Buying a house can be a taxing task. But if you have decided to invest in a new construction home, you will be welcomed with many perks. You can design the interiors just how you like and won’t have to worry about worn-out parts. 

Although buying a new construction home can be the best decision of your life, there are a few things that should be taken care of. In this guide, you will get to know the essential steps to follow in buying a new construction home. 

1. Research and Choose the Right Home Builder

If you wish to build your house right from scratch, look for the right home builder for you. If you already have a location in mind, find a builder in that area. It is crucial to think about what you want and be vocal about your needs to get the house of your dreams.

Research the background of the builder. Lack of consistency and reliability are major red flags. Look for a home builder that meets your expectations and knows how to deliver a quality project within schedule. Check local builders’  portfolios on their websites to have an idea of the quality of their work. You can also ask for reviews from their past clients if possible.

2. Use the Services of a Real Estate Agent

While some people may prefer seeing their house get built brick by brick, others want to avoid this part of the home-buying process and choose to purchase a house that is already finished. If you’re opting for the latter, you will have to team up with a real estate agent who will help you get the best deal.  

A real estate agent will take into account your preferences for price, location, and space. After that, you will be shown different houses which you can choose from based on your requirements. They also ensure that the listings you’re looking at have no pending mechanics liens and other legal complications that can hamper the process. 

3. Differentiate Between Standard and Extra Features

As you begin house hunting, you should get to know the usual basic and additional features. You will find standard or basic features in almost every new construction home. These include ventilation, the height of the ceiling, flooring, cabinets, and wardrobes. On the other hand,  extra or additional features include the appliances fitted in the kitchen or bathroom, smart home implements, and landscaping. 

4. Don’t Forget About the Added Expenses

While buying a new construction home, you will notice that several additional expenses need to be taken care of. It is super essential to know how much you can afford and to not end up overlooking some major considerations. These include:

HOA fees

The homeowner’s association is the organization that makes and implements the rules for specific areas in a gated neighbourhood. This type of organization is common in subdivisions and other planned communities. The people who purchase a property within the jurisdiction of an HOA are required to pay dues. These dues are known as HOA fees and add to the costs of buying and maintaining a home. 

Closing costs

Closing costs are the charges that are due after a real estate transaction ends. These may come in the form of real estate commissions, insurance, or taxes.


Most of the time, the warranty on a new construction home offers very limited coverage. For example, it may include coverage for the first year on the doors. In other instances, coverage may be offered for two years on plumbing and electrical work. If you are not satisfied with these warranties, you can ask for changes or concessions. 


Once your house is ready, you may want to build a lawn. You should be aware of any rules or regulations to build one and whether the cost is included in your purchase. 


There will be many things that may not be covered in your contract, such as kitchen and bathroom racks or towel holders. You need to prepare yourself for these additional expenses and have a proper budget planned. 

5. Make Sure to Work With a Licensed Loan Officer/Mortgage Broker

Anyone who is planning to buy a home needs good financial advice. This is why finding the right team to work with is very crucial. Among the first professionals to look for when you decide to invest in a house is a licensed loan officer or mortgage broker. Not only will they help you understand mortgages better, but they will also help you save your hard-earned money. 

A house is a place where a person spends a lot of their time; it is their haven. This makes buying a home one of the most crucial deals in a person’s life. Given this, they must take every measure to ensure that this deal will prove to be a good one. 

About the Author:

Chris Woodard is the Co-Founder of, where they build software that helps contractors, subcontractors, and material suppliers with late payments. also provides funding for construction businesses in the form of invoice factoring, material supply trade credit, and mechanics lien purchasing.