10 Questions to Ask Before You Sign with a Builder

Buying a new construction home is one of the most exciting purchases you'll ever make. You get to pick the floor plan, the finishes, the lot — everything is brand new, built just for you. But here's what most buyers don't realize until it's too late: the contract you sign with a builder is very different from a standard resale purchase agreement. It's written by the builder's attorneys, for the builder's benefit.

Before you put pen to paper, walk through these ten questions. Asking them upfront can save you tens of thousands of dollars, months of headaches, and a lot of sleepless nights.

1. What exactly is included in the base price — and what's an upgrade?

Model homes are designed to sell. That gorgeous kitchen with the quartz waterfall island, the wide-plank hardwood floors, the upgraded trim package? Most of it is an upgrade. Ask for a written breakdown of what comes standard versus what's extra. Buyers regularly discover their "$450,000 home" is closer to $520,000 once they've selected the finishes shown in the model.

2. Who pays for what at closing?

Builders often advertise incentives like "we'll cover closing costs" — but only if you use their preferred lender and title company. Get specifics in writing: who pays for the survey, title insurance, transfer taxes, HOA setup fees, and any builder-imposed administrative fees? These line items add up fast.

3. What is the construction timeline, and what happens if it slips?

Every builder will quote you a timeline. Almost none of them hit it. Ask what happens if your home isn't ready on the promised date. Are you compensated for temporary housing? Can you walk away with your earnest money back? What's the cutoff date that triggers any remedy? Vague language here is a red flag.

4. Can I use my own lender?

You can almost always say no to the builder's preferred lender — but it may cost you the incentive package. Run the numbers both ways. Sometimes the builder's lender is genuinely competitive; sometimes they're charging a higher rate that wipes out the "free" closing costs three times over.

5. What does the warranty actually cover, and for how long?

Most builders offer a tiered warranty: one year on workmanship, two years on systems (plumbing, electrical, HVAC), and ten years on major structural defects. Read the fine print. What counts as a "defect"? What's the process for filing a claim? Is the warranty backed by the builder or by a third-party insurer? Builders go out of business — third-party warranties survive that.

6. Can I get an independent home inspection?

Yes, you can — and you absolutely should. Even brand-new homes have defects. I've seen missing insulation, miswired outlets, improperly flashed windows, and HVAC systems sized for the wrong square footage. Hire your own inspector at the pre-drywall stage and again before final walkthrough. The few hundred dollars you spend is the best money in the entire transaction.

7. What changes can I still make, and what's the deadline?

Once you sign, every change order has a cost and a cutoff. Want to upgrade the cabinets after framing has started? It might not be possible — or it might cost triple what it would have at contract. Ask for the design center deadline, the change order policy, and which decisions are truly final at signing.

8. What's the HOA situation?

If you're buying in a new development, the builder typically controls the HOA until enough homes are sold. That means dues can change, rules can be added, and amenities promised in the marketing brochure may or may not actually get built. Ask for the current HOA documents, the projected dues, and what amenities are contractually guaranteed versus "planned."

9. What happens to my earnest money if I have to back out?

Builder contracts are notoriously buyer-unfriendly when it comes to earnest money. In many cases, if you can't close — even due to a job loss or a denied loan — the builder keeps every dollar. Understand the contingencies. Is there a financing contingency? An inspection contingency? An appraisal contingency? If the answer is no, you're taking on significant risk.

10. Who is representing my interests in this transaction?

This is the most important question, and most buyers never think to ask it. The friendly on-site sales rep showing you the model home works for the builder. Their job — their legal obligation