Buying · Middle Tennessee
Buying new construction
Nashville ranks among the top markets in the country for new home construction, and buying new is not the same transaction as buying a resale. I have built, so this is the page where my background matters most.
Bring representation to the first visit, not the second
The person in the model home works for the builder. That is not a criticism, it is their job, and they are usually good at it. It just means nobody in that room is working for you unless you brought them.
Most builders will honor a buyer agent if that agent is with you on your very first visit and registers you then. Walk in alone, sign in, and you may have given that up permanently. It costs you nothing to bring somebody and it can cost you a lot not to.
The builder contract is not the standard contract
Builders write their own purchase agreements and they are written to protect the builder. Completion dates are often estimates rather than commitments, and the remedies if a build runs long may be limited or absent.
Read what happens if your rate lock expires because the house is late. Read what happens to your deposit and under what conditions it is refundable. Read whether the builder can substitute materials, because most contracts allow it and that is how a specified item quietly becomes something else.
The design center is where budgets go to die
The base price is a starting point. The design center appointment is where a house at one number becomes a house at a very different number, and it happens in an afternoon while you are excited.
Go in with a number you will not exceed and a list of what actually matters. Structural options have to be decided early and generally cannot be added later. Finishes usually can be changed after closing, often for less than the builder charges. Knowing which is which before you sit down is worth thousands.
- Decide structural options first, they are the ones you cannot go back and add
- Ask what is genuinely included in the base price and get it in writing
- Ask what the upgrade costs, then price the same thing from a local contractor before you agree
- Understand which upgrades hold value at resale and which do not
New does not mean flawless, and this is where I look hardest
A new house is built quickly by a lot of different trades and things get missed. Get your own independent inspection, and consider one before the drywall goes up as well as at the end, because once it is closed in nobody can see the framing, the plumbing or the wiring again.
This is the part I bring a different set of eyes to. I know what a shortcut looks like when it is still visible, and I know the ones that do not show up until an inspection at resale five years from now.
Warranties, and the walkthrough that matters
Builder warranties are usually tiered, with a short period covering workmanship, a longer one on systems and a much longer one on structure. Find out exactly what each period covers and how you submit a claim.
The eleventh-month walkthrough is the one people forget. If your workmanship warranty runs a year, walking the house at month eleven with a list is your last chance to have things fixed under it. Put it in your calendar the day you close.
Common questions
Do I really need an agent for new construction?
You need somebody in the room who is not paid by the builder. The builder representative is good at their job and their job is the builder. Bring representation on your first visit, because most builders require registration then, and once you have signed in alone you may not be able to add anyone later.
Should I still get an inspection on a brand new house?
Yes, and ideally twice. Once before the drywall closes the walls, while framing, plumbing and wiring are still visible, and once at the end. New construction is fast and built by many hands, and things get missed. The inspection is cheap relative to what it finds.
Which upgrades are worth the money?
The ones you cannot add later, generally. Structural changes have to be decided up front. Finishes can usually be changed afterward, often for less than the builder charges for the same thing. I would rather walk your options list with you before your design appointment than hear about it after.
What happens if the build runs late?
That depends entirely on what your contract says, which is why the contract is the thing to read carefully. Many builder agreements treat completion dates as estimates. The real exposure is usually your rate lock expiring, so ask your lender what a delay costs you before you sign.
The bottom line
I have built, renovated and sold, and on a new construction walkthrough I am looking at the things that show up at inspection or at resale rather than at the staging.