Frequently Asked Questions New Construction

Click on each item for more information.

Can I use a Realtor when building a new home?

Yes, & definitely do. (Keep reading to find out why)

Do I really need to use a realtor? Don’t the builders have representatives that will take care of all that?

You really should. People forget that builders have salespeople that represent what is best for the builder. Buyers need a Realtor who is representing what is best for them as a buyer!

How much does it cost me to use a realtor when building a new home? (psst, the answer is $0)

Nothing, the builder is paying your Realtor’s commission. Even better yet, the commission is usually based upon the base price of the home, so your Realtor doesn’t earn more if you spend more in upgrades. This helps you to know your Realtor is working with your best interest in mind.

Does it typically cost more or less to build new vs buying an existing home?

It typically cost more to build new than to buy an existing home. Not only do you have the base price of the model you are building, but you also have lot premiums and upgrade costs. Additionally, once you move in, you have other costs to consider such as window treatments, landscape design and deck or patio costs… just to name a few. Your Realtor can help make sure you stay within budget when considering a new home purchase.

How long does construction typically take?

Every build and builder is different, but 6-12 months is typical.

Can I really build the house any way I would like?

Each builder has restrictions on how flexible they will be, but generally speaking they are willing to allow you to modify the home to a certain point, so you have as much of a custom experience as possible.

Is the process of getting a mortgage for new construction different than a typical mortgage?

It depends on the type of builder you work with. With most production (or high volume) builders, you would go through a typical mortgage progression, starting the application process 45 days prior to closing and taking possession of your completed new home. Some smaller, more regional builders may ask you to close on a Construction Loan first, which requires that you close on the new home before the actual build process begins. In this situation you make “interest only” payments on that loan until the home is completed. Once the home is finished, you convert the construction loan into a normal mortgage.

When do I start making payments on my new home?

If you don’t close on the home until after the home is built, your first mortgage payment is due the first month after closing. If you close on the home prior to it being built through the use of a construction loan, you begin payments upon the first month of closing on the construction loan.

How will I know when it is time to choose things like flooring, paint, fixtures, appliances, etc?

The salesperson working for the builder will outline a plan for this. The process is different with every builder, but they will have a plan to walk you through. As your Realtor, we will make sure you understand this process and are comfortable before you sign on the dotted line.

How will I know if the home is being built correctly?

Every municipality will conduct building inspections throughout the process to ensure the home is being built to code. We would also recommend you work with a private home inspector that is familiar with new construction and can inspect the home throughout the process. Your Realtor should be able to make a recommendation of an inspector who can monitor and report on the build at appropriate stages.

If I’m not 100% satisfied at the end of the build, what do I do?

You will be afforded the opportunity to do a final walk through at the end of the build. This is your opportunity to request that the builder fix or improve any finishing touches/issues before your final closing date/move in date. The builder will work hard to do so, and if they don’t, you can ultimately choose not to close. However, this choice may cost you a per diem fee IF the city has already ok’d them to close on the home by issuing a certificate of occupancy.

What (if any) warranty do I get on a newly constructed home?

Most new construction homes have a 1 year “fit and finish” warranty, and an additional basement/structure warranty that could range from 5 to 15 years, covering the foundation of the home.

What if I have more questions?

Give us a call, don’t be shy. We have helped A LOT of our clients buy new construction homes, so we’ve experienced just about every scenario out there. Plus, we’re just nice to chat with. Call us today with any questions about new construction home building, or any other real estate questions for that matter. We’re happy to help. (734) 707-7992


If you’re interested in discussing new construction with us just complete the form below and we’ll reach out to you.