Buying New Construction in North Texas: What Builders May Not Explain Before You Sign

Buying New Construction in North Texas: What Builders May Not Explain Before You Sign

By Shawna Martinez

Buying a brand-new home can sound simple.

Choose a floor plan, select finishes, sign paperwork, and wait for the keys.

Reality has entered the chat.

New construction involves contracts, timelines, incentives, financing, inspections, upgrade costs, warranties, tax estimates, and builder-specific rules that buyers need to understand before signing.

The Builder’s Sales Representative Represents the Builder

The onsite representative works for the builder.

That does not make the representative dishonest. It means the representative’s legal and business responsibilities are aligned with the seller.

Buyers should understand who represents whom before discussing finances, negotiating terms, or signing documents.

Texas law changed in 2026 to require written agreements in many residential buyer-representation situations before a license holder performs certain brokerage activities.

Builder Contracts Are Different

Texas has separate contract forms for completed and incomplete new homes, and builders may also use proprietary contracts drafted for their developments.

Important terms may include:

• Completion deadlines
• Extension rights
• Deposit requirements
• Upgrade payments
• Financing deadlines
• Appraisal provisions
• Inspection access
• Change-order policies
• Cancellation rights
• Warranty procedures

Buyers should read the complete agreement and consult an attorney when legal advice is needed.

Incentives Are Not Free Money

Builders may offer:

• Closing-cost assistance
• Temporary rate buydowns
• Permanent interest-rate reductions
• Design-center credits
• Appliance packages
• Lot-premium discounts
• Price reductions

An incentive may require using the builder’s preferred lender or title company.

Compare the total loan cost, interest rate, fees, cash required, and long-term payment rather than choosing the biggest headline credit.

The Base Price Is Not the Final Price

The advertised price may not include:

• Lot premium
• Structural options
• Extended patio
• Additional garage space
• Fireplace
• Upgraded elevation
• Flooring
• Cabinets
• Countertops
• Lighting
• Window coverings
• Landscaping
• Appliances

Ask for a written estimate showing the complete anticipated price before becoming emotionally attached to the model home.

Property Taxes May Be Underestimated

A newly built home may initially show taxes based primarily on the lot or partially completed construction.

The future tax bill can be much higher after the completed home is assessed.

Buyers should evaluate the estimated completed value and all applicable taxing entities. Denton County provides a tax-estimator tool, but estimates should be verified for the specific property.

You Still Need Inspections

New does not mean flawless.

Independent inspections may identify issues involving:

• Foundation
• Framing
• Electrical work
• Plumbing
• Roofing
• HVAC installation
• Drainage
• Grading
• Insulation
• Cosmetic completion

Depending on the construction stage, buyers may consider phased inspections and a final inspection before closing.

Understand the Warranty

Ask:

• What is covered?
• For how long?
• Who handles claims?
• What is excluded?
• Is there an emergency process?
• Must disputes go through arbitration?
• Does coverage transfer?

A warranty is useful only when buyers understand how to use it.

Frequently Asked Questions

Do I need my own agent for new construction?

Independent representation can help buyers compare communities, understand incentives, review pricing, manage inspections, and negotiate where possible.

Does using an agent increase the price?

Builder compensation and pricing policies vary. Ask about representation before registering or touring.

Can builders negotiate?

Sometimes. Negotiable items may include price, incentives, lot premiums, closing costs, inventory-home discounts, or upgrades.

Should I use the builder’s lender?

Compare the builder lender’s full offer with outside financing. The incentive matters only in the context of total cost.

Can a new home fail inspection?

Yes. Construction defects and incomplete work can occur in any home.

Need Help Comparing Builders?

The best builder incentive is not always the largest number printed on the flyer.

Reach out before visiting model homes so we can compare communities, contracts, taxes, upgrades, incentives, and inspection strategy.

Shawna Martinez | Performance Team | Real | 940-395-3474 | shawna@performtexas.com | performtexas.com