What to Know Before Visiting a New Construction Model Home in Houston

Touring new construction is fun.

You walk into a beautifully decorated model home, everything smells new, the kitchen is spotless, and suddenly you're picturing yourself living there.

Before you fall in love with the model, though, there are a few things I want you to know.

Buying new construction is different from purchasing a resale home, and some of the most important decisions happen before you ever sign a contract.

1. Talk to Your Real Estate Agent Before You Visit

This is one of the biggest things buyers overlook.

The friendly salesperson who greets you at the model home works for the builder.

Their job is to sell the builder's homes.

If you want your own real estate agent involved, contact your agent before visiting the builder.

Builder policies regarding agent registration and representation can vary. Some builders may require your agent to accompany you or be identified when you first register.

Don't wait until you've already selected the house and negotiated terms to call your agent.

2. Don't Assume Everything in the Model Is Included

Model homes are designed to show what is possible, not necessarily what comes standard.

That gorgeous kitchen may include upgraded:

• Cabinets

• Countertops

• Appliances

• Flooring

• Lighting

• Backsplash

• Hardware

The model may also include structural upgrades such as extended patios, additional bedrooms, larger showers, fireplaces, or expanded living areas.

Ask what is standard and what is an upgrade.

3. Ask for the Actual Price of the Home You Want

A sign advertising homes "from the $300s" doesn't mean the model you're touring costs anywhere near that amount.

The advertised starting price may apply to a smaller floor plan with standard features.

Ask for pricing on the actual floor plan, lot and options you're considering.

4. Inventory Home or Build From the Ground Up?

There are generally different ways to purchase new construction.

Inventory or Quick Move-In Homes

These homes are already under construction or completed.

The builder has usually selected most or all of the finishes.

The advantage is that you may be able to move sooner, and builders sometimes offer attractive incentives on homes they want to sell quickly.

Building From the Ground Up

This may give you more opportunities to select finishes and certain structural options.

However, construction takes time, and upgrades can quickly increase the final price.

Neither option is automatically better. It depends on your budget, timeline and priorities.

5. Understand the Lot Premium

Not every lot costs the same.

Builders may charge premiums for properties located on:

• Cul-de-sacs

• Larger lots

• Corner lots

• Waterfront lots

• Greenbelts

• Lots without rear neighbors

A lot premium can add thousands of dollars to the purchase price.

Ask about it before assuming the advertised base price applies to the lot you want.

6. Ask About the Property Tax Rate

This is particularly important in Houston-area new construction.

Many newer communities may have MUD taxes or other assessments that contribute to the overall property tax rate.

Don't compare homes using purchase price alone.

A $350,000 home with one tax rate can have a noticeably different monthly payment from a $350,000 home in another community.

Ask your lender to estimate the payment using the property's expected tax rate.

7. Understand the HOA

Ask about:

• Annual HOA dues

• Transfer or administrative fees

• Community rules

• Amenities

• Planned future amenities

If the community is still being developed, understand that amenities shown in marketing materials may not all be completed yet.

Ask what exists today and what is planned for the future.

8. Builder Incentives Can Be Valuable

Builders frequently offer incentives such as:

• Closing-cost assistance

• Interest-rate incentives

• Rate buydowns

• Design-center credits

• Appliance packages

• Price reductions

These incentives can be excellent opportunities.

But read the details.

Some incentives may require using the builder's preferred lender or title company.

Compare the complete loan terms rather than looking only at the incentive amount.

9. The Builder's Lender Isn't Your Only Option

You can ask the builder's preferred lender for a loan estimate and compare it with other lenders.

Look at:

• Interest rate

• APR

• Lender fees

• Closing costs

• Mortgage insurance

• Incentives

• Cash needed to close

The biggest advertised incentive doesn't always produce the lowest overall cost.

10. Builder Contracts Are Different

Many builders use their own contracts rather than the standard forms commonly used for resale transactions.

Builder contracts can contain provisions involving:

• Construction delays

• Financing

• Deposits

• Change orders

• Completion dates

• Inspections

• Default

• Warranties

Read the contract carefully before signing and seek appropriate legal advice when needed.

11. Get an Independent Inspection

Brand new does not mean flawless.

Homes are built by people, and mistakes happen.

Depending on the stage of construction, buyers may consider inspections such as:

• Pre-drywall inspection

• Final inspection

• Warranty inspection

An independent inspector works for you, not the builder.

12. Compare New Construction With Resale Homes

Don't assume new construction is automatically the best deal.

A resale home may offer:

• Lower property taxes

• Mature landscaping

• Established neighborhoods

• Existing window coverings

• Appliances

• Completed improvements

New construction may offer:

• Builder warranties

• Newer systems

• Modern floor plans

• Energy-efficient features

• Builder incentives

We should compare the total package.

Final Thoughts

Go enjoy the model homes. That's part of the fun of buying new construction.

Just remember that the model is designed to sell you a vision.

Before making a decision, look beyond the furniture and beautiful finishes. Understand the price, taxes, HOA, incentives, financing, contract, inspections and builder's track record.

Those details tell you much more about the purchase than the model home does.

About Marysol Calvillo

I'm a real estate broker helping buyers throughout Katy, Cypress, Hockley and the greater Houston area compare new construction and resale opportunities.

I help my clients evaluate builders, communities, incentives, taxes and contracts so they can make informed decisions before purchasing.

Planning to tour new construction? Contact me before your first model-home visit. We'll create a list of communities and builders that fit your budget, location and lifestyle so you can walk in knowing exactly what questions to ask.