- Over 70% of new construction buyers are surprised by post-closing costs like finishing the yard and appliances.
- Builder contracts often include fine print that favors the seller, causing confusion for over 40% of buyers.
- New builds offer energy efficiency and modern design but lack the finished yards of existing homes.
- Third-party inspections on new homes routinely uncover defects city inspectors miss.
- Interest rate changes during construction can drastically raise monthly payments before closing.
Buying a new construction home is full of exciting possibilities—brand-new appliances, custom layouts, and modern finishes. But with those perks come pitfalls that can cost you time, money, and energy if you’re not careful. Whether you’re moving to Las Vegas, trading up, or buying your first home, understanding the process of buying a new build home is essential. Here’s what you need to know before you sign on the dotted line.
Understand the True Cost of a New Home Purchase
When you’re buying a new build home, the price tag listed on the builder’s website (or plastered on a sign) is typically the base price. While this can seem attractive, it doesn’t include many of the features you may have seen in the model home. Most buyers don’t realize that model homes showcase premium upgrades: custom cabinetry, premium flooring, smart home packages, double ovens, high-end countertops, and tile backsplash—all of which cost extra.
More than 70% of buyers are caught off guard by hidden post-closing expenses not factored into the base price, according to the National Association of Home Builders. These costs can include
- Window treatments (blinds, shutters, shades)
- Major appliances like refrigerators or washers and dryers
- Finishing the yard and fencing
- Ceiling fans or upgraded light fixtures
- Garage door openers and irrigation systems
When budgeting for a new home purchase, ask the builder for a full list of what’s included in the base price. Get quotes on desired upgrades and ask whether they can be rolled into your mortgage. Always get it in writing. Accurate budgeting on the front end will prevent surprises later on.
Be Strategic About Upgrades
While the idea of customizing your brand-new home can be tempting, not all upgrades give you back the most value or make the most sense. Focus your energy and dollars on the upgrades that are difficult or expensive to do after construction is complete.
Prioritize upgrades like
- Adding square footage through extended floor plans
- Structural changes like open-concept layouts or expanded kitchen islands
- Upgraded wiring for electrical systems, additional outlets, or work-from-home tech
- Plumbing changes for an extra bathroom or pre-plumbing for a water softener
- Pre-wiring for ceiling fans, security systems, or surround sound
Meanwhile, aesthetic or surface-level finishes (like paint color, cabinet knobs, or light fixtures) can often be done later—and usually at a fraction of the cost a builder would charge. For instance, upgrading cabinet hardware through the builder might cost $1,000+, while a DIY upgrade post-closing might only cost a few hundred dollars.
Discuss which upgrades are essential to lock in during the build phase and which can wait. This approach helps you focus on long-term comfort, future resale value, and your immediate budget.
Negotiate! Even with Big Builders
Many homebuyers mistakenly believe that buying a new construction home means the price is set in stone. But builders—especially in competitive markets like Las Vegas—often have room to negotiate, especially when they need to meet quarterly sales goals.
Builders may be willing to offer
- Upgraded flooring or countertop packages at no extra charge
- Closing costs covered if you use their preferred lender
- Reduced lot premiums (often ranging from $5,000–$25,000)
- Extended warranties or longer post-close customer service periods
- Flexible move-in dates or “quick move-in” pricing on inventory homes
Working with a skilled real estate agent gives you insider access to builder promotions, timing strategies, and connections that the average buyer doesn’t know about. In some cases, you may even be able to get on a VIP list for upcoming releases before the public.
Compare New vs. Existing Homes Thoughtfully
A key consideration when buying a home is deciding whether a new home or existing one fits your needs better.
Benefits of a new construction home include
- All systems (HVAC, plumbing, roofing, electrical) are brand-new and under warranty
- Modern layouts suited for today’s lifestyles (open floor plans, large closets, updated kitchens)
- Energy-efficient windows, appliances, and insulation methods that reduce utility bills
- Fewer immediate repair or renovation needs
However, existing homes often come with other advantages
- Located in older neighborhoods with finished yards, schools, and infrastructure
- Typically faster closing timelines since you’re not waiting for the build to complete
- May offer architectural charm or unique customization that new homes lack
- Lower property taxes depending on the location and age of the home
Analyze your lifestyle, urgency, financial goals, and aesthetic preferences before choosing new construction over resale properties.
Vet the Builder’s Reputation
Not all builders are created equal. Some are known for high-quality craftsmanship and exceptional communication, while others skimp on details once the contract is signed. Before buying a new build home, do your homework
- Read recent online reviews on Google, Yelp, and homebuyer forums
- Look for complaints filed with the Better Business Bureau (BBB)
- Visit other neighborhoods built by the same company and talk to current homeowners
- Ask about warranty responsiveness—will they fix drywall cracks, HVAC issues, or appliance problems without pushback?
A 2022 J.D. Power report shows that builder communication is one of the biggest factors showing the difference between high and low satisfaction scores. Don’t just ask about finishes; ask about how the builder keeps you informed, how often you’ll be updated on progress, and who your main point of contact will be during construction.
Know the Fine Print in Builder Contracts
Standard real estate contracts used for resale homes are generally balanced between buyer and seller interests. Not so with builder contracts. These documents are written entirely by the builder’s legal team—in their own favor.
Watch out for clauses about
- Required deposits (often non-refundable)
- Timelines the builder is NOT obligated to meet
- How incentives or discounts may be rescinded
- Escalation clauses tied to supply cost increases
According to Zillow, over 40% of first-time buyers say they felt overwhelmed or misled by builder contracts, especially when it came to upgrades, incentives, and financing requirements. This is where having a real estate agent is invaluable—they’ve seen these contracts before and know what red flags to look for.
Don’t Skip Third-Party Home Inspections
It’s a myth that a brand-new home doesn’t need inspection. City or county inspectors only ensure that the house meets local code requirements—but that doesn’t mean it’s well built.
Hire a licensed third-party inspector to perform a detailed analysis
- Pre-drywall inspection: ensures the home’s structural components, electrical wiring, plumbing lines, and HVAC ducts are properly installed before they’re covered up
- Final walkthrough inspection: identifies construction defects, safety hazards, or cosmetic flaws before closing
Many buyers who skip inspections later find
- Poorly installed insulation
- Misaligned framing that affects flooring or drywall
- Incomplete plumbing or electrical work
- Doors and windows that don’t seal properly
A couple hundred dollars spent on inspection could save you thousands in repairs—or give you leverage to demand repairs from the builder before you close.
Beware of Interest Rate Changes During Construction
Construction delays are not just inconvenient—they can also affect your financing. In fast-changing markets, interest rates may increase even while your home is still being built. That can lead to higher mortgage payments than originally planned.
For example, data from the Federal Reserve Bank showed that mortgage rates jumped more than 0.75% in a matter of just three months in late 2023, maybe adding hundreds of dollars to your monthly payment.
To protect yourself
- Ask your lender about long-term rate lock programs (some offer protection for 180 to 360 days)
- Inquire about float-down options that allow you to take advantage of lower rates if they drop before you close
- Monitor your debt-to-income ratio and job stability, as qualification standards can change
Check with multiple lenders before thinking your builder’s preferred lender is your best or only option.
Understand the Catch Behind Builder Incentives
Builder incentives can sound attractive: thousands off closing costs, free upgrades, or even points off your interest rate. But be cautious—these discounts often require you to use the builder’s affiliated lender or title company.
While convenient, this may saddle you with
- Less competitive mortgage interest rates
- Higher administrative or processing fees
- Reduced flexibility in choosing loan terms or down payment programs
Always compare the bottom-line cost of using the builder’s package vs. shopping around. Sometimes a smaller upfront savings means a more expensive loan over time.
Expect Delays and Build a Flexible Timeline
New build home timelines are known for changing. Weather, materials, labor shortages, and city permitting are just a few of the things that can delay your dream home. If you’re selling another property or moving across the country, this can be stressful.
Avoid locking in
- Moving services or flights too early
- Closing dates on a current home without flexibility
- Lease termination without a temporary housing backup
Builders often provide a “completion window” instead of a guaranteed deadline. Plan for extra weeks or even a couple months beyond that to be safe—especially during colder or storm-prone seasons.
Master the Final Walkthrough & Warranty Process
The final walkthrough (also called a “blue tape walkthrough”) is your last chance to identify flaws before accepting the home in its current condition. Bring your agent and consider hiring your inspector again.
What to look for
- Cosmetic issues like unpainted drywall, chipped tile, or missing caulk
- Improperly installed doors, drawers, and windows
- Problems with HVAC operation, outlets, light fixtures, smoke detectors
- Water leaks, loose fixtures, or missing items from your contract
Most builders offer multi-tiered warranties
- 1 year: cosmetic or workmanship issues
- 2 years: mechanical defects
- 10 years: structural issues
Make warranty claims in writing and follow up persistently. Keep an organized timeline and set reminders to inspect your home before each warranty phase expires.
Never Skip Working with a Real Estate Agent
Even though the builder’s sales agent may seem helpful, remember: they work for the builder. Only a buyer’s agent is legally committed to representing your interests.
Benefits of using a buyer’s agent
- Insight into competing subdivisions and how price points compare
- Access to inventory not yet listed to the public
- Support in reviewing contracts, timelines, and pricing tiers
- Assistance during walkthroughs, inspections, and negotiations
Best of all, representation typically costs you nothing. Builders pay the commission, not you, so you get expert guidance without extra fees.
Why Buying New in Las Vegas Needs Strategic Planning
The Las Vegas housing market is growing fast, particularly in areas like Summerlin, Henderson, and the Southwest Valley. New construction homes are changing rapidly to keep up with people wanting homes from Californians moving or locals looking to upsize.
But with demand comes complexity
- Builders may move quickly but limit customization windows
- Some communities have strict HOA rules or high fees
- Inventory homes may come with default packages that aren’t ideal
Steve Hawks, a seasoned Las Vegas real estate professional, helps buyers handle these challenges and get special access to incentives and properties before they hit the market.
Final Tips for a Smooth New Home Buying Experience
- Get pre-approved early to understand your true budget
- Visit model homes with your agent and ask the right questions
- Hire a home inspector during the build—not just at closing
- Walk your home during key build phases (foundation, framing, pre-drywall, etc.)
- Keep digital records of agreements, timelines, and warranties
Remember, buying a new construction home is a big investment, but with research and the right guidance, it doesn’t have to be overwhelming.
Thinking about buying a new construction home in Las Vegas? Don’t go it alone. Contact Steve Hawks today for a no-obligation consultation and let a top 1% national real estate expert help you through every step—from model tours to move-in day.
Citations
- Federal Reserve Bank. (2024). Mortgage Rate Trends Q1 2024. Retrieved from https://www.federalreserve.gov/