For agents · 4 min read

What are new construction homes?

A new construction home is one where your buyer is the first person to live in it. Simple, right? But “new home” can mean a few different things. Here’s how to get on the same page with your buyer.

What counts as a new construction home?

A new construction home is one where the buyer is the first person to live in it.

People also say “new home,” “newly built home” or “to-be-built home.” They might mean a finished home, or one that isn’t built yet. Ask your buyer which they mean before you start searching.

  • Move-in ready

    Built and waiting. The fastest way into a new home.

  • Under construction or to be built

    A home in a new community. Your buyer may still pick some finishes.

  • Custom build

    Designed for your buyer, often on land they own. The most choices, and the longest wait.

Plans or inventory?

Builders sell two things: inventory homes, which are built or being built, and plans, which they’ll build for your buyer.

On New Home Buddy: the Build Status filter switches between Inventory and Plans. Plans show a starting price and an estimated build time.

The seller is the builder

In a resale, you work with the owner’s listing agent. In new construction, you work with the builder’s sales rep.

Know what your buyer wants, and which builders can deliver it. Good relationships with reps get you faster answers.

Most new homes are in new communities. Some buyers want to build on land they own instead. That takes longer, and needs a builder who builds on your buyer’s lot.

On New Home Buddy: connect with the reps you want to do deals with in Builder Connections. They become your contact on the homes they’re allowed to sell.

How custom does your buyer want to go?

Ask early. The answer decides which builders, and which communities, fit.

Semi-custom

  • Pick a plan, then choose from the builder’s options
  • Usually in a new community
  • Shorter timeline, simpler pricing

Fully custom

  • Design almost everything
  • Often on the buyer’s own land
  • The longest timeline, and the most decisions

On New Home Buddy: use the More filters, like Primary Bedroom, Additional Rooms and Garage Bays, to check quickly if a wish list is realistic.

Talk about build times

Ask when your buyer needs to move. Timing narrows the choices fast. From fastest to slowest:

  1. Move-in ready: close as soon as the loan is ready.
  2. Under construction: depends on how far along it is.
  3. To-be-built plan: usually several months. Ask the builder.
  4. Fully custom: the longest, with the most unknowns.

Build times also depend on the builder’s crews, weather, materials, permits and landscaping.

On New Home Buddy: the Available By filter shows homes ready by your buyer’s move date.

Warranty and inspections

Most builders include a limited warranty. What it covers, and for how long, varies by builder. Get the warranty and walk your buyer through it.

Still recommend an independent home inspection. New homes can have mistakes too.

  • Ask the builder about their inspection rules early
  • Consider an inspection before the drywall goes up
  • Inspect again before the final walk-through

Talking points buyers love

New construction has real perks. Bring them up when they fit your buyer.

  • Energy efficiency

    Newer building codes, insulation, windows and HVAC usually mean lower energy use. Ask the builder about energy features.

  • Less maintenance, early on

    Everything is new, so repairs in the first years are usually fewer. The builder’s warranty helps too.

  • Builder incentives

    Builders often help with closing costs or the rate. Incentives change, so check what’s offered now.

  • Choices from day one

    Your buyer may pick the plan, the lot and the finishes, and be the first to live there.

Get started

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