Texas New Construction FAQ
Everything you need to know about buying a new construction home in Texas.
The Buying Process
Do I need a real estate agent for new construction in Texas?
Absolutely. The builder's sales agent represents the builder, not you. Your own agent protects your interests in negotiations, reviews contracts (which are builder-favorable), ensures proper inspections, and may negotiate upgrades or concessions. Having an agent doesn't increase your cost - the builder pays the commission.
How long does it take to build a new home in Texas?
Typical build times: production/tract homes take 4-8 months, semi-custom homes 6-12 months, and full custom homes 12-24 months. Supply chain delays and weather can extend timelines. Builders in master-planned communities often have spec homes (already started or completed) available sooner.
Can I negotiate the price of a new construction home?
Builders rarely reduce base prices (to protect comparable values), but you can negotiate: upgrades and options, closing cost contributions, lot premiums, and design center credits. In slower markets, builders may offer significant incentive packages. Your agent knows what's negotiable with each builder.
What is earnest money on new construction?
New construction earnest money typically ranges from 1-5% of the purchase price, often due in stages: initial deposit at contract ($1,000-$5,000), then a larger amount at certain milestones. Builder contracts may have different refund terms than resale contracts, so review carefully.
Design & Upgrades
What upgrades are worth it in new construction?
Best-value upgrades: structural changes (extra rooms, expanded garage) that can't be added later, kitchen countertops and cabinetry, electrical outlet placement, and water line for refrigerator. Skip: lighting fixtures, hardware, and paint - these are cheaper to do yourself after closing.
Should I use the builder's lender?
Compare the builder's lender to at least 2-3 outside lenders. Builders often offer incentives (closing cost credits, rate buy-downs) for using their preferred lender, but outside lenders may have better rates. Get quotes from both and compare the total cost over the loan term.
What is a design center appointment?
After signing the contract, you'll visit the builder's design center to select finishes: flooring, countertops, cabinets, tile, fixtures, paint colors, and more. Appointments last 2-6 hours. Set a firm upgrade budget beforehand - it's easy to overspend. Focus spending on items visible and hard to change later.
Can I make changes after construction starts?
Change orders are possible but costly and may delay construction. Most builders allow changes only before certain milestones (foundation pour, framing, drywall). Each change typically incurs a $500-$2,000 administrative fee plus the cost difference. Make final decisions at the design center stage.
Inspections & Warranties
Should I get an inspection on a new construction home?
Yes - this is one of the most important inspections you'll ever do. Even new homes have defects: 15-20% of new homes have significant issues. Get at least two inspections: a pre-drywall inspection (to check framing, plumbing, electrical before walls go up) and a final inspection before closing.
What does a new home warranty cover in Texas?
Typical warranties include: 1 year on workmanship and materials, 2 years on mechanical systems (plumbing, electrical, HVAC), and 10 years on structural defects. Builder warranties vary - review the specific terms. Some builders offer extended warranty programs. Read our Warranty Guide.
What is a builder's blue tape walkthrough?
Before closing, you do a walkthrough marking defects with blue painter's tape: scratches, paint issues, dents, misaligned cabinets, etc. The builder should fix all items before closing. Document everything with photos. Your agent should attend to help identify issues you might miss.
What if I find problems after closing on a new home?
Document issues and submit warranty claims in writing to the builder. Most builders have a 30-day and 11-month warranty request period. Keep all communication in writing. For structural issues, the 10-year warranty applies. If the builder is unresponsive, TREC and the Texas Attorney General can help.
Communities & Lots
How do I choose a lot in a new development?
Consider: lot size and shape, orientation (south-facing backyards get more sun), proximity to amenities and roads (corner lots have more traffic noise), drainage (avoid low spots), views, and future construction plans nearby. Premium lots (cul-de-sac, greenbelt, water view) cost $5,000-$50,000+ more.
What are master-planned communities in Texas?
Master-planned communities (MPCs) are large-scale developments with amenities like pools, parks, trails, fitness centers, and sometimes schools and shopping. Examples: Sienna (Missouri City), Cross Creek Ranch (Fulshear), Harvest (Argyle), Travisso (Leander). HOA fees fund amenities and maintenance.
Should I buy in a new or established neighborhood?
New communities offer: latest energy efficiency, modern designs, amenity centers, and customization options. Established neighborhoods offer: mature trees, proven property values, existing schools, and lower HOA fees. Consider commute times - new communities are often farther from city centers.
New Construction Resources
Information on this page is sourced from official Texas and federal agencies. Always verify current rates, requirements, and regulations with the appropriate authority.
- Texas Residential Construction Commission - Builder warranty and dispute resolution
- Texas Association of Builders - Builder standards and consumer resources
- National Association of Home Builders - New construction statistics and standards
- Texas Department of Licensing and Regulation - Contractor licensing information
Have More Questions?
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