this home, what can be assessed at each stage, and how to document any concern. Inspection requirements and completion evidence depend on construction and financing context. HUD’s Single Family Housing Policy Handbook and HUD forms relate to applicable HUD programs; they do not establish a mandatory inspection sequence for every new-home buyer.
What should you check in a new-home warranty?
Read the actual builder warranty and identify who must respond to a claim, what is covered, and how to make a claim on time. Also collect separate manufacturer warranties for equipment and products; a builder warranty, product warranty, and optional home warranty or service contract are different arrangements.
For the builder warranty, check:
- Responsible provider: Identify the builder or other company legally responsible for the promise and how to contact it if ownership or personnel change.
- Coverage: Determine which structural and nonstructural items are included, and whether coverage differs by component or period. Do not assume that every defect or repair is covered.
- Exclusions and maintenance: Read exclusions, maintenance duties, and conditions that could affect coverage.
- Deadlines and process: Note how and where to submit a claim, the notice deadline, what evidence to provide, and how to escalate a disputed or unanswered claim.
- Duration: Record the coverage periods for each category exactly as written in the warranty.
The FTC’s explanation of new-home warranties distinguishes builder warranties from home warranties or service contracts and advises buyers to understand coverage and the claims process. Get product warranties and manuals for appliances, heating and cooling equipment, and other installed products directly as part of closeout; their terms may differ from the builder’s obligations.
What should you verify about the lot, hazards, and insurance?
Ask whether the lot or home has flooded or sustained disaster damage, then verify the answer through available public records where possible. Disclosure obligations vary by state, and an absence of a known disclosure is not proof that damage never occurred. The CFPB warns that past damage may recur and may affect insurance availability, cost, or property value.
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Before committing, request an insurance estimate for the specific address, especially if the location has significant hazard exposure. A quote or preliminary estimate is not a guarantee that a policy will remain available or cost the same at closing, so confirm the terms and timing with an insurer. Check the hazard history and relevant public information available for the area, and ask what local sources can confirm it.
Also consider building-code requirements, energy efficiency, utility arrangements, and neighborhood plans as part of location due diligence. A newly built home is not insulated from risks tied to the site or community. A nearby planned project, restrictions, lack of convenient services, or limited emergency access can matter as much to household suitability as the home’s finishes.
What should you do at the final walkthrough and closing?
Use the final walkthrough to compare what has been delivered with the signed documents and record unresolved items. It is a final verification step, not a replacement for staged or independent inspections, contract review, or the approvals required locally.
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- Bring the controlling documents. Use the signed plans and specifications, finish schedule, selected options, allowances, and approved change orders as your reference.
- Compare the delivered home. Check that included features and agreed selections match the documents. Note missing, damaged, unfinished, or differing items clearly.
- Write down every deficiency. Create a punch list with a description of each item, who will correct it, and an agreed target date. Keep a copy and retain evidence of any later completion.
- Reconcile selections and costs. Confirm how allowances, upgrades, fees, and change orders were handled against the agreement and closing documents. Ask about any amount you do not recognize before signing final paperwork.
- Confirm applicable approvals. Ask which final local approval and occupancy documents apply to the home and verify that they have been issued where required. Requirements differ; ask the local building department what applies to this property.
- Collect the closeout file. Keep the executed contract, survey, builder and product warranties, manuals, applicable tax receipts, insurance policies, completed punch list, and relevant occupancy, health, sewer, septic, or code-compliance records.
The NAHB’s closing guidance identifies closeout records and completion steps buyers may need. The exact documents are property- and jurisdiction-specific: a home using a septic system or private well may have different records from one connected to municipal services, and not every listed certificate applies to every home.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How should you compare two builders or new homes?
Compare the same categories for each home and use documented answers where possible. A lower advertised price may not be the lower-cost choice once upgrades, fees, insurance, taxes, dues, utilities, and landscaping are included.
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| What to compare | Questions to answer |
|---|---|
| Contract and deposit | Are financing and inspection contingencies available? When can the deposit be returned? What happens after a delay, cancellation, or unfinished work? |
| Builder record | Are recent references available? Is the builder’s business contact information clear? What does the complaint history and written documentation show? |
| Total cost | What is included, what is an upgrade, and which allowances or fees could change the total? What will dues, taxes, insurance, utilities, and landscaping add? |
| Inspection and completion | Can an independent inspector access the home at useful construction stages and before closing? How are corrections recorded? Which local occupancy approvals apply? |
| Warranty | Who is responsible? What items and periods are covered, what is excluded, and what deadlines and steps govern claims? |
| Site and community | What hazard history, restrictions, services, HOA obligations, emergency access, or planned development could affect the household? |
Give more weight to written terms and verifiable records than to informal assurances. If a builder will not provide a requested document or inspection access, ask why and consider how that uncertainty affects your willingness to proceed. A comparison cannot remove risk, but it can expose differences that an advertised price or model-home tour will not show.
Frequently Asked Questions
When can I get my new-construction deposit back?
There is no universal refund rule for new-build deposits. The signed contract and local law control, so identify the refund conditions, deadlines, required notices, and any forfeiture terms before paying.
Can I use my own mortgage lender when buying from a builder?
Yes, CFPB guidance says buyers may shop lenders and do not have to use a builder-associated lender. Compare complete loan terms and confirm each lender’s requirements for the particular construction and closing.
Does a new home need a certificate of occupancy before I move in?
The applicable approval and occupancy documents depend on local rules and the property. Ask the local building department which approvals apply and verify their status before taking occupancy.
Are builder warranties and home warranties the same thing?
No. A builder warranty and a home warranty or service contract are separate arrangements, and installed products may have their own manufacturer warranties. Read each document for coverage, exclusions, claims procedures, and deadlines.
