What You MUST Know Before Signing a Contract on Your New Construction Home!

When we signed our new construction home contract, we were shocked at how many decisions needed to be made before we signed with the builder!

Some of these decisions we were prepared for (the model and floor plan), while others we had no clue and scrambled to make last minute while reading over the contract (the color of our home and structural options).

So in this post, I’m going to detail all the things you need to be prepared to decide on when you’re signing the contract on a new construction home.

The Model

Let’s start with the easiest choice! Knowing the model you plan on building is something you have to know before signing your contract on a new construction home. And, you are probably prepared to make that decision. You usually only have a few choices here, and it’s usually easy to narrow it down pretty quickly based on your needs and budget.

Your model choice can affect all your other choices (the floor plan, lot, the color of your home, and your structural options), so make certain you are sure in your decision.

The Lot

When we first started looking, I didn’t think choosing a lot was that big of a deal. I thought they’d hand us a map of 100 lots, and we’d say “That one looks good”.

Not so much.

Builders only release a certain number of lots at one time (that way they can be more efficient in building things close together AND create a level of exclusivity on their property).

And, they may only build certain models on certain lots. Attached garage models need much wider lots than detached garage models. And, an 1800 square foot home may not need as much land as a 3500 square foot model.

So, we were handed a list of ten lots that were set aside for our model. It included the acreage, any identifying features, and the lot premium prices.

Lot Premiums

Lot premium? Yep–you have to pay an extra amount based on the appeal of your lot. Want a bigger lot? More money. Want to be in a cul de sac? More money. Want to back up to established trees instead of a drainage pond? More money.

For us, our lot premiums ranged from $15k-$40k, but I’ve heard of some running up to $100,000! We had no idea the lot cost wouldn’t be included in that “Starting from the $300s”.

How to Choose

My best advice for choosing a lot is to take the list and drive by each one. Get out and walk around. What would your backyard look like? What does the front of the house look out over? How close are your neighbors? How busy is the street you’re going to be on? You can even get down to if the sun rises right in the master bedroom.

How did we make our decision?

We spent a little extra to get slightly bigger lot (they ranged from .12 to .4 acres and we got .16 acres) and a lot in the start of a cul de sac.

When that cut our choices down to 4 lots within $5k of each other, we narrowed it down further by choosing a lot that backed up to mature trees instead of a drainage pond, with the sun rising on the back of the house, away from the master. And, it’s in the start of a cul de sac, so less traffic for our little one to play.

So, make sure you keep room in your budget to choose the right lot for your family!

The Color

We had no idea we had to choose our exterior colors when we signed the contract! The first time we saw the color options was when the contract was forwarded to us.

And, we didn’t know there would be restrictions on what we could choose from. Our neighborhood has limits on what colors can be used next to each other, so they don’t have 15 of the same color house in a row. So, out of the packet of 30 options, we were limited to about 20.

Of course, all the colors I loved were already taken (I loved the whites and creams). We ended up with an SW Escape Grey exterior with SW Black Fox shutters, and I have to say, I love it! It’s a beautiful grey green!

If the exterior color of your home is super important, make sure you ask about this before you settle on a model and a lot.

The Floor Plan aka Structural Options

Ok, now that you’ve taken care of model, the lot, and the color, it’s time to get down to some of the fun (and for us, most stressful) stuff: the floor plan, aka your structural options.

We had about 30 decisions we had to make here, and while most of them were pretty easy, others we didn’t know we’d have to make when signing the contract. We thought they were decisions for the design center a month later, so we’d have more time to debate and work with the budget.

(P.S. If you need help deciding on your floor plan, check out our free guide on How to Choose Your New Build Home Plan, including a printable worksheet!)

The Obvious Choices

Some obvious structural options include your floor plan (screened porch or sunroom options, upgraded tub or shower in your master bath, and adding on a room or a third floor).

The Not So Obvious Ones

Other structural options you may not be thinking of are the exterior facade of your home. Our model had four slightly different facades, and we had to choose which one we wanted. You may be limited based on what your neighbors already picked, so make sure you ask if there’s one you have to have. Sometimes the facade may change the size of the features on the front of your home, like the size of your porch. You may have to change lots to get what you want!

We also had to decide if we wanted our home right or left facing. I.e., did we want the floor plan laid out like the model and our driveway on the right, or laid out the opposite way with our driveway on the left? I didn’t know this was even a choice, but we both found we had very strong opinions about it and wanted it just like the model.

And, All the Rest

Here’s a list of other structural options you may have to decided on before signing a contract (like I said earlier, we had about 30 decisions to make):

• Upgrading the kitchen to gas appliances
• Adding a gas fireplace
• 1 or 2 car garage
• Sprinkler system in the yard
• Adding extra windows or sliding door
• Upgraded bath options
• Tankless or traditional hot water heater

When we were having to make some of these decisions, I was super stressed! One, we didn’t know we would have to make some of these decisions now, and not at the design center. And, two, I didn’t even know some of these were decisions to make!

But, the reason all of these things need to be decided on when you sign a contract is a very important one: permitting.

Permits

The builder needs to apply for permits to build your home, and anything structural (gas lines, additions, water lines for sprinklers, garages, windows, doors) has to be included in the permit for your home. And, permits can take a while (ours took about 6 weeks, but I feel like that’s on the quick end), so these decisions need to be made as soon as possible.

My advice to be best prepared: ask your builder’s realtor for a list of everything you’ll need to decide when you are signing the contract. That way, you don’t have the same surprise and stress that we did.

And, make sure you’re sure on these decisions. Since permits are involved, it can be extremely costly AND may cause a huge delay if you decide to change one of these things after your contract has been signed. So, make sure you’re happy with these choices before signing your contract!

Last Tip: Make Sure You Have Your Money Ready!

Just like many resale purchases, signing a contract on a new construction home requires a non-refundable deposit at the time of signing your contract. For us, this was called a “reservation fee”. It was $5,000, due at contract signing, that was then applied to the down payment due at our design center appointment (see more on preparing for your design center appointment here).

While this makes sense logically, we didn’t come to our appointment with a checkbook. So, be smarter than us and bring that with you when you’re looking at a new construction community you’re interested in.

Any Other Tips for Preparing for Signing Your New Construction Home Contract?

If you’ve bought new construction before, what tips do you have for others about to embark on the process? Anything else your builder required you to do before signing the contract? Comment below!

Need More New Build Tips?

Check out all our new construction tips and tricks on A Girl’s Guide to Home DIY, like How to Choose Your New Construction Home Plan, Prepping for Your Design Center Appointment, and Help! My Builder Made a Mistake.