Building A House / Buying New Construction

🛠️ Home Buying Boot Camp: **Building Edition**

*What to Know Before You Build or Buy New Construction*

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👷‍♀️ Let’s Talk About Building a Home

This post is part of the *Home Buying Boot Camp* series, but this one’s for those of you who want that *new-new.* Whether you’re dreaming of a fresh home smell or want to design your floor plan from scratch, here’s what you need to know about new construction—especially in subdivisions.

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📍 TYPES OF BUILDING

There are two main types of new construction:

* **Custom Build** – You build from scratch, on your own land (or land you’ll acquire)
* **Subdivision Build** – A builder is already developing in a neighborhood, and you choose one of their models

This blog will focus mostly on **subdivision builders**, but let’s break both down.

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🏗️ Custom Build: AKA “So… You Still Like Your Spouse, Right?”

Custom building is not for the faint of heart. It’s exciting—but it’s also a long and *emotional* process. As they say, this is the “make-or-break” test of any marriage.

How It Works:

* You can either **already own land**, or **roll the cost of the land** into your construction financing.
* You’ll need a **construction loan**—preferably a **construction-to-perm loan** (so you don’t have to refinance later).
* Your land may require:

* A **survey**
* A **perk test** (to make sure it can support a septic system if no city sewer)
* An **architect** (unless your builder already has floor plans)

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🏘️ Subdivision Builder: The More Common Route

This is where you walk into a model home, meet a smiling agent, and tour a staged version of your future house.

It’s easier than custom—but it’s still building.

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🛁 Two Paths to Buying in a Subdivision:

1. **SPEC House**
2. **Pre-Sale**

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🏡 SPEC HOUSE: “What You See Is What You Get”

A SPEC home is already under construction (or even fully finished) by the builder.

* Minimal customization—unless you catch it *early enough*
* May come with **builder incentives** if they’re trying to close by end-of-quarter
* Quicker close, often within 30–60 days

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✏️ PRE-SALE: “From Dirt to Doorstep”

You get to pick:

* The **lot**
* The **floor plan**
* The **upgrades**
* The **design selections**

Timeline:

* Typically takes **7–9 months**
* Completion dates are **tentative** (weather, delays, etc.)

Stages of Building May Include:

* Foundation
* Framing
* Plumbing & Electrical
* Drywall
* Finishes
* Final Walkthrough

You may have:

* A **frame walk**
* A **blue tape walk** (builder walkthrough to mark issues)
* A **home inspection** prior to final walkthrough (recommended!)

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🏦 How the Loan Process Works

* You get **pre-approved** up front—then wait while the home is built
* About **45 days before completion**, the actual **loan process begins**
* From there, it’s the **same process** as buying a resale home: appraisal, underwriting, closing, etc.

✅ Pro Tip: Ask your agent for a *home buying timeline* so you know when each piece hits.

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🧑‍💼 The Agents Involved

This is *critical*.

* The agent in the model home? **They work for the builder.**
Think of it like using the same lawyer as the person you’re suing. Friendly, but **not** on your side.

* You need a **buyer’s agent** to represent *you*—and it costs you nothing as a buyer.

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💡 Perks of Buying a New Construction Home

* It’s brand new—no weird smells, no past owners, no sketchy carpet stains
* Less maintenance** for the first few years
* Home warranties** (usually 1 year for workmanship, longer for structure)
* Builder incentives, especially when using their preferred lender