What to Ask a New Home Builder Before You Sign Anything

The most important question to ask a new home builder before you sign anything is simple: is this contract a TREC form, or the builder's own paperwork? At almost every builder sales office in Central Texas it is the builder's own contract, written by their attorney, and it does not work like a resale deal. It typically has no option period, no unconditional right to walk away, and its own rules for your deposit. Every other question — about the lot, the upgrades, the incentives — sits on top of that one document. Get clear on it before any money changes hands.

Here are the questions Amanda Brown walks buyers through at builder offices across the Fort Hood area. Print them or send them to your agent before the appointment.

Questions About the Contract Itself

Is this your contract or a TREC form?

Texas does publish new-home contract forms, but builders are generally allowed to use their own attorney-prepared version instead. That is not automatically a problem — it just means the protections of the standard resale contract may not be in the document at all. Ask plainly, then have your own attorney review it. A Texas agent cannot give legal advice, and the sales counselor works for the builder, not for you.

If I need to back out, what does it cost me?

On a resale home, the option period buys a window to terminate for any reason. Builder contracts usually do not include that window. Ask for the exact cancellation terms, what counts as a default, and whether you forfeit the deposit if the deal falls apart.

How much is my earnest money, and is any of it refundable?

Builder deposits are often a smaller percentage than a resale deposit, but they are frequently non-refundable once you sign, and many builders also collect a design-selection deposit. Ask when each payment is due and what would return it.

Questions About the Money

What is the incentive tied to, and what do I give up to get it?

Builder incentives usually run through the builder's preferred lender — a rate buydown, a closing-cost credit, or a price reduction. Run it both ways: your own lender with no incentive, versus the builder's lender with it. Sometimes the incentive beats the rate difference by a lot; sometimes it does not. Ask whether it changes if rates move before closing.

Will my taxes be based on the land or the finished house?

New construction is typically taxed on the unimproved value while it is being built, then reassessed the first January after it is finished. Ask what the tax estimate is based on, and check with the county appraisal district — Bell or Coryell, depending on the address — because that first full-year bill surprises a lot of new owners.

Are there MUD or PID charges?

Municipal Utility Districts and Public Improvement Districts are common in new Texas subdivisions and appear as separate line items on your tax bill, on top of city, county, school, and college taxes. Ask for the current rate and whether the district carries outstanding debt.

What do the HOA dues cover?

Get the amount, how often it can rise, and read the deed restrictions before you sign — especially anything about fencing, outbuildings, trailers, or vehicles in the driveway. HOA rules here are not uniform.

Questions About the Lot and the Neighborhood

• Which lot, and why this one? Ask for the plat, the lot premium, and what is planned for the open land beside or behind you.
• Where does water go when it rains? New subdivisions sit on graded lots, so ask about drainage, swales, and floodplain.
• What school is zoned to this address? Zoning follows district boundaries, not city limits, so confirm the campus by street address.
• What else is approved nearby? A future commercial pad or additional phase changes the feel of a street.

Questions About the Build Itself

What is included, and what is an upgrade?

Ask for the written specification list rather than relying on the model home tour. Model homes are almost always loaded with upgrades that are not in the base price — flooring, cabinets, lighting, landscaping, and appliances are the usual differences.

Can I bring my own inspector?

Ask when a third-party inspector can walk the home, ideally at pre-drywall before the walls close up, and again before closing. Some builders allow it and others restrict access, so get the answer in writing.

When do I get a walkthrough?

Ask how the final walkthrough and punch list are handled, what happens if the certificate of occupancy slips, and who the building entity is — and whether that same company honors the warranty.

Questions About the Warranty

Ask what the warranty covers, for how long, what is excluded, and who you call in year three. Texas does not license home builders, so the warranty terms and the builder's track record carry more weight than a license number would; ask for addresses of homes they finished two years ago and knock on doors. And know that the Texas Residential Construction Liability Act requires written notice and a chance to repair before suing over a construction defect — generally at least 60 days — so warranty comes well before the courthouse.

Bring Representation to the First Visit

In most builder transactions the builder pays the buyer's agent, so representation usually does not change your price — but the sales counselor represents the builder. Register your agent at your first visit, because many builders will not add one later. Still deciding? Here is an honest look at the pros and cons of using a realtor for new construction.

Get the Answers in Writing

Nothing counts unless it is in the contract or an addendum. Verbal promises about a fence, landscaping, a completion date, or a credit at closing tend to disappear once the paperwork governs. Start with these questions to ask before you even choose a builder, and read up on the hidden costs of buying in Central Texas before you close.

Amanda has sat through these appointments with families all over Killeen, Harker Heights, Copperas Cove, and the Gatesville side of the county, and she works with the home builders across Central Texas often enough to know which questions each one answers well.