The Complete Guide to Buying New Construction Homes in Texas

by JW Roeder

Buying a new construction home in Texas can be an exciting opportunity to personalize your living space and avoid the surprises that sometimes come with older homes. But the process is also very different from buying a resale home—and it comes with its own set of considerations.

Whether you're building from the ground up or buying a nearly completed spec home, this guide will walk you through everything you need to know to make a smart and informed decision.

🧱 1. Know the Types of New Construction Homes

There are generally three types of new builds:

Custom Homes – You work with a builder to design a completely personalized home.
Semi-Custom Homes – You choose from a builder’s floor plans with some customization.
Spec Homes (Inventory Homes) – Built by the builder with popular finishes and layouts, ready or nearly ready to move in.

Each option has different timelines, costs, and levels of customization.

🏡 2. The Role of a Realtor in New Builds

Many buyers think they don’t need a real estate agent for new construction—but having one is just as important. A knowledgeable agent will:

Advocate for you in negotiations
Help review the builder contract (often very different from resale contracts)
Guide you through the timeline and inspections
Stay on top of progress and builder communication

Important: The builder's sales rep works for the builder, not for you.

📅 3. Understand the Timeline

Depending on the builder and how far along the home is, timelines can vary:

Spec Homes: Move-in ready or within 30–90 days
Semi-Custom: Typically 4–7 months
Custom Homes: Can take 8–12+ months

Delays due to weather, supply chain issues, or permits are common—so flexibility is key.

💰 4. What About Financing?

Some builders offer preferred lenders with special incentives like closing cost credits or design upgrades. You’re not required to use their lender, but compare offers carefully.

Also, know that construction-to-perm loans may be required for fully custom homes.

🧾 5. Watch the Contract Details

Builder contracts often differ significantly from standard Texas resale contracts. They usually favor the builder in terms of delays, pricing, and warranty limitations.

Key things to watch:

Final pricing (especially if you’re making upgrades)
Timelines and builder’s rights to extend
Cancellation clauses
Warranty terms

A real estate agent familiar with new builds will help you read between the lines.

🧱 6. Don’t Skip the Inspection

Even though it’s brand new, every home should still be inspected! Consider:

Pre-drywall inspection (to check plumbing, electrical, structure)
Final inspection before closing
11-month warranty inspection before your builder warranty expires

No home is perfect—even brand new ones.

🌟 7. Look at Builder Reputation

Not all builders are created equal. Ask your agent about:

Builder reputation in the community
Warranty service responsiveness
Resale values of homes built by that builder

Online reviews and local agent feedback can be invaluable here.

🛋️ 8. Plan for Design & Upgrade Costs

Most model homes you tour are loaded with upgrades. Before falling in love, ask:

What’s included in the base price?
How much do common upgrades cost?
Are there design center allowances?

Some upgrades (like flooring or kitchen finishes) are worth the money—others can be done more affordably after closing.

📍 Final Thoughts

Buying a new construction home in Texas can be one of the most rewarding real estate experiences, but only if you approach it with the right knowledge and guidance. Having a trusted agent in your corner, understanding the process, and preparing for each phase will help ensure your dream home becomes a reality—without the unexpected headaches.

Thinking about buying a new home in Austin or the surrounding suburbs? I specialize in new construction and have helped dozens of clients through the process from lot selection to final walk-through. Let’s talk about your goals and how I can help you navigate every step with confidence.