Before You Spend
Before You Walk Into a Model Home
A buyer’s guide to new construction: who the sales agent works for, what the base price leaves out, which incentives are worth taking, and the questions to ask before you sign a builder contract. Written for buyers anywhere, with notes for Maryland and the Bowie area.
1. Know who works for whom
The on-site sales consultant is employed by the builder and is there to sell the builder’s homes at the builder’s price. They can be helpful and honest, but their job is to protect the builder’s interests in price, timeline and contract terms.
Your own buyer’s agent works for you. With new construction, that usually means negotiating upgrades and closing costs, reviewing the builder contract, tracking deadlines, and pushing for repairs at the final walkthrough. You will sign a written buyer agreement with your agent that spells out what they do and how they are paid. Agent compensation is negotiable, and many builders offer to pay the buyer’s agent, so ask the builder and your agent how it works for that community.
The rule that trips people up: many builders require your agent to be with you, or registered by name, on your very first visit or sign-in. Walk in alone and fill out a guest card, and you may lose the ability to have an agent represent you later. Call your agent before you go.
2. The base price is not the price
Model homes are usually decorated with upgrades. The advertised price usually is not.
- Lot premiums. Corner, backing to trees, cul-de-sac or larger lots often cost extra.
- Structural options. Extra bedroom, finished basement, sunroom, bigger garage. These are cheapest to add before construction starts and hard or impossible to add later.
- Design center selections. Flooring, cabinets, counters, lighting and appliances. Set a budget before your design appointment and decide what you will do yourself later.
- Fees. HOA dues, community amenity fees and, in parts of Maryland, front foot benefit charges in some newer communities. Ask for every recurring fee in writing.
Ask the sales consultant for a priced list of what is included in the model you are touring, so you can see what the home you are looking at would really cost.
3. Incentives: read the fine print
Builders often offer closing cost help or a lower rate if you use their affiliated lender or title company. Sometimes that is a genuinely good deal. Sometimes the incentive is offset by a higher rate, higher fees or a price that is harder to negotiate.
- Get a Loan Estimate from the builder’s lender and from at least one outside lender on the same day, for the same loan, and compare the full costs, not just the rate.
- Ask whether the incentive requires you to use their lender and title company, and what happens if you do not.
- For homes that will take months to build, ask how long the rate lock lasts and what an extension costs.
- Quick move-in or “spec” homes that are already finished are often where builders have the most room to negotiate.
4. Get your own inspections, even on a brand new home
New does not mean flawless. Homes are built quickly by many different subcontractors, and county code inspections check for minimum standards, not workmanship.
- Pre-drywall inspection. Your inspector sees framing, plumbing, electrical and insulation before the walls close.
- Final inspection before your walkthrough, so you can put real items on the punch list.
- 11-month warranty inspection. Many builders offer a one-year workmanship warranty. Catch issues before it ends.
Confirm in the contract that you are allowed to bring your own inspector, and when.
5. Read the builder’s contract before you fall in love
Builder contracts are written by the builder’s attorneys and are generally not the standard purchase forms used for resale homes. Look closely at:
- How much your deposit is, and when it becomes non-refundable.
- What happens if construction runs late, and whether the builder can change the completion date.
- Whether the builder can substitute materials or change the plan.
- The warranty: what is covered, for how long, and who you call. Many builders use a structure that covers workmanship for one year, systems for two, and major structural items for ten. Get the actual document.
- Whether your purchase can be contingent on selling your current home, and on your financing and appraisal.
If anything is unclear, have a real estate attorney review it. That is a small cost next to the size of the purchase.
Your model home visit checklist
- Call your agent first and register them on your first visit or sign-in.
- Get a priced list of the upgrades in the model you tour.
- Ask for lot premiums, HOA dues and every other recurring fee in writing.
- Ask which incentives require the builder’s lender or title company.
- Ask what is included in the base price, item by item.
- Ask for the warranty document and a sample contract to take home.
- Ask when you can bring your own inspector.
- Ask about the estimated completion date and what happens if it slips.
- Get Loan Estimates from the builder’s lender and an outside lender.
- Do not sign or leave a deposit on the first visit.
Frequently asked questions
Do I need a real estate agent to buy a new construction home?
You are not required to have one, but the builder’s sales consultant represents the builder. Your own agent can negotiate upgrades and closing costs, review the contract and deadlines, and advocate for you at inspections and the final walkthrough.
Can I bring my agent after my first visit to a model home?
Sometimes, but many builders require your agent to accompany you or be registered on your first visit. If you sign in alone, the builder may decline to work with an agent you add later. Check the builder’s policy before you go.
Should I use the builder’s preferred lender?
Compare first. Get Loan Estimates from the builder’s lender and at least one outside lender for the same loan on the same day, and compare total costs, not just the interest rate or the size of the incentive.
Do I need a home inspection on a brand new house?
It is strongly recommended. A pre-drywall inspection and a final inspection before your walkthrough catch workmanship issues that code inspections are not designed to find. An inspection shortly before your one-year warranty ends is also worth it.
Is the price of a new construction home negotiable?
Base prices are often firm, but builders frequently negotiate on upgrades, closing cost credits, lot premiums and especially on finished quick move-in homes. Your agent can tell you what has been realistic in that community recently.
Touring new construction in the Bowie area or anywhere in Maryland?
Text Bruno Tarquinii, REALTOR with Fairfax Realty Premier, before your first visit so he can be registered as your agent and help you compare builders, incentives and contracts.