New construction in DFW is one of the most active buyer opportunities in the country right now. Communities in McKinney, Melissa, Celina, Prosper, and beyond are selling briskly, and builders are offering incentives — rate buydowns, closing cost assistance, design center credits — that can genuinely change the math on a home purchase.
But new construction contracts are not standard Texas real estate contracts. They're written by the builder's legal team, they favor the builder, and most buyers sign them without really understanding what they've agreed to. This post covers the things that matter most.
Bring a Realtor to the builder's office — your first visit counts
This is the one non-negotiable. If you walk into a builder's model home without your own Realtor, you may forfeit the right to have one represent you in that transaction. Builder sales agents are professional salespeople whose job is to represent the builder. You need someone in your corner.
Importantly: having a Realtor doesn't cost you more. Builder commissions are pre-baked into the home's price. Your Realtor is paid by the builder, not you. There is no reason not to have representation, and often significant reason to have it.
Rate buydowns: how they work and what to watch
Builder rate buydowns are one of the most common incentives right now. A builder might offer to buy your mortgage rate down by 1–2 points, which can meaningfully reduce your monthly payment. The math is real — but so are the conditions attached.
Most builder rate buydowns are tied to using the builder's preferred lender. That's the catch. The preferred lender may or may not offer competitive terms beyond the buydown. Always get a comparison quote from an outside lender. The buydown should be additive to a competitive rate, not a trade for one.
Design center upgrades: the most common trap
Builders make substantial margin in the design center. Flooring upgrades, cabinet pulls, countertop tiers, outdoor living packages — each one is a high-margin add-on. The problem is that most design center upgrades do not return their full cost at resale. You're paying retail for things buyers in the resale market will value at a discount.
The general rule: upgrade what you can't easily change later (structural options, lot premiums, floor plan changes) and keep cosmetic upgrades modest. The kitchen faucet can be swapped out for $200 after closing. The structural footprint cannot.
Earnest money and cancellation policies
Builder contracts typically require larger earnest money deposits than standard resale transactions, and builder cancellation policies are significantly less forgiving. In many builder contracts, your earnest money is at risk if you cancel for reasons not specifically enumerated in the contract — including financing falling through if you don't use the builder's lender.
Read the cancellation clause carefully before you sign. Know exactly what triggers you must hit and when, and what happens to your deposit if you walk away.
Resale considerations: the question buyers skip
Most buyers in a new construction community are thinking about the home they're buying, not the one they'll sell in 5–8 years. But the choices you make now — lot position, floor plan, upgrade level — affect that future sale. A home backing to a major road, with an unusual floor plan, or with very personalized finishes will be a harder sell in a market full of other similar-age homes from the same builder.
Before you sign, spend ten minutes thinking about the buyer you'll eventually be selling to. Pick the lot and floor plan with that person in mind, not just your current preferences.
Thinking about building new in DFW?
Mike specializes in new construction — comparing builders, negotiating incentives, reviewing contracts, and protecting resale value. He goes with you to the builder's office.
Talk to Mike