New construction can look irresistible. Everything is new, shiny, and presented as turnkey. But right now builders are under pressure. Many have large inventories of speculative homes and a strong incentive to push buyers to close before the house is truly finished. If you let them rush you, you could end up living with incomplete work, missed upgrades, or ongoing headaches for months.
Why builders are rushing closings
Several market forces are at work:
- High spec inventory. Many builders are sitting on months of unsold, move in ready homes that they built without a buyer. That creates urgency to convert inventory into cash.
- Vertical integration. Builders often use preferred lenders and title companies that they own or are affiliated with. That creates a built in pipeline to close loans quickly and recover fees.
- Cash flow pressure. When sales slow, builders push to close more homes, sometimes before all finishing work or inspections are complete.
Your rights and the one rule that matters
Under RESPA, you have the right to choose your mortgage company and your title company. No one can force you to use the builder’s preferred lender or title provider. That matters because the builder benefits when their affiliated companies process your loan and closing.
Never forget this: you are the one paying the settlement fees. That means you get to decide who is involved in the loan and closing process. Use your options to protect your interests.
Red flags to watch for during the final walkthrough
Be on alert for these common tactics and problems:
- Walkthroughs scheduled too close to closing, especially around holidays. If your final walkthrough is days before closing, subs and crews may not be available to finish punch list items.
- Direct contact with the builder instead of your agent. Builders should communicate through the buyer’s agent. If they call you directly to push a walkthrough or closing, proceed carefully.
- No certificate of occupancy or missing final inspections. Lenders may pressure to close anyway when the builder has a stake in the mortgage company.
- Incomplete landscaping, missing appliances, or visible defects. If sod is not down, appliances not installed, or there are cosmetic and functional imperfections, do not accept the house as is.
How to protect yourself: practical checklist
Follow this checklist during construction, final walkthrough, and closing:
- Choose your own lender and title company unless the builder provides a written concession that clearly outvalues your alternate costs. Verify any claimed credits on the settlement statement.
- Bring an independent home inspector for the final walkthrough. A pro will find issues you might miss.
- Bring your own blue painters tape and mark every defect or blemish. Tape is removable and makes it easy to document exact locations for punch list items.
- Require the certificate of occupancy and all final inspections before signing anything that transfers possession.
- Get the punch list in writing with clear deadlines and a plan for verification. Do not accept vague promises.
- Refuse to close if the work is not complete to your satisfaction. If you are paying market price, the home must be finished and correct.
- Get everything documented on the settlement statement and in written addenda. Avoid verbal agreements that are unenforceable later.
What to say when the builder pressures you
Use firm, simple language. Examples of effective responses:
- “We will not close until everything on the punch list is complete and inspected.”
- “Please provide the certificate of occupancy and final inspection reports before we schedule closing.”
- “All agreements need to be in writing and reflected on the settlement statement. We will not sign otherwise.”
“If it ain’t perfect, we will not be going to closing.”
When to walk away
If the builder refuses to commit to deadlines, dodge written agreements, or expects you to accept incomplete work, be prepared to walk away. There are other builders and other opportunities. You do not have to accept a home that does not meet the contract terms or your standards.
Final takeaway
Buying a new construction home can be a great experience if you stay firm and protective of your rights. Insist on clear, written commitments, use your choice of lender and title provider, document every imperfection, and do not allow a rushed closing to become a lifelong headache.
New homes are supposed to be new and finished. Hold the line and get exactly what you paid for.
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