Allen Markel, REALTOR® · Texas Premier Realty

Way to Buy

Buying New Construction — With Someone on Your Side

The agent in the model home is friendly, knowledgeable, and paid by the builder. Bringing your own representation costs you nothing, because the builder has already budgeted for it — but it has to happen before you sign a visitor card on your own. Most builder policies treat that signature as registering you unrepresented, and in a lot of communities it can't be undone afterward. Everything after that is the ordinary work: comparing base price against what the model actually contains, reading a contract written on the builder's paper rather than the standard TREC form, and inspecting twice — once before drywall closes the walls, once before you close.

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Is this right for you?

The honest fit

Best for

  • You want a home nobody has lived in, with a warranty and current code
  • You're shopping the fast-growing Cypress, Katy, Tomball, Magnolia, and Montgomery areas where most new inventory is
  • You'd rather choose finishes than inherit somebody else's

Maybe not if…

  • You need to be in a home in the next 60 days — build timelines rarely cooperate
  • You want mature trees, established schools by reputation, and a proven resale history
  • Your budget only works with negotiating room on base price, which builders protect hard

The process

How it works

  1. 01

    Register me with the builder ON YOUR FIRST VISIT — this is the whole ballgame, and it's explained below.

  2. 02

    We compare builders honestly: base price versus what the model actually contains, lot premiums, and what the incentives really cost you.

  3. 03

    I read the builder's contract with you — it is their paper, not the standard TREC form, and it is written for them.

  4. 04

    We inspect. Twice: before drywall closes the walls, and again before you close.

The trade

What you get — and what to weigh

What you get

  • Somebody reading a one-sided contract who isn't paid by the builder
  • Independent inspections at the two points where problems are still cheap to fix
  • An honest read on incentives — most are financing credits, not price cuts, and they aren't equal
  • Comparison across builders instead of falling in love inside one model home

The trade-offs (straight talk)

  • Base price is close to non-negotiable; the real negotiation is incentives, upgrades, and lot premiums
  • Timelines slip — plan your lease or your sale with slack in it
  • Design-center upgrades carry enormous margin and rarely return their cost at resale
  • You are buying into an unfinished neighborhood; the streets around you will be a job site for a while

Typically qualifies

  • • Nothing special — but you must bring representation before you register on your own
  • • Financing lined up, though you are rarely required to use the builder's lender
  • • Patience with a timeline that will move at least once

“The single most expensive mistake in new construction is walking into a model home alone on a Saturday and signing the visitor card. In most builder policies that registers you as unrepresented, and it can permanently disqualify you from bringing an agent to that community. It costs you nothing to bring me — the builder has already budgeted for it — and it costs you everything to forget.”

Homes sold
175+Homes sold
In closed sales
$54M+In closed sales
Texas markets served
2Texas markets served
Counties served today
6Counties served today

Career totals across two Texas markets — DFW, then Greater Houston.

Questions, answered

Frequently asked questions

In the standard arrangement, no — builders budget for buyer representation and pay it out of the transaction, exactly as a resale seller does. What it costs you is remembering to do it first. Register me on your first visit, before you sign a visitor card on your own.

Shopping new construction?

Tell me which communities you're looking atbefore you visit.Getting represented takes one message and it has to happen first.

Call (832) 709-2540

Not sure this is the right path? Let's figure it out together.

A quick, no-pressure conversation is all it takes.

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Allen Markel, REALTOR® · Texas Premier Realty · TREC #0658294

Questions about New Construction

New Construction

  • Should I get an independent inspection on a new construction home?

    Yes. An independent inspection on new construction reveals issues the builder's warranty may not cover and gives you leverage to negotiate repairs before closing. The inspection happens during your option period, when you can still walk away. New homes have defects too, and an inspector trained in TREC standards documents them so you know what you are buying and what to expect after closing.

    Read the full answer
  • What does a pre-drywall inspection actually catch that I should care about?

    A pre-drywall inspection catches framing defects, electrical and plumbing rough-ins, HVAC ductwork, insulation placement, and structural issues before they are hidden behind walls. You see what the builder installed before concealment, so you can negotiate repairs or corrections while access is easy and costs are lower. It is your window to verify the work matches the contract and building code before closing.

    Read the full answer
  • What upgrades at the design center actually add resale value?

    Design center upgrades vary widely in resale value. Structural and systems upgrades like roof, HVAC, and electrical tend to hold value better than cosmetic choices. What matters most depends on the buyer's priorities, the neighborhood, and the home's condition. Some upgrades are easier and cheaper to add after closing. Talk to us to find the right option for your circumstances.

    Read the full answer
  • Does buying in phase one of a new development carry extra risk?

    Phase one carries different risks than later phases, not necessarily more or less. Early buyers may face incomplete amenities, uncertain neighborhood character, and longer construction timelines. Later phases benefit from seeing what was built, but may have fewer lot choices and higher prices. The right timing depends on your priorities: speed, lot selection, price, or seeing the finished community. Neither choice is without trade-offs.

    Read the full answer

What it is

  • Do I need a REALTOR to buy new construction?

    You do not need one, but we strongly recommend it. The salesperson in the model home works for the builder. Your own REALTOR works for you, reads the builder's paperwork with you, compares builders and protects your interests from the first visit through closing.

  • Who does the salesperson in the model home work for?

    The builder. They can be friendly and knowledgeable, but their job is to sell the builder's homes on the builder's terms. Having your own REALTOR means someone is looking out for you, not for the seller.

  • What is different about buying new construction compared with a resale home?

    You choose or approve finishes, wait for the home to be built, and sign a contract written by the builder instead of the standard form. Timelines can move, and the neighborhood may still be under construction. There is also a builder warranty, which varies.

Who it fits

  • Who is new construction a good fit for?

    It fits someone who wants a home nobody has lived in, current building standards and a say in finishes. It also suits someone willing to wait through a build. It may not fit if you need to move very soon or want an older neighborhood with mature trees.

  • Who should think twice about new construction?

    If you need to be in a home soon, build timelines rarely cooperate. It may also be harder if you want mature trees or a long resale history, or if your budget depends on negotiating on price. Talk to us to find the right option for your circumstances.

  • Is new construction better than a resale home?

    Neither wins every time. New homes offer a fresh start and a warranty, while resale homes may offer a location, a mature lot or room to negotiate. We compare actual homes against your priorities and timeline.

  • Which areas have the most new construction?

    Most new inventory is in the fast-growing parts of the Houston area, including Cypress, Katy, Tomball, Magnolia and Montgomery. Specific communities change as new sections open. Tell us where you are looking and we will check what is available.

How it works

  • What are the steps to buy new construction with an agent?

    Bring us in before you visit alone, we compare builders, we read the builder's contract with you, and we arrange inspections along the way. Then comes the final walkthrough and closing. We stay involved from the first visit until you have your keys.

  • Why do I need a written agreement before touring with an agent?

    A written buyer agreement is required before touring with an agent. It sets out how we work together and how we are paid, so there are no surprises. It does not mean you must hire an agent to walk into a builder office alone, but registering with the builder is where timing matters.

  • What happens if I visit a model home before bringing you in?

    Many builders treat what you sign on a visitor card as registering you without representation, and in some communities that cannot be undone later. If you already visited, tell us right away so we can see what the builder's policy says.

  • How do I register with the builder once I have you?

    On your first visit, you tell the builder you are working with us and we make sure the registration is done correctly before you sign anything on your own. It takes one message. The builder's policy decides how it is handled, so timing matters.

  • How are inspections handled on a new build?

    There are several different inspection methods for new construction, and we walk you through which one fits your build and your builder. We do not leave it to chance, because the right choice depends on the type of build and the stage you are at.

  • Why should I get my own inspection if the builder has inspectors?

    The builder's quality checks are not the same as an inspector working for you. An independent inspector looks out for your interests and documents issues so they can be fixed while you still have leverage. New does not mean flawless.

  • How long does a new build usually take?

    It varies by builder, plan and conditions, and timelines can slip. Plan your lease or sale with slack in it rather than a fixed date. We help you ask the builder realistic questions about schedule and what could change it.

Costs to weigh

  • Is the price on a new build negotiable?

    The base price is usually protected hard. The real negotiating room tends to be in incentives, upgrades and lot premiums, and that varies by builder and community. We help you see what is worth pushing on and what is not.

  • What are builder incentives and are they real savings?

    Builder incentives are often financing credits instead of price cuts, and they can come with conditions such as using the builder's lender. They are not all equal. We compare them against other options so you see what each really costs or saves you.

  • Are design center upgrades worth the money?

    Upgrades often carry a high margin and may not return their cost when you sell. Some may be cheaper to add after closing. We help you decide which matter to how you will live in the home and which are better left for later.

  • What is a lot premium?

    It is an added charge for a particular lot, such as one with a better view, a larger size or a preferred position. Lot premiums vary by community and can add up. We help you weigh whether the premium makes sense for you.

  • What costs besides the price should I plan for on a new build?

    Think about upgrades, window coverings, fencing and landscaping that may not be included, plus closing costs and taxes that can include a special district. Moving timelines may also add costs. Ask the builder for a full list of what is and is not included.

Offers and timing

  • What should I get from the builder and what can I do later?

    Know what is included versus not, get in writing what the builder promises, and save upgrades you can do yourself for later. Some items cost less to add after closing. We go through that list with you before you commit.

  • Is there any room to negotiate when walking model homes?

    Some. There can be negotiation room on incentives, upgrades and lots, though base price tends to be firm. It is helpful to know what a model includes versus what the actual home will have. We help you ask the right questions.

  • When is the right time to bring you in?

    Before you visit a builder on your own, ideally before your first trip to a model home. Waiting until after you register can limit your options. A quick message to us first costs nothing.

Property questions

  • What should I know about buying in a community still being built?

    Streets and lots around you may be a job site for a while, and amenities may arrive over time. Ask what is planned and when, and keep your expectations flexible. We help you ask what the builder has committed to in writing.

  • What should I check about taxes and special districts on a new build?

    Many new communities include a special district that adds to the tax rate. Ask for the full rate and any fees before you decide what you can afford. We help you check, since two communities nearby can carry very different costs.

  • Does a new home need a flood check too?

    Yes. Being new does not remove flood risk, and elevation and drainage matter. We look at flood information for the community and lot, so you know the answer before you commit.

  • Are model homes the same as the one I would get?

    Not always. Models often show upgrades and features that cost extra or are not included. Compare the model with the actual plan and list what is standard versus optional. Do this before you fall in love inside the model.

Compared with other options

  • How do I compare builders against each other?

    Look at base price against what the model actually contains, lot premiums, incentives, warranty terms and the builder's track record. Builder tiers differ, so quality and finish levels vary. We compare them side by side so you are not judging only the model.

  • New build or a recent resale, which is smarter?

    It depends on your timeline, budget and priorities. A recent resale can close faster and may leave negotiating room, while a new build gives choice and warranty coverage. We look at specific homes for both so you compare real numbers.

Getting started

  • What should I do before my first visit to a builder?

    Contact us, tell us which communities interest you, and hold off on signing a visitor card on your own. Have a rough budget and financing in mind too. It takes one message and keeps your options open.

  • What should I bring when I tour model homes with you?

    A rough budget, a list of must-haves, and a way to take notes and photos. We bring the questions to ask and the comparison list. Do not sign anything on the spot, and let us review it with you.

Money

  • How much do I need down for a new construction home?

    Down payment minimums come from the loan program, not the builder. VA and USDA can be 0% down, FHA is 3.5% down with a credit score of 580 or higher, and conventional can be as low as 3% down. The builder may also ask for a deposit with the contract. Ask for the full payment schedule in writing. A loan originator can give you your numbers.

  • What extra costs come with buying new construction?

    Lot premiums, design-center upgrades, and items the model may include but the base price does not. Closing costs generally run 2% to 5% of the purchase price, plus prepaid items. A special district can add to the tax rate. Ask the builder for the full list before you decide what you can afford.

  • Can the builder pay my closing costs?

    Often, as an incentive. Most are financing credits rather than price cuts, and they may require using the builder's lender. Loan programs cap seller contributions: FHA 6%, USDA 6%, VA 4% concessions, conventional 3%, 6% or 9% depending on down payment. A loan originator can give you your numbers.

  • Are builder incentives really worth it?

    It depends on what they cost you. Most incentives are financing credits, not price cuts, and they are not equal. A credit tied to the builder's lender could come with a rate that is higher than elsewhere. We run it both ways with real numbers before you decide, so the incentive is judged on total cost.

  • How do I compare the builder's lender with another lender?

    Ask each for a Loan Estimate and compare the rate, points, lender credits, closing costs and the builder incentive attached. The builder's offer may or may not be priced competitively. A loan originator can explain each line, and we help you put the offers side by side.

  • How does a rate lock work if my home takes months to build?

    A rate lock holds a rate for a set period, and a build that slips can outlast it. Ask the loan originator about lock options and what an extension costs. We plan around the builder's timeline, which can move, so you are not surprised when the date shifts.

  • How does earnest money work with a builder?

    Builders generally ask for a deposit with the contract, and the terms are in their contract, which is written for them. We read it with you and point out what to ask. For legal questions about what happens to a deposit, ask your attorney before you sign.

Process

  • Do I need a pre-approval before I visit a model home?

    It helps, and so does having us registered on your first visit. A pre-approval tells you what you can spend before you fall in love with a floor plan. Builders and sellers take your offer more seriously with one, and it keeps the budget honest from the first tour.

  • How do I compare two builders fairly?

    Compare base price against what the model actually contains, lot premiums, upgrades and what the incentives really cost you. We put the numbers in one place so you are not choosing based on a model home. Talk to us before you visit, so the comparison starts with your first tour.

  • How do I negotiate with a builder?

    Base price is close to non-negotiable, so the real negotiation is incentives, upgrades and lot premiums. We help you decide where to push and where to give. Comparing more than one builder gives you more leverage, and having your own representation from the first visit matters.

  • Can an attorney review the builder's contract?

    Yes, many buyers have one do it. The builder's contract is their paper, written for them, so we point out terms to question, and an attorney can explain what the terms legally mean. Ask for the contract early so there is time to review it before you are under pressure.

  • What is the final walkthrough and punch list?

    Before closing, you walk the home with the builder and list items that need fixing, called a punch list. A final inspection by an inspector working for you catches problems while your leverage is still strong. Keep the lists and reports with your records for the warranty.

  • What if I already signed the visitor card on my own?

    Tell us right away. Many builder policies treat the signature as registering you without representation, and in a lot of communities it cannot be undone, but policies vary. We ask the builder what is possible, so contact us before visiting again and do not sign anything else alone.

  • Should I buy a move-in-ready home or build one?

    A home that is already built shortens the wait, while building lets you choose finishes. Timelines slip on new builds, so ask what the schedule really looks like. Talk to us about which fits your timeline and budget, since the better answer depends on when you need to be in the home.

The contract

  • Why is a builder's contract different from a resale contract?

    Builders usually use their own paper, written to protect them, so terms, deadlines and remedies can differ from a standard resale contract. We read it with you and point out what to question. For what the terms legally mean, an attorney can advise.

The warranty

  • Can I get more coverage than the standard builder warranty?

    Warranty terms vary by builder, so read what is covered and for how long. Ask the builder whether longer or additional coverage is available and what it costs. We go over the terms with you and keep your inspection reports with your records.

The timeline

  • What if my home build is delayed?

    Delays happen, so plan for them with slack in your lease or sale. Ask what the contract says about delays and what changes if the date moves. We read that language with you, and an attorney can explain legal effects.

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