New Construction Homes

Do I need my own agent when buying new construction in Houston?

Yes, it can. Many builder contracts include a price escalation clause that allows the builder to pass along increases in material or labor costs to the buyer. This is one of the most important clauses to review before signing anything. The language varies by builder, and some contracts cap the increase while others do not. Reviewing the contract with a buyer's agent before you sign is the best way to understand exactly what you are agreeing to and whether there is room to negotiate the terms.

It depends on the type of home. Production homes in Houston communities like Katy, Cypress, and Pearland typically take 6 to 9 months from contract to closing. Semi-custom homes generally run 8 to 12 months. Custom homes can take 12 to 18 months or longer. Weather is a real factor in Houston. Hurricane season, heavy spring rains, and the city's clay soil can all cause delays. About 60 percent of new construction closings experience some delay, so building a buffer into your timeline and housing plan is always a smart move.

No, not automatically. Builders often offer incentives like closing cost credits or upgrade allowances if you use their preferred lender, and those incentives can be worth thousands of dollars. However, the interest rate and loan terms from the builder's lender may not be the most competitive available to you. The right move is to get pre-approved with an outside lender first so you have a baseline, then compare that against what the builder's lender is offering. Never agree to use a preferred lender just for the incentive without running the numbers on the full cost of the loan.

Yes, always. New construction homes are not exempt from defects. Missed steps, subcontractor errors, and items that did not pass code can all be present in a brand new home. There are two inspections worth scheduling: a pre-drywall inspection, which happens before the walls are closed and allows an inspector to check the framing, plumbing, and electrical, and a final inspection before closing. A builder's certificate of occupancy is not the same as an independent home inspection. Skipping it is one of the most common and costly mistakes new construction buyers make.

MUD stands for Municipal Utility District. Most new construction communities in Greater Houston's suburbs are located within a MUD, which is a special taxing district that funds the infrastructure for that development including water, sewer, and drainage systems. MUD taxes are assessed on top of your regular property taxes and can add anywhere from 0.20 to over 1.00 percent to your effective tax rate depending on the district. On a $400,000 home that can mean an additional $800 to $4,000 per year. Knowing the MUD tax rate before you go under contract is a critical part of evaluating the true cost of a home.

The upgrades most worth pushing on are the ones that are expensive or disruptive to add after closing. These include the lot premium, structural options like extra windows or room configurations, appliance packages, and flooring throughout the main living areas. Cosmetic upgrades like cabinet hardware, light fixtures, and paint colors are easy and relatively affordable to change later. Buyers typically spend 20 to 50 percent above the base price once upgrades and lot premiums are factored in, so knowing where to spend and where to hold back matters. A buyer's agent with new construction experience can tell you which upgrades that builder typically negotiates on and which ones are fixed.