What They Don't Tell You About Buying New Construction in the Twin Cities

New construction sounds like the dream. A home no one has lived in before. Fresh finishes, modern floor plan, everything picked out by you. No inspection surprises. No competing with other buyers over someone else's old house.

And in the right circumstances, it can be a great move. But there are risks specific to new construction that most buyers never think to ask about until they're already in the middle of them. After helping buyers navigate this process for years, here's what I want you to know before you sign anything.

1. Delays Are Common, and They Can Cost You

Most new construction contracts include language that gives the builder a wide window to complete the home, sometimes with very limited remedies for the buyer when timelines slip. Six-month delays are not unusual. A year-plus is not unheard of.

This creates real problems for buyers who are renting month-to-month, selling their existing home, or trying to coordinate a school year. Read the contract carefully and understand exactly what recourse you have if the builder misses their projected close date.

2. You Cannot Lock Your Interest Rate Until 60 Days Before Closing

This is one of the most financially significant risks in new construction, and it catches buyers off guard.

When you go under contract on a new build, you're typically looking at a 6 to 12 month build timeline. Most lenders will not let you lock a rate that far in advance, or if they do, the cost is significant. That means you get pre-approved based on today's rates, then close based on rates many months from now.

If rates move up between now and closing, your monthly payment and your qualification could look very different. Buyers who qualified comfortably at the start of the process have found themselves scrambling to close when rates shifted. Plan for this scenario before you commit.

3. What You Pick May Not Be What Gets Built

Builder contracts typically include the right to substitute materials, fixtures, or finishes when the original selection is unavailable. This stems from supply chain disruptions that became widespread in recent years and have never fully resolved.

You might select a specific flooring, cabinet door style, or appliance package, and the builder substitutes something comparable in their view. Whether it's comparable in your view is a different conversation. Understand the substitution clause in your contract and ask specifically what happens if you disagree with the substitute.

4. Builder Insolvency Is a Real Risk

This one doesn't come up in the sales center conversation, but it should. During periods of rapid expansion followed by supply chain disruptions and rising material costs, a number of builders over-extended themselves. Some folded mid-project.

Before you sign, research the builder. How long have they been operating? Do they have completed subdivisions in the area you can walk through? Are there public records of lawsuits or complaints? What happens to your earnest money if they cannot complete the home?

5. Unpaid Subcontractors Can Put a Lien on Your Property

When a builder doesn't pay their subcontractors (plumbers, electricians, framers, concrete crews), those contractors have the right to file a mechanics lien against the property. That lien can attach to the home even after you've purchased it.

Before closing, your title company should conduct a lien search. Make sure you have title insurance and that the closing process includes a mechanism for confirming all subcontractors have been paid or are protected through lien waivers. This is not something to skip.

6. The Site Can Change Without Your Approval

You picked your lot based on what you saw at signing. The adjacent lot was going to be a green space. The tree line along the back was intact. The grade looked manageable.

Builders can make site modifications that change what surrounds your home. Grading changes, storm water management adjustments, tree removal, and adjacent development decisions can all shift during the build phase. If any of those things matter to you, ask what control you actually have and get any site-specific representations in writing.

The Most Important Step Most New Construction Buyers Miss

Builders are fully prepared to work with buyer's agents. They have money set aside for it. The agent's fee does not come out of your pocket and does not increase the price of the home. This is already factored into how builders structure their transactions.

What many buyers don't realize is that you must register your agent at the very first visit. Before you walk the model home. Before you sit down with the sales rep. The moment you step onto that property without an agent registered, the builder will tell you that you cannot add one later.

This is not a technicality. It is standard practice across builders in the Twin Cities and nationally. The sales rep in that model home works for the builder. They are skilled at their job and they are not on your side. That is not a criticism. It is just the structure of the transaction.

Bring an agent with you the first time you visit any model home or new construction community, even if you're just looking. Bring them even before you've decided you're serious. Registering your agent at the start costs you nothing and protects your access to representation throughout the entire process.

What a Buyer's Agent Actually Does in a New Construction Transaction

• Reviews the builder's contract before you sign (these are written entirely in the builder's favor)
• Negotiates upgrades, closing costs, or price adjustments on your behalf
• Monitors the build timeline and escalates concerns when things go sideways
• Coordinates a pre-drywall inspection and final walkthrough with an independent inspector (not the builder's inspector)
• Protects you at closing, including reviewing the settlement statement and flagging anything that doesn't match the contract

The Bottom Line

New construction can be a smart choice in the right circumstances. But the builder's sales process is designed to move you forward with momentum. Someone in your corner whose job is to slow that down and make sure you understand what you're signing is not a luxury. It's how you protect a transaction that can easily represent the largest purchase of your life.

If you are considering new construction in the west metro or Wright County and want to talk through what you're looking at before you visit a single model home, reach out. That conversation is free. The mistakes it prevents are not.