Builder Incentives

Builders frequently offer incentives to move inventory, especially on spec homes (homes already under construction or completed). Common incentives include closing cost contributions, rate buydowns, free upgrades, and appliance packages.

Builder incentives are often tied to using the builder's preferred lender. Before accepting a lender incentive, compare the total cost rate, fees, and terms against outside lenders. The incentive may or may not offset a less competitive loan.

• Closing cost contributions (often 2–4% of purchase price)
• Interest rate buydowns (temporary or permanent)
• Free upgrades at the design center
• Appliance packages
• Lot premiums waived
• Extended rate locks

Builder Warranties

New construction homes in Texas typically come with a builder warranty. The standard structure is: 1 year on workmanship and materials, 2 years on mechanical systems (HVAC, plumbing, electrical), and 10 years on structural defects.

Warranty terms vary by builder. Read the warranty document carefully before closing and understand the process for submitting warranty claims.

Independent Inspections

Even though a new construction home is brand new, an independent inspection is strongly recommended and in some cases, multiple inspections at different stages of construction.

A pre-drywall inspection allows an inspector to examine framing, plumbing, electrical, and HVAC rough-in before the walls are closed. A final inspection before closing catches any remaining issues. Some buyers also hire a third-party inspector for a warranty inspection at the 11-month mark.

• Pre-drywall inspection (framing, plumbing, electrical rough-in)
• Final inspection before closing
• 11-month warranty inspection (before 1-year warranty expires)
• Use an inspector independent of the builder

Design Centers

Most production builders have a design center where you select finishes, fixtures, and upgrades. Design center appointments typically happen early in the construction process.

Design center upgrades can add significantly to the purchase price. Prioritize structural and mechanical upgrades (which are difficult to change later) over cosmetic upgrades (flooring, countertops) that you can update yourself after closing.

Construction Timelines

New construction timelines vary by builder, community, and market conditions. A typical production home takes 4–8 months from contract to closing. Custom homes take longer.

Supply chain issues and labor availability can affect timelines. Get a realistic timeline estimate from your builder and understand what happens if the home isn't ready by your target move-in date.

Representation

You can and should have your own real estate agent represent you when buying new construction. The builder's sales agent represents the builder, not you. Having your own agent costs you nothing (the builder pays the commission) and gives you an advocate throughout the process.

Register your agent on your first visit to the community. Most builders require agent registration on the first visit to pay the commission.