The New Construction Home Buying Process, Explained

If you want to know how to buy a new construction home in South Florida, the process is different from a resale purchase in almost every way. You are signing a builder contract, not a standard FAR/BAR agreement. You are choosing features months before you ever move in. And the sales agent sitting in that model home works for the builder, not for you. Understanding each stage before you start will save you money, prevent surprises, and put you in a stronger position at the closing table.

Step 1: choose your builder and community

South Florida has some of the most active new construction markets in the country. Builders like Lennar, D.R. Horton, GL Homes, and Pulte are all delivering communities across Palm Beach, Broward, Miami-Dade, and the Treasure Coast. Each operates differently, with its own contract language, upgrade pricing, and incentive structure.

Start by narrowing down the county and general price range. Entry-level new construction in areas like Port St. Lucie typically starts around $350,000 to $420,000 for a single-family home. Move-up communities in western Boca Raton or Parkland can run $650,000 to $900,000. Luxury new builds in Palm Beach Gardens or Weston can exceed $1.5 million. Knowing your range before you tour model homes keeps the conversation focused.

Research builder reputation through the Florida Department of Business and Professional Regulation, which licenses contractors. Check the Better Business Bureau and look for completed-community reviews, not just model-home impressions. A builder's warranty program matters too: Florida statute requires a one-year workmanship warranty, a two-year systems warranty, and a 10-year structural warranty on new homes.

Step 2: pick your lot and floor plan

Within a community, lot selection affects your daily life more than most buyers realize. A corner lot offers more side yard but also more road noise and foot traffic. A lakefront lot costs a premium, often $20,000 to $60,000 above a standard interior lot in South Florida communities. A lot that backs to a preserve or conservation land cannot be developed behind you, which has long-term privacy and resale value.

Floor plans in production-builder communities are fixed in their basic footprint. You choose from three to eight plans, then select variations: single story vs. two story, three-car garage, bonus room, extended lanai. Read the base plan carefully. Closets, storage, and outdoor living space are frequently smaller than the model suggests, because models are decorated and staged to appear larger than they are.

What "standard" really means

Builders market a base price, but the home in their model is rarely standard. Many features you see, including luxury plank flooring, quartz countertops, tray ceilings, and premium appliances, are structural or design upgrades. The upgrade cost list is sometimes called the design center menu, and it can add 10 to 25 percent to the base price. A home listed at $450,000 may cost $525,000 or more by the time you finish selections.

Step 3: go through the design center

The design center appointment is usually scheduled after you sign a purchase agreement and pay your deposit. You will have a limited number of appointments, often just two or three, to make every finish selection: flooring, cabinets, countertops, tile, fixtures, lighting, appliances, and exterior colors.

Come prepared. Prices are non-negotiable here. Builders mark up design center selections significantly, sometimes 30 to 50 percent above what you would pay buying the same product at retail after closing. Structural upgrades like an extra bedroom, a third garage bay, or an extended covered lanai are generally cost-effective because they add livable square footage. Cosmetic upgrades like cabinet hardware, outlet covers, and light fixtures are often better handled post-closing through a contractor or home improvement store.

Make a list of the upgrades you absolutely want versus those you are willing to add later. Flooring you cannot change without demolition (tile under cabinetry, hardwood in the great room) is worth upgrading at the design center. Paint, fixtures, and surface hardware are not.

Step 4: review and sign the builder contract

This is the most important point in the entire process: the builder contract is not a standard FAR/BAR residential contract. It is written by the builder's attorneys to protect the builder. Contingencies are limited, deposits are often non-refundable after a short rescission period, and price escalation clauses may allow the builder to pass certain cost increases on to you before closing.

Key items to review before signing:

• Deposit structure. Builders typically require 3 to 10 percent at signing, sometimes split into a contract deposit and a design center deposit. Know which portions are refundable and under what conditions.
• Price lock vs. escalation. Some contracts are fixed-price. Others include clauses allowing cost increases tied to material or labor costs. Understand exactly what you are agreeing to.
• Completion timeline and penalty. Builders rarely guarantee a specific closing date. Delays of three to six months beyond the estimated completion date are common. The contract will specify your remedies, which are often limited to canceling for a full refund.
• Financing contingency. Builder contracts frequently restrict your ability to cancel based on financing. If rates rise substantially between signing and closing, you may be contractually required to close or forfeit your deposit.
• Preferred lender incentives. Builders often offer closing cost credits, rate buydowns, or design center credits if you use their affiliated lender. These can be worth $5,000 to $15,000. Compare the total cost to what an outside lender offers before committing.

Have a real estate attorney review the contract before you sign. Builder contracts can be 30 to 50 pages long, and the language is one-sided by design.

Why you need your own agent at a new construction site

The on-site sales representative is a licensed agent whose client is the builder. They are helpful, friendly, and knowledgeable about their product. They are not working in your interest. They cannot advise you on comparable resale values, point out weaknesses in the contract, or tell you when competing communities are offering better incentives.

Bringing a buyer's agent costs you nothing in almost all cases. Builders budget a co-op commission into their pricing, and that cost does not disappear if you arrive unrepresented. What changes is who gets paid. Registering with your agent on your first visit protects your representation. Most builders have a "first visit" rule: if you tour a community without your agent, they may refuse to recognize the representation on subsequent visits.

A good buyer's agent can also negotiate on your behalf. Builders are rarely willing to move on the base price, but they will frequently offer closing cost credits, additional design center allowances, rate buydowns, or lot premium reductions, especially late in a phase when they need to hit sales targets before starting the next section.

The construction phase

Once you sign and permits are pulled, construction typically takes six to twelve months for a production home in South Florida, though supply chain conditions and municipal inspection delays can push that longer. You will receive milestone updates and may be allowed periodic site visits.

During this phase, avoid making significant financial changes. Do not switch jobs, take on new debt, or make large undeposited cash transfers. Your lender will re-verify your employment, credit, and assets before closing, and changes during the construction period can jeopardize your loan approval.

Use this time to research your estimated closing costs. Florida closing costs for a new construction home typically run 2 to 4 percent of the purchase price, not counting prepaid items like homeowners insurance and property tax escrow. On a $500,000 home, that is $10,000 to $20,000 in cash needed at closing beyond your down payment.

New construction inspections

Never skip independent inspections on a new construction home. The builder's municipal inspections confirm code compliance. They do not catch every defect, and they are not done in your interest.

Hire a licensed Florida home inspector for three separate visits:

1. Frame inspection. Conducted after framing is complete but before insulation or mechanicals are installed. This is your best chance to identify structural issues, framing errors, window and door rough openings, and sheathing problems.
2. Pre-drywall inspection. After electrical, plumbing, and HVAC rough-in but before drywall is hung. Lets the inspector verify that pipes, wires, and ducts are properly installed and that no penetrations in the building envelope are unsealed.
3. Final walkthrough inspection. Done after substantial completion but before your closing day walkthrough with the builder. A thorough inspector will test every outlet, every door, every faucet, and every appliance. They will also examine the roof, attic, exterior, and drainage.

Each inspection costs roughly $300 to $500. Combined, they are a modest insurance policy on a transaction that may be the largest financial commitment of your life. Bring your punch list from the final inspection to the builder's official walkthrough. The builder is required to address items on the punch list before or shortly after closing. Get commitments in writing.

Closing on new construction

The closing process on a new construction home follows the same general mechanics as a resale: title search, title insurance, loan closing documents, and disbursement. A few items are specific to new builds.

You will need a certificate of occupancy (CO) from the local municipality before you can close. The builder is responsible for obtaining this, but delays in municipal inspections are common in high-growth South Florida counties. Confirm the CO has been issued before you schedule your movers.

Florida requires builders to provide you with a buyer's survey plat at closing, and you should purchase an owner's title insurance policy even though the builder's lender requires a lender's policy. Owner's title insurance on a $500,000 new home costs roughly $1,500 to $2,500 and protects your equity if a title defect surfaces after closing.

Review your final closing disclosure at least 24 hours before closing. Compare every line item to your loan estimate and the builder's original contract. Errors in new construction closings, including double-charging for items that should be covered by builder incentives, do happen.

After closing, register your warranties immediately. Florida's statutory warranties are automatic, but manufacturer warranties on appliances, HVAC systems, and roofing require product registration to be valid. Keep copies of all inspection reports, your punch list, the signed warranty documents, and the certificate of occupancy. You will need them if you sell or if a warranty claim arises.

You can browse current listings across all eight counties we serve, including new construction communities, or use our home value tool to understand how a new construction purchase compares to resale options in your target area.

Frequently asked questions

Can I negotiate the price on a new construction home?

Base prices are rarely negotiable, especially in a phase with active sales. What builders will negotiate are incentives: closing cost credits, design center allowances, lot premium reductions, and mortgage rate buydowns. The most negotiating leverage comes at the end of a phase when the builder wants to close out remaining inventory before launching the next section.

Do I need a real estate agent to buy new construction?

You are not required to have one, but having a buyer's agent costs you nothing in most cases because the builder has already budgeted a co-op commission. Without an agent, you are negotiating directly against the builder's sales team with no representation. Registering with your agent on your first visit to any community is the rule you need to follow to protect that relationship.

How long does new construction take in South Florida?

Production homes in South Florida typically take 6 to 12 months from permit to certificate of occupancy. Custom or semi-custom builds can take 12 to 24 months. Factors that cause delays include municipal inspection backlogs, permit processing times in high-volume counties like Palm Beach and Broward, and material or trade availability.

What warranties come with a new construction home in Florida?

Florida law requires builders to provide a one-year workmanship warranty, a two-year warranty on plumbing, electrical, HVAC, and other mechanical systems, and a 10-year warranty on structural defects. Many builders also offer their own extended warranty programs, and appliances carry separate manufacturer warranties that you must register after closing.

Should I use the builder's preferred lender?

Compare the full cost carefully. Builder-affiliated lenders sometimes offer closing cost credits or rate buydowns worth $5,000 to $15,000, which can make them genuinely competitive. In other cases, the rate or fees are higher than outside lenders, and the incentive only looks good when you focus on the credit and ignore the rate. Get a full loan estimate from at least one outside lender before committing to the builder's preferred option.

Is title insurance necessary on a brand-new home?

Yes. Title defects on new construction can include unrecorded easements, issues with the original land subdivision, prior liens from subcontractors, or errors in the legal description. An owner's title insurance policy is a one-time cost at closing and protects your equity for as long as you own the home. It is not optional in a prudent transaction.