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

343 Properties
Page 1 of 29
$3,400,000
Neighborhood: Skyridge
4
Beds
4F23/4
Baths
4,768
Sq.Ft.
2022
Year Built
2
Days on Site
12201949
MLS
Lot #64 - Stunning Lake and Mountain Views from a coveted downhill homesite in the Ursa Subdivision of SkyRidge Mountain Community. Mountain contemporary design located on the northwest shore of the...
$800,000
Neighborhood: Swiss Alpenhof
6
Beds
5
Baths
5,521
Sq.Ft.
2019
Year Built
2
Days on Site
12201956
MLS
Wonderful opportunity to customize this stunning Midway 2 Story home. Situated on lot 19 in Alpenhof Estate, a very sought after neighborhood in beautiful Midway. This home is being offered as is...
$1,350,000
Neighborhood: Swiss Mountain Estates
5
Beds
4
Baths
5,533
Sq.Ft.
2022
Year Built
2
Days on Site
12201960
MLS
Scotch Fields is a development of 89 home sites in the Northwest corner of Midway near the entrance to Wasatch State Park and Golf Course. There are walking and biking trails throughout the community....
$1,150,000
Neighborhood: Scotch Fields
5
Beds
4
Baths
4,825
Sq.Ft.
2022
Year Built
2
Days on Site
12201962
MLS
The last 2 lots to be built by Probst Enterprises are now released and available. Scotch fields is a development of 89 home sites in the Northwest corner of Midway near the entrance to Wasatch State...
$6,650,000
Neighborhood: Wapiti Canyon
5
Beds
1F43/411/2
Baths
7,331
Sq.Ft.
2023
Year Built
2
Days on Site
12201965
MLS
Stunning to be built home in upper Promontory. This moody modern home design boasts a welcoming front entry that opens to views of mountain resorts and golf with 5 bedrooms and 7 bathrooms. The main...
$1,575,000
Neighborhood: Wasatch County Area
4
Beds
4F11/2
Baths
5,068
Sq.Ft.
2022
Year Built
2
Days on Site
12201847
MLS
If you want a custom built, brand new home but don't want to wait for the completion of construction then run, don't walk to see this listing before it is gone. This luxury home in Midway, UT is an...
$930,900
Neighborhood: Silver Creek Village
3
Beds
3
Baths
1,421
Sq.Ft.
2022
Year Built
3
Days on Site
12201924
MLS
Amazing townhomes in Park City's latest master planned community Silver Creek. The Halstead home-plan allows you to get a great home at an affordable price! Home features include 2 car tandem garage,...
$1,017,900
Neighborhood: Silver Creek Village
3
Beds
4
Baths
1,772
Sq.Ft.
2022
Year Built
3
Days on Site
12201925
MLS
Amazing townhomes in Park City's latest master planned community Silver Creek. The Woodbury home-plan allows you to check off all the boxes on your new home! large garage, flex room,9ft ceilings,...
$1,249,900
Neighborhood: Silver Creek Village
3
Beds
1F13/411/2
Baths
2,444
Sq.Ft.
2022
Year Built
3
Days on Site
12201935
MLS
The Keetley - All move-in dates confirmed, NEW Updated pricing. Request more information for details. Modern, fresh, style converges in a carefully curated medley of modern, sleek finishes, textures,...
$8,900,000
Neighborhood: Moonshadow
5
Beds
4F21/2
Baths
5,362
Sq.Ft.
2024
Year Built
6
Days on Site
12201886
MLS
This beautiful new construction home is located in the heart of the Village at Empire Pass and is within short walking distance of the Tower Club. The home was designed by WOW Atelier Architects and...
Open 5/25
6730 Painted Valley Pass Park City, UT 84098
$5,500,000
Neighborhood: Private Estates At Painted Shores
5
Beds
4F11/2
Baths
5,015
Sq.Ft.
2022
Year Built
6
Days on Site
12201907
MLS
This newly-constructed masterpiece is located at the high point of the coveted Painted Valley Estates neighborhood. The property is defined by breathtaking airplane views in all directions. Not a...
$7,500,000
Neighborhood: Sunset Ridge
6
Beds
2F43/421/2
Baths
8,745
Sq.Ft.
2022
Year Built
8
Days on Site
12201842
MLS
Amazing Ski views from this high-end new construction Promontory home. The gourmet kitchen features a Sub-Zero Column fridge, freezer & wine fridge, Wolf double ovens, a gas range & 2 dishwashers....

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