New construction sounds like the dream. Brand new appliances. No one else has lived there. Builder warranties. You pick the finishes. What could go wrong?
Quite a bit, actually. After helping dozens of buyers navigate new construction purchases across South Florida, I can tell you that most of them walked into the builder's sales office without realizing how much they did not know. Some got great deals. Others paid more than they should have, skipped inspections they later wished they had done, and ran into surprises that an experienced buyer's agent would have caught early.
This guide covers what you actually need to know before signing a new construction contract.
The Builder's Agent Works for the Builder
When you walk into a new construction community and meet the sales agent in the model home, that person works for the builder. Their job is to sell you that home at the best price and terms for the builder. They are friendly, knowledgeable, and helpful. But they are not on your side.
This does not mean the builder's agent is dishonest. It just means there is no one in that room looking out for your interests unless you bring your own buyer's agent.
Bringing your own buyer's agent costs you nothing. The builder pays the commission. You get professional representation at no extra cost.
A buyer's agent who works with new construction regularly will know which upgrades are worth the markup, which ones you can add cheaper after closing, what the builder has agreed to for other buyers, and how to negotiate extras like closing cost credits or rate buydowns.
The Contract Is Not a Standard Form
When you buy a resale home, there is a Florida purchase agreement that your agent and the listing agent both know. When you buy new construction, you sign the builder's contract. These are written by the builder's legal team to protect the builder, not you.
Some things to watch for in new construction contracts:
- Timeline flexibility: Most builder contracts give the builder significant leeway on delivery dates. If the home is delayed six months, you may have limited recourse.
- Deposit structure: Builders often require deposits in stages. Understand when those deposits become nonrefundable.
- Price protection: Some contracts allow the builder to pass material cost increases to you. Others lock the price. Know which you have.
- Financing contingencies: Builder contracts often have shorter financing contingency windows than a resale purchase. If your loan falls through, your deposit may be at risk.
- Preferred lender requirement: Builders often push their in-house lender. The incentives can be real, but so can higher rates. Always compare.
Have a real estate attorney review the contract before you sign. This is not optional on a purchase this size.
Upgrades: Where Builders Make Their Margin
The base price gets you in the door. The upgrade center is where builders make serious money. Granite countertops, premium flooring, extended patios, built-in cabinets. Each one carries a markup that is often two to three times what you would pay hiring your own contractor after closing.
Structural upgrades like adding a bedroom, extending the garage, or raising ceilings must be done before closing and are worth paying for through the builder. Cosmetic upgrades like flooring, countertops, and light fixtures are often cheaper to add after closing on your own.
That said, there is one reason to buy some upgrades through the builder: they can be rolled into your mortgage. If financing the cost matters to your budget, that changes the calculation. Your agent can help you decide what makes sense.
Get an Independent Home Inspection
One of the most common mistakes new construction buyers make is skipping the home inspection. The reasoning is understandable. Everything is brand new. The builder has quality control. The municipality already inspected it. What is there to find?
A lot, actually. Improper grading. HVAC issues. Electrical wiring errors. Plumbing that does not meet code. Insulation gaps. These are not rare findings in new construction. They happen because large communities are built quickly and subcontractors move fast.
Hire an independent home inspector who has no relationship with the builder. Schedule the inspection at the pre-drywall phase if possible so the inspector can see inside the walls. Then schedule a second inspection before your final walkthrough.
The Walkthrough Is Not Just a Tour
Your final walkthrough before closing is your last chance to document anything that needs to be fixed before you take ownership. Bring your agent. Bring a notepad. Check everything.
- Run every faucet and flush every toilet
- Test every light switch and outlet
- Open and close every door and window
- Look at the ceilings for water stains or uneven paint
- Check that all appliances are installed and working
- Verify every upgrade you selected is actually in the home
- Check the grading around the foundation
Everything you find gets documented on a punch list. The builder is supposed to fix it before closing. Get that confirmation in writing before you sign.
HOA Fees and Community Development Districts
Many new construction communities in South Florida are governed by a homeowners association. Some also have a Community Development District, known as a CDD. This is an additional annual fee that covers infrastructure the developer built, things like roads, drainage systems, and community amenities.
CDD fees can add hundreds of dollars per year to your costs and they do not go away quickly. They are often assessed for 20 to 30 years. Make sure you understand the full picture of what you will owe each month and each year before you fall in love with a community.
Builder Incentives Are Real and Negotiable
Builders want to close homes. When communities are moving slowly or interest rates are elevated, builders have more flexibility than most people realize. Common incentives include:
- Closing cost credits, often 3 to 6 percent of the purchase price
- Mortgage rate buydowns through the builder's preferred lender
- Free upgrade packages on select homes
- Price reductions on spec homes that are already built
Spec homes are worth asking about specifically. The builder has money tied up in a finished house sitting empty and wants it sold. You have significantly more negotiating leverage on a spec home than on a home you pick from a floor plan before construction even begins.
New Construction in South Florida Right Now
South Florida continues to attract new development, particularly in communities across western Broward County including Tamarac, Coral Springs, and surrounding areas. Several active communities have homes available at different price points, from townhomes in the $400s to single family homes well above $500,000.
I represent buyers in new construction communities across the area. I know which builders have the best reputations for construction quality, customer service, and follow through on warranty claims. That knowledge alone can save you real headaches down the road.
Thinking About New Construction?
Let me walk you through the process. I know the builders, the communities, and the contracts. Buyer representation costs you nothing and gives you a real advocate in your corner.
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