New Construction Homes in Austin & Central Texas

Buying a new construction home is an exciting journey, sometimes offering the opportunity to customize your dream property from the ground up. However, navigating the new construction process can be complex. If you hire me for your new construction purchase, I will be there to protect your interests and guide you through every step of purchasing or building a new construction home.

Do I Need a REALTOR® for New Construction?

A common misconception is that skipping REALTOR® representation will lead to cost savings when building a home. In reality, having a knowledgeable REALTOR® by your side can save you time, money, and headaches. Here’s why:

Builder Pays the Commission: When your REALTOR® schedules the initial appointment with your selected builder, the builder often covers their commission—not you. This cost comes from a separate budget and does not affect your build costs.
Advocacy: Sales agents for the builder represent the builder’s interests, not yours. As your REALTOR®, I am your fiduciary and I will advocate for you.
Builder Contracts Favor the Builder: Builder contracts are often heavily weighted in their favor. They may include clauses that allow for:
- Builders to increase the sales price before closing.
- Builders to avoid fixing mistakes found during inspections.
- Strict deadlines for financing and closing, with little flexibility.
Expertise in Inspections: I recommend three independent inspections to identify potential issues that the builder may need to address:
- Before the foundation is poured.
- Before the sheetrock is installed.
- A few days before closing.

What to Expect During the New Construction Process

Initial Appointment: Let your REALTOR® schedule your first meeting with the builder. This ensures the builder knows you’re represented and sets the stage for a smoother process.
Design Studio Selections: At the design studio, you’ll choose finishes, fixtures, and upgrades. Your REALTOR® can help you stay within budget while achieving the look you want. Remember, upgrades can significantly impact your home’s final price, potentially affecting appraisal and financing.
Financing and Incentives: Builders often offer special incentives if you use their preferred lender. However, it’s wise to share these offers with your lender to see if they can match or beat the terms. Mortgage rates can fluctuate between signing the contract and closing, so understanding your options is key.
Construction Timeline: New construction timelines can be impacted by weather, labor or material shortages, and permitting delays. Be prepared for potential changes and understand that closing may occur shortly after the home is finished, sometimes with only five days’ notice.
Closing: Earnest money is typically required when signing the contract and is often non-refundable. Review the builder’s warranty, which usually includes coverage for materials and workmanship (1 year), plumbing and HVAC systems (2 years), and major structural defects (10 years).
After Move-In: Building issues such as buckling floors, leaks, or drainage problems may arise. Your builder’s warranty will be your resource for addressing these concerns.

Challenges to Consider

Property Taxes: Your initial property taxes will be based on the unimproved lot value but will increase significantly once your home is reassessed. Be prepared to set aside extra funds for future tax bills.
Competing with New Homes: If you sell shortly after buying, you’ll likely compete with other brand-new homes, which can impact your resale value.
Builders Are Not REALTORS®: In Texas, builders are not regulated like REALTORS® and are not bound by the same code of ethics. This highlights the importance of having your REALTOR® represent you throughout the process.

What Clients Are Saying About Roarke

“I was fortunate to work with Roarke in my search for a new place to live with my dog and two cats. From the start he was very friendly and very receptive to what I was looking for. He was very easy to communicate with and was very responsive to my inquiries. He understood how important certain criteria was to me and in the end I found a place I know I’ll be happy at.

Roarke is very knowledgeable and I would absolutely work with him again in the future. Hopefully next time it’s when I am buying a house.” - Feliz S.

Frequently Asked Questions

Can I negotiate the price of a new construction home? Builders are less likely to negotiate on price but may offer incentives such as upgraded finishes, closing cost credits, or appliance packages. Your REALTOR® can help you secure the best deal.
What happens if my new home isn’t ready on time? Delays are common due to weather, labor shortages, or supply chain issues. Be prepared for flexible timelines and have a contingency plan in place.
Do I really need inspections for a brand-new home? Yes! Independent inspections can catch issues that may not be apparent during construction. Builders’ warranties typically don’t cover everything, so inspections are essential for peace of mind. I have had clients find active plumbing leaks during the independent inspection, and yes, the builder repaired the issue.
What financing options are available for new construction? Builders often offer preferred lender incentives, but it’s wise to compare these with other lenders to ensure you’re getting the best terms.
What is a 1/2/10 builder’s warranty and what does it cover? A builder’s warranty often covers materials and workmanship for 1 year, plumbing and HVAC systems for 2 years, and major structural defects for 10 years. Consult with your REALTOR ® to determine what is covered under your warranty.

Let Me Guide You Through New Construction

Purchasing a brand new home should be an exciting and rewarding experience. As your REALTOR®, I’ll ensure you’re informed, protected, and supported every step of the way. Contact me today to schedule a free consultation and start your new home journey in Austin, TX, or Central Texas.