HHM demand-led research
How to compare new-construction homes before signing
A new home can reduce near-term maintenance, but the purchase still involves choices about the builder, lot, plans, allowances, upgrades, deposits, financing, inspections, completion standards, warranties, insurance, and future neighborhood costs. Compare the complete delivered home and contract—not only the model-home appearance, advertised payment, or builder incentive—and independently verify every material promise before signing.
What matters first
- A builder deposit may become nonrefundable under the contract, so confirm the refund conditions, financing contingency, construction milestones, delay terms, and remedies before paying it.
- A preferred lender or closing incentive can lower a visible upfront cost while another lender offers a better overall loan; compare Loan Estimates for the same price, down payment, term, lock period, and points or credits.
- Independent inspections can still be valuable for new construction. The contract should address access, inspection stages, correction procedures, final completion, walkthrough items, and any right to delay closing for unresolved work.
- A builder warranty is not the same as a separately sold home service contract. Read coverage periods, exclusions, claim deadlines, repair standards, dispute procedures, and responsibility for temporary living or related expenses.
- Energy-efficiency and certification claims should identify the exact program, version, rating company, field verification, certificate, equipment, envelope, ventilation, and expected operating assumptions for the individual home.
Verify before spending
- 1Compare the base price, lot premium, structural options, design-center selections, allowances, change fees, incentives, estimated taxes, association charges, utility setup, landscaping, window treatments, appliances, and every item excluded from delivery.
- 2Research the builder’s legal entity, license where applicable, completed communities, complaint and court history, warranty service, subcontractor oversight, and references from buyers who have lived in their homes long enough to request repairs.
- 3Have an appropriate independent professional review the purchase contract and addenda, then schedule the inspections and document review permitted by the contract and local rules.
- 4Obtain competing financing and insurance estimates, verify the appraisal and completion conditions, and retain signed plans, specifications, selections, change orders, inspection reports, correction records, warranties, manuals, certificates, and closing documents.
Primary sources reviewed
Find the right homeConsumer Financial Protection BureauLoan Estimate explainerConsumer Financial Protection BureauWarranties for New HomesFederal Trade CommissionSingle-Family New Homes program requirementsU.S. Environmental Protection AgencyENERGY STAR new-home partner locatorU.S. Environmental Protection Agency
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