There is something exciting about being the first person to live in a home, choosing your own finishes, and skipping the bidding wars that come with an established resale property. But a new construction home comes with its own set of rules, timelines, and contract terms that catch even experienced buyers off guard. Before you sign a builder’s contract, it is worth understanding exactly what you are agreeing to, because builder agreements look nothing like a standard resale purchase contract. As the team behind The Myles Group at Keller Williams, and through our builder partnership with Summit Valor Homes, we have walked dozens of families through exactly this process across Central Texas.
Builder Contracts Favor the Builder by Default
Standard resale contracts are typically written to balance the interests of both buyer and seller fairly evenly. Builder contracts are usually drafted entirely by the builder’s legal team and heavily favor their interests, including completion timelines, deposit forfeiture terms, and change order pricing. Having your own agent or real estate attorney review the contract before you sign protects you from terms that might otherwise go unnoticed until they become a problem months into the build. Pay particular attention to clauses covering construction delays, since many builder contracts include language that shields the builder from penalties even when completion stretches well past the original estimate, leaving you responsible for extended temporary housing costs in the meantime.
Understand What Is Actually Included in the Base Price
The advertised price on a new construction home rarely includes everything you will actually want. Landscaping, blinds, fencing, garage door openers, and upgraded flooring are common items that show up as add-ons once you are in the design center. Ask for an itemized list of what the base price includes before you fall in love with the model home’s finishes, since model homes are almost always upgraded well beyond the base package.
Upgrade Costs Add Up Faster Than Buyers Expect
Design center visits are where upgrade budgets on a newly built property tend to spiral. A seemingly small upgrade to countertops, cabinet hardware, or flooring can add thousands of dollars once you multiply it across an entire home. Set a firm upgrade budget before your design appointment and prioritize structural upgrades, like additional outlets or plumbing rough-ins, over purely cosmetic ones that can often be added later without opening up walls.
Financing a New Build Works Differently Than Financing Resale
Depending on the builder, you may need a construction loan that converts to a permanent mortgage, or the builder may handle financing through their preferred lender with incentives attached. Builder incentives can be valuable, but always compare the total cost against financing independently, since a slightly better rate elsewhere can sometimes outweigh a builder’s closing cost credit. The Consumer Financial Protection Bureau offers clear, unbiased guidance on comparing loan estimates that applies just as much to new construction financing as it does to resale purchases. It is also worth asking your builder whether their preferred lender’s incentive is contingent on using their in-house title company or closing attorney, since some incentive packages come bundled with additional fees that offset part of the savings.
Know What the Warranty Actually Covers
Most builders offer a limited warranty covering workmanship and materials for the first year, along with longer coverage for major systems and structural elements. Read the specifics carefully, since warranty terms vary significantly between builders, and understand the claims process before you need to use it. A builder with a clear, responsive warranty process is worth factoring into your decision as much as the floor plan itself. Ask other homeowners in the community, if any exist yet, about their actual experience getting warranty claims addressed, since a generous warranty on paper means little if the builder is slow or difficult to reach once the sale is finalized.
Never Skip the Independent Inspection
It is tempting to assume a brand new home does not need an inspection, but construction defects happen even with reputable builders, and municipal inspections do not catch everything. An independent, third-party inspection at the pre-drywall stage and again before closing catches issues while they are still easy and inexpensive to fix. This single step often prevents thousands of dollars in problems that would otherwise surface only after you have moved in and the warranty clock has already started.
Work With an Agent Who Represents You, Not the Builder
The sales representative in a builder’s model home works for the builder, not for you, even though they are often friendly and helpful throughout the process. Bringing your own agent, at no extra cost to you in most cases, means someone is reviewing contract terms, negotiating upgrades and incentives, and watching timelines with your interests in mind rather than the builder’s sales targets. Buyers exploring new construction homes in Killeen benefit from this kind of independent representation from the very first design center appointment. It is also worth noting that Killeen’s housing stock skews older overall, with a large share of homes dating to earlier decades of the city’s growth, which is part of why new construction carries strong demand among buyers who want modern systems and lower near-term maintenance.
Compare New Construction Against Resale Before You Decide
New construction is not automatically the better choice, and comparing your options honestly matters. Buyers considering new construction homes for veterans in Killeen, for example, might find that resale homes closer to the post offer a shorter commute, even if the finishes are less modern.With Killeen’s new construction median listing price averaging around $245,900 compared to lower resale price points, buyers must decide if the premium of a brand-new home matches their overall financial goals.
Weighing homes in Killeen, Texas, across both categories, rather than assuming new is always better, leads to a decision that fits your actual priorities.
A new construction home can be an excellent choice, but only when you go in with clear eyes about contract terms, upgrade costs, financing options, and warranty coverage. Our team at The Myles Group at Keller Williams is ready to guide you through every step of the process, from your first design center visit to your final walkthrough.
Reach out to our team or visit our website before you sign anything