New Construction Buyer Guide for Southern Maryland
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Almost nobody says this out loud: with new construction you are not using the Maryland Residential Contract of Sale. You are signing the builder's contract, drafted by the builder's lawyers, for the builder's benefit. That changes everything about how the purchase should be run.
The contract was written by their attorney, not yours
Here is the thing almost nobody says out loud about new construction: you are not using the Maryland Residential Contract of Sale. You are signing the builder's contract, drafted by the builder's lawyers, for the builder's benefit.
That is not a scandal. It is normal, and plenty of builders here are decent to deal with. But it means the protections you would ordinarily have as a Maryland buyer are not automatically present, and the person in the sales office does not work for you.
The single most costly mistake in new construction is walking into a model home alone. Do that and, depending on the builder's registration rules, you may have given up your ability to bring your own representation. It costs you nothing to have me with you and it can cost you a great deal not to. Why representation still matters with new construction covers that in detail.
1. The consultation, before you visit a single model
We talk first. Which communities, which builders, production or semi-custom, and whether you are buying a completed inventory home, one under construction, or a build from scratch on a lot. Those three are almost different transactions.
Then I register you properly on the first visit so your representation is protected from the start.
2. Financing, including the builder's lender
The builder will strongly encourage you to use their affiliated lender, usually with an incentive attached. Sometimes that genuinely is the best deal. Sometimes the incentive is worth less than the rate difference.
Get an outside preapproval as well, so you have a real comparison rather than a feeling. Bring the preapproval checklist.
If you are building from scratch on land, financing is different again — see one-time close construction loans, which avoid financing twice.
3. The buyer agency agreement
Signed before we visit models. Builders typically pay a buyer-agent commission out of their marketing budget, but that is the builder's policy rather than a guarantee, and it is a question I ask each one directly. We agree my fee and how it will be handled in writing first. See buyer agency and compensation.
4. Building the search across counties
New construction inventory here moves between counties, and where the value sits changes with it. We look at all of it: Calvert, Anne Arundel, Charles and St. Mary's.
If you are buying land to build rather than a builder's lot, that is its own project — see the steps to building a new home.
5. Touring models, which are not the house you will get
The model is the top of the range. It has the upgraded kitchen, the finished basement, the extended deck, the landscaping package and frequently a larger lot. The base house is a different building.
So I ask for the base specification in writing and we walk the model with it in hand, marking what is standard and what is not. Buyers routinely fall for a model and then discover that reproducing what they walked through costs eighty thousand dollars in options.
6. Evaluating the deal
Different from evaluating a resale, because you are evaluating three things at once: the house, the lot, and the builder.
- The lot. Premium or standard, and what you are paying for the premium. Grading and drainage. What is planned behind you, which the sales office may describe optimistically. Whether the community is finished or you will live beside construction for two years.
- The options. Which upgrades hold value and which are money you will not see again. Structural options must be decided early and cannot be added later; finishes often can.
- The builder. What their warranty actually covers and for how long, how they handle warranty calls once they have moved on to the next community, and what buyers in their last phase would tell you.
- The disclosures. Maryland has specific requirements for new home builders — see new home builder disclosure.
7. Preparing the offer, which is really the contract negotiation
Builders rarely move much on price, because a recorded low sale affects every remaining home in the community. What they will move on is everything else: options included at no charge, closing cost assistance, the lot premium, a rate buydown through their lender, or upgrades added at cost.
So we negotiate where the give actually is. And we read the contract properly, which is where I spend most of my time on a new construction deal — the completion date and what happens if it slips, the escalation or materials clauses that let the builder raise your price, the deposit and whether it is refundable and under what circumstances, the arbitration clause, and the warranty terms.
See how to evaluate a whole offer.
8. Negotiating
Quietly, and in writing, and never by accepting the first answer from the sales office. The wider method is in the complete guide to real estate negotiation.
9. Inspections — yes, on a brand new house
This is the one I argue about most, so let me be direct. New houses have defects. They are built quickly by many different trades, and nobody independent has checked the work except a county inspector who is confirming code compliance rather than quality.
I want three inspections on a build: a pre-drywall inspection while the framing, wiring and plumbing are still visible, a full inspection before settlement, and another before the warranty year expires. The pre-drywall one is the valuable one, because after the drywall goes up those problems are invisible and expensive.
Some builders resist independent inspection. That resistance is itself information. Use the inspection selection checklist, and on well and septic communities include the well and septic items and radon, which new construction is not immune to.
10. Appraisal and loan approval
The appraisal comes late on a build, sometimes very late, and your rate lock has to be managed around a completion date that may move. This is a real risk on a nine-month build and it is worth asking your lender directly what happens if the house is not finished when the lock expires.
11. Title and insurance
Confirm there are no mechanics' liens from unpaid subcontractors, which is a genuine risk on new construction. Insurance is usually straightforward, and you will need it bound for settlement.
12. Final walkthrough, which here is a punch list
This is not a formality on a new build. It is a detailed inspection where we list every defect and get written commitment on each one, with dates.
Get it in writing before you sign at settlement. Verbal promises from a site superintendent have a short shelf life once your file is closed and they are working on the next phase. The walkthrough checklist is the starting point.
13. Settlement
Often at the builder's title company. That is usually fine, and you are still entitled to choose your own.
14. After closing, and the warranty year
Keep every document. Then diarise two dates: one at about ten months to have the house inspected again, and one before the warranty year expires to submit any remaining claims in writing.
Most builder warranty disputes I have seen came down to somebody reporting a problem by phone, being told it would be handled, and having no record of it when the year ran out. The utility and address change checklist covers the practical week.
Where new construction buyers get stuck
They visit the model alone on a Sunday, register with the sales office, and only afterwards think about representation. By then the builder's position is that you came in unrepresented.
The second pattern is emotional commitment to a house that does not exist yet. It is easy to sign a contract for something you cannot see, harder to walk away eight months later when the completion date has slipped twice and the price has moved under a materials clause. Read the contract before you feel committed, because the contract is the purchase — the house is what you get if the contract works.
Frequently Asked Questions
It is the most costly mistake in new construction. Depending on the builder's registration rules, registering alone can cost you the ability to bring your own representation.
Builders typically pay a buyer-agent commission from their marketing budget, but that is builder policy rather than a guarantee. Agree your fee and how it is handled in writing first.
Rarely, because a recorded low sale affects every remaining home in the community. They will often move on options, closing cost help, the lot premium or a rate buydown.
Yes, three times: pre-drywall while framing and wiring are visible, again before settlement, and once more before the warranty year expires. The pre-drywall inspection is the valuable one.
No. The model is the top of the range with upgraded finishes and often a larger lot. Get the base specification in writing and walk the model with it in hand.
The completion date and what happens if it slips, escalation or materials clauses that let the builder raise the price, deposit refundability, the arbitration clause and the warranty terms.
Before You Visit the First Model
Call me first. It costs you nothing to have me with you and it can cost a great deal not to.
Dawn Riley
Associate Broker, Realtor, Master Certified Negotiator
The Riley Team at Deep Roots Real Estate
410-414-2438
dawn@dawnriley.net
https://dawnriley.net/