That model home with $100,000 in upgrades? Your base price home won't look like that. And those "incredible" builder incentives often come with strings attached—like requiring their lender and title company, which may cost you more in the long run. New doesn't mean problem-free, and existing doesn't mean money pit. The right choice depends on your priorities, not marketing.
The Quick Comparison
Before diving into details, here's the high-level view of what each option offers:
- Everything is brand new—no previous wear
- Modern layouts and energy efficiency
- Builder warranty coverage (typically 1-10 years)
- Choose your finishes and some customization
- Often in developing areas farther from urban centers
- Potential for construction delays
- Base price + upgrades + lot premium can add up fast
- May include MUD (Municipal Utility District) taxes
- Established neighborhoods with mature landscaping
- What you see is what you get (mostly)
- Often closer to jobs, schools, amenities
- Negotiation room on price and repairs
- May need updates or repairs over time
- Faster closing timeline (30-45 days typical)
- Character and unique features
- Known utility and maintenance costs from seller
Which Might Be Right for You?
Answer 8 quick questions to see which option aligns better with your priorities.
How important is having everything brand new with no previous owners?
How do you feel about being farther from established areas (restaurants, shops, highways)?
How flexible is your timeline to move in?
How do you feel about handling repairs and maintenance?
How important is energy efficiency and modern features?
Do you want to choose finishes (cabinets, counters, flooring)?
How do you feel about lot size and yard space?
How important is having established trees and mature landscaping?
Your Profile
Based on your answers...
The DFW New Construction Landscape
Dallas-Fort Worth is one of the hottest new construction markets in the country. Understanding the landscape helps you navigate your options.
Where New Construction Is Happening
Most new construction in DFW is in outer suburbs and developing areas:
- North: Celina, Prosper, Princeton, Anna, Melissa—rapid growth with multiple master-planned communities
- West: Haslet, Fort Worth far north, Weatherford suburbs—more affordable options
- South: Midlothian, Waxahachie, Red Oak—growing quickly with family-friendly communities
- East: Forney, Royse City, Rockwall outskirts—growing inventory at various price points
Types of Builders in DFW
Production Builders
$250K - $600K typically
Large national/regional builders (DR Horton, Lennar, Meritage, Taylor Morrison) building hundreds of homes from set floor plans. Less customization but more competitive pricing and faster timelines.
Semi-Custom Builders
$400K - $800K typically
Regional builders (Highland Homes, Britton Homes, Drees) offering more floor plan options and upgrade flexibility. Balance of customization and efficiency.
Custom Builders
$600K+ typically
Local builders creating one-of-a-kind homes on your lot or theirs. Full design control but longer timelines and higher costs.
That gorgeous model home you toured? It typically includes $75,000-$150,000 in upgrades beyond the base price. The "starting at" price gets you builder-grade finishes, basic flooring, and minimal landscaping. Always ask: "What's included in the base price, and what does THIS model cost as shown?"
The True Cost Comparison
Comparing new construction to existing home prices isn't apples to apples. Here's what you're really paying for:
New Construction Costs to Factor In
- Base price: The advertised "starting at" price
- Lot premium: Corner lots, cul-de-sacs, backing to greenbelts can add $5,000-$50,000+
- Structural options: Extra bedrooms, media rooms, covered patios: $10,000-$50,000+
- Design center upgrades: Countertops, cabinets, flooring, fixtures: $20,000-$100,000+
- Blinds/window coverings: Usually not included: $2,000-$8,000
- Landscaping beyond basic: Most builders include minimal sod and a few bushes: $5,000-$20,000 to complete
- Fence: Often not included or only partial: $3,000-$10,000
- Appliances: May only include range/microwave—fridge, washer, dryer extra
Existing Home Costs to Factor In
- Purchase price: Usually negotiable, especially with inspection findings
- Inspection repairs: Seller may cover some; budget $0-$10,000 for your portion
- Immediate updates: Paint, flooring, fixtures you want to change: varies widely
- Older systems: HVAC, roof, water heater may need replacement in 5-10 years
- Energy efficiency: Older windows and insulation = higher utility bills
True Cost Comparison Calculator
Enter your numbers to see how the costs actually compare:
New Construction Total
Existing Home Total
MUD Taxes: The Hidden Cost Many Buyers Miss
If you're looking at new construction in DFW's outer suburbs, you MUST understand Municipal Utility Districts (MUDs).
What Is a MUD?
A Municipal Utility District is a special taxing district created to finance infrastructure (water, sewer, drainage, roads) in new developments. The developer creates the MUD to build infrastructure, then homeowners pay it off through additional property taxes—sometimes for 20-30 years.
How MUD Taxes Impact Your Payment
A typical MUD tax rate adds $0.50 to $1.50 per $100 of assessed value on top of regular property taxes.
On a $400,000 home, that's:
- $2,000 - $6,000 extra per year in property taxes
- $167 - $500 extra per month in your escrow/payment
Always ask: "Is this property in a MUD? What is the current MUD tax rate? Is the rate expected to change?" Get this in writing. Some builders downplay MUD taxes or only mention the regular tax rate. The MUD tax can add 25-50% to your property tax bill.
The Good News About MUDs
MUD taxes aren't all bad. They allowed the development to be built (and priced lower initially). As the MUD debt is paid down, rates typically decrease. Some MUDs also provide amenities like pools and parks. Just go in with eyes open about the true cost.
Buying Timelines: What to Expect
One of the biggest differences between new and existing homes is how long it takes from contract to keys.
New Construction
Pre-construction (early phase) can be 8-12+ months
Existing Home
Can be faster with cash or accelerated timelines
The New Construction Buying Process
Buying from a builder is fundamentally different from buying an existing home. Here's what to expect:
Step 1: Find Communities and Builders
Research communities that match your location preferences. Visit model homes, but remember—have your own agent represent you. The sales agent in the model home works for the builder, not you.
Step 2: Understand What's Available
- Spec homes: Already under construction or completed. Faster timeline, limited customization.
- To-be-built: Choose your lot and make design selections. Longer timeline, more choices.
- Inventory homes: Completed homes ready for move-in. Immediate, but you get what's there.
Step 3: The Builder Contract
Builder contracts are VERY different from standard resale contracts:
- They're typically written by the builder's attorneys—in the builder's favor
- Less negotiable than resale contracts
- May have escalation clauses allowing price increases
- Deposit structures vary (often $2,000-$10,000+ earnest money)
- Cancellation terms can be strict
Always use your own buyer's agent, even for new construction. The builder's sales team represents the builder's interests. Your agent can review the contract, negotiate on your behalf, and advocate for you during construction. Most builders pay the buyer's agent commission—it costs you nothing to have representation.
Step 4: Design Center Selections
This is where budgets explode. You'll spend hours choosing:
- Countertops (granite, quartz, marble)
- Cabinets (style, color, hardware)
- Flooring (carpet, hardwood, tile, LVP)
- Fixtures (lighting, plumbing, door hardware)
- Appliances (ranges, built-in options)
- Exterior selections (brick, stone, siding)
Set a firm upgrade budget BEFORE the design center appointment. It's easy to add $50,000+ in "just a little upgrade" decisions.
Step 5: Construction Monitoring
During construction:
- Visit regularly (ask about visiting policies)
- Document with photos
- Note questions or concerns for your agent to address
- Don't communicate directly with construction crews—go through proper channels
Step 6: Inspections (Yes, You Still Need Them!)
"It's new—why would I need an inspection?" This is a common and costly mistake.
- Pre-drywall inspection: Check framing, electrical, plumbing before walls close
- Final inspection: Before closing, check everything thoroughly
- 11-month warranty inspection: Before your 1-year warranty expires
New homes have defects too—sometimes more than existing homes because everything is untested.
Builder Incentives: What's Really Being Offered
Builders often advertise impressive-sounding incentives. Here's how to evaluate them:
Common Incentive Types
Builder contributes toward your closing costs. Actual cash value that reduces your out-of-pocket.
Builder pays to lower your interest rate, either temporarily (2-1 buydown) or permanently. Can save significant money.
Often upgrades that would have been negotiable anyway, or from a limited selection. Get the retail value of what's included.
"$30,000 in free upgrades!"—but only if you use their preferred options. May not cover what you actually want.
The Catch: Preferred Lender Requirements
Many incentives require using the builder's preferred (often affiliated) lender and title company:
- The preferred lender's rate/fees may offset the incentive value
- Always get a quote from an outside lender to compare TRUE cost
- Calculate: Incentive value minus any extra cost from preferred lender = real value
Questions to Ask About Incentives
- What's the actual dollar value of this incentive?
- Are there conditions (preferred lender, specific lots, closing by a date)?
- Can I apply this toward structural options or just design upgrades?
- What happens to the incentive if construction is delayed?
- Is this incentive in addition to or instead of other discounts?
Understanding New Home Warranties
One of the biggest advantages of new construction is warranty coverage. Here's what's typically included:
Standard Builder Warranty Structure
- Year 1 - Workmanship: Covers defects in materials and workmanship (paint, drywall, flooring issues)
- Year 2 - Systems: Covers major systems (HVAC, electrical, plumbing)
- Year 10 - Structural: Covers major structural defects (foundation, load-bearing elements)
What Warranties Typically DON'T Cover
- Normal wear and tear
- Cosmetic issues after move-in
- Landscaping (usually separate warranty)
- Appliances (covered by manufacturer warranty)
- Damage from owner modifications
- Issues caused by lack of maintenance
Making the Most of Your Warranty
- Document everything: Take photos at move-in
- Report issues promptly: Don't wait until warranty expires
- Keep records: Save all correspondence with builder
- Schedule the 11-month inspection: Before your first-year warranty expires, have a professional inspect and submit all issues
When Existing Homes Make More Sense
Existing homes aren't just the "fallback" option. In many situations, they're the better choice:
Location Priority
If you need to be close to specific areas—downtown jobs, established schools, entertainment districts—existing homes are often your only option. New construction typically happens on the outskirts.
Mature Neighborhoods
Want tree-lined streets, established landscaping, and neighbors who've been there for years? You won't get that in a new subdivision for 10-20 years.
Larger Lots
Older neighborhoods typically have larger lots. New construction lots have shrunk dramatically over the decades to maximize builder profit.
Character and Uniqueness
Older homes often have architectural character, unique layouts, and quality craftsmanship that's rare in production new construction.
Immediate Equity Potential
With existing homes, you can sometimes buy below market value or negotiate repairs. New construction is typically priced at or above market with little negotiation room.
Transparent Costs
With existing homes, you can see actual utility bills, know the real property taxes, and understand maintenance history. New construction costs are estimates until you've lived there.
Questions to Ask: Builder Edition
Use this interactive checklist when visiting builders. Click items to check them off as you get answers.
- What is the BASE price with no upgrades?
- What upgrades are in this model vs. base?
- What's the lot premium for different locations?
- Are there any price escalation clauses in the contract?
- What's included: blinds, fridge, washer/dryer, fence?
- Is this property in a MUD?
- What is the TOTAL tax rate (including MUD)?
- What's the HOA fee and what does it cover?
- Are there any additional fees (amenity, maintenance)?
- What's the estimated completion date?
- What happens if construction is delayed?
- What's the deposit/earnest money structure?
- What are the cancellation terms and penalties?
- What warranty coverage is provided?
- Can I do a pre-drywall inspection?
- How are warranty issues handled after closing?
- Who is the construction superintendent?
- What current incentives are available?
- Do incentives require using preferred lender?
- What's the value if I use my own lender?
- Do you pay buyer's agent commission?
- How many homes total in this community?
- What phase of development is this?
- What school district/schools serve this area?
- What commercial development is planned nearby?
Making Your Decision
There's no universally "right" answer—the best choice depends entirely on your priorities, timeline, and situation.
- Value having everything new and under warranty
- Want to choose your own finishes and layout
- Have flexibility on timing (6+ months)
- Don't mind being farther from urban centers
- Prefer low-maintenance living
- Can budget accurately for true total cost including upgrades
- Prioritize location and established neighborhoods
- Need to move quickly
- Want more negotiating leverage on price
- Prefer larger lots and mature landscaping
- Are handy or don't mind maintaining older systems
- Want to see exactly what you're getting before buying
Have flexibility on location AND timeline, want to compare true costs side-by-side, or are open to the best home regardless of age. Many buyers find their perfect home after looking at both options. Don't limit yourself unnecessarily.