Buying new construction in Houston can be an exciting opportunity, but it comes with its own set of challenges. Here’s a list of key tips specifically tailored for buyers considering new construction homes in Houston:
1. Choose the Right Builder
- Research the builder’s reputation: Look for online reviews, ask past buyers, and check the builder’s track record with the Texas Real Estate Commission (TREC) and Better Business Bureau (BBB).
- Visit model homes: See the quality firsthand and ask what is standard vs. upgrade.
- Look at completed neighborhoods: It gives you insight into how the community ages and is maintained.
2. Location Matters
- Flood zones: Houston is prone to flooding. Check FEMA flood maps and consult a local insurance agent about the need for flood insurance—even if it’s not required.
- School districts: Even if you don’t have kids, homes in good school zones typically retain value better.
- Proximity to work and amenities: Houston traffic can be rough—factor in commute times.
3. Understand Pricing and Upgrades
- Base price vs. final cost: The model home is often full of upgrades. Ask for a list of included features and upgrade costs.
- Negotiate: Builders might be more flexible on upgrades or closing costs than base price.
- Don’t over-upgrade: Be cautious about spending too much on upgrades that won’t boost resale value.
4. Hire Your Own Agent
- The builder’s agent represents the builder, not you. Having your own real estate agent ensures your interests are protected. Meadows Property Group Realtors are experienced in new construction homes, so call us for all of your concerns. We would love to help you with your new construction home.
5. Get a Home Inspection
- Even though it’s new, new construction can have defects. Hire a third-party inspector:
- Before drywall (pre-drywall inspection)
- At final walkthrough
- Before your builder warranty expires (11-month inspection)
6. Understand the Warranty
- Texas builders typically offer:
- 1-year workmanship warranty
- 2-year systems warranty (electrical, plumbing, HVAC)
- 10-year structural warranty
- Read the fine print, and clarify what’s covered and the process for making claims.
7. Ask About Construction Timeline & Delays
- Houston weather can delay construction.
- Get completion dates in writing, but know delays can happen.
- Ask what happens if the project is delayed—some contracts allow generous builder leeway.
8. Know What’s Included in the HOA/Community
- Many Houston master-planned communities have HOAs with rules and fees.
- Ask:
- What are the dues?
- What amenities are included?
- Are there any restrictions on landscaping, paint colors, etc.?
9. Secure Financing Early
- Compare the builder’s preferred lender with outside lenders.
- Builders may offer incentives (like covering closing costs) if you use their lender, but always compare rates and fees.
- Consider a rate lock if you’re building over many months.
10. Read the Contract Carefully
- New construction contracts in Texas are often builder-drafted, not standard TREC forms.
- Have your real estate agent and possibly an attorney review it.
- Pay special attention to:
- Cancellation clauses
- Escalation clauses (for materials/labor cost increases)
- Warranty terms
It is very exciting to build your own home and the best way to get all the amenities and features you desire. If you have never done it before, it is advisable to get an experienced Realtor to guide you through the process. As stated before, have representation. The builders do not represent you, they represent themselves. Meadows Property Group Realtors are available to assist you.
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