12 New Construction Mistakes to Avoid in Georgia
A new house is not the same as a problem-free house, and a builder's contract is not the standard contract.
Metro Atlanta has a lot of new building, especially in the outer suburbs. Buying from a builder is a different transaction from buying a resale: the builder writes the contract, the sales agent works for the builder, and timelines can move. See our guide to buying new construction in Georgia.
1. Visiting the model without your own agent
Many builders require your agent to be with you, or registered, on the first visit to represent you. Go alone once and you may not be able to add an agent later.
Check the builder's registration policy on its website or call the sales office before you go. Some builders require your agent to be present; others accept a registration form or email in advance.
2. Assuming the sales agent represents you
The on-site agent works for the builder. They can be helpful and honest, but their job is the builder's interests.
3. Signing the builder's contract without review
Builder contracts differ from the standard Georgia purchase agreement and usually favour the builder on delays, changes and deposits. Have your agent — or an attorney — read it first.
Look in particular at what happens to your deposits if your loan is denied, how long the builder can delay completion, and whether the builder can change materials or features. Ask about anything you don't understand before signing.
4. Skipping independent inspections
County inspections check code minimums. Hire your own inspector for a pre-drywall inspection and a final inspection before closing, and again before the warranty ends.
A pre-drywall inspection lets an inspector see framing, wiring, plumbing and insulation while they are still exposed. A warranty inspection before the first year ends catches settling, leaks and finish issues the builder should fix.
5. Judging price by the model home
Models show upgrades. Ask for the price of the base home and a list of what is standard.
6. Overspending on upgrades in the design studio
Upgrades are often rolled into the loan and priced at retail. Some — like flooring or lighting — may be cheaper to do later; structural changes are not.
Prioritise things that are hard to change later: structural options, extra outlets, plumbing locations and insulation. Paint, lighting and many finishes can be updated after you move in, often for less.
7. Taking incentives without comparing the full cost
A builder's closing-cost credit or rate buydown often requires using their preferred lender. Compare the total cost with an outside lender's quote. See builder incentives.
Ask the builder's lender for a Loan Estimate and ask an outside lender for one on the same day. Compare the rate, points, fees and total cash to close, not just the size of the incentive.
8. Ignoring the deposit terms
Builder earnest money and upgrade deposits are often non-refundable. Know exactly what you can recover if your financing fails.
9. Not planning for delays
Completion dates move. If you are selling a home or ending a lease, build in a buffer and read what the contract says about delays.
Rate locks can expire if construction runs long. Ask how long your lock lasts, who pays for an extension, and whether the builder will cover it if the delay is theirs.
10. Forgetting to research the HOA
New communities often have an HOA controlled by the builder until it is turned over to residents. Ask about fees, planned amenities and how fees may change.
11. Not checking what will be built next door
Ask about future phases, commercial parcels and road plans. The empty lot behind you won't stay empty.
12. Missing the warranty deadlines
Builder warranties have different terms for workmanship, systems and structure. Keep a list of issues and submit it before each deadline.
Keep a dated list with photos of every issue, and send requests in writing so there is a record. Builders usually schedule warranty visits, but the deadlines are yours to meet.
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Common questions
Do I need an agent to buy new construction?
You don't have to have one, but your own agent represents you, not the builder. Register them on your first visit.
Should I inspect a brand-new home?
Yes — pre-drywall and before closing. New homes can have defects that code inspections don't catch.
Do I have to use the builder's lender?
Usually not, but incentives may depend on it. Compare the full cost of both options.
Can I negotiate with a builder?
Often on closing costs, upgrades or rate buydowns more than on base price, especially on homes that are already built.
Read next
General information for Georgia home buyers, not legal, tax or lending advice. Loan programs, rates, limits, tax rates and insurance terms are set by lenders, agencies, counties and insurers and change — confirm current figures with them, and have your closing attorney review anything you sign.