Buying a new construction home in Texas is not the same as buying a resale. The builder's sales agent works for the builder — not for you. The contract the builder hands you is typically drafted by the builder's attorneys to protect the builder's interests. That does not make builders bad actors; it just means you need to ask the right questions before you sign anything or hand over a check.
These questions apply to most DFW new construction purchases, whether you are buying a spec home that is already framed or a to-be-built home that exists only on paper today.
What Are the Completion Timeline and the Delay Penalties?
Ask the builder's sales agent for an estimated completion window in writing. Most builders will give you a range — approximately eight to fourteen months is typical for a fully custom build, while production homes in established communities can close in as few as three to five months if the home is already under construction.
More important than the estimate is what happens when the builder misses it. Read the contract's force majeure clause carefully. Many builder contracts allow unlimited delays for supply chain issues, labor shortages, or weather — with no penalty to the builder and no right for you to cancel without forfeiting your earnest money. Ask directly: if the home is not complete within X months of the projected date, what are my options?
What Are the Earnest Money Terms — and Is Any of It Refundable?
Builder contracts in Texas vary widely on earnest money. Some builders require as little as $1,000 to $5,000. Others — especially in higher-price-point communities — require one to three percent of the purchase price, which on a $500,000 home means $5,000 to $15,000 upfront.
The critical question is refundability. Unlike a standard Texas resale transaction where TREC forms create a clear option period and termination right, new construction contracts are builder-drafted documents. Some allow a refund if the home is not completed by a specified date; others make all or most of the earnest money non-refundable after a short cancellation window. Ask the builder:
- Under what circumstances is earnest money fully refunded?
- Is there an option period or a free-look window?
- What happens to my deposit if financing falls through?
Can I Bring My Own Inspector, and When?
Texas law does not prohibit you from hiring a TREC-licensed inspector for a new construction home. What varies is the builder's willingness to accommodate inspections — and the timing windows they allow.
Ask the builder whether you can schedule a third-party inspection at three stages: foundation pour, pre-drywall framing, and final walkthrough. Pre-drywall is particularly valuable because it is the last opportunity to see the plumbing, electrical rough-in, and framing before it is covered. Some builders welcome third-party inspectors; others restrict access or allow only a final walkthrough inspection.
Do I Have to Use the Builder's Lender, and What Are the Incentive Terms?
Many DFW builders offer closing cost incentives — often approximately $5,000 to $20,000 — if you use their preferred or in-house lender. That incentive can be real value, but it comes with conditions.
Ask for the full incentive terms in writing. Common restrictions include: the incentive disappears if you switch lenders, the incentive is tied to a specific loan type, or the incentive is only available on certain communities or inventory homes. Compare the builder's lender rate and fees against at least one outside quote. The Consumer Financial Protection Bureau recommends shopping at least three lenders to compare loan estimates before committing.
Also ask: can I still receive the closing incentive if I use your preferred lender but my loan officer changes? Builder incentive programs can have fine print that surprises buyers at closing.
Is a Buyer's Agent Allowed, and How Does Registration Work?
Builder sales agents are licensed through the Texas Real Estate Commission (TREC) and represent the builder. You have the right to bring your own buyer's agent — a REALTOR® or licensed agent who represents your interests — to a new construction transaction.
However, most DFW builders have a registration policy: your buyer's agent must register you before or during your first visit to the community. If you visit the model home or sales office without registering your agent first, many builders will deny commission to that agent regardless of how much work they do later.
Ask the builder directly: what is your buyer's agent registration policy? Can my agent register me now, before I tour? What documentation do you need?
What Does the Warranty Actually Cover?
Texas new construction warranties are governed by state law, but what builders offer beyond the statutory minimum varies. Ask for the warranty document before you sign the purchase contract — not after. Key questions:
- What is covered in year one versus years two through ten?
- Is the warranty backed by the builder directly, or by a third-party warranty company?
- What is the dispute resolution process if a warranty claim is denied?
Many builders use arbitration clauses that limit your ability to pursue claims in court. That is not automatically a problem, but it is something you should understand before signing.
Buying new construction in Texas can be an excellent decision — you get a modern floor plan, energy-efficient systems, and a builder warranty that a resale home cannot offer. The builders operating in DFW run the range from large national production builders to small custom shops, and most are reputable. What separates buyers who close satisfied from buyers who close frustrated is preparation: asking these questions before signing gives you the information you need to negotiate, walk away if necessary, or move forward with confidence.