{"id":99760,"date":"2026-04-16T09:18:29","date_gmt":"2026-04-16T16:18:29","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=99760"},"modified":"2026-04-16T09:16:46","modified_gmt":"2026-04-16T16:16:46","slug":"buying-a-new-construction-home","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/buying-a-new-construction-home\/","title":{"rendered":"How to Buy a New Construction Home in 9 Steps"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Buying a new construction home can sound like a dream for many homebuyers, but it can look different from purchasing an existing property. Whether you\u2019re <\/span><a href=\"https:\/\/www.redfin.com\/blog\/building-a-house-guide\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">building from the ground up<\/span><\/a><span style=\"font-weight: 400;\"> or buying a move-in-ready new build, there are additional steps, timelines, and decisions to consider.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this Redfin article, we\u2019ll cover everything you need to know about buying a new construction home. Whether you\u2019re looking at an upcoming development in <\/span><a href=\"https:\/\/www.redfin.com\/city\/16409\/CA\/Sacramento\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">Sacramento, CA<\/span><\/a><span style=\"font-weight: 400;\">, or looking at land outside of<\/span> <a href=\"https:\/\/www.redfin.com\/city\/35759\/WI\/Milwaukee\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">Milwaukee, WI<\/span><\/a><span style=\"font-weight: 400;\">, here\u2019s what to consider before getting started.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Key takeaways\u00a0<\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">New construction homes are built from scratch as part of a planned community or on land you purchase.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They\u2019re typically more expensive than existing homes due to higher construction and development costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">New-builds can take a few months to a year to build, depending on the size, layout, and location.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">1. Determine a budget<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The first step of buying a new construction home is to determine a budget. While you\u2019ll need to decide between building a home from the ground up or purchasing a newly built home, knowing <\/span><a href=\"https:\/\/www.redfin.com\/how-much-house-can-i-afford\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">how much house you can afford<\/span><\/a><span style=\"font-weight: 400;\"> can help guide your decision.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Building a home is often more expensive due to the price of materials and labor. For example, a <\/span><a href=\"https:\/\/www.nahb.org\/-\/media\/NAHB\/news-and-economics\/docs\/housing-economics-plus\/special-studies\/2025\/special-study-cost-of-constructing-a-home-2024-january-2025.pdf?rev=00a42a1ce63b4a22a4dba9bda8af954b\" data-wpel-link=\"external\" target=\"_blank\" rel=\"external noopener noreferrer\"><span style=\"font-weight: 400;\">2025 NAHB study<\/span><\/a><span style=\"font-weight: 400;\">, the average sales price for a new single-family home in 2024 was $665,298. In comparison, the <\/span><a href=\"https:\/\/www.redfin.com\/us-housing-market\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">US median sale price<\/span><\/a><span style=\"font-weight: 400;\"> is $429,129, according to February 2026 Redfin data. It\u2019s a good idea to set a budget early, so you know what&#8217;s truly affordable.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">2. <\/span><span style=\"font-weight: 400;\">Decide between building a home or a move-in-ready home<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Knowing your budget can help you decide whether to build a home or buy a <\/span><a href=\"https:\/\/www.redfin.com\/blog\/what-does-move-in-ready-mean\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">move-in-ready<\/span><\/a><span style=\"font-weight: 400;\"> property. Here\u2019s what you need to know about each option:<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Option 1: Build a home from the ground up<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Your first option is to build a home from scratch. There are two ways you can do this \u2013 buy land and build a home, or buy a lot in a planned community. <\/span><a href=\"https:\/\/www.redfin.com\/blog\/how-to-buy-land\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">Buying land<\/span><\/a><span style=\"font-weight: 400;\"> and building a home is typically more complicated. You\u2019ll need to find land that\u2019s suitable to build on, commit to a builder, file permits, establish sewer, water, and electricity lines, and much more. This whole process could take 1 to 2 years.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For many buyers, the easier option is to buy a lot in a <\/span><a href=\"https:\/\/www.redfin.com\/blog\/master-planned-community\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">planned community<\/span><\/a><span style=\"font-weight: 400;\"> that hasn\u2019t started construction yet. In this case, there will already be a builder, permits filed, and utility lines set up, while still giving you the option to choose a layout and finishes. Homes in planned communities typically take several months to complete, but be sure to ask the builder for their projected timeline.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Option 2: Buy a move-in-ready home<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Your second option is to buy a move-in-ready or spec home. These homes are typically in the process of being built or were recently finished. If the home is currently being built, you can likely negotiate finishes like paint color, flooring, and appliance packages.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You\u2019ll still have some freedom to customize your home, but usually, major structural changes are off the table. Your agent will have a good idea of what to <\/span><a href=\"https:\/\/www.redfin.com\/blog\/how-to-negotiate-new-home-price-with-builder\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">negotiate in a move-in-ready home.<\/span><\/a><\/p>\n<h2><span style=\"font-weight: 400;\">3. Consider what loan is right for you<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Once you\u2019ve decided between buying a move-in-ready home or building a home, you\u2019ll need to evaluate the available loan options.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are the most <\/span><a href=\"https:\/\/www.redfin.com\/blog\/types-of-mortgage-loans\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">common loan types<\/span><\/a><span style=\"font-weight: 400;\"> to consider when buying a new home:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Construction-only loan:<\/b><span style=\"font-weight: 400;\"> If you decide to buy land to build a home on, a construction loan is an option. These are short-term, high-interest loans that are used to finance the construction process. Typically, these loans only last for a year and cover the cost of land, building materials, permits, and labor. After this ends, you\u2019ll likely need to get a traditional mortgage.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Construction-to-permanent loan: <\/b><span style=\"font-weight: 400;\">These loans cover the construction process, but convert to a traditional mortgage once the home is completed. You\u2019ll need a down payment, but you\u2019ll only pay closing costs once, which can be beneficial.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Conventional mortgage:<\/b><span style=\"font-weight: 400;\"> A conventional mortgage is one of the most common mortgages. If you&#8217;re buying a new home or one that\u2019s located in a planned community, this can be a good option.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Keep in mind that there are plenty of loan options available, including FHA, VA, and USDA loans. Speaking with a lender can help you decide which loan type fits your goals.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">4. Find a real estate agent<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Working with a <\/span><a href=\"https:\/\/www.redfin.com\/real-estate-agents\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">real estate agent<\/span><\/a><span style=\"font-weight: 400;\"> is a good plan regardless of the type of home you\u2019re buying. If you\u2019re looking to buy land, finding an agent with experience in land, such as rural, off-grid, or recreational, is key, as they can identify opportunities and potential risks. A real estate agent can also help you buy a home in a planned community, such as making an offer, negotiating on upgrades, and ensuring the closing process goes smoothly.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">5. Choose an area you want to live in<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Determining where to build or buy a home affects everything from your daily commute and property taxes to access to amenities and utilities. Typically new construction homes are built farther away from the city center or in suburban areas. If you\u2019re planning to buy land, it\u2019s likely to be in a more remote location.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many new construction homes are sold as part of a subdivision development, with parcels of land for sale. Depending on the area, you may find these lots are smaller than you expect, with close boundaries to your neighbors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Buying land requires you to think about everything from electricity, internet reliability, utilities, and access to amenities. Factor in how long it will take you to complete daily errands, commute time, access to major highways and roads, proximity to friends and family, and more. Depending on your goals, the trade-off may be worth it.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">6. Compare home builders<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Choosing the right home builder is equally important as finding the right real estate agent. The <\/span><a href=\"https:\/\/www.nahb.org\/nahb-community\/nahb-directories\" data-wpel-link=\"external\" target=\"_blank\" rel=\"external noopener noreferrer\"><span style=\"font-weight: 400;\">National Association of Home Builders\u2019 (NAHB)<\/span><\/a><span style=\"font-weight: 400;\"> directory is a good place to begin your search. Start by reading online reviews, confirming the builder is licensed, and reviewing their floor plans.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With homes in a planned community, there are usually a few floor plans or models to choose from. You\u2019ll want to look at these to see if they align with your needs and wants in a new home. Depending on the builder, they may be open to changing the layout to accommodate your wishes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are plenty of important questions to ask potential builders, but some include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What are the standard finishes versus the upgraded features?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What warranty policies do you provide?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What is the projected timeline for the home to be built?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How long have you been in business, and are you licensed and insured?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do you have any <\/span><a href=\"https:\/\/www.redfin.com\/blog\/spec-house\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">spec homes<\/span><\/a><span style=\"font-weight: 400;\"> I can tour?<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">7. Negotiate changes and sign a contract with a builder<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Once you\u2019ve decided on a builder, you\u2019ll get a contract to review outlining the projected completion date, your deposit, building materials, finishes, and more. If your home is part of a <\/span><a href=\"https:\/\/www.redfin.com\/blog\/what-is-a-planned-unit-development\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">planned community<\/span><\/a><span style=\"font-weight: 400;\">, certain interior features such as standard appliances, carpet, base paint colors, and trim may already be included in the price.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Typically, you\u2019ll have the option to select add-ons such as hardwood floors, upgraded appliances, or crown molding for a higher price. Keep in mind, you can try to negotiate these higher-end features into the existing purchase price.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your real estate agent can help you read through the contract, negotiate, and make sure everything you\u2019ve agreed upon is included. They\u2019ll also help you evaluate the builder\u2019s warranties, what occurs if building material prices increase, or how to negotiate changes during the building process.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">8. Have a home inspection and final walkthrough<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">After the home is built, you\u2019ll still want a professional <\/span><a href=\"https:\/\/www.redfin.com\/blog\/home-inspection\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">home inspection<\/span><\/a><span style=\"font-weight: 400;\">. Most new-builds include <\/span><a href=\"https:\/\/www.redfin.com\/blog\/what-are-phase-inspections\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">phase inspections<\/span><\/a><span style=\"font-weight: 400;\">, where a home inspector checks the home at certain stages of the building process. Even if a home has undergone phase inspections, a final inspection can help identify any issues that were missed or developed later.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If there are issues with wiring, plumbing, or cosmetic mistakes, you can negotiate those repairs with your contractor before officially closing on the home. Home inspections typically cost a few hundred dollars, but this could save you from paying for a major repair in the future.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You\u2019ll also want to have a final walkthrough to make sure everything you agreed upon is finished and cleaned up in the home. Most of the time, you and the builder will create a \u201cpunch list,\u201d which is a list of all final repairs that need to be completed before closing day. This includes repairs after the home inspection and minor issues such as floor scratches or paint drips.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">9. Close on the house<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When you\u2019ve cleared the home inspection and applied for your mortgage, you&#8217;ll be in the <\/span><a href=\"https:\/\/www.redfin.com\/blog\/steps-to-closing-on-a-house\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">closing process<\/span><\/a><span style=\"font-weight: 400;\">. Your agent and lender will guide you through the process, such as reviewing the closing disclosure, bringing the right paperwork, and more. On closing day, you\u2019ll receive the keys and be able to move in.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">FAQs about buying a new construction home<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">How long does it take to build a new construction home?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">On average, it takes about 4 to 8 months to build a home in a subdivision. To build a home on land, it can take anywhere from 1 to 2 years. Keep in mind, this varies depending on your location, access to building materials, and the complexity of the project.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Can I negotiate on a new build?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, but not in the way you may expect. Most builders won\u2019t negotiate on a home\u2019s base price, but you may be able to negotiate on upgrades, a longer warranty, or other concessions.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What is a new build versus a spec home?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A new-build is a home that you purchased before it was built, giving you the option to pick a layout, paint colors, finishes, and landscaping. A spec home is a new home that was not built for a specific buyer, so it typically just has the baseline features.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Do I still need a down payment for a new build?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, unless you have a <\/span><a href=\"https:\/\/www.redfin.com\/blog\/how-to-buy-a-house-with-no-money-down\/\" data-wpel-link=\"exclude\"><span style=\"font-weight: 400;\">zero-down payment loan<\/span><\/a><span style=\"font-weight: 400;\"> like a VA or USDA loan. You\u2019ll also likely need a builder\u2019s deposit, which is a nonrefundable payment of around 10% of the home\u2019s cost. It acts as an earnest money deposit and covers initial building costs.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Buying a new construction home? Learn the steps to buy a new construction home and what to expect from the building process to moving in.<\/p>\n","protected":false},"author":537,"featured_media":99136,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[34276],"tags":[34529,34629,34617],"coauthors":[33440],"class_list":["post-99760","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-home","tag-buying-faq","tag-first-time-homebuyer","tag-home-buying-process"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How to Buy a New Construction Home in 9 Steps | Redfin<\/title>\n<meta name=\"description\" content=\"Buying a new construction home? 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