Builder Contracts: What Buyers Need to Know Before Signing

New construction homes can be an excellent option for buyers.

Modern floor plans, energy-efficient features, builder incentives, and warranty coverage attract many homebuyers throughout the Houston area.

However, builder contracts are very different from standard resale contracts.

Builder Contracts Favor the Builder

Unlike standard Texas resale contracts, builder contracts are written by the builder's legal team.

Their primary purpose is to protect the builder's interests.

That doesn't mean buyers shouldn't purchase new construction. It simply means buyers should understand what they're signing.

Important Items to Review

Construction Timelines

Completion dates are often estimates and can change due to:

• Weather

• Labor shortages

• Material delays

• Permitting issues

Change Orders

Upgrades and modifications may affect pricing and timelines.

Make sure you understand how changes are handled.

Warranty Coverage

Builders typically provide warranty coverage, but coverage varies.

Review:

• What is covered

• Coverage periods

• Claim procedures

Financing Incentives

Builders frequently offer:

• Closing cost assistance

• Interest rate incentives

• Upgrade packages

Always compare these incentives with outside financing options.

Why Representation Matters

The builder's sales representative works for the builder.

Having your own real estate professional helps ensure someone is looking out for your interests throughout the process.

The Bottom Line

New construction can be a great investment, but understanding the contract before signing can help prevent surprises later.

Considering a new construction home in Katy, Cypress, Hockley, or the Houston area? Contact Marysol Calvillo before visiting a builder so you can make informed decisions from day one.