First-Time Buyer's Guide to New Construction in Georgia and Alabama

By Cindy LaDuke, Associate Broker, REALTOR® · Cindy's Realty Group by eXp Realty · Reviewed November 3, 2026

Short answer: Buying a new home from a builder can work very well for a first purchase. You get new systems, a warranty, and sometimes help with closing costs or your rate. But the builder writes the contract, its sales team represents the builder, and the advertised price is a starting point. Talk to a buyer's agent before your first model visit, get a Loan Estimate from at least one lender you choose, and budget for the HOA, taxes after the house is assessed, and your own inspections.

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The new-construction path, step by step

• 1. Before you visit: What happens: Pre-approval with a lender you choose; talk to your agent · What to decide or ask: Ask your agent how this builder registers buyer's agents. Policies differ by builder and can require your agent at the first visit

• 2. Tour and compare: What happens: Models, quick move-in homes, lots · What to decide or ask: Starting price vs. available-home price; included features vs. upgrades
• 3. Choose a home or lot: What happens: Move-in-ready or to-be-built · What to decide or ask: Lot premium, orientation, drainage, what's planned next door
• 4. Builder contract: What happens: Builder's own contract and addenda · What to decide or ask: Deposit amount, when it becomes non-refundable, delay terms, financing contingency
• 5. Earnest money / deposits: What happens: Often due at contract, plus more for structural options · What to decide or ask: Get every deposit and refund rule in writing
• 6. Design selections (to-be-built): What happens: Choose finishes in the design center · What to decide or ask: Price every option before the appointment. Selections are often final

• 7. Inspections: What happens: Pre-drywall and final, by your own inspector · What to decide or ask: Confirm the builder allows them, and schedule early
• 8. Final walk-through: What happens: Punch list · What to decide or ask: Get the list in writing with completion dates
• 9. Closing: What happens: Funds, title, keys · What to decide or ask: Final Closing Disclosure vs. Loan Estimate
• 10. Warranty: What happens: Builder warranty period · What to decide or ask: How to file a request, plus the deadline for the 11-month review

Down payment, earnest money and closing costs

• Earnest money and deposits: builders set their own amounts. Some start low on quick move-in homes and add deposits for options on to-be-built homes. Ask when each dollar becomes non-refundable.
• Down payment: depends on your loan program (conventional, FHA, VA, USDA where eligible). Your lender confirms what you qualify for.

• Closing costs: lender fees, title, prepaid taxes and insurance, and HOA initiation or capital contributions. A builder credit may cover part of this. Loan programs cap seller contributions.

An incentive is only as good as its written terms. Price reductions, closing-cost credits, temporary buydowns and permanent buydowns with the same dollar value affect you very differently. My full comparison, with a worked example, is in What to Compare When a Builder Offers an Incentive.

Total-cost comparison (fill one column per home):

• Contract price (incl. lot premium + options)
• Incentive (type + dollars)
• Required lender/title? deadline?
• Rate and how long it lasts
• Monthly P&I (year 1 / after buydown)
• HOA (monthly) + initiation
• Estimated taxes after the house is assessed
• Insurance (HO-3 or HO-6)
• Cash to close
• Items you'll still buy (blinds, fence, appliances, gutters)

Comparing lenders

Ask the builder's preferred lender and at least one outside lender for an official Loan Estimate on the same home, on the same day. Compare the rate, points, lender credits and section A–J costs.

If the builder's incentive depends on its lender, see whether the incentive outweighs any difference in costs.

Assistance programs (check eligibility before you count on them)

• Georgia: the Georgia Dream Homeownership Program (Georgia Department of Community Affairs) offers down payment assistance through participating lenders, with income and purchase-price limits and homebuyer education. Current limits and amounts: dca.ga.gov or a participating lender.
• Alabama: the Alabama Housing Finance Authority (AHFA) offers programs such as Step Up through participating lenders, with income and price limits and homebuyer education. Current terms: ahfa.com.
• Assistance depends on funding availability and on the lender, and some builders' incentives can't be combined with it. Ask the lender and the builder before you contract. Nothing here promises eligibility or approval.

HOA, property taxes and insurance

• HOA: get the dues, what they cover, initiation fees and the covenants before signing. Townhome HOAs often cover more (and cost more) than single-family HOAs.
• Property taxes after construction: many new homes are taxed on land value only until the county assesses the finished home. Budget for the finished value, or your escrow can jump in year two. Check the county assessor (Hall, Gwinnett, Forsyth, Fulton or Madison).
• Insurance: quote it before you contract, and check the address on FEMA's flood map.

Inspections, warranties and delays

• A new home still needs an independent inspector: pre-drywall (framing, plumbing, electrical before the walls close) and final. Many buyers also schedule an 11-month warranty inspection.
• Get the warranty in writing: what's covered, for how long, and how to request service.

• Estimated completion is not a promise. Read what the contract says about delays before you set a lease end date or a move.

Questions to ask before choosing a lot or floor plan

1. What's the lot premium, and why (size, view, cul-de-sac, backing to open space)?
2. Where does water drain on this lot? Is any of it in a flood zone or easement?
3. What's planned next to and behind this lot?
4. Which direction does the house face (sun, driveway slope)?
5. Can this plan fit a fence, a patio or a future screened porch under the HOA rules?
6. What's standard in this plan, and what's in the model only?
7. Is there a quick move-in home on this plan already, and how does its price compare with building one?
8. How many homes on this plan are already in the community (resale competition later)?
9. Which school system serves this exact address?
10. What's the realistic completion date, and what happens if it slips?

☐ Pre-approval from a lender you chose · ☐ Talk to your agent before the first visit/registration · ☐ Standard features sheet · ☐ Options price list · ☐ Lot premium in writing · ☐ HOA dues, coverage and covenants · ☐ Incentive terms in writing (lender? deadline?) · ☐ Two Loan Estimates · ☐ Tax estimate at finished value · ☐ Insurance quote · ☐ Flood map check · ☐ School assignment by address · ☐ Pre-drywall inspection · ☐ Final inspection · ☐ Written punch list · ☐ Warranty instructions · ☐ 11-month inspection on your calendar

How I help first-time buyers

I represent you, not the builder. I help you compare communities on total cost, set up lender comparisons, read the builder contract with you, coordinate inspections, and keep the timeline realistic. If you're renting, I'll help you match a move-in estimate to your lease. In Georgia and Alabama, and in English or Spanish.

How your agent is paid on a builder purchase depends on the builder and our written agreement. We'll review it before you visit, and I don't promise that representation is free in every case.

Community guides: Ramsay Cove, Owens Cross Roads, AL · Millstone at Mundy Mill, Gainesville, GA · Dry Creek Village, Tuscumbia/Muscle Shoals, AL · All new construction

Next step: Use the form below to request the new-construction buyer checklist or a consultation. Call or text 678-650-1425 · cindy@cindysrealtygroup.com

General information, not legal, tax or lending advice. Program terms change. Verify with the administrator and your lender. Cindy's Realty Group by eXp Realty. Equal Housing Opportunity.