The short version
- Bring your own agent on your very first visit, or check the builder's registration policy before you walk in.
- Decide between a spec (inventory) home and a to-be-built home.
- Read the builder's contract, which is often not a TREC form, before you put down a deposit.
- Compare lenders, including the builder's preferred lender and at least one other.
- Hire your own inspector for phased inspections: pre-pour, pre-drywall and final.
- Understand the MUD, PID and HOA costs and notices before you sign.
- Do a final walk-through with a written punch list, then close.
- File your homestead exemption and schedule an inspection before your first-year warranty ends.
Bring your own agent on the first visit
The friendly salesperson in the model home works for the builder. Their job is to sell that builder's homes on that builder's terms. Your own agent works for you: comparing the builder's price and incentives with resale homes and other builders, reviewing the contract with you, flagging MUD, PID and HOA costs, and coordinating independent inspections.
Many builders have agent registration policies: to work with your own agent, the agent must come with you or register you on your first visit to the community. If you walk in alone and sign the guest card, the builder may not recognize your agent later. Policies differ by builder, so ask before you go, or simply bring your agent the first time.
Texas law also requires a written buyer agreement with your agent before they show you property (Senate Bill 1968, effective January 1, 2026). The agreement states how your agent is compensated and that compensation is not set by law and is fully negotiable. Your agent will explain it before your first tour. More in our buyer's guide.
Spec homes vs. to-be-built homes
Spec or inventory home | To-be-built home | |
|---|---|---|
What it is | Started or finished by the builder without a specific buyer | Built after you sign, on a lot and plan you choose |
Timeline | Often can close sooner | Months of construction, with more risk of delays |
Choices | Finishes already selected | You pick options and upgrades, usually at design-center prices |
Seeing it | You can inspect what you are buying | You rely on plans, specs and phased inspections |
TREC form (if used) | New Home Contract (Completed Construction), No. 24-20 | New Home Contract (Incomplete Construction), No. 23-20 |
With a to-be-built home, a rate lock may need to cover a long construction period. Ask your lender how long locks last and what extensions cost.
Builder contracts vs. TREC forms
TREC publishes two new-home contracts, the New Home Contract (Incomplete Construction), No. 23-20, and the New Home Contract (Completed Construction), No. 24-20, both effective July 1, 2026. Many builders instead use their own contracts written by their attorneys. Builder contracts often differ from TREC forms in ways that matter:
- Deposits. How much earnest money and any upgrade or option deposits you pay, and whether they are refundable, and when.
- Completion dates and delays. Whether there is a firm completion date, what counts as an excused delay, and what happens if the builder runs late.
- Change orders and upgrades. How changes are priced, and whether design-center selections are final once signed.
- Financing contingency. Whether you can get your deposit back if your loan falls through, and on what terms.
- Incentives tied to the builder's lender or title company.
- Inspections. Whether you may bring a third-party inspector, and when.
- Dispute resolution. Some builder contracts include arbitration clauses.
- The warranty and how to make a claim.
Get every promise in writing, including incentives, lot premiums, completion dates and any items the builder agrees to fix. Consider having a real estate attorney review a builder contract you do not fully understand. Real estate agents cannot draft legal terms or give legal advice on another party's contract.
Disclosures on a new home
Texas Property Code Section 5.008 exempts the sale of a never-occupied new home from the Seller's Disclosure Notice. The other statutory notices still apply: the MUD notice under Water Code Chapter 49, the PID notice under Property Code Section 5.014 and the mandatory HOA membership notice. Ask the builder for the plat, soil and engineering reports, HOA documents and the warranty booklet.
Lender incentives and your own lender
Builders often offer incentives, such as closing cost credits or interest rate buydowns, if you finance through their affiliated or preferred lender. Those incentives can be valuable, but compare the whole cost:
- You can choose your own lender. Get a Loan Estimate from the builder's lender and at least one other, and compare rate, points, fees and cash to close side by side.
- You can choose your own title company. The Texas Department of Insurance says you may choose any title company, and title premiums are set by TDI, so the premium itself is the same everywhere.
- Know what kind of buydown it is. A temporary buydown lowers the payment for the first year or two; a permanent buydown lowers the rate for the life of the loan. Ask for the terms in writing.
- Ask what happens to the incentive if you use another lender, and whether it can be applied to price, closing costs or upgrades instead.
Inspections: pre-pour, pre-drywall and final
A new home is inspected by the city or county for code compliance, but those inspections check minimum requirements and do not work for you. An independent TREC-licensed inspector does. Many buyers order phased inspections:
Phase | When | What the inspector looks at |
|---|---|---|
Pre-pour (foundation) | After forms, steel and plumbing are set, before concrete is poured | Forms, reinforcement, cable or rebar placement, under-slab plumbing and site grading |
Pre-drywall (framing) | After framing, roof decking, windows, plumbing, electrical and HVAC rough-in, before insulation and drywall | Framing, fasteners, flashing, wiring, ducts and penetrations while they are still visible |
Final | When the home is complete, before your walk-through | A full inspection of the finished house to build your punch list |
Warranty (about 11 months) | Before the first-year warranty ends | Settling, cracks, drainage, roof and systems after a year of use |
Before you sign, confirm the builder allows third-party inspections, how access is scheduled and how much notice the inspector needs, and put that permission in the contract. For a spec home that is already finished, you can still get a full inspection before closing.
Builder warranties and your rights
Texas has no state agency that administers new-home warranties today. The Texas Residential Construction Commission, which registered builders and set warranty standards, was abolished effective September 1, 2009. Your coverage comes from the builder's contract and written warranty, which may be backed by a third-party warranty company.
Coverage terms can differ for workmanship, systems and major structural components, so read each part of the warranty before you sign and note:
- What is covered, what is excluded, and for how long.
- How to file a claim, and whether claims must be in writing.
- Your maintenance obligations, such as foundation watering and drainage, that can affect coverage.
- Who backs the structural coverage and whether it transfers if you sell.
A builder warranty is different from a home warranty. What Texas calls a residential service contract covers repair or replacement of systems and appliances, and the companies that sell them are licensed by the Texas Department of Licensing and Regulation.
If a construction defect becomes a dispute, the Residential Construction Liability Act (Texas Property Code Chapter 27) generally requires the homeowner to send the builder written notice of the defect at least 60 days before filing suit and to give the builder a chance to inspect and offer to repair or settle. Talk with a construction attorney about a specific defect.
MUDs, PIDs and HOAs in new communities
Many newer Central Texas subdivisions are in a municipal utility district, a public improvement district or both. Developers commonly use MUDs to finance water, sewer and drainage, and some cities use PIDs to pay for improvements in new neighborhoods. Both add to your yearly cost beyond county, city and school taxes. MUD rates in Williamson County alone ranged from $0.18 to $1.00 per $100 in 2025. See our property tax, MUD and PID guide for how they work.
- Notices before signing. The MUD notice (Water Code Chapter 49) and the PID notice (Property Code Section 5.014) must be given before you sign a binding contract.
- Ask for numbers. The MUD's current rate, the PID's annual installment, remaining schedule and payoff amount, and HOA dues plus any one-time capital contribution or transfer fees at closing.
- Who runs the HOA. In a new subdivision, the developer (the declarant) usually controls the HOA board during the development period. Texas Property Code Chapter 209 requires owner-elected board seats to phase in as lots are sold. Check the declaration for the development period and any rules that apply while homes are still being sold.
Your first tax bills
Appraisal districts value property as of January 1. If your home was a lot or only partly built on January 1, that year's bill may reflect only the land or a partial house, and the next year's bill can be much higher once the finished home is appraised. Budget for the increase and expect your escrow payment to rise. Because builders generally do not claim a homestead exemption, you may qualify for yours for the part of the year you own the home; file with the appraisal district soon after you move in.
The final walk-through and closing
Before closing, you and the builder walk the finished home and write a punch list of items to correct. Bring your inspector's final report and compare it with the builder's list. Get a written commitment, with dates, for anything the builder will finish after closing. Keep the warranty booklet, appliance manuals and any HOA documents together.
At closing, review your Closing Disclosure (due at least 3 business days before closing if you have a loan), confirm wiring instructions by phone with the title company at a number you already know, and confirm utilities are set up, since new homes may be served by a MUD, a special utility district or a water supply corporation rather than a city.
New construction vs. resale: what changes
New construction | Resale | |
|---|---|---|
Contract | Builder's own contract or TREC 23-20 / 24-20 | TREC 20-19 resale contract |
Seller's Disclosure Notice | Not required for a never-occupied new home | Required for most sellers |
Option period | Depends on the builder's contract | Negotiated in Paragraph 5 |
Inspections | Phased; builder must allow access | Usually one inspection in the option period |
Warranty | Builder's written warranty | Optional residential service contract |
MUD or PID | Common in newer subdivisions | Depends on the neighborhood |
First-year taxes | May jump once the finished home is appraised | Based on the existing home, minus the seller's cap |
How Jorgenson Real Estate helps new-home buyers
Jorgenson Real Estate is an independent, veteran-owned brokerage based in Round Rock. We represent buyers of new homes across Central Texas: comparing builders and communities, reviewing builder contracts and incentives with you, pulling the MUD, PID and HOA numbers, coordinating phased inspections and walking the punch list. Because of builder registration policies, contact us before your first model-home visit.