Allowances
The budget the builder builds into your base price for each category of finish. Know what each allowance includes, in quantity and quality, before you start choosing.
Kathleen Militello, Realtor® · eXp Realty
Buying New Construction on the North Shore
New construction offers a chance to buy a home that has never been lived in, with finishes you choose and a builder's warranty behind it. It also comes with its own process, timeline, and paperwork. Here is how buying from a builder works on the North Shore and how to protect yourself at every step.
Kathleen's take
People often assume buying new means fewer risks. The truth is, it is simply a different set of details: a contract written by the builder, choices made months before you move in, and timelines that can shift. The buyers I have seen do best are the ones who read every line, keep their own inspections, and keep their own representation.
I want you to understand exactly what you are getting into, from the allowance schedule to the warranty fine print, so the home you imagine is the home you actually get. Let's look at your options and make a smart move. You don't have to figure this out alone.
Warmly, Kathleen
Working with builders
Working with builders, and why representation matters
The builder's sales team is very good at what they do, and what they do is represent the builder. When you buy new construction, you want someone whose only job is protecting your interests: reviewing the contract, scrutinizing the allowance schedule, tracking change orders, and standing next to you at the final walkthrough.
That someone is a buyer's agent. In most new-construction sales on the North Shore, the buyer's agent is compensated through the transaction, but the arrangement should be confirmed in writing before you tour. And tell the sales office you are represented from your first visit. Once you are registered as an unrepresented buyer, builders may not be able to credit or compensate your agent later.
Buying directly from a builder saves nothing if you give up the protections a professional brings. The place to decide who is on your side is before you sign anything.
The process
The purchase process and timeline
Buying from a builder follows a different rhythm than buying an existing home. Instead of a closing date set by two sellers and buyers, your closing follows the construction schedule. Here is the shape of the journey, from first visit to keys.
- 1
Register and tour
Your first visit sets important groundwork. Tell the sales office up front that you are working with a buyer’s agent, and take the time to tour the model and any finished homes in the development.
- 2
Choose your lot and plan
Pick the homesite and the floor plan. Here is where the builder hands you the allowance schedule: the budget built into your base price for the finishes you will select.
- 3
Sign the agreement
The builder’s contract, sometimes called a purchase agreement, locks in the base price, the lot, the plan, and the timeline. Attorney review matters here more than at any other step.
- 4
Make your selections
Within your allowances you choose cabinets, counters, flooring, fixtures, and paint. Anything beyond the allowance is an upgrade, and every selection should be documented in writing.
- 5
Watch it take shape
Construction can take months. Stay in touch, visit the site, and ask questions at each milestone. A pre-drywall walkthrough with your inspector catches issues before they are covered up.
- 6
Walk through and close
Before closing, you get a walkthrough to check the finished home against your selections. Any incomplete or damaged items are listed for correction, then you close and receive your keys and warranty documents.
The total time from contract to closing depends on the builder's schedule, the weather, and how far along construction is when you buy. Ask for a realistic timeline in writing at the start, and build in flexibility.
Selections and changes
Upgrades, allowances, and change orders
This is where new-construction budgets quietly grow. Understanding three words, allowance, upgrade, and change order, keeps you in control of the final price.
Upgrades
Anything you choose above the allowance, from upgraded cabinets to a premium countertop. Each upgrade adds to your price, so ask for the exact cost before you say yes.
Change orders
A written change to the agreed scope, with a price and a timeline impact, signed by both sides before the work happens. Never rely on a verbal change.
The pattern to remember: allowances define what you get, upgrades define what you pay extra for, and change orders define everything that changes after the contract is signed. Keep a file with every document, and never let a conversation replace a signature.
Protection
Inspections and warranties
A brand-new home is not an excuse to skip diligence. In fact, the timing of your inspections is the one thing you control that the builder does not.
Inspect twice
A pre-drywall inspection sees the framing, plumbing, wiring, and insulation before they disappear behind the walls.
A final inspection before closing checks the completed systems, appliances, and finishes against your agreement.
Your inspector works for you alone and does not answer to the builder.
Read the warranty
New-home warranties typically cover structure and major systems for a set period, and workmanship for a shorter one.
Appliances and mechanicals usually carry their own manufacturers' warranties, separate from the builder's.
Know the claims process and the deadlines for reporting issues before you close, not after the first winter.
Your checklist
The new-construction checklist
- Confirm the builder is properly licensed and insured, ask for references and completed projects, and visit an active job site.
- Have your own mortgage pre-approval in hand before you talk price, so you know your real buying power.
- Get every allowance, upgrade, and selection in writing with its price, and keep the paperwork organized.
- Schedule independent inspections, including a pre-drywall inspection, before the walls close in.
- Walk the finished home with your list of selections in hand and itemize anything incomplete or damaged.
- Read the warranty end to end and write down the claims process and the deadlines for reporting issues.
Key Takeaways
The short version
-
The builder's contract is written to protect the builder. Have an attorney who understands new construction review it before you sign anything.
-
Allowances set the builder’s budget for your selections. Anything above them is an upgrade you pay for, so track every choice in writing.
-
Change orders are normal, but only when they are written, priced, and signed before the work happens.
-
A new home still deserves a professional inspection and a careful pre-closing walkthrough, and the warranty’s fine print tells you what is actually covered.
Ask Kathleen
Frequently Asked Questions
Straight answers to the new-construction questions North Shore buyers ask most.
Yes, and it is worth doing from the first visit. The builder's sales team represents the builder, not you. A buyer's agent represents your interests, from reviewing the contract and allowance schedule to negotiating upgrades and inspecting the finished home. In most new-construction sales the buyer's agent is compensated through the transaction, but confirm the arrangement in writing before you tour a sales center.
The base price includes the builder's allowance: a set budget for each category of finish, such as cabinets, countertops, and flooring. You choose items within those allowances, and the choices usually have a credit or an extra charge compared to the allowance. The builder adds the difference to your price, so it pays to understand each allowance before you start picking finishes.
A change order is a written modification to the original agreement, whether it moves a wall, adds a window, or changes a finish. A proper change order states exactly what changes, what it costs, and how it affects the timeline, and it is signed by both sides before the work happens. Verbal changes are the number one source of new-construction surprises.
More than once. A pre-drywall inspection, before the insulation and drywall go in, lets a professional see the framing, plumbing, and wiring while they are still visible. A final inspection before closing checks the completed home and its systems. An independent inspector works for you, and a few hundred dollars of inspection is very inexpensive protection on a new home.
Most new-home warranties cover the structure and major systems for a defined period and workmanship for a shorter window, but coverage varies by builder. Some items, like appliances and mechanicals, carry their own manufacturers' warranties. Read the warranty document before you close, know what is excluded, and report any issue in writing within the deadlines it sets.
Closing happens when the home is substantially complete rather than on a date chosen by two homeowners, so the timeline can shift with construction. You will receive your selections and change-order paperwork, the final walkthrough lists anything left to correct, and your attorney reviews the closing documents just as in any Massachusetts purchase. Warranty documents and certificates for things like smoke detectors and septic, where applicable, are part of the handoff.
Written by
Kathleen Militello, Realtor®
The Militello Team · AI Certified Agent™ · Certified Negotiation Specialist™ · eXp Realty
- MA Salesperson License 9053343
- Serving Boston's Coastal North Shore
- (978) 500-1480
- TheMilitelloTeam@gmail.com
I'm Kathleen Militello, a Realtor® with eXp Realty serving Boston's Coastal North Shore since 2003. My mission is to truly know the people I work with, understand what matters to them, and use everything I've learned in real estate to help them make a move they'll feel good about long after the closing. Because in real estate, Experience Matters.
Experience Matters
Let's build your search around you
Whether you are choosing between builders or comparing new construction to an existing home, I'll help you understand the real differences and negotiate from a position of knowledge.
Kathleen Militello, Realtor® / The Militello Team | eXp Realty
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