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LPT RealtyA Buyer's Field Guide · Central Texas
The New
Construction Guide
The honest pros and cons of buying new, what the features really do for you, and why your own advisor, independent inspections and smart negotiation matter more with a builder.
Ascend Group | LPT Realty
Inside This Guide
Contents
A Note Before You Tour03New vs Resale at a Glance04Pros and Cons, Honestly05Features, Advantages, Benefits07The Builder's Agent Works for the Builder09Why You Need Your Own Advisor10Negotiation11New Construction Inspections13From Contract to Closing15Building New in Central Texas16Questions to Ask a Builder17Costly Mistakes to Avoid18Your Checklist19Talk to an Advisor20
Plate IThe plan comes first.
This guide is general information to help you prepare. It is not legal, tax, lending or engineering advice. Builder contracts, warranties and incentives vary, so always read your own documents and ask a qualified professional when you need one.
Ascend Group | LPT Realty2
A Note Before You Tour
Brand new is wonderful. Built right is better.
Few things feel as good as walking into a home no one has ever lived in.
The paint is fresh, the systems are under warranty, and the floor plan was drawn for the way people live today. Across Central Texas, from the growing suburbs around Austin to the communities around San Antonio and the Hill Country towns in between, new neighborhoods take shape every year.
New construction is also its own kind of transaction. The contract is usually the builder's own. The friendly person in the model home represents the builder. The house you are buying may still be a slab, or a drawing. And brand new is not the same as built right.
This guide is the conversation we have with every buyer considering a new home: the honest pros and cons, what each feature actually does for you, how negotiation really works with a builder, and the independent inspections we recommend at every stage.
Read it, mark it up, and bring your questions. There is a checklist at the back and space for your notes.
Ascend Group has guided Central Texas buyers and sellers since 2013, with more than 10,000 homes sold. When you are ready to tour, we would love to walk in with you.
The Advisors of Ascend Group
Serving all of Central Texas
2013
Guiding Texas buyers since
10,000+
Homes sold
Your side
Of the table, every step
Ascend Group | LPT Realty3
New vs Resale at a Glance
Two good paths. Different trade-offs.
Neither is better in every case. Here is how they usually compare, so you can decide which trade-offs fit your life.
| New construction | Resale | |
|---|---|---|
| Condition | Never lived in; every system starts at day one. | Lived in; age and upkeep vary from home to home. |
| Warranty | Builder's limited warranty is standard; terms vary by builder. | Usually none, unless a home warranty is bought or negotiated. |
| Personalization | Choose plan, lot and finishes, within the builder's options. | What you see is what you get; changes mean renovation. |
| Negotiation | Builders often protect base price and offer incentives instead. | Price, repairs and terms are negotiated with an individual seller. |
| Timing | Move-in ready inventory homes, or a wait while yours is built. | Closing timeline set by the contract, often more predictable. |
| Efficiency | Built to current energy codes and building practices. | Depends on age and upgrades. |
| Setting | Young trees, fresh sod, a neighborhood still filling in. | Mature landscaping and an established neighborhood. |
| Fees and taxes | HOAs are common; some communities sit in a MUD or PID. | Varies; older areas may have fewer special districts. |
| Inspections | Best done in phases while the home is built. | One inspection during the option period. |
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Pros and Cons, Honestly
What you gain
- Nothing is worn outRoof, HVAC, water heater and appliances all start new, so early repairs are rare.
- A builder warrantyCoverage for workmanship, systems and structure for set periods, per the builder's terms.
- Current codes and efficiencyModern insulation, windows and equipment built to today's energy codes.
- Your choicesPick the plan, the lot and finishes instead of living with someone else's.
- Builder incentivesClosing-cost help, rate buydowns or upgrade credits are common.
- Planned amenitiesMany communities include pools, trails, parks and open space.
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Pros and Cons, Honestly
What to watch
None of these is a deal-breaker. Each one is easier to manage when you see it coming.
- The base price is not the final priceUpgrades, lot premiums and options can add up quickly. Price the home the way you would actually build it.
- Timelines can slipWeather, permits, inspections and supply delays can move a completion date. Plan housing and rate-lock timing with some cushion.
- The contract is written for the builderBuilder contracts often limit the builder's liability for delays and restrict how and when deposits are refunded.
- A neighborhood still formingExpect construction traffic and noise for a while, young trees, and the builder selling new homes beside you if you resell early.
- Special districts and duesMUD or PID assessments and HOA dues can raise your monthly cost. Know them before you choose a community.
- New is not the same as flawlessMany trades work fast on a tight schedule. Independent inspections catch what busy crews miss.
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Features · Advantages · Benefits
What the brochure says, and what it means for you
Sales materials list features. What matters is the advantage each one creates, and the benefit you feel living there. Here is how to read them.
Feature → Advantage → Benefit
Builder Warranty
Feature
A written limited warranty, often covering workmanship, major systems and structure for different periods.
Advantage
Defects found in the covered period are the builder's to fix, per the warranty's terms.
Benefit
Fewer surprise repair bills in your first years, and a clear path when something fails.
Energy-Efficient Construction
Feature
Built to current energy codes: insulation, sealed ducts, efficient windows and HVAC; some builders add third-party efficiency ratings.
Advantage
The home needs less energy to heat and cool.
Benefit
Steadier comfort through a Texas summer and potentially lower utility bills.
Customization
Feature
Design-center selections and structural options, such as an added room, a bigger garage or extra windows.
Advantage
The home fits your household on day one.
Benefit
No renovation dust, contractors or second loan after you move in.
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Builder Incentives
Feature
Closing-cost contributions, rate buydowns through a preferred lender, or design-center credits.
Advantage
Lower cash to close or a lower monthly payment.
Benefit
More home for your budget, when you compare offers on the full cost.
Lower Maintenance
Feature
A new roof, HVAC, water heater, plumbing, appliances and finishes.
Advantage
Major components are at the very start of their service lives.
Benefit
Weekends spent living in the home, not repairing it.
Modern Floor Plans
Feature
Open living areas, flex rooms and home offices, with tech wiring where offered.
Advantage
Space laid out for how households work and gather now.
Benefit
Room to work from home, host and grow without walls in the way.
Planned Communities
Feature
Amenity centers, pools, trails, parks and HOA-maintained common areas.
Advantage
Recreation and green space are built into the neighborhood.
Benefit
A lifestyle close to home. Weigh it against the HOA dues.
A feature is only worth what it does for you, at the price you actually pay.
Your advisor's job is to translate the brochure: which options add real value and resale appeal, which are easy to add later for less, and which incentives are truly worth the most to you.
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Know Who Sits Where
The builder's agent works for the builder.
The on-site sales consultant is often friendly, knowledgeable and genuinely helpful. They are also employed or contracted by the builder, and their job is to sell homes on terms that are good for the builder.
That is not a criticism. It is simply the role. They cannot advise you on whether the price is right, whether that lot will resell well, or whether the preferred lender's offer is your best deal.
The model home is a stage. Every finish in it was chosen to sell.
The sales consultant may or may not hold a real estate license. Either way, they represent the builder. The builder's contract is drafted by the builder's attorneys, for the builder.
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Why You Need Your Own Advisor
Someone at the table who works for you
Your own buyer's agent, who at Ascend we call your advisor, represents your interests from the first tour to the 11-month warranty inspection.
Typically at no cost to you
In most new-construction sales, the builder typically pays the compensation of the buyer's advisor, so having your own representation usually does not add to your cost. Every sale is different. Before we work together you sign a written buyer representation agreement that spells out exactly how your advisor is paid.
Bring us on the first visit
Many builders require your advisor to be with you, or registered, on your very first visit to the community or sales office. Walk in alone and you may lose the right to representation for that builder. Call us before you tour, even a model home "just to look."
What your advisor does
- Compares builders and communities on price per foot, lot, quality, fees and resale potential.
- Reads the builder's contract and addenda with you: deposits, delays, changes and warranty terms. We recommend a real estate attorney whenever legal advice is needed.
- Negotiates incentives, upgrades, closing costs and lot premiums.
- Coordinates independent inspections at each phase of the build.
- Tracks the build and keeps deadlines for selections, financing and rate locks on schedule.
- Compares the preferred lender with outside Loan Estimates.
- Pushes the punch list before closing and the warranty list after.
- Brings the resale view: how the plan, lot and upgrades will look to the next buyer.
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Negotiation
Yes, you can negotiate with a builder.
Builders tend to protect their base prices, because every sale sets a comparable for the rest of the community. So the value often shows up somewhere other than the sticker. Know the levers.
Lever 01
Closing Costs
A builder contribution toward closing costs lowers the cash you need at the table.
Lever 02
Rate Buydowns
Incentives that buy down your interest rate, usually through the builder's preferred lender. Compare by APR and total cost, not just the headline rate.
Lever 03
Upgrades and Options
Design-center credits or included options, especially useful for structural items that are costly to add later.
Lever 04
Lot Premiums
Greenbelt, corner, cul-de-sac and view lots often carry a premium. Ask whether it is firm.
Lever 05
Price
Most realistic on finished inventory homes, homes near completion, or at the end of a phase.
Lever 06
The Extras
Window coverings, fencing, gutters, landscaping, refrigerator or washer and dryer.
Lever 07
Timing and Terms
Closing date, deposit amounts and how deposits are handled if financing falls through.
Incentives change
Builder incentives are often tied to a specific home, a deadline or a lender. Get every promise in writing, in the contract or an addendum.
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Negotiation, Continued
The trade-offs that matter most
Upgrades vs Price
A price reduction lowers your loan amount and your payment for the life of the loan. An upgrade credit improves the home but leaves the price, and the loan, where they are. Neither is always better; run both.
When you choose upgrades, put the budget into things that are hard to change later: structural options, extra windows, electrical and plumbing rough-ins, insulation. Paint, light fixtures and hardware are easy to change after closing, often for less.
Preferred-Lender Incentives
Many of the best incentives require the builder's preferred or affiliated lender. They can be a great deal. Get a competing Loan Estimate anyway and compare rate, APR, points, fees and cash to close side by side.
Federal law (RESPA, Section 9) generally prohibits a seller from requiring you to buy title insurance from a particular title company as a condition of the sale.
Lot Premiums
Before paying extra for a lot, look past the view: which way the home faces in the Texas sun, drainage and grading, easements, what will be built behind you, and whether any part of the lot sits in a mapped flood zone.
Spec vs To-Be-Built
| Spec / inventory | To-be-built | |
|---|---|---|
| Timing | Sooner; may be finished | Longer; you wait for the build |
| Choices | Already selected | Your plan, lot, finishes |
| Leverage | Often more; carrying costs | Usually less on price |
| Inspections | Some phases may be past | Every phase is possible |
Ascend Group | LPT Realty12
Plate IIThe last look inside the walls.
New Construction Inspections
Why “it’s new” isn’t enough
Dozens of trades and subcontractors touch a new home on a tight schedule. Most do good work. Some mistakes are simply covered up by the next trade, and once drywall goes up, they are hidden.
Municipal inspections check for minimum code compliance at certain stages. They are not a review of quality or workmanship on your behalf, and how much is inspected depends on where the home is built.
An independent inspector licensed by the Texas Real Estate Commission (TREC) works for you, not for the builder. A phased inspection plan lets problems be fixed when it is still easy and inexpensive to fix them.
Put access in writing
Some builders limit when outside inspectors can visit or require them to carry insurance. Your advisor asks for inspection access in the contract and coordinates every visit.
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The Four Inspections We Recommend
Inspect in phases, not just at the end
i
Pre-Pour (Foundation)
Before the concrete is poured
Checks the forms, steel reinforcement or post-tension cables, vapor barrier, plumbing penetrations and beam dimensions against the plans. Parts of Central Texas sit on clay soils that shrink and swell, so the foundation deserves a careful look.
ii
Pre-Drywall (Framing)
After rough-ins, before insulation and drywall
Your last chance to see inside the walls: framing, sheathing, window flashing, roof structure, fire blocking, and rough plumbing, electrical and HVAC.
iii
Final
Before your walk-through and closing
A full inspection of the finished home: roof, attic, HVAC operation, plumbing, electrical, appliances, grading and drainage, and finishes. The findings become your written punch list before you close.
iv
11-Month Warranty
Shortly before the first year ends
Many builder warranties cover workmanship for the first year. An inspection near month eleven catches settling cracks, sticking doors, roof, drainage and HVAC issues while they are still covered. Check your own warranty's dates and submit claims in writing.
Choosing an inspector
Look for a TREC-licensed inspector who regularly performs new-construction phase inspections. Ask for a sample report, and make sure each visit is scheduled before the next stage covers the work.
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From Contract to Closing
The road to your keys
Get pre-approved, call your advisor
Know your budget and register your advisor before your first visit.
Choose the community, plan and lot
Compare fees, taxes, lot orientation and resale potential.
Sign the builder's contract Negotiate
Review deposits, delay terms, incentives and inspection access.
Design-center selections
Meet the selection deadlines; changes later often cost more.
Permits and site work
The lot is prepared and utilities are brought in.
Foundation Pre-pour
Inspect before the concrete is poured.
Framing and rough-ins Pre-drywall
Inspect before insulation and drywall.
Drywall, finishes, landscaping
Watch your rate lock and loan timing as completion nears.
Final inspection and walk-through Final
Punch list in writing, before closing.
Closing and move-in
Keys in hand. Save your warranty documents.
Month eleven Warranty
Inspect again and submit warranty requests.
Timing varies by builder, plan and season. Inventory homes may already be past some steps.
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Building New in Central Texas
Local ground, local rules
Where New Homes Are Rising
New communities ring Austin and San Antonio and line the I-35 corridor between them, out into the Hill Country. Each area has its own commute, schools, tax rates and price points.
The Ground Matters
Parts of the region sit on expansive clay soils that move with moisture. Foundation design, drainage and the pre-pour inspection matter here.
MUDs and PIDs
Many new communities are in a municipal utility district (MUD) or public improvement district (PID) that adds a tax or assessment. Texas requires sellers to disclose them. Read the notices and add the cost to your budget.
Your First Tax Bill
Texas appraises property as of January 1. A home finished during the year may be taxed on the lot alone at first, then on the full home the next year. Budget for the full amount from the start.
Sun and Heat
Orientation, shade, window placement and attic insulation shape summer comfort and cooling costs.
Water and Drainage
Check FEMA flood maps, lot grading and the community's drainage plan before you choose a lot.
Ascend Group | LPT Realty16
Questions to Ask a Builder
Bring these to the sales office
Price and Contract
- What is included in the base price, exactly?
- What incentives are available, and what are their conditions?
- Are lot premiums and option prices negotiable?
- How much is the deposit, and when is it refundable?
- What happens if completion is delayed?
Build and Quality
- May I hire independent inspectors at each phase?
- Who is my construction contact, and how often will I get updates?
- Does an engineer review the foundation design and the steel before the pour?
- Can I see homes you built a few years ago?
- Are spec features in the model included in my home?
Warranty and Service
- Who backs the warranty, and what does each part cover, for how long?
- How do I submit a warranty request, and how fast is the response?
- Is there a scheduled 11-month or one-year visit?
Community and Costs
- Is the community in a MUD or PID? What is the current rate?
- What are the HOA dues, and what do they cover?
- What is planned for the land around this lot?
- How many homes and phases remain to be built?
If it matters to you, get the answer in writing.
Verbal promises in a sales office are hard to enforce. Your advisor helps you ask the right questions and makes sure the answers end up in the contract or an addendum.
Ascend Group | LPT Realty17
Costly Mistakes to Avoid
Eight ways buyers pay more than they need to
01
Touring alone first
Many builders require your advisor at the first visit. Skip it and you may lose representation.
02
Shopping the base price
Compare homes as you would actually build them, with lot, options and fees included.
03
Taking the incentive without comparing
Get an outside Loan Estimate and compare the total cost, by APR.
04
Skipping independent inspections
Code inspections are a minimum. Your inspector works for you.
05
Upgrading the wrong things
Spend on structure and systems that are hard to change; finishes can wait.
06
Forgetting taxes and dues
Budget for MUD or PID taxes, HOA dues and the full-value tax bill after the first year.
07
Signing without reading
Know the deposit, delay and change-order terms before you sign.
08
Missing the warranty window
Inspect near month eleven and send requests in writing before coverage ends.
The most expensive problem is the one you find after closing.
Every mistake on this page is avoidable with a plan, a checklist and an advisor who has walked buyers through new construction before.
Ascend Group | LPT Realty18
Your New Construction Checklist
Tear it out. Tick it off.
Before You Tour Step 1
- Talk with your Ascend advisor and register them
- Get pre-approved and set a true all-in budget
- List must-haves: rooms, commute, schools
Before You Sign Step 2
- Price the home with lot, options and fees
- Check MUD, PID and HOA costs and notices
- Compare the preferred lender with an outside Loan Estimate
- Review deposits, delays and inspection access
- Get every incentive in writing
During the Build Step 3
- Meet design-center deadlines
- Pre-pour foundation inspection
- Pre-drywall inspection
- Visit the site and keep a photo log
Before Closing Step 4
- Final inspection by your own inspector
- Written punch list, completed or agreed in writing
- Confirm rate lock and closing date
- Set up utilities and homeowner's insurance
- Collect warranty documents and manuals
After Move-In Step 5
- Note your warranty dates on the calendar
- Log issues as they appear
- 11-month warranty inspection
- Submit warranty requests in writing
- Protest your appraisal if the value looks wrong
Notes
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Your Next Step
Walk in with an advisor.
Before you tour a model home, talk with an Ascend advisor. We will help you compare communities, register with the builder, negotiate, line up inspections and stay on your side from contract to the 11-month warranty visit.
Talk to an advisor · ascendgroupre.com
(512) 890-1372
i
Start a conversation
Call, or reach us at ascendgroupre.com.
ii
Build your short list
Communities, plans and lots that fit your budget.
iii
Tour together
Registered with the builder from your first visit.
Ascend Group | LPT Realty20
Notes and Sources
For the curious
- Inspector licensing. Professional and real estate inspectors in Texas are licensed by the Texas Real Estate Commission. trec.texas.gov
- MUD notice. Texas Water Code §49.452 requires a seller to give a purchaser notice when a property is in a municipal utility district or similar water district.
- PID notice. Texas Property Code §5.014 requires notice of an obligation to pay a public improvement district assessment.
- Appraisal date. Texas Tax Code §23.01 provides that taxable property is appraised at market value as of January 1.
- Title insurance choice. Real Estate Settlement Procedures Act, Section 9 (12 U.S.C. §2608).
- Construction defect claims. Texas Property Code Chapter 27 (Residential Construction Liability Act) sets a notice-and-repair process before most construction-defect claims. Ask an attorney about your situation.
- Flood maps. FEMA Flood Map Service Center, msc.fema.gov
General information only, not legal, tax, lending or engineering advice. Builder contracts, warranties, incentives and inspection policies vary and change. Confirm all terms in your own documents.
Your notes
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LPT RealtyExceptional Properties. Extraordinary Texas.
Guiding Central Texas buyers and sellers since 2013. More than 10,000 homes sold.
ascendgroupre.com · (512) 890-1372
Ascend Group | LPT Realty
Ascend Group is a real estate team brokered by LPT Realty. 7427 North Lamar Boulevard, Austin, TX 78752. Serving all of Central Texas, from Georgetown to San Antonio.
Texas law requires all license holders to provide the Information About Brokerage Services (IABS) form and the TREC Consumer Protection Notice, both available at ascendgroupre.com.
This guide is general information and is not legal, tax, lending or engineering advice. Builder compensation, incentives, warranties and policies vary and are not guaranteed. © 2026 Ascend Group | LPT Realty. All rights reserved.
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