New construction
Buying new construction in Indiana: read beyond the model home
Compare the lot, builder contract, upgrades, financing incentives, inspection access, and warranty before buying a newly built Indiana home.
The model home answers a design question. It does not tell you the final price of your lot, which finishes are included, or what happens if completion moves. Before comparing a new build with a resale, turn the builder’s proposal into a written description of the home, the money, and the responsibilities you would accept.
Build a price for the home you would actually receive
Request a written specification for the exact lot and floor plan. Separate the base price, lot premium, structural options, finishes, allowances, and anything you must arrange after completion. Ask explicitly about landscaping, appliances, window coverings, and utility connections rather than assuming the model shows standard inclusions.
Keep recurring costs beside the purchase price. Ask for association documents and fees, insurance quotes, and an explanation of the property-tax estimate. A bill reflecting land or partially completed construction is not a reliable budget for a finished home. Revisit your cash reserves after accounting for the move and immediate purchases.
- Which displayed features are upgrades?
- What is excluded from the contract price?
- Who can approve a substitution, and how is its price documented?
- What cash is due at signing, selections, and closing?
Understand deposits, changes, and delays before signing
Ask your representative or attorney to explain the builder agreement, including deposits, cancellation rights, financing conditions, change orders, dispute terms, and the process if completion is delayed. Do not assume a builder contract gives you the same options as a resale contract you have used before.
Match the construction schedule to your own housing plan. Ask how completion is defined, when a closing date becomes firm, and what happens to storage, temporary housing, or a rate lock if the timeline changes. A verbal target date is not the same as a contractual commitment.
Compare financing incentives on the whole loan
If the builder offers a credit through a preferred lender, request the eligibility conditions and compare written loan estimates with another lender using the same price, down payment, loan term, and timing. Include fees, mortgage insurance, cash to close, and the payment after any temporary incentive ends.
Ask who pays to extend a rate lock and under what circumstances. A closing credit can be useful without making that loan the least expensive choice. Have the lender explain whether the home’s completion status affects underwriting or the appraisal process.
Plan independent review before the walls and deadlines close
Clarify in writing whether independent inspections are allowed, at which stages, and how access and notice work. Ask the inspector what can be evaluated at each stage. A municipal inspection, lender appraisal, and your own inspection have different purposes; none is a substitute for understanding the others.
At the final walkthrough, document incomplete items and ask how they will be resolved under the agreement. Confirm the status of any required occupancy approvals with the responsible authority. Do not assume a punch list automatically permits you to delay closing or withhold funds; ask the professionals advising you.
Read the actual warranty and its claim procedure
The FTC distinguishes a builder warranty from a separately purchased home service contract. Coverage varies by component and agreement. Read your warranty for exclusions, notice requirements, coverage start dates, remedies, and any mediation or arbitration provisions rather than assuming a universal coverage period.
Keep the signed specifications, change orders, walkthrough record, warranty, and claim correspondence together. The FTC recommends putting repair requests in writing and retaining a record. Schedule maintenance according to the applicable instructions; owning a new home still requires a maintenance budget.
- Who is responsible for the warranty: the builder or a third party?
- Where must a claim be sent, and what proof is required?
- Which defects, components, and consequential expenses are excluded?
- How are unresolved items tracked after possession?
Sources & further research
Editorial reference check: November 2, 2026. Verify current terms, availability, boundaries, and conditions with the linked agency or operator. General education—not financial, tax, legal, or inspection advice.