Buying new construction feels simpler than resale — pick a lot, pick a package, sign at the sales centre. It isn't. Deposit structures, upgrade pricing, closing-date flexibility and contract terms vary enormously from one builder to the next, and the sales rep sitting across the desk from you represents the builder, not you. Here's what actually changes when you buy new instead of resale, and the one thing most new-build buyers don't realize before they ever walk into a sales office.
New build vs. resale: what actually differs
New construction and resale aren't just different inventory — they're different transactions, with different risks and different leverage. Before you sign anything at a sales centre, it's worth knowing exactly what changes:
- Price is rarely the final number — lot premiums, upgrade packages and design-centre selections routinely add tens of thousands to the base price advertised in the community
- Closing dates on pre-construction are estimates, not guarantees — delays of months are common and the contract usually favours the builder if it happens
- You're buying from a floor plan or a model, not the actual finished unit — finishes, sightlines and even room dimensions can differ slightly from what's built
- New homes carry Tarion warranty coverage that resale homes don't — but Tarion protects against builder defects, not against paying too much for the lot or upgrades
- Deposit structures are builder-specific and can tie up significant cash for a year or more before closing, unlike a resale deposit held briefly in trust
- There's effectively no room to negotiate price the way you would on a resale listing — but incentives, upgrade credits and closing-cost credits are often negotiable if you ask
The one thing most new-build buyers don't know
Walking into a builder's sales office without your own agent doesn't save you money — it just means the only person in the room representing your interests isn't there. Builders pay the buyer's agent commission whether you bring one or not; it's built into their marketing budget, not added onto your price. If you don't bring an agent, that commission doesn't come off your price — it just stays with the builder. Bringing someone who's read dozens of these contracts costs you nothing and gets you a second set of eyes on the deposit structure, closing-date language, upgrade pricing and what's actually negotiable before you sign.
Frequently asked questions
Do I need a real estate agent for a new build?
You don't need one to walk in and look — but you should have one before you sign anything. The sales rep at the model home works for the builder, full stop, no matter how helpful they are. Most builder contracts also require your agent to be registered on your very first visit, so bring someone before you tour, not after you've fallen for a lot.
Does bringing an agent cost me anything extra?
No. The builder pays the buyer's agent commission out of their own marketing budget — it isn't added to your purchase price, and skipping it doesn't get you a discount. You're leaving representation on the table for nothing.
Can I negotiate with a builder?
List price itself is usually fixed, but plenty around it isn't — upgrade credits, appliance packages, closing-cost credits, extended deposit structures and lot premiums are all commonly negotiable, especially later in a community's sales cycle when a builder is trying to move remaining lots.
What's Tarion, and why does it matter?
Tarion is Ontario's mandatory new-home warranty program, covering defects in workmanship and materials for a set period after closing. It's real protection resale buyers don't get — but it only covers builder defects, not whether you paid a fair price for the lot, the upgrades, or the finished product versus what was shown in the model.
How is buying a quick-possession or inventory home different from pre-construction?
A quick-possession (or "inventory") home is already built or near-finished, so you're seeing the actual product instead of a floor plan, and closing happens on a real timeline instead of a builder estimate. You lose some ability to customize finishes, but you also lose the delay risk and the surprise of finished sightlines not quite matching the model — often a better fit for buyers who want certainty over customization.
Considering a new build in London, St. Thomas or anywhere across the region? Send me the community and floor plan you're looking at before you sign — a second read on the contract and what's actually negotiable costs you nothing and can save a lot more than that.
