New Construction Buyers: What to Know Before Buying a Brand-New Home

Buying a new construction home is exciting. You get a fresh, modern space with the latest designs, energy efficiencies, and zero previous owners. But the process is different from buying a resale home, and knowing what to expect helps you avoid costly surprises.

This complete guide walks you through the steps, hidden costs, and key tips every new construction buyer should know before purchasing.

1. Understand the Types of New Construction Homes

Before you begin, know which category fits your needs and budget.

Pre-Construction / Pre-Sale Homes

Purchased before the home is built, common for condos and townhomes.

• Lower entry price

• More time to save before completion

• Ability to choose finishes

Spec Homes

Move-in-ready or almost complete homes built by a developer.

• Faster possession

• Fewer customization options

Custom-Built Homes

You design the home with a builder from scratch.

• Highest level of personalization

• Requires time, planning, and larger budgets

2. Research the Builder’s Reputation

Not all builders are equal. A reputable builder means better quality and fewer future problems.

Check for:

• Online reviews

• Past projects

• Homeowner feedback

• Warranty coverage

• Completion track record

• Financial stability

Ask your agent for insight, they often know which builders deliver on promises and which to avoid.

3. Get Pre-Approved Before You Visit a Show Home

Builders often have sales teams on-site, but you should know your budget before walking in.

Why pre-approval matters:

• Sets realistic expectations

• Strengthens your negotiating power

• Helps you secure construction-friendly financing

• Protects you against rate increases during long build times

4. Know What’s Included vs. What’s an Upgrade

New construction homes come with a base price, but upgrades can add thousands.

Typical upgrades:

• Countertops and flooring

• Appliances

• Lighting packages

• Extra windows

• Landscaping

• Air conditioning

• Smart home features

Ask the builder for an Inclusions List to avoid surprise costs later.

5. Understand the Timeline and Delays

New construction timelines are estimates, not guarantees.

Expect:

• Weather delays

• Material shortages

• Labour delays

• Permit processing times

Ask for a realistic timeline and understand their policy if completion is delayed.

6. Review the New Home Warranty

Most new construction homes include a warranty. In Canada, coverage varies by province.

Typical warranty coverage includes:

• Structural defects

• Electrical, plumbing, and HVAC systems

• Building envelope

• Major structural components

• Workmanship and materials

Make sure you know what is covered, for how long, and how to make claims.

7. Hire Your Own Real Estate Agent

The builder’s sales representative works for the builder, not you.

Your own agent helps with:

• Price negotiations

• Reviewing contracts

• Understanding upgrade pricing

• Navigating timelines

• Protecting your interests

This service is usually at no cost to the buyer, as builders typically pay agent commissions.

8. Conduct Independent Inspections

Even brand-new homes can have issues. Always schedule:

• Pre-drywall inspection

• Final home inspection

• Post-possession walkthrough

Professional inspections help you catch problems before move-in, and before your warranty begins.

9. Understand Closing Costs and Additional Fees

New construction often has higher or different fees than resale homes.

Potential extra costs:

• GST / HST (Canada)

• Landscaping or fencing fees

• Strata/HOA setup fees

• Utility connection fees

• Upgrades and custom changes

• Legal fees

Ask your agent for a full breakdown of expected costs.

10. Plan for the Final Walkthrough

Before moving in, you’ll meet with the builder to inspect the finished home.

During the walkthrough:

• Test appliances

• Check doors, windows, and locks

• Inspect flooring and paint

• Review heating and electrical systems

• Confirm completion of upgrades

Document any deficiencies so the builder can fix them promptly.

Is New Construction Right for You?

Buying new gives you a modern, energy-efficient home built to your taste. But understanding the process, from upgrades to warranties—helps ensure a smoother experience and a better investment.

Whether you’re buying pre-construction, a spec home, or designing custom, the right guidance makes all the difference.