12 Questions to Ask a Builder’s Sales Office Before You Sign

Walking into a new-construction model home is a great experience. That is the point. The model is staged, upgraded and lit to make you want to sign that afternoon.

The person at the sales desk is usually friendly and knowledgeable, but they work for the builder. Their job is to sell homes for the builder. Your job is to understand exactly what you are agreeing to. These are the questions I would want answered, in writing where possible, before signing anything.

About the house

1. What in this model is standard, and what is an upgrade? Ask for the list. Flooring, cabinets, lighting, countertops, landscaping and even ceiling height can all be upgrades in a model.

2. What is the price of the base home on the lot I want, before any options? Then ask what the home you are looking at as shown would cost. The gap between the two is often the biggest surprise in new construction.

3. Are there lot premiums? Corner lots, larger yards, wooded backs or certain views often carry an extra charge.

4. What happens if prices or materials change during the build? Find out whether your price is fixed once you sign, and under what circumstances it could change.

About the timeline

5. When is construction expected to start and finish? Ask what could delay it and what happens if it is delayed.

6. When do I have to make my design selections, and when are they locked? Changes after a cutoff can be expensive or impossible.

7. Can I visit the home during construction? Some builders schedule walk-throughs at set stages. Some limit visits for safety reasons. Know the rules up front.

About the money

8. What incentives are available, and what are the conditions? Incentives are often tied to using the builder's preferred lender or closing by a certain date. Compare the full package with an outside lender's offer before deciding. (There is a longer discussion of price cuts vs. rate buydowns on this blog.)

9. How much is the deposit, and when is it refundable? Get the answer in the contract, not just from the conversation.

10. What are the HOA dues and what do they cover? Ask for the HOA documents, including the rules. Amenities that are promised but not yet built deserve an especially clear answer about when they will be finished.

About after closing

11. What does the warranty cover, for how long, and how do I file a claim? Ask for the warranty document itself.

12. Can I bring my own inspector? You should. A brand-new home can still have problems, and an independent inspector works for you. Many buyers schedule one inspection before drywall goes up and another before closing.

One more thing: who represents you?

The sales office represents the builder. You can bring your own agent to represent you, and it is worth asking about the builder's policy on that before your first visit. Some builders require your agent to be with you, or registered, on that first visit for them to be involved later. The new construction guide goes deeper on how the process works.

Sir Ashley's take

Nothing on this list is meant to be adversarial. Good builders answer these questions easily. If you are getting vague answers about what is included, what it will cost, or when it will be done, that tells you something before you have spent a dollar.

Is the builder's contract negotiable?

Builders' contracts are usually their own forms and they are often less flexible than a resale purchase, but price, incentives, closing dates and some terms can sometimes be negotiated. Have the contract reviewed before you sign it.

Do I really need an inspection on a new home?

It is strongly recommended. Municipal code inspections check minimum standards, not workmanship. An independent inspector can catch issues while the builder is still on site to fix them.