Before You Sign: 5 Things to Know About Your Builder Contract for a New Home

Building your dream home in East Tennessee is an exciting adventure, but before the first wall goes up, there’s one important step to take care of first. Your builder contract for new home is where everything begins. This document sets the foundation for your project, outlining what will be built, when it will happen, and how it will be paid for.

At Red Door Homes, we believe your home-building journey should feel exciting and stress-free from start to finish. Here’s what you should know before you sign on the dotted line.

A builder contract for new home is a legal agreement between you and your builder that outlines the details of your home construction. It covers everything from design choices and materials to timelines and payment schedules. In simple terms, it’s your project roadmap.

A good contract protects both you and your builder. It makes sure everyone understands what’s expected, how problems will be handled, and when each stage of the project will happen. The clearer your contract is, the smoother your build will be.

At Red Door Homes, we believe that transparency builds trust. That’s why we take the time to walk you through every part of your contract so you know exactly what’s included and what to expect before construction begins.

One of the first things to look at in your builder contract for new home is the scope of work. This section lists everything your builder is agreeing to provide and complete. It often includes materials, finishes, labor, and even site preparation.

It’s also important to understand what’s not included. Sometimes, certain finishes, landscaping, or upgrades fall outside the base price. The contract should clearly state these details so there’s no confusion later.

For example, you might have a standard kitchen countertop material included in your base price, but upgrading to quartz or granite could add extra cost. By reviewing your contract carefully, you’ll know exactly what you’re getting for your investment.

Your builder contract for new home should clearly outline your build timeline, including key stages such as permitting, construction, and final walkthrough. This timeline helps you plan for move-in and stay realistic about how long your project will take.

In East Tennessee, weather can play a big role in your construction timeline . Heavy rain or cold winter temperatures can sometimes slow down certain parts of construction. Your builder should include flexibility for these situations while still keeping your project on track.

Understanding your timeline helps you prepare emotionally and financially. It also helps set healthy expectations so you can enjoy the process instead of stressing about it.

The financial section of your builder contract for new home is one of the most important parts to understand. It outlines how and when payments are made throughout the project.

Most builders require an initial deposit before construction begins, followed by a few progress payments as different stages are completed. The contract should clearly list each payment amount and due date. This ensures you always know what’s coming and when.

If you’re financing your home, make sure the payment schedule aligns with your loan agreement. It’s always a good idea to talk with your lender before signing the contract to confirm that everything matches up.

Every new home should come with a warranty, and your builder contract for new home should clearly explain what’s covered and for how long.

Typical warranties include coverage for structure, workmanship, and key systems like plumbing and electrical. These warranties protect you in case something unexpected happens after you move in. Knowing the warranty details before you sign helps you feel confident that your investment is protected.

Sometimes, even after signing your builder contract for new home, you might want to make a few changes. Maybe you decide to upgrade flooring or add a covered porch. It’s completely normal, but it’s important to know how your builder handles these changes.

Builders typically manage changes through a “ change order. ” This document records the requested update, any added cost, and any timeline adjustments. It ensures that both you and your builder are on the same page before moving forward.

Before you sign your builder contract for new home, take time to ask a few important questions. A good builder will welcome these conversations and be happy to explain every part of the agreement.

These questions not only help you understand the contract better but also give you a feel for how your builder communicates.

Building a home is one of the biggest and most rewarding experiences of your life. Understanding your builder contract for new home helps you take that journey with confidence. When you know what’s in your contract, you’ll feel informed, supported, and ready for the exciting road ahead. 

At Red Door Homes, we’re proud to serve families across East Tennessee who are ready to bring their dream homes to life. From explaining every detail of your contract to handing you the keys at closing, we’re with you every step of the way.

If you’re ready to build your forever home, our team is here to guide you through every stage of the process. Contact us today to schedule your free consultation.