Are These New-Build Home Myths Stopping You From Buying?

If you’ve been passing over newly built homes in your search, it might be because of outdated assumptions. It’s time to set the record straight on some common myths—so you don’t overlook a great opportunity.

Myth #1: New Homes Always Cost More

Many buyers assume a brand-new home will have a higher price tag than an existing one—but that’s not always the case, especially in today’s market.

In fact, recent data from the U.S. Census and the National Association of Realtors (NAR) shows that the median price for a newly built home is currently lower than the price of an existing home.

So, what’s behind this trend? Heather Long, Chief Economist at Navy Federal Credit Union, notes that it comes down to two main factors: new homes are generally being built smaller than before, and builders are more willing to reduce prices.

If you’ve been avoiding new construction based solely on price, it might be time to revisit that decision. A quick conversation with your local real estate agent could reveal options—and price points—you didn’t expect.

Myth #2: Builders Don’t Negotiate

A lot of buyers think builders won’t budge when it comes to negotiating—but that’s far from the truth. Many builders have completed homes they need to sell quickly, making them more open to striking a deal.

Mark Fleming, Chief Economist at First American, explains that builders have strong motivation to sell: the longer a property sits, the more it costs them. Many publicly traded builders have even stated in earnings calls that they plan to keep offering incentives—especially mortgage rate buydowns—to close deals faster.

This could mean builders are often more flexible than individual sellers, with a greater willingness to sweeten the deal. In fact, Zonda reports that 75% of new home communities offered incentives on quick move-in properties in June.

Myth #3: They Don’t Build Them Like They Used To

Some believe newer homes lack the craftsmanship of older ones—but the truth is, quality varies no matter the era. The key is choosing a reputable builder.

According to the National Association of Home Builders (NAHB), one of the best ways to judge quality is to speak directly with recent buyers from that builder. NAHB advises that any reputable builder should be ready to share references from satisfied customers. If they can’t, that’s a red flag.

Questions to ask past buyers include:

• Did the builder meet your expectations?
• Would you choose the same builder again?

Your real estate agent can also be a valuable resource for insights, as they often know which builders in your area have the best track records.

Myth #4: You Don’t Need Your Own Real Estate Agent

This might be the most dangerous myth of all. When purchasing new construction, having your own agent is even more critical. Builder contracts often include terms that differ from standard resale agreements, and you’ll want a professional who can break down the fine print and advocate for your interests.

A Realtor.com survey backs this up—buyers who purchased new construction found their own agents far more helpful than the builder or builder’s representative throughout the process.

Bottom Line

Don’t let outdated myths or misconceptions stop you from considering one of the most promising opportunities in today’s housing market.

Whether you’re simply curious about the new communities going up nearby, interested in the latest builder incentives, or wondering if a brand-new home could actually fit your budget, the best next step is to connect with a local real estate agent. With the right guidance, you may discover options you didn’t even know were available—and be pleasantly surprised by what’s possible right now.