Updated November 2026
There is nothing quite like walking into a brand new home that nobody has lived in. New construction has been a big part of growth across Sioux Falls, Harrisburg, Tea, Brandon and the rest of the Sioux Empire. But buying new is a different process from buying resale, and the contract is usually written by the builder. Here is what I walk buyers through.
Bring Your Own Agent From the Start
The friendly person at the model home works for the builder. How a buyer's agent is paid on a new build varies by builder, so we will confirm it in writing up front. Many builders require that your agent be present or registered at your first visit. Call me before you walk into a model, and I can be there with you.
Types of New Construction Purchases
Spec or inventory homes: already built or under construction, with finishes mostly chosen
Build on a selected lot: you choose a plan and lot, then make selections
Custom builds: you work with a builder on your own design, often on your own lot
Each one has different timelines and levels of choice.
Reading the Builder Contract
Builder contracts are usually not the same standard forms used in resale. Things I look at closely with buyers:
Deposits and earnest money
How much is due, when, and is any of it refundable? What happens to it if financing falls through?
Completion date
Is there an estimated completion date or a firm one? What happens if it is late? Can the builder extend it, and for what reasons?
Price and escalation
Is the price fixed, or can it change if material costs rise?
Financing and appraisal
Can you use any lender, or does the builder offer incentives for using a preferred lender? Incentives can be helpful, but compare the full loan terms.
For anything legal, I recommend having a real estate attorney review the contract. I am not an attorney and I will tell you when a question needs one.
Allowances and Selections
Allowances are budgets for items like flooring, cabinets, lighting and countertops. If you pick something above the allowance, you pay the difference. Ask for a written list of every allowance and what it covers, then compare with the actual selections you like. A low allowance can make a base price look better than it is.
Change Orders
Changing something after selections are made usually requires a written change order, which may cost extra and can affect the schedule. Get every change in writing, with the price and any time impact, before work starts.
Inspections During the Build
City inspections check code requirements at certain stages. An independent inspector works for you and can look at different things. Many buyers schedule:
A pre-drywall inspection to see framing, plumbing, electrical and insulation before walls close
A final inspection before closing
I first studied architectural engineering before real estate, so I like to walk the site with buyers during construction too.
The Final Walkthrough
Before closing, you will walk the home with the builder. Bring your list and look for:
Paint and drywall touch-ups
Doors and windows that open, close and lock properly
Working appliances, fixtures and outlets
Proper grading and drainage away from the foundation
Finishes that match your selections
Anything not finished goes on a written punch list with completion dates.
Warranty
Most builders provide a written warranty. Read it before you sign: what is covered, for how long, and how to request service. Keep a running list of items to report during your warranty period.
Assessments, Covenants and Dues
New subdivisions may have special assessments, covenants or association dues. Ask for the documents early, and check city or county records for assessments.
Thinking About Building?
I represent buyers, not builders, from first model visit to final walkthrough. Learn more on my buyers page, read how new construction compares with resale in Harrisburg, or explore my neighborhood guides.
Call or text me at 605.999.3522 or email tyler@amystockberger.com before your first model home visit.
Tyler Stunes, Amy Stockberger Real Estate. This post is general information, not legal advice. Please have an attorney review builder contracts.
Sources
General process information; no statistics cited.
City of Sioux Falls building permits and inspections: https://www.siouxfalls.gov
HUD Buying a Home: https://www.hud.gov/topics/buying_a_home