New Construction Guide

Buying a brand-new home from a builder is different from buying resale. Daniel Yoon is a Certified New Home Co-Broker (in addition to ABR and SRS) and helps buyers navigate builder contracts, incentives, and inspections across Henrico, Chesterfield, Hanover, and Richmond City.

Why bring your own buyer agent

The model-home sales associate works for the builder. Your buyer agent works for you. An independent agent can:

• Compare communities and floor plans across multiple builders, not just one sales office.
• Review the builder purchase agreement, options list, and addenda before you sign.
• Help you evaluate incentives versus a lower base price.
• Coordinate independent inspections and punch-list walkthroughs.
• Keep the process documented when timelines, change orders, or lot premiums shift.

In many Richmond-area new-construction contracts, the builder offers compensation to the buyer agent. Terms vary by builder and community. Confirm the compensation amount and any conditions in writing before you rely on them.

How builder-paid compensation usually works

1. Ask the sales office for the current buyer-agent compensation policy for that community.
2. Get the figure in writing (email from the sales manager or a written addendum is best).
3. Confirm whether compensation changes if you use the builder preferred lender or title company.
4. Confirm whether the amount is a flat fee, a percentage of base price, or of total sales price including options.

Do not assume the number you heard in another community still applies. Policies change, and some promotions are time-limited.

What to ask in the model home

• What is included in the base price versus optional upgrades?
• What are current lot premiums, and which lots are available?
• What is the estimated completion timeline, and how are delays handled?
• Which structural, appliance, and systems warranties apply, and for how long?
• What HOA or condo fees apply, and what do they cover?
• Are there builder incentives right now (rate buydowns, closing cost credits, design-center allowances)?
• Must I use the preferred lender to receive the incentive, and what is the APR comparison if I shop other lenders?
• Can I select an independent inspector for pre-drywall and final walkthrough?
• What is the deposit schedule, and which deposits are refundable?

Inspections on new builds

New does not mean perfect. Common inspection points include:

• Pre-drywall (framing) inspection: structure, plumbing rough-in, electrical rough-in, insulation plan.
• Final / pre-settlement inspection: finishes, appliances, HVAC operation, grading and drainage, punch list.
• Independent specialists when needed: radon, sewer scope (if applicable), or energy performance.

Use a licensed inspector who is experienced with new construction. Keep a written punch list and confirm completion dates before final walkthrough or settlement.

Builder incentives versus price

A rate buydown or closing-cost credit can be valuable, but it is not always better than a lower purchase price. Ask:

• Does the incentive require the preferred lender, and how does that rate compare after shopping?
• Is the incentive permanent (price reduction) or temporary (temporary buydown)?
• How does the incentive affect appraisal, loan-to-value, and future refinancing?
• Would a lower base price reduce transfer taxes, mortgage insurance, and future property taxes more effectively?

Run the numbers both ways with your lender before you choose.

Working with a Certified New Home Co-Broker

Daniel Yoon holds the Certified New Home Co-Broker credential, along with Accredited Buyer Representative (ABR) and Seller Representative Specialist (SRS). He represents buyers on new construction across the Richmond metro and publishes independent research on local builders. Consultations are available in English and Korean.