Buying New Construction Homes in Northern Virginia

Our careers in real estate began with representing a home builder, managing both brokerage operations and the sale of new communities in Fredericksburg, King George, Stafford, and Spotsylvania. During that time, Maryanne and I were surprised by how many buyers entered builder contracts without a real estate agent. Here’s what we discovered:

• Many buyers thought they weren’t allowed to bring an agent to a new home purchase.

• Others assumed skipping an agent would put them in a better position to negotiate a lower price.

• Some believed builder transactions didn’t require professional representation.

• First-time buyers often assumed they would have to pay the agent’s commission out-of-pocket.

What Actually Happens

While marketing and agent commissions are built into the home’s price, builders rarely reduce prices for unrepresented buyers. In fact, showing up to a model home without your agent can sometimes disqualify you from having one. Why? Because representation often leads to requests for contract changes—such as eliminating lot premiums, removing transfer taxes, or adding incentives—and builders aren’t eager to renegotiate on the buyer’s behalf.

Still, builders know it’s in their best interest to work with agents, especially since we represent qualified buyers actively comparing communities across the region.

Lower prices rarely happen in new construction, especially when inventory is tight. Instead, you’ll see offers like:

• Half-price design upgrades

• Free structural options (e.g., rec rooms, decks, morning rooms)

• Closing cost assistance with use of the builder’s lender

But when do meaningful discounts occur? It all comes down to timing.

When to Negotiate on New Homes

1. When Builders Are Closing Out a Subdivision

At the end of a project, builders worry less about future appraisals and focus on clearing inventory. Marketing efforts are shifting to newer developments, and the last few homes—often on less desirable lots—can come with deep discounts. If you like the site, it’s time to negotiate.

2. When Contracts Fall Through

Builders aim for 19% profit margins. A canceled contract leaves them holding a completed home, which means insurance, interest, and loss. Watch for steep cuts: a $735,000 home in Potomac Shores dropped to $679,000, then again to $659,000 within a month after a contract fell through.

3. When Quarterly Sales Are Down

Publicly traded builders need to meet sales targets. If numbers are soft, they’ll host promotions like the “Welcome Home Sales Event,” offering $10,000 off or closing cost incentives. In these moments, we go beyond the promotion and negotiate for better terms on behalf of our clients.

4. Timing Matters

Negotiating power peaks in:

• July and August (before back-to-school)

• November through January (holiday/winter slowdown)

For example, in January 2015, we reduced a client’s contract from $664,000 to $611,000. If they had waited until February, when traffic picks up, that price would’ve been difficult. Likewise, in August 2015, we bought the best lot in a Stafford subdivision—waiving a $40,000 lot premium and securing 50% off design upgrades—by negotiating aggressively on August 31.

Why You Need an Agent

Builder Reputation

Experienced agents know which builders stand behind their products. We’ve helped clients through the entire process—from contract to warranty repair—and know which companies consistently deliver quality.

Experience Counts

The most important document in any builder contract is the standard features sheet. It details the materials, finishes, and systems included. Some builders omit this entirely from the contract. Don’t proceed without it—in Virginia, only written agreements are enforceable.

Verbal promises? They don’t count. We’ve seen builders make handshake deals that later disappeared. We won’t let that happen to you.

Critical Inspections

We ensure your contract includes scheduled inspections:

• Site inspection and lot placement approval

• Framing and structural walkthrough

• Wiring and mechanical check before drywall

• Final walkthrough inspections

These inspections confirm that everything—standard features and upgrades—is being built to spec. We’ll also advise you on change order deadlines, which many buyers miss without guidance.

As shown in our walkthrough photos, we’re not shy about using blue tape. If you’re not working with us, at least hire an inspector with construction knowledge. City or county inspections only check code compliance—not workmanship.

Financing Strategy

Builders often require you to pre-qualify with their preferred lender, which is legal. However, it’s illegal for builders to force you to use their lender exclusively. We’ve seen builder-affiliated lenders offer “free” upgrades, only to make up the cost through high rates or hidden fees.

That’s why we review your financing options and compare builder offerings with our trusted lender network—to find what truly benefits you.

Appraisal Challenges

Builder reps may try to influence appraisals by only showing sales within the subdivision. But if those comps don’t support the contract price, you’ll be expected to pay the difference out of pocket.

We’ve stepped in on behalf of clients to find independent comparable sales in surrounding communities—helping secure fair value and avoid financial strain at closing.

Closing Process

Before settlement, we review every financial document to ensure accuracy and transparency. We stay in close contact with the builder’s transaction coordinator and your lender to confirm that all deadlines, inspections, upgrades, and financial agreements are documented and finalized.

What It Costs to Build a Home

According to the National Association of Home Builders (NAHB) 2015 “Costs of Constructing a Home” report, the average $468,318 home on a half-acre lot breaks down as follows:

• Interior finishes – 29.6%

• Framing – 18%

• Exterior finishes – 15%

• Systems (HVAC, plumbing, etc.) – 13.1%

• Foundation – 11.6%

• Final steps (landscaping, cleanup, etc.) – 6.8%

• Site work – 5.6%

• Miscellaneous – 0.5%

Builders We've Worked With

We’ve helped clients successfully purchase new construction from:
Atlantic Builders, Augustine Homes, Beazer Homes, Brookfield Residential, Centex Homes, Del Webb, Drees Homes, D.R. Horton, Hazel Homes, Hylton Group, K. Hovnanian, Lennar, M/I Homes, NVHomes, Pulte Homes, Richmond American Homes, Ryan Homes, Ryland Homes, Sona Homes, Stanley Martin Homes, Toll Brothers, Tricord Homes, Van Metre, and Winchester Homes.