New construction means any structure for which the "start of construction" commenced on or after the effective date of the initial floodplain management ordinance and includes any subsequent improvements to such structure. A new construction home is one that has not been previously occupied. Typically, the seller of a new construction home is the builder. On Redfin.com, we define homes for sale as new construction based on whether the listing agent marked them as such in the Multiple Listing Service (MLS). Otherwise, Redfin marks homes as new construction if they were built within the past year and a half.
Sales Process and Construction
New homes are often sold before they’re built. A builder will generally get financing lined up and map out both sales process and construction. This means they’ll try to sell as many homes as possible before they’re even built. To accomplish this, they’ll build out model homes and allow buyers to go in and review floor plans, fixtures, and finishes while the homes are under construction. Depending on the state, builders need to get through some of the approvals process before they can actually start signing contracts.
For the most part, you can get a sense of what your new home would look and feel like and where it will be located in the community. Ready to move forward? You’ll likely have to put down a deposit, from a few thousand dollars to 10 percent of the purchase price.
Be aware that even if there are 100 homes in the community, they won’t all be available at once. Homebuilders tend to release the homes in phases. If the first 10 homes sell quickly at the asking price, and the market continues to do well, the builder can raise the prices on the second or third phase. Also, the sales cycle for a new community can take years. The last phase could end up being priced 10 percent or more than phase one, simply because the real estate market has appreciated.
How to Build a New Home
Below you will find the main steps to know how to build a new home:
- Prepare Construction Site and Pour Foundation
- Complete Rough Framing
- Complete Rough Plumbing, Electrical HVAC
- Install Insulation
- Complete Drywall and Interior Fixtures, Start Exterior Finishes
- Finish Interior Trim, Install Exterior Walkways and Driveway
- Install Hard Surface Flooring, Countertops; Complete Exterior Grading
- Finish Mechanical Trims; Install Bathroom Fixtures
- Install Mirrors, Shower Doors; Finish Flooring, Exterior Landscaping
- Final Walk-Through