What You Need to Know about Buying New Construction

Buying new constructionAs you prepare to buy a home, buying new construction may be an option available to you.

Here's what you need to know about buying new construction, and how the process differs from buying an existing home.

Not Always Listed on MLS

Buying new construction requires you to look for a builder and new development in places other than MLS. New construction builders tend to advertise online or with builders, and your agent should have an idea of what new construction neighborhoods are under development in your desired areas.

Often Sold Before Being Built

One of the major ways buying new construction differs from buying an existing home is the timeline. In many cases, a new construction home is sold before it is built.

This translates into some pros and cons for you, as the buyer.

Pros include knowing the exact cost of your home (if the price is locked in) far further in advance than usual, being able to participate in design decisions, and the ability to think ahead for design and renovation plans. Cons include the opportunity for supply or weather related delays, not being able to see the home before buying it (relying on digital renderings and model homes, instead), and possibly moving into a neighborhood that is still a construction zone.

The First Buyers Pay Less than the Last Buyers

Builders generally develop a community in phases, with property values increasing as each phase is complete. For those buying new construction, this translates into a better deal if you buy in the first phase than the last.

You may also find that you builder is motivated to get the first batch of homes under contract quickly, in order to be able to advertise the number of homes already under contract or to report back to their lender with the success of the project.

If possible, look for a builder that is in the earliest phase of development in order to make the best investment. As long as you are willing to put up with construction in your neighborhood for a few months or years, the ROI will be worthwhile.

Discounts May Come in the Form of Upgrades

A builder is not likely to negotiate the price of the home, mostly because the sales price becomes public record in most states and the builder won't want to show homes sold for less. However, depending on how motivated they are to sell, you may be able to negotiate for more upgrades without raising the price.

If you are buying new construction toward the end of the community's development, your builder may be particularly motivated to wrap up sales. Consider asking for upgrades like:

  • Hardwood floors instead of carpet
  • Upgraded appliances
  • Better insulation
  • Landscaping

If you are able to negotiate for significant upgrades, the equivalent of thousands of dollars, you may be getting a better investment even if you spend the same amount.

Be Cautious About In-House Lenders

In many cases, a builder will have a relationship with a local lender, or even have an in-house lender. They may require that all buyers get pre-approval with that lender, even if they don't intend to choose them for their mortgage.

Your builder may offer incentives if you go with their preferred or in-house lender, but be cautious about doing so. Make sure the incentives are not hiding rates or terms that ultimately cost you more.

Even if you end up choosing the builder's preferred or in-house lender, it is still best practice to pursue pre-approval with multiple lenders and compare their terms to get the best loan for your needs.

For more information about buying new construction in Park City, contact us today! We are ready to help.

Start Browsing All New Construction Homes and Properties

318 Properties
Page 1 of 27
$950,000
Neighborhood: Silver Creek Village
4
Beds
3F11/2
Baths
2,782
Sq.Ft.
2022
Year Built
5
Days on Site
12300257
MLS
Amazing new single family home in Park City's latest master-planned Community, Silver Creek Village. **Includes finished basement! Built by premier builder, Hillwood Homes, this well-designed home...
Open 2/4
6831 Woods Rose Drive Dr Park City,  UT 84098
$999,000
Neighborhood: Silver Creek Village
4
Beds
3F11/2
Baths
2,157
Sq.Ft.
2022
Year Built
6
Days on Site
12300169
MLS
No description available...
$925,000
Neighborhood: Brookside (Heber)
3
Beds
2F11/2
Baths
3,452
Sq.Ft.
2023
Year Built
7
Days on Site
12300220
MLS
Brand new home in the Brookside neighborhood. Large open windows throughout provide the open floor plan with lots of natural light and views of the surrounding mountains, including Mt. Timpanogos. A...
Pending
10226 N Liv Place Park City,  UT 84060
$4,500,000
Neighborhood: Velvaere
3
Beds
3F11/2
Baths
2,092
Sq.Ft.
2024
Year Built
9
Days on Site
12300199
MLS
Velvre is a thoughtfully-envisioned wellness community dedicated to providing a holistic well-being and adventure-centric lifestyle. Offering two best-in-class amenity centers with innovative...
$2,800,000
Neighborhood: Crossings At Lake Creek
5
Beds
4F21/2
Baths
5,776
Sq.Ft.
2023
Year Built
9
Days on Site
12300202
MLS
Check this out! Impressive new build located in the Crossings. A picturesque upscale community east of Heber. This stately home is just up the road from the fishing pond. A grand stately exterior...
$6,950,000
Neighborhood: Promontory Ridge
5
Beds
1F53/411/2
Baths
7,099
Sq.Ft.
2023
Year Built
12
Days on Site
12300171
MLS
This home is your perfect mountain getaway. Featuring ski resort views and epic sunsets, the setting for this home is beautiful 365 days a year. Striking modern design by the acclaimed Aaron Inouye,...
$5,000,000
Neighborhood: Northgate Canyon
5
Beds
5F21/2
Baths
6,690
Sq.Ft.
2023
Year Built
12
Days on Site
12300181
MLS
Live large in Park City! This sophisticated mountain retreat in Promontory comes with a rare Full Golf Membership for sale and access to Promontory's ski-in/ski-out lodge, valet ski service and...
$2,885,000
Neighborhood: Soaring Hawk At Hideout
4
Beds
1F23/411/2
Baths
3,614
Sq.Ft.
2023
Year Built
12
Days on Site
12300183
MLS
The high-end luxury design of this custom home is experienced from the moment you walk through the door. Located on a quiet cul-de-sac overlooking the Wasatch Range, this thoughtfully designed home...
$1,690,000
Neighborhood: Discovery Ridge
4
Beds
3F11/2
Baths
2,433
Sq.Ft.
2023
Year Built
13
Days on Site
12300168
MLS
Ideally set between Park City and the Salt Lake Valley lies Discovery Ridge, a beautiful 72-acre mountain residential development surrounded by 1,000 acres of Toll Canyon open space. Discovery Ridge...
$2,295,000
Neighborhood: Red Ledges
3
Beds
3F11/2
Baths
3,015
Sq.Ft.
2022
Year Built
14
Days on Site
12300140
MLS
Mountain View Village is Red Ledges' newest neighborhood designed and built by Red Ledges Homebuilding. This custom home features an open floor plan, two car garage, spectacular views, and a large...
$2,725,000
Neighborhood: Red Ledges
4
Beds
5F11/2
Baths
3,917
Sq.Ft.
2022
Year Built
14
Days on Site
12300141
MLS
Mountain View Village is Red Ledges' newest neighborhood designed and built by Red Ledges Homebuilding. This custom home features an open floor plan, two car garage, spectacular views, and a large...
$2,295,000
Neighborhood: Red Ledges
3
Beds
3F11/2
Baths
2,630
Sq.Ft.
2021
Year Built
14
Days on Site
12300142
MLS
Mountain View Village is Red Ledges' newest neighborhood designed and built by Red Ledges Homebuilding. This custom home features an open floor plan, two car garage, spectacular views, and a large...

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