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

373 Properties
Page 1 of 32
$1,425,000
Neighborhood: Hart Crossing
3
Beds
3F11/2
Baths
2,597
Sq.Ft.
2022
Year Built
1
Day on Site
12204036
MLS
This one-of-a-kind conservation subdivision is surrounded by grassland acres that are never to be built on. It was designed to be that way! Combine scenic beauty of Kamas Valley with convenience and...
$1,385,000
Neighborhood: Hart Crossing
3
Beds
2F11/2
Baths
2,597
Sq.Ft.
2022
Year Built
1
Day on Site
12204041
MLS
This one-of-a-kind conservation subdivision is surrounded by grassland acres that are never to be built on. It was designed to be that way! Combine scenic beauty of Kamas Valley with convenience and...
$3,950,000
Neighborhood: Snyders Addition
4
Beds
2F11/2
Baths
2,661
Sq.Ft.
2016
Year Built
2
Days on Site
12204018
MLS
This newly built mountain-modern luxury home is located in the heart of Park City's historic Old Town neighborhood. Offering the convenience of a short walking distance to skiing at the base of Park...
7
Beds
5
Baths
6,684
Sq.Ft.
2022
Year Built
2
Days on Site
12204025
MLS
This home is more than aspirational; it's Mountain Modern at it's finest. A piece of luxury, nestled in the heart of the world renowned Red Ledges Golf Community. The homesite is set back on a...
$1,118,944
Neighborhood: Silver Creek Village
4
Beds
3F11/2
Baths
2,619
Sq.Ft.
2023
Year Built
5
Days on Site
12204006
MLS
Brand new home located in Silver Creek Village! This beautiful and modern designed home is built up to the ZERO ENERGY READY code requirement to reduce pollution/emissions inside and outside of the...
Pending
7817 Gallery Dr Park City, UT 84098
$5,100,000
Neighborhood: The Gallery
5
Beds
4F11/2
Baths
4,840
Sq.Ft.
2023
Year Built
7
Days on Site
12203982
MLS
The Wyeth is one of the most sought-after Promontory Homes floor plans. This absolutely gorgeous homesite looks over the Dye Canyon golf course and catches awesome ski run views. Located near the...
$2,995,000
Neighborhood: Red Ledges
4
Beds
4F11/2
Baths
3,925
Sq.Ft.
2023
Year Built
7
Days on Site
12203990
MLS
285 Haystack Mountain Drive, a new mountain modern custom build in Red Ledges, offers something for everyone. Main floor living in a spacious single level rambler, four bedrooms and four full...
Pending
7825 Gallery Dr Park City, UT 84098
$4,900,000
Neighborhood: The Gallery
4
Beds
4F11/2
Baths
4,650
Sq.Ft.
2023
Year Built
12
Days on Site
12203925
MLS
The Russel is one of the most sought-after Promontory Homes floor plans. This absolutely gorgeous homesite looks over the Dye Canyon golf course and catches awesome ski run views. Located near the...
$1,765,000
Neighborhood: Benloch Ranch
3
Beds
33/4
Baths
2,153
Sq.Ft.
2023
Year Built
15
Days on Site
12203891
MLS
Introducing the Skylark floorplan at Benloch Ranch, a master planned community of more than 2,300 acres along Highway 32, just south of the Jordanelle Reservoir, minutes outside Park City, Utah where...
$1,815,000
Neighborhood: Benloch Ranch
3
Beds
33/411/2
Baths
2,345
Sq.Ft.
2023
Year Built
15
Days on Site
12203892
MLS
Introducing the Kanyon floorplan at Benloch Ranch, a master planned community of more than 2,300 acres along Highway 32, just south of the Jordanelle Reservoir, minutes outside Park City, Utah where...
$2,295,000
Neighborhood: Red Ledges
3
Beds
3F11/2
Baths
3,015
Sq.Ft.
2022
Year Built
16
Days on Site
12203879
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...
$1,450,000
Neighborhood: Other(Areas 23-41)
7
Beds
5F11/2
Baths
4,661
Sq.Ft.
2022
Year Built
16
Days on Site
12203868
MLS
Your Heber dream home is finally available! You're going to love this thoughtfully built new construction home including the optional basement apartment with private entrance. This sun filled home...

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