Choosing to build a new home has its perks, including fewer maintenance issues, better personalization, and overall peace of mind with the right contractor.

The caveat is in finding the right builder. And with building permits for new home construction topping records, finding the ideal builder can be a challenge.

Below is an overview of what to consider when building new, including the compromise between customization, convenience, and cost (budget).

Recent Stats

Last year, Delaware’s 27% increase in new home building permits ranked first in the nation. Moreover, hundreds of different builders are working to meet this demand. With so many options to choose from, how do you decide?

The 3Cs of Building a New Home

There is a tradeoff between customization, convenience, and cost when building a home.

Customization refers to how personalized your home is. Convenience relates to how much effort you put into the project and the time it takes. And Cost… describes how much (or little) money you spend, i.e., budget.

If convenience is important to you, that typically comes at a cost as you hire the most experienced designers and builders to take care of everything in a reasonable time frame.

Selecting Process

In the 3Cs framework, selecting the right builder comes down to the right mix of personalization, quality, ease of the process, and budget.

One way to approach the selection process is to consult Realtors, mortgage lenders, and other community stakeholders who’ve done work with various builders and are familiar with their results.

Contact us directly for a full review of local builders and the latest new construction communities to consider.

Red Flags

Reputable builders typically require an upfront deposit. But if they want an unreasonably large amount, you should be wary. Circumstances will differ, but deposits generally range from five to ten percent.

A builder without a portfolio of existing clients is also concerning. Having no references isn’t inherently wrong — we all start somewhere — but dig deeper if they cannot supply a list of previous projects and clients.

Additional red flags include:

• Uses high-pressure sales tactics
• Provides unreasonably low quotes
• Doesn’t provide a comprehensive contract


Fully understanding these items with a builder is vital:

• Exposure to increases in construction costs and negotiate price increase caps if needed.
• Fees associated with handling changes or upgrades during the building process.
• Warranty program.
• Project management and supervision support.
• Level of finishes included in base pricing.

Negotiating Terms & Costs

A knowledgeable representative can assist with negotiating competitive pricing, extended builder warranty coverage, pre-drywall home inspections, guidance in resolving issues, reviewing builder track records, exploring creative new construction financing options and providing design guidance to help you make selections that will lead to a more advantageous resale.

Having representation during the new construction process offers several benefits in protecting your interests, verses working with the builder’s sales team to finalize terms.

It’s a significant financial commitment and an experienced new construction Realtor can advocate and stand up for you throughout the entire transaction.

As a team with abundant experience in the new home building and construction process, we’re here to help. Call me any time to review your options.

Click Here to review the latest new construction homes in Bethany Beach and see our active resale listings below.

Henry Jaffe