Questions to Ask When Buying a New Construction Home
For buyers signing a contract on a home a builder has not finished yet. These 20 questions cover the total price with options, selection cutoffs, the completion date and what happens when it slips, deposits and financing conditions, inspections during construction, warranty terms, and the costs that arrive in year two.
The questions
Open any question for the note
What is the total price with this lot, this floor plan and these options, in writing?
Why ask it
The advertised base price rarely includes the lot premium, the elevation, or the options in the model, and each one is added on a separate worksheet. Ask for a single signed document with the full number, because a verbal running total is where thirty thousand dollars quietly appears.
What is the lot premium on this lot, and how does it compare with the others still available?
Why ask it
Lot pricing is where builders capture the most margin and where buyers have the least information. Ask what each remaining lot is priced at and why, then walk them, because a premium for a wooded rear boundary is worth more than a premium for being on the corner of the entrance road.
What comes in the base house, and what in the model home would I be paying extra for?
Why ask it
Model homes are built with the upgrade package throughout: cabinets, flooring, trim, lighting, landscaping, sometimes even the layout. Walk the model with the standard feature list in your hand and mark every difference, since that list is your real option budget.
What are the allowances for flooring, cabinets, counters and lighting, and what do the upgrades actually cost?
Why ask it
Allowances are set low often enough that most buyers exceed them, and design center pricing usually runs above what the same work would cost after closing. Ask for the option price list, then decide which items are worth doing through the builder because they are hard to change later, such as anything structural or behind a wall.
When is the cutoff for each category of selection, and what happens if I change my mind afterward?
Why ask it
Structural changes usually close before the slab is poured, while finishes stay open much longer, and a change order after a cutoff carries a fee plus whatever the delay costs. Get the cutoff dates in writing on the day you sign so you can plan your decisions around them.
What completion date is in the contract, and what does the contract say happens if the build runs late?
Why ask it
Sales staff give an estimate and the contract usually gives a much later outside date, with the delay risk sitting on you. Ask what remedy you have if the date moves twice, since your rate lock, your lease, and your movers all depend on it.
How is my deposit held, and under what circumstances do I lose it?
Why ask it
Deposits on new construction can be substantial and are often at risk if your financing changes, if you cannot close on the builder's schedule, or if you cancel after selections. Ask whether the money sits in escrow with a third party or goes to the builder, and read the default clause before you sign.
Do I have to use your lender and title company to get the incentive, and what is the incentive worth?
Why ask it
Builders protect the sale price because it sets the comps for every remaining lot, so they pay closing costs or buy the rate down instead, on the condition that you use their affiliates. Get one outside loan estimate and compare total cost, not the monthly payment, before accepting.
If rates move while the house is being built, what protection do I have and what does it cost?
Why ask it
A build that runs six to twelve months can outlast any normal rate lock, and an extended lock or float down usually carries a fee. Ask how long the lock runs, what an extension costs, and what happens if you no longer qualify at the new rate.
What happens if the appraisal comes in below the contract price?
Why ask it
Prices set today for a house finishing next year sometimes fail to appraise, and many builder contracts do not give you a way out. Ask whether there is an appraisal contingency, and if there is not, know that you would need to cover the gap in cash or forfeit the deposit.
Does the contract require arbitration, and does it replace any implied warranty?
Why ask it
Builder contracts are drafted by the builder's attorneys and commonly send disputes to binding arbitration and substitute the limited written warranty for the implied warranty of habitability. Have a real estate attorney read it before you sign, because some of these terms are negotiable and all of them matter later.
May I have my own inspector at pre-drywall, at final, and before the warranty year ends?
Why ask it
Pre-drywall is the only chance to see framing, wiring, plumbing and duct connections before they disappear, and some contracts limit third party inspections. Get written permission for all three visits, since the municipal inspector checks code minimums rather than workmanship.
May I visit the site during construction, and what are the rules?
Why ask it
Regular visits catch mistakes while they are still cheap to fix, and photographs of each stage become your record when something is questioned later. Ask when you may walk it, whether you need to be escorted, and who to raise an observation with so it does not go to a subcontractor directly.
Who is the site superintendent on my house, and how will I hear about progress?
Why ask it
One superintendent's attention affects quality more than the name on the entrance sign, and continuity matters when you file a warranty claim in month three. Ask for a name, a phone number, and how often you will get an update, then notice whether those updates actually arrive.
What are the warranty periods, who backs the structural coverage, and how do I file a claim?
Why ask it
A common structure is roughly one year on workmanship, two on systems and ten on structure, but the value depends on whether an insurance carrier stands behind it or the builder self-insures. Ask for the warranty booklet itself, the submission method and the response window in writing.
What is the walkthrough and punch list process, and how long may I keep adding items?
Why ask it
Drywall cracks, nail pops and sticking doors surface over the first several months as the house dries and settles, so a single walkthrough before closing is not enough. Many builders schedule a thirty day and an eleven month visit, and you want that commitment before closing rather than after.
What does the HOA cost, and are there any special district or bond assessments on this lot?
Why ask it
Community development, municipal utility and improvement districts fund the roads and water infrastructure of new subdivisions, and their payments sit on top of HOA dues and property tax. Ask for the recorded disclosure for this specific lot, because the amount varies by phase.
What will my property tax bill look like in the second year, once the finished house is assessed?
Why ask it
New construction is often taxed on land value alone for the first cycle, then jumps once the completed house reaches the tax roll. Ask the county what the assessment is likely to be at your purchase price, and budget for that figure rather than the one on the current bill.
What is planned for the land around this lot, and how much longer will construction continue nearby?
Why ask it
The tree line behind the lot belongs to whoever holds that parcel, and future phases, retention ponds and collector roads are frequently not shown in the sales materials. Ask for the recorded plat and the remaining lot count, and expect construction traffic until the last one closes.
What mechanical and energy documentation will I get for my house specifically?
Why ask it
Ask for the heating and cooling load calculation, the duct design, the blower door and duct leakage results, and the energy rating if one is done. A system sized by rule of thumb rather than calculation costs you comfort and utility money for as long as you own the house.
Contracting With a Builder Before the House Exists
Practical guidance for the conversation itself
The Contract Stage
Have an attorney read it, not the sales agent
The on-site agent works for the builder and is not permitted to change the contract. A real estate attorney will flag the arbitration clause, the warranty disclaimer, the completion date and delay remedy, the deposit default terms, the appraisal and financing contingencies, and the clause letting the builder substitute materials of equal or better quality without telling you. A few hundred dollars here is the cheapest part of the transaction.
Get the whole price on one signed page
Base price, lot premium, elevation, structural options, design center selections and any incentive should appear together on a single document you both sign. Builders present these on separate worksheets at different meetings, which makes the running total easy to lose track of and hard to argue about later.
Price the incentive against an outside lender
Ask what the incentive is worth in dollars, then get one independent loan estimate for the same loan amount. Compare total cost over the years you actually plan to stay rather than the monthly payment. Builder financing is sometimes genuinely the better deal, but you cannot know that without a competing quote in hand.
Plan around the selection cutoffs from day one
Write down every cutoff date at signing: structural, plumbing and electrical rough-in, cabinets and counters, flooring, paint. Decisions made under time pressure at the design center are the ones buyers regret, and a change order after the cutoff costs both a fee and calendar time.
While the House Is Being Built
Inspect at pre-drywall, and pay for it
Once the walls close, framing, wiring, plumbing, duct connections, insulation and flashing are invisible for the life of the house. Hire your own inspector for a pre-drywall visit and give the report to the superintendent in writing. This is the single highest value inspection in a new build because everything found is still cheap to correct.
Photograph every stage yourself
Walk the site weekly if you are allowed and take dated photographs of the foundation, the framing, the rough-ins, the flashing at windows and roof penetrations, and the insulation before it is covered. When a warranty question arises in year three, your photographs are the only record of what is behind the drywall.
Raise issues through the superintendent, in writing
Speaking directly to a subcontractor puts them in an awkward position and rarely produces a documented fix. Email the superintendent with a photograph and a specific description, keep the thread, and follow up on anything that goes quiet. A pattern of unanswered emails during construction is a fair preview of warranty service afterward.
Walk the lot in the rain before you close
Grading and drainage are finished last, sometimes rushed, and they cause the most expensive problems in new houses. Look for ground sloping away from the foundation on every side, downspouts discharging well past the backfill, and no standing water near the walls. Take dated photographs so you have a record if the grade changes later.
Red Flags
- A contract that limits or forbids your own independent inspections.
- A completion date in the contract that is months later than the one you were given verbally, with no remedy for delay.
- A large deposit paid to the builder rather than into escrow, with broad default language attached.
- An incentive that requires waiving the appraisal contingency or closing on a fixed date regardless of readiness.
- A ten year structural warranty backed by the builder itself rather than an insurance carrier.
- Option and lot pricing that is never assembled into one signed total.
- No answer about what will be built on the land behind the lot.
- A superintendent nobody will name, or a name that changes twice during your build.
Paperwork to Collect Before Closing
- The signed contract with every option worksheet and change order attached.
- Certificate of occupancy plus the permit and inspection history for the address.
- The limited warranty document naming the carrier, the coverage periods and the claim procedure.
- Manufacturer warranties with model and serial numbers for the HVAC, water heater, roof and windows so you can register them.
- The load calculation, duct design, blower door and duct leakage results for your house.
- Survey, recorded plat and final grade certification for the lot.
- HOA documents, current budget, reserve study and any special district or bond disclosure.
- The signed punch list from your final walkthrough with target completion dates on each item.