Buying New Construction in Middle Tennessee
Builder-rep dynamics, builder incentives, warranty realities, and what we negotiate that buyers often don't realize is negotiable.
Call 615-265-1000New construction looks simple on paper — pick a lot, pick a plan, close in 6-12 months. Reality has more friction than the model home suggests. Honest framework follows. Important note: the builder's on-site representative works for the builder, not for you. Having buyer representation matters here even more than on resale.
Who the builder rep actually represents
The friendly person in the model home is the builder's employee or contractor. Their job is to sell that builder's homes at the best terms for the builder.
They're not bad people. They're often great people. But they don't represent your interests in the transaction.
You should have your own buyer representation — at no cost to you in most builder transactions (builder pays buyer-agent commission).
Builder incentives — what's actually available
- Rate buydowns: Builder buys down your interest rate. Common, often 1-2 points equivalent.
- Closing cost credits: Cash toward closing. Common, often $5K-$20K.
- Finish upgrades: Free upgrades to specific finish packages.
- Free options: Garage door upgrades, light fixture packages, paint colors.
- Builder's preferred lender often offers the strongest incentive stack but requires using their lender. Always shop outside the builder's lender to confirm.
What we negotiate on new construction
- Lot premium (builders sometimes have flex on specific lots).
- Specific finish upgrades.
- Closing cost credits beyond standard incentive.
- Earnest money structure (try to keep it lower while still showing seriousness).
- Warranty coverage and known builder service track record.
- Specific contract clauses (right to back out if delays exceed X, right to walk if appraisal short).
Warranty and post-close reality
- Most production builders offer a 1-2-10 warranty (1 year workmanship, 2 years systems, 10 years structural).
- Customers' real experience with that warranty varies dramatically by builder. We can share what we've heard from our clients about specific builders.
- Punch lists at delivery — make them comprehensive and in writing.
- First-year walkthrough — schedule it. Builder is responsible for fixes during the warranty period.
Frequently asked
Do I need a realtor for new construction?
Strongly recommended. The builder pays the buyer-agent commission in most cases, so you typically pay nothing for representation. You gain negotiation, contract review, and someone whose interests align with yours rather than the builder's.
Should I use the builder's preferred lender?
Always shop outside. Get 2-3 lender quotes. The builder's lender often offers incentives that look attractive but lock you in. Compare the all-in cost.
What about inspections on new construction?
Absolutely get a third-party inspection at framing AND at completion. Builders mostly do good work; mistakes happen. The $400-$600 you spend is the best money in the entire transaction.
Buying new? Let's make sure you have someone on your side.
30-min call before you walk into any model home. We'll explain incentives, builder dynamics, and negotiation reality. Costs you nothing.