Can I bring my own agent to a builder?
Yes, and you should, but you generally have to register them on your first visit. Walk in alone and you may have given up representation before you knew there was a choice.
Read the detail
The person at the desk in the sales office is a salesperson for the builder. They are usually pleasant and well informed and they represent the seller, which means the person explaining your options is the person on the other side of the negotiation.
Most builders will pay a buyer's agent and most require registration at first contact, which is the trap: sign in on your own, come back with an agent, and the builder can decline. It costs nothing to bring somebody with you the first time and it is frequently unrecoverable afterwards. Register on visit one.
What is actually different from buying a resale?
The contract, the timeline and the tax. You sign the builder's paperwork rather than the standard form, the closing date can move, and your property tax arrives in two instalments months apart.
Read the detail
| Resale | New build | |
|---|---|---|
| The contract | Standard form, familiar terms | The builder's own, written for them |
| Closing date | Fixed in the contract | Tied to completion, can move |
| Inspections | Assumed | Yours to insist on |
| Negotiation | Mostly on price | Mostly on upgrades and incentives |
| Property tax | Reassessed at purchase | Reassessed, then a supplemental bill later |
The contract row is the one to take seriously. A builder's agreement is drafted for the builder, and terms a resale buyer takes for granted, including what happens if completion slips and what you can do about defects, are theirs to set. Have it read by an attorney before you sign; it is a small cost against the size of the purchase.
The negotiation row is the useful one. Builders resist cutting the headline price because it affects the value of every other home in the tract. They are often far more flexible on upgrades, closing costs and incentives, which is where the real money is.
Do I need an inspection on a brand new house?
Yes. New does not mean flawless, it means unlived-in, and the only person who has checked the work so far is the person who did it.
Read the detail
Our own view and it is a strong one: get an independent inspection before the drywall goes up if the build allows it, and another before closing. New homes routinely turn up drainage problems, workmanship issues and things simply left undone, and the difference between finding them before closing and after is the difference between a fix and a claim.
Builders sometimes discourage independent inspections. That is a reason to insist rather than a reason to skip it, and a builder confident in their work will not mind.
What is Mello-Roos going to cost me?
On a new Orange County tract, usually thousands a year on top of your ordinary property tax, and it is disclosed to you before you are committed.
Read the detail
A special tax funds the infrastructure that made the community possible: the roads, the schools, the parks. It appears on your property tax bill rather than in the association dues, it has an end date, and both the amount and that date should be in the notice you receive.
Ask for the number in dollars per year rather than as a rate, ask when it ends, and put it in your monthly calculation next to the association dues. A new build that looked comparable to a resale on price frequently is not once both are in, and that is the single most common surprise in a new-home purchase here.
What is the public report and should I read it?
A disclosure document the state issues on the subdivision, given to you before you are committed. Yes, read it, and read the association documents that come with it.
Read the detail
It covers what the development is, what is planned, what the restrictions are and what obligations come with ownership. It is genuinely useful and it is the one document in a builder's stack that was not written by the builder.
Read it alongside the association package: the budget, the reserves and the rules. On a new community the reserves are unproven, so pay attention to what the budget assumes and what happens to dues once the builder is no longer subsidising them, which is a real and common increase.
Do I have to use the builder's lender?
No. A builder generally cannot require it, though they can and do offer incentives to make it attractive.
Read the detail
The incentives are frequently real and worth taking, especially credits toward closing costs or upgrades. What you should not do is accept the affiliated lender without comparing, because the incentive can be smaller than the difference in rate over the life of the loan.
Get a competing quote and compare the whole cost rather than the headline incentive. If the builder's lender wins, take it. If it does not, the incentive was buying something worth less than it appeared.
How does financing work if the house is not built yet?
The problem is the moving completion date. A rate lock has a term, and a build that slips past it can leave you re-locking at whatever rates have become.
Read the detail
Extended locks exist and cost money, and whether one is worth buying depends on how far out completion is and where rates are heading. It is a real decision rather than a formality and it should be made deliberately with your lender rather than defaulted into.
The related point: your loan approval is based on your circumstances at approval. A build completing eight months later gets re-verified, so a job change, a new car loan or a large credit balance between now and then can genuinely cost you the house. Change nothing financially until you have closed.
How does the property tax work on a new home?
You are assessed on the completed value, and then a supplemental bill arrives separately, often months after you have moved in.
Read the detail
The supplemental covers the gap between the land's old assessment and the finished home's value for the remainder of the tax year. It is not a mistake and it is not a duplicate, and on a new build it can be a substantial one-off amount arriving when you have just spent everything on the move.
Budget for it before closing. Between the supplemental, the ordinary tax on a fresh assessment, the special tax and the association dues, the true monthly cost of a new home is materially higher than the mortgage payment people compare on.
What happens if something is wrong after I move in?
There is a defined process and a required first step, and it does not begin with a lawyer. Notify the builder in writing and give them the opportunity to inspect and repair.
Read the detail
New homes carry warranty coverage on different elements for different periods, and there is a formal procedure that has to be followed before a dispute can go anywhere. Skipping the step will not help you; following it usually resolves the problem.
The practical advice: report everything in writing and early, even small things, and keep the correspondence. Buyers who live with a defect for two years and then complain find themselves arguing about when it was discovered rather than about the defect.
FAQs
Common questions about Buying New Construction
Can I bring my own agent to a builder?
Yes, and you generally have to register them on your first visit. The person at the desk in the sales office works for the builder, so walking in alone means the person explaining your options is on the other side of the negotiation. Most builders pay a buyer's agent, and most will decline if you register yourself first.
Is the price negotiable on a new build?
Less than you would hope, and for a reason: cutting the headline price affects the value of every other home in the tract. Builders are usually far more flexible on upgrades, closing costs and incentives, which is where the real money is. Negotiate there rather than on the sticker.
Do I need an inspection on a brand new house?
Yes. New means unlived-in, not flawless, and so far the only person who has checked the work is the person who did it. Get one before the drywall goes up if the build allows, and another before closing. Builders who discourage it are giving you a reason to insist.
How much will Mello-Roos cost me?
On a new Orange County tract, usually thousands a year on top of the ordinary property tax, and it is disclosed before you are committed. Ask for it in dollars per year rather than as a rate, ask when it ends, and put it in the monthly calculation beside the association dues.
Do I have to use the builder's lender?
No, though they can offer incentives to make it attractive, and those incentives are often genuinely worth taking. What you should not do is accept without comparing, because the incentive can be smaller than the rate difference over the life of the loan. Get a competing quote and compare total cost.
What happens if the build runs late?
Your rate lock has a term, and a build that slips past it can leave you re-locking at whatever rates have become. Extended locks exist and cost money. Your loan approval is also re-verified before closing, so a job change or a new car loan between now and completion can genuinely cost you the house.
Should I read the public report?
Yes, and the association documents with it. The public report covers what the development is, what is planned and what obligations come with ownership, and it is the one document in the builder's stack that they did not write. On a new community, pay particular attention to what happens to dues once the builder stops subsidising them.
Why did I get a second tax bill after moving in?
It is the supplemental assessment, covering the gap between the land's old value and the finished home's value for the rest of the tax year. It is not a mistake or a duplicate, and on a new build it can be a substantial one-off arriving just after you have spent everything on the move. Budget for it before closing.
What if something is defective after I move in?
There is a defined process with a required first step, and it does not begin with a lawyer. Notify the builder in writing and let them inspect and repair. Report everything early, even small things, and keep the correspondence, because buyers who wait two years end up arguing about when the defect was discovered.
Is a new home more expensive to run than a resale?
Usually yes, and the comparison people make on price alone misses it. Between the supplemental bill, the ordinary tax on a fresh assessment, the special tax and the association dues, the true monthly cost of a new Orange County home is materially higher than the mortgage payment suggests.