There are a few options available to the new home buyer prospect. They can choose to buy land and have a custom home built. Or another alternative is to buy one of the new homes that are being built in a new construction area like a subdivision. No matter which option is chosen the prospective buyer needs to ask some important questions before signing on the dotted line.

Important Questions For The New Construction Build

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When buying a new home in a new construction area the builder will have set terms and conditions that will include what comes with the purchase and what doesn’t. As a buyer of one of these homes, it is important to know what these are such as:

The Lot

  • Is the lot the house is situated on included in the price?
  • Are there price variances with the different lots?
  • Are there certain features with the lots that cannot be opted out of?
  • If the price of the lot is not included is the price firm or is it negotiable?

The Completion

  • A new home buyer will need to know when they are able to move into the home and the questions asked should include:
  • What will be the completion date?
  • Does the timeline for completion include the completion of the landscaping?
  • When with the entire construction site be completed?

Are there any warranties?

  • Depending on where the buyer is making their purchase there may be mandatory warranties in place. Questions to ask are:
  • What mandatory warranties are in place?
  • Does the builder offer any warranties outside of those that are mandatory?
  • Are there any additional warranties that can be purchased?
  • How long does each of the warranties last?

The Materials Used

  • A new home build is comprised of many different materials. Homebuyers want to know:
  • What materials are being used for the exterior?
  • What materials and finishes are being used for the interior? This will include those used for counters, floors and cupboards for example.

What Upgrades Are Available

  • Most builders will offer options for upgrades the new home buyer will at least want to know what their choices are which might include:
  • Are there options for additional or different styled windows?
  • Are there options for different layouts?

What Items Are Included With The Purchase?

Most that are buying a new home build want new items to go with the new home. Many builders will include some of these, but the home buyer needs to know exactly what these are and be sure they are included in the purchase price such as:

  • Stove
  • Fridge
  • Washer
  • Dryer
  • Microwave

Will The Landscaping Be Completed By Occupancy Date?

New home builds in a construction zone often means homes are completed at different times. The goal of the builder is to get the homes sold completed first. This means that some of the new homeowners are moving in while the area is still under construction. They need to know:

  • Will the landscaping of their property be completed by the move-in date?
  • Will there be easy access to their specific home while the construction phase is ongoing in the subdivision?
  • Are there any additional options when it comes to landscaping?

Is there cost escalations?

When buying one of these homes the buyer will have to sign a contract. It is important that every word of this is read before signing. Some specific questions should be asked about it even before this such as:

  • Are there going to be any hidden costs?
  • Is there a clause in the contract that states there may be cost escalation costs to be covered by the buyer?

What are the rules and regulations?

Sometimes with these types of purchases, there are homeowners associations. For others, there are not. The new home buyer wants to know which it is and also:

  • Has the builder set any rules and regulations that pertain to what can be done with the property?


New home buyers in new build construction areas may have questions regarding the financing such as:

  • Does the builder offer financing options?
  • Are there any incentives being offered if the new home buyer finances through the builder?

Building A Custom Home

For those that are going to purchase property and have a custom home built there are several questions that the new home should ask the building contractor.

Builder’s Credibility

The new homeowner needs to know the builder is going to be reliable and to determine this ask questions such as:

  • How long the builder has been in business?
  • Is the builder able to provide references?
  • How many homes does the builder complete on average each year?
  • Does the builder ever have issues with completion dates?
  • Are there any completed homes by the builder that can be viewed?
  • Is The builder registered with Tarion?
  • Has the builder had any warranty claims against them?
  • How many inspections during the building process does the builder allow?
  • What warranties is the builder offering?

The Costs

The customer having a new home built wants to know what the costs will be along with the financing arrangements, and should ask:

  • What is included in the price quoted?
  • Will there be any additional or hidden costs?
  • How much of a deposit is required?
  • Who will be paying the HST?
  • Who is responsible for paying for the enrollment with Tarion?
  • Does the builder offer any financing options?

Some of the questions that need to be asked in either one of these options for a new home build are similar although each of them are more applicable to the actual build. For each of these types of home builds there are pros and cons. It does take some knowledge to be able to make informed decisions. Ideally relying on a qualified and experienced real estate agent to assist with the builds can help to reduce some of the common mistakes and risks that do exist.

For those that are having a home built on land, they have purchased there should be a set of questions that are asked concerning the land itself if the purpose is to build a new home on it.

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