New home construction: what to know

What the job involves, what changes the price, and what to ask a pro.

What new home construction is

New home construction builds a house from the ground up on a prepared lot. The work covers excavation, the foundation, framing, roofing, the mechanical systems, finishes and inspections, usually from an architect's or builder's plans. Buyers choose it when they want a new house built to a plan rather than an existing home.

Signs you need it

  • You own a buildable lot with utilities at or near the property line and want a house built on it
  • You have chosen a floor plan from a builder and need the lot, site work and approvals handled
  • Your current home is too small or poorly laid out, and a rebuild on another site makes more sense than an addition
  • You want modern insulation, framing and systems in a house you can design around your needs
  • You want one team responsible for the schedule from the first excavation to the final walk-through

What the pro does

  • The builder checks the lot for setbacks, easements, grade and soil conditions, then lays out the house on the site
  • Excavation and grading prepare the building pad, and the footings and foundation are formed and poured
  • The framing crew builds the walls, floors and roof, and the house is dried in with sheathing and weather barrier
  • Plumbing, electrical and mechanical rough-ins go in before the walls are closed, and each is inspected
  • Insulation, drywall, finish carpentry, flooring, cabinets, fixtures and exterior trim are installed in sequence
  • The builder runs the final inspections, corrects any punch list items and hands over the house with records and warranties

What changes the price

Every job is different, so we do not publish prices. These are the things that move the quote up or down.

  • Lot condition, such as slope, rock, poor soil, tree removal and the distance to utility connections
  • Size, shape and roof complexity of the house, since each adds framing and labor
  • Foundation type, such as a slab, crawl space or full basement, and the soil it must bear on
  • Finish level and the choices made for flooring, cabinets, fixtures and exterior materials
  • Energy and mechanical systems chosen, such as heat pumps, insulation levels and ventilation
  • Permit, impact and utility connection fees that differ by jurisdiction
  • Schedule changes made after the contract is signed, which add labor and carrying time

What a written quote should spell out

  • The house plan, elevations and specifications the price is based on
  • Site work, excavation and foundation scope, with soil conditions noted
  • Allowances for finishes, fixtures and appliances, and how upgrades are priced
  • Who pays for permits, impact fees, utility connections and inspection fees
  • Draw schedule tied to completed milestones, and how change orders are approved
  • Warranty coverage for structure, systems and workmanship, with the length and what is excluded

Questions to ask before you hire

  • Who will be the licensed general contractor on record, and can I check their license and insurance?
  • What soil and drainage findings do you expect on this lot, and who will test the soil?
  • Which inspections happen during construction, and do I get to attend the framing and final walk-throughs?
  • How do you manage delays from weather, material shortages and inspection scheduling?
  • What is included in the warranty for the structure, the roof, the systems and the finishes?
  • Can I see a finished home you built on a similar lot with the same plan style?
  • How are upgrades priced, and how long can I wait before I must decide on finishes?

Red flags

  • The builder cannot show you a licensed contractor record, insurance or a list of finished homes
  • They skip a soil test or a site survey on a lot that clearly has slope, fill or water issues
  • They ask for large deposits before permits are issued or before the lot is confirmed buildable
  • They will not put the allowances, the upgrades and the change order process in writing

What you can do yourself

You can gather your lot survey, utility locations, the house plan and your finish choices, and you can attend design meetings and walk the site with the builder. Do not dig, grade, pour or frame the house yourself, and do not do structural, gas or electrical work. Hire a licensed builder for the full build.

Licenses and permits

New home construction is commonly done by licensed general contractors, and nearly every new house needs a building permit with inspections at set stages. Check with your state or local licensing agency and your local building department for contractor licensing, permit and inspection rules that apply to the lot.

New home construction questions

How long does a new home take to build?

The timeline depends on the house size, the lot, the weather, the permit review and the material supply. Ask the builder for a written schedule with milestones, and ask how it changes if the permit is delayed.

Should I hire an architect as well as a builder?

An architect designs the house and prepares drawings. A builder constructs it. Some builders offer plan packages, and some buyers hire an architect for a custom design. Decide which path fits before you sign a build contract.

What inspections should I expect?

Expect inspections for the footings, the foundation, the framing, the rough-in of plumbing and electrical, the insulation and the final. Ask the builder which ones you can attend and how results are shared with you.

About this guide

This national guide is written and checked by infinibell. Rules and conditions differ by place, so local pros are credited on guides for the cities they serve, not on national ones.

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