What I Wish Every New Construction Buyer Knew

New construction is exciting. Everything's fresh, nobody's lived there, and you get to pick your finishes. I love it too. But buying from a builder is a very different process than buying a resale home, and I've watched a lot of buyers walk in without knowing how it really works.

So let me walk you through what I tell my own clients. No fluff, just what I've learned sitting across the table from builders here in Kansas City.

"Newer" doesn't always mean "no repairs"

One of the most common things I hear is, "I only want a home built in the last five years, because I don't want to spend money on repairs." I get it. Nobody wants a surprise bill right after closing.

But here's the thing. Let's say a home was built in 2020 and the owners never touched the roof. That roof is going to need attention sooner than the one on a 1997 home that got a brand-new roof nine years ago, right? The year on the listing doesn't tell you the whole story.

What I look at is condition. How old is the roof? The HVAC? The furnace? Has the sewer line been replaced? A well-kept older home with updates can honestly be in better shape than a newer one that's been ignored.

And you always have inspections. If the inspector finds something that worries you, you can walk away. That's what they're for.

I'm not saying don't buy new. I'm saying don't rule out a great home just because of a number. Keep your options open, because the more you narrow it, the longer you wait, and prices don't usually go down while you're waiting.

Who's really paying for that low builder rate?

You've probably seen the signs. "4.99%!" "Special financing!" Those promos are real, and they can save you a lot of money. But it helps to understand how they work.

The lender isn't the one lowering your rate. The builder is. They pay the lender up front to "buy down" your interest rate. Think of it like the builder prepaying some of your interest for you. On one recent deal, that buydown was worth close to $19,000. That doesn't change the price of the house. It changes your monthly payment, and that adds up over 30 years.

A few things I always tell buyers:

• The promo usually requires the builder's lender. I love the lenders I work with, but sometimes the honest answer is that an outside lender can't compete with a builder-paid buydown.
• Read the fine print on the rate. That big number on the sign might be for an FHA (Federal Housing Administration) loan. If you're getting a conventional loan, your promo rate may be a little higher.
• Promos change. Builders set aside a budget for incentives at the start of a project. Early buyers often get the best deals, and later ones get a little less.

Permanent vs. temporary buydowns

You might also hear about a "3-2-1" or "2-1" buydown. Those lower your rate for the first few years, then it goes back up to the normal rate. It feels great at first, but nobody knows where rates will be in two or three years.

My personal preference? Take the permanent lower rate if it's on the table. Your 30-year fixed rate never goes up. And if rates drop later, you can refinance. I've done it on my own home, and it lowered our payment by about $500 a month. That's the safer route, in my opinion.

Yes, you can negotiate with a builder (just not like a garage sale)

Buyers often ask me, "Can't you just call them and talk the price down?" It doesn't work that way. With a builder, everything is in writing. We submit an offer, and they accept it, reject it, or counter. That's the negotiation.

How much room is there? In my experience, builders will often come down somewhere around $10,000 to $15,000. They're not going to drop $40,000 or $100,000, because it costs them real money to build that house. If you offer too low, you also risk losing the incentives that came with the list price.

Here's what I always remind buyers to think about:

• Price vs. credits. Do you want a lower price, or more money toward closing costs? A lower price usually helps you more long term.
• Do the monthly math. On one deal, a $10,000 price difference only changed the payment by about $47 a month. Know what you're really fighting for.
• Look like a serious buyer. Too much back-and-forth and builders lose patience, especially when someone else wants the same lot.
• Watch the deadlines. Promos expire, and the last lot in a phase can go fast.

Earnest money comes first

This one surprises people. Some builders want your earnest money before they'll even look at your offer. With resale, it usually comes after. It's not a huge amount, often a couple thousand dollars or less, and it's typically refundable if your financing falls through or the builder doesn't finish the home. Still, ask exactly when it's refundable before you send it.

Builder contracts are long, and they protect the builder

A standard Kansas City resale contract is about 16 pages. One builder contract I reviewed this year was close to 100. Builders write their own contracts, and those contracts are designed to protect them more than anyone else.

So I read every page. Then I run it through an AI tool and ask it to pull out the buyer's rights, the builder's rights, and any red flags, and I send my clients a plain-English summary. I'm not a lawyer, and I always recommend getting professional advice if something feels off. But you should never sign something you don't understand.

A few things I always check:

• Is the price locked? If material costs go up during the build, can they raise your price? You want the answer to be no.
• Material substitutions. Most builders can swap materials for something of "similar quality" without asking you. That's normal, but you should know it's there.
• Delays. Builders usually have the right to push back the completion date. Buyers usually don't get that same flexibility.

Inspect, visit, and keep an eye on it

Just because it's brand new doesn't mean it's perfect. Here's how I protect my buyers during a build:

• Pre-drywall walkthrough. About 30 minutes to see the wiring, plumbing, and structure before the walls close up.
• Final walkthrough and punch list. Usually a couple of weeks before closing. Anything that's not right goes on the list to fix.
• Your own inspector. Optional, and you pay for it (often around $500), but it's a second set of eyes that works only for you.
• Regular check-ins. I like to stop by every week or two. If you're working long hours, I can go on your behalf.

One more tip: ask the builder for the walkthrough schedule up front, and ask them to copy your agent on emails. One-day notice isn't okay when you have a job and a family.

Warranty and the little things

Most builders offer a 1-year, 2-year, and 10-year warranty, which is a big plus. Not every new home has a storm shelter, so know your plan (an interior bathroom is usually the safest spot). Many come with a passive radon vent system. And upgrades like blinds or smart switches can often be added after contract, so ask to see the actual product before you pay for it.

Don't leave closing credit on the table

Closing costs usually land somewhere around 2% of the purchase price, and with new builds, title fees can run a little higher than on a resale. If the builder gives you a closing cost credit, that's great. But here's what many buyers don't know: if your actual costs come in lower than the credit, you often don't get the difference back.

So I push the lender to use every dollar of that credit for you. Lenders have rules about the order they apply seller credits, which is why the paperwork can look confusing. That's okay. I'll sit down with the lender and do the math line by line until it's right. And on closing day, I compare every number to the final title statement.

Bring your agent on the very first visit

This is a big one. When you walk into a model home for the first time, tell the sales office you have an agent. Some communities won't work with a buyer's agent if you don't register them up front, and some don't pay agents at all, which can change which communities make sense for you.

The builder's sales team is lovely, but they work for the builder. I work for you. My job is to read the contract, negotiate, check on the build, and make sure you only sign what you should sign.

The bottom line

Buying new construction can be one of the best decisions you make. You get a fresh home, often a great rate, and a warranty behind it. You just need to go in with your eyes open: understand the incentives, read the contract, inspect the work, and watch the numbers all the way to closing.

If you're thinking about building or buying new in Kansas City, I'd love to walk you through it. Does that sound good? Let's talk.