How to Buy a New Construction Home in Virginia

Buying a new construction home in Virginia has many obvious perks.

You can oversee the construction from start to finish, potentially customize certain features, and move into a brand new home; a new construction home in Virginia likely means no renovations or fixes for multiple years. But, the process differs from buying a resale home.

Each developer works differently, and many have specific timelines and procedures when selling a new construction home, whether it’s a single-family, fully-customized house or a townhouse in a planned community.

Working with a buyer’s agent experienced in new construction will be the easiest route you can take. But for home buyers who want the basics of buying a new construction home in Virginia, our guide will take you through the essentials. 

Buying a new construction home in Virginia

• What is a new construction home in Virginia?
• The pros and cons of buying new construction
• Hiring a buyer’s agent
• Finding the right neighborhood
• Getting pre-approved
• Working with an experienced builder
• Customizing your home
• Knowing what you’re paying for

What is a new construction home in Virginia?

New construction homes are fully or semi-customized residential properties that are built from the ground up. New construction typically features the latest design trends, energy-efficient appliances, and modern amenities, making them an attractive option for homebuyers who prefer a turnkey property.

It is common in Virginia for developers to purchase large portions of land and subdivide them into individual lots. Those lots are typically sold to interested buyers and later host the newly constructed homes.

New construction home styles vary in Virginia. Some may be townhouse communities managed by a Homeowner Association; buyers own the home itself but share outside spaces. Other developers cater to buyers who want a fully-customized home. They’ll help you create a design to include every feature you’d like.

Pros of buying new construction

• Customization: Buyers can sometimes work with builders to design their ideal home, tailoring the layout, finishes, square footage, and floor plan. It’s important to note that location and development’s limitations can affect the customization options available.
• Move-in ready: You’re essentially moving into a turn-key property. There are no renovations to worry about; just furnishing your brand-new home. 
• Energy efficiency: New construction homes often incorporate energy-saving technologies, potentially resulting in lower utility bills and a smaller environmental footprint.
• Lower maintenance: With new appliances, systems, and materials, new construction homes generally require less maintenance than older properties.

Cons of buying new construction

• Cost: New construction homes can be more expensive than existing homes regarding purchase price and customization expenses.
• Time: Building a new home can take anywhere from several months to a few years, depending on the complexity of the project and any unforeseen delays.
• No prior history: You don’t get to see what the home looks like until it’s fully built. The design layout and pictures are a close estimate of the final product, but you won’t know what you’re getting until you enter the new home.

Hiring a buyer’s agent

Working with a buyer’s agent experienced in new construction can make buying a new home much smoother. 

New construction real estate usually involves specific nuances that are best handled by an expert broker. For instance, builders work via a specific timeline and handle customizations and designs in a unique way. An expert agent can help you navigate these areas to ensure you get what you want from your new construction home.

They will help you inspect critical areas of the home, leverage their knowledge of local home prices to negotiate the best possible deal, and help you perform essential due diligence. 

They’ll also have experience dealing with local builders and developers and can point you in the right direction as you decide who to work with.

Most importantly, your agent protects your best interests throughout the transaction. Be sure to bring your agent with you the first time you visit a new construction showing, as some developers have strict rules about representation and commissions if you show up alone but enlist an agent’s services afterward.

Apart from helping you ask necessary questions about the project details and ensuring you get the best price during negotiations, your agent can help you save money on your new construction purchase via commission rebates.

For example, Prevu will offer the largest rebate in Virginia, allowing buyers to potentially receive up to 1% of their home's purchase price after closing. The extra cash back can help offset expensive closing costs and jumpstart your furnishing budget for your new home. 

Finding the right neighborhood

Your final product may have all the bells and whistles you want, but your daily life can depend heavily on your chosen neighborhood. 

Many Virginia homebuyers scout areas that provide a convenient commute to DC, while others explore neighborhoods that offer easy access to outdoor activities and recreation. 

It’s crucial to decide on an area that aligns with your needs before committing to a new construction home purchase. After all, new construction homes usually require a significant investment, and you want to ensure you’ll have access to everything you need before committing. 

Take the time to explore Northern Virginia cities like Arlington and Alexandria, and venture further into Virginia’s suburbs. If you find an area you like, take a drive or the Metro during rush hour. It can be a great barometer to determine what your daily commute may look like and give you an idea of your price range. 

It may be time-consuming, but it’s a step worth taking to ensure peace of mind once you make that down payment.

Getting pre-approved

Getting a mortgage pre-approval is necessary for today’s market. Both sellers and developers will expect offers from qualified buyers, and a mortgage pre-approval guarantees that you can proceed with the transaction.

However, getting a pre-approval for a new construction home can be more nuanced than loans for a resale home. 

Some lenders may pre-approve a loan only after the construction reaches a specific point in its timeline. Others may want to see the home finished before approving a mortgage, making it difficult to strengthen your offer with a pre-approval.

In some cases, using builders’ financing can be the simplest option. Builders typically have relationships with trusted lenders as they often need funding for new development. Those lenders will usually have more relaxed requirements concerning the timeline and state of the new construction, allowing you to secure financing faster.

But remember that the loan terms may not be the best available, so it’s important to evaluate your options. 

Explore various lenders with your agent and consider the best choice for your specific scenario. If you’re determined to make your offer attractive, it may be worth considering the builder’s lender. If you’re concerned about high rates and monthly payments, give yourself time to find the best terms.   

Working with an experienced builder

Choosing the right builder is as important as deciding on the best neighborhood. Each developer has a different approach to their projects, and it’s crucial that you take the time to interview various builders. 

Your buyer agent will help guide you on this journey, as they will try to ensure the builder you work with knows how to design the home you want. 

For a fully-customized home, having a good idea of what you want can make the process smoother. An experienced builder can expand on your idea, highlight what is possible or not, and guide you through the best possible way to achieve the ideal design for your new home.

If you’re exploring townhouse communities, you’ll want to ensure the builders are reputable and have worked extensively in Virginia. 

Customizing your home

Most new construction single-family homes are fully customized projects. You generally work with a builder to select the materials, layout, and specific features. The process may take longer due to different variables that can affect the project, but you usually have full control over the project.

New construction projects, such as townhome communities in Virginia, are typically fully-customizable or semi-customizable. It’s common for these developments to come with most of the features pre-planned, yet some allow buyers to decide on color schemes or materials.

If customization is important for you, be sure to ask the builder or developer everything you can about available options and which aspects of the new construction are customizable.

Knowing what you’re paying for

It’s essential to know as much as possible about the development before you buy, and it’s easy to overlook specific details if you’re not experienced in new construction.

A buyer’s agent will know what to look for to ensure you make an informed decision, such as reviewing the timeline and finalizing agreed-upon features.

They’ll also help you negotiate the best price for purchasing a specific lot. Many pre-planned developments have various lots available for sale and charge a premium for the most desirable ones.

For example, cul-de-sac lots or lots that have unobstructed views may have specific lot premiums as an additional charge, which can add to an already expensive price tag. Your agent will be an invaluable resource to help secure the best possible terms.