FAQs
How long does it take to build a new home? Most production homes take 6–9 months, while semi-custom or full custom homes may take up to a year or more. If you need a home sooner, many builders offer quick move-in (spec) homes that may allow closing in as little as 30–60 days. Is it more expensive to build new compared to buying an existing home? In many cases, new construction can cost slightly more upfront than a similar resale home because you’re paying for brand-new systems, energy efficiency, and builder warranties. However, pricing varies widely by area, and builder incentives (such as closing cost credits or discounted upgrades) can help narrow the gap. Is it worth building new versus buying an existing home? Building new allows you to personalize your home and enjoy brand-new systems with lower early maintenance, modern energy efficiency, and builder warranties. While new construction can carry a higher upfront price and a longer timeline, many buyers value avoiding competition on older homes and securing a home that fits their needs from the start. When should I involve my REALTOR®? Before visiting any model homes. Many builders require agent registration at the first visit to ensure full representation. Can I use my own lender? Yes. Some builders offer incentives for using theirs, but you’re free to shop around for the best rate and terms. What warranties do new homes come with? Minnesota law requires statutory warranties: 1 year on workmanship and materials, 2 years on mechanical systems, and 10 years on structural elements. Many builders also provide additional warranty programs. What if I want to build a fully custom home on my own lot? Building a custom home is possible, but it often involves additional steps such as lot selection, builder bids, and construction-loan financing. With the right plan and guidance, the process can be manageable—and incredibly rewarding.
Can I customize a new construction home? Customization depends on the builder and the construction stage. Production builders often offer preset packages, while semi-custom and custom builders allow more flexibility —including structural changes and broader finish selections. Do I need a real estate agent when buying a new construction home? While not required, having your own agent is highly recommended. Builder sales reps work for the builder—your Realtor represents you. In most cases, there is no cost to you, since builders typically pay buyer-agent commissions. What’s included in a “base price”? The base price includes the home with standard finishes on a standard lot. Upgrades, lot premiums, and structural options increase the final cost. How much do new homes cost in the Twin Cities Metro? Prices vary by location and home type, but in general, new townhomes often start in the mid-$300s, and new single- family homes commonly start in the $400s. Move-up homes typically fall in the $500s–$700s, while luxury or custom builds can reach $800K and beyond. Are there financing differences with new construction? Yes—there are two common paths. In most developments, the builder finances construction and you close with a standard mortgage when the home is complete. For custom builds on your own lot, a construction loan may be required. What if I need to sell my current home first? This is very common. Options include negotiating rent- backs, extended closings, or selling shortly before your new home is ready. With careful planning, many clients move directly into their new construction home without disruption. Do I need a home inspection on new construction? Yes. Even new homes can have issues. A third-party inspection ensures quality and accountability before closing. Are model homes for sale? Yes, sometimes. Builders often sell their model homes at the end of a development cycle—usually with top-tier finishes and furnishings.
Brandon Doyle | brandon@doylerealestateteam.com | 612–702–7687
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