Essential Tips for Buying a New Construction Home | Avoid These Common Mistakes!

When it comes to real estate, there’s a "dark side" that many homebuyers don’t see until it’s too late — and new construction homes are no exception. While buying a brand-new home can seem exciting and straightforward, there are plenty of pitfalls that can easily be avoided with the right knowledge and representation. Builders made it easier: first-come, first-serve, a deposit, and the home was yours — no bidding wars required. Even buyers with lower credit scores could often get in as long as they qualified.

More recently, as interest rates climbed into the 8% range, builders started offering major incentives again — lower rates, thousands in credits, and free upgrades. It's important to remember: these builders are multi-billion-dollar companies. They have the ability to pre-buy loans at lower rates, offering 6% when the going rate is 8%, but it’s all strategic. Their goal is to move inventory and protect their bottom line — not necessarily to do you a favor.

One major misconception many buyers have is thinking they’ll save money by not using their own real estate agent when purchasing a new build. This is absolutely false. Builders set aside commissions for buyer agents whether you bring one or not. If you don't have an agent, that money just stays with the builder — you don't get a discount.

And here’s the thing: the builder’s sales agent, no matter how friendly they are, works for the builder. Their job is to protect the builder’s interests — not yours. If your closing date gets pushed back by weeks or even months, they aren’t there to fight for you. If issues come up during construction, they aren't on your side. Without your own representation, you're left navigating these challenges alone.

Another common mistake with new builds is giving notice on your current home based on the builder’s estimated completion date. Those dates are almost always optimistic, and delays are extremely common — from weather to supply issues to inspection delays. Until you have the keys in your hand, it’s risky to make any firm move-out plans.

Having a buyer’s agent can also protect your earnest money deposit. Builders’ contracts often favor the builder heavily. If you aren’t able to close due to financing issues — whether it's an interest rate jump or a lender problem — builders can and will keep your deposit unless you have someone advocating for you. I've personally had to step in and escalate issues to upper management to get clients’ deposits back when things went sideways.

Another crucial layer of protection: getting a private home inspection. Many buyers mistakenly believe new construction means "perfect" — but that's rarely the case. Builders must meet minimum code requirements, but that doesn't mean your new home is flawless. A third-party home inspection can catch small (or major) issues that could be corrected before you close, saving you time, stress, and money down the road.

Without an agent guiding you, many first-time buyers don’t even realize they should be doing independent inspections — or how to protect themselves contractually if the unexpected happens. Even if everything seems to go smoothly, having a knowledgeable advocate in your corner ensures that if something goes wrong, you’re not left fighting a billion-dollar company alone.

At the end of the day, working with an agent for a new build costs you nothing — and it can save you thousands. It ensures you have someone looking out for your best interests, not the builder’s profits. The builder has a team protecting them. You deserve the same.

If you're thinking about buying a new construction home, make sure you have a professional by your side — it could be the difference between a smooth, exciting experience and a stressful, costly mistake.

And if you have any questions about buying a new build — or anything else real estate related — reach out to us at The Hardy Group!

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