New construction buyer's guide · Southwest Twin Cities
Written by Melissa + Blake Suddath · REALTORS® at eXp Realty
A straight, no-spin guide to buying new construction in the southwest metro, picking the builder, reading the contract, handling lot premiums and incentives, and timing the close. No sales script, just what actually matters.
Yes, and it matters more than most buyers realize. This is the single most important thing to understand before you walk into a builder's sales office. When you visit a new-construction community, the sales agent in the model home works for the builder. Their job is to represent the builder's interests, which means you'd be negotiating without representation.
A buyer's agent represents you. We review the purchase agreement with you before you sign, negotiate on your behalf, and guide you through every phase from contract to close. How we are compensated is explained in your buyer representation agreement before you sign anything.
An important step: tell the builder you have an agent on your very first visit. Many builders ask that agents be registered at the first visit, and if you tour a model home on your own, the builder may not recognize your agent later. Bring us with you, or have us register you, before your first visit.
Choosing a builder
What actually matters when you compare builders? Beyond the model-home polish, it comes down to four things: how the builder handles warranty claims, what's standard versus an upgrade, lot premiums, and the real value of the incentives. Across the southwest metro you'll meet national builders like D.R. Horton, Lennar, M/I Homes, and Pulte alongside regional and local custom builders.
Minnesota new builds carry a statutory warranty: 1 year on workmanship, 2 years on mechanical systems, 10 years on structural defects. What matters is how a builder handles claims, so ask about their process and read the warranty before you sign.
The base price gets you a home, not necessarily the home in the model. Flooring, fixtures, countertops, appliances, sometimes landscaping are upgrades. Before you fall for a model, we walk you through what's standard and what the upgrades cost.
The best lots, such as walkout basements, pond views, cul-de-sacs and larger lots, often carry premiums. Premiums vary widely by lot and community, so we help you understand what you're paying for.
Closing-cost contributions, included finished basements, appliance packages, and rate buydowns are common. Some incentives may be tied to the builder's preferred lender, so ask about the terms and compare them with an outside quote before committing.
Understanding your purchase agreement matters. A new-construction purchase agreement is not the same as a standard Minnesota contract. It's drafted by the builder's attorneys to protect the builder, with terms on timelines, change orders, allowances, and contingencies that can work against you if you don't know what to look for.
Spec homes close fast; to-be-built homes give you customization but a longer, less predictable timeline. And if you're selling first, you plan your timeline around your build, not the other way around. We review your contract with you and talk through what's worth asking about before you sign.
Questions buyers actually ask
Start the conversation
Tell us where you are in the process and what you're hoping to do, whether that's buying, selling, or both. We'll listen, answer your questions honestly, and help you figure out the best next step.