Trimming development fees would make dozens of housing projects across the country more economically viable in a time when Canada looks to seriously boost construction, says the nation’s housing agency.

Development charges, which municipalities levy on housing developers to pay for the new infrastructure such as roads, water and transit needed for these projects, are especially popular in Ontario and British Columbia and can vary greatly.

For example, a two-bedroom apartment in Ottawa commands development charges of $39,600 while Markham takes $121,500, according to data from Canada Mortgage and Housing Corp. (CMHC).

Given that the average new build was 55 units in Ottawa in 2024 and 246 units in Markham, a developer could be on the hook for $2.2 million and $29.9 million, respectively, in upfront fees for a build.

As a result, developers face a real hurdle in getting their projects off the ground.

But cutting the charges in half would boost the number of viable projects by about five per cent in Toronto and Vancouver, according to CMHC. An all-out cut would boost that figure to about 10 per cent.

“Reducing development charges can improve housing project viability, especially in communities where they are highest, but meaningful gains in supply require substantial reductions and they are only one part of the solution,” Mathieu Laberge, CMHC’s chief economist, said in a release .

“Improving affordability will require a broader approach, including improved land-use regulation and increased scale and innovation to boost productivity in the construction industry.”

On top of stalling projects, development charges also hurt housing affordability.

CMHC said development charges are passed down to homebuyers and that the price increases are often larger than the development fees themselves. The higher prices on new builds can also drive up prices for existing homes on the market.

High development charges, however, can be a bit of a double-edged sword since they can drive down prices of vacant land and help alleviate property taxes.

CMHC estimates Canada needs to double its annual housing starts to between 430,000 and 480,000 new units by 2035 to meet demand.

As of April, Canada was on pace for 256,777 housing starts in 2026.

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Professional stock pickers are having a hard time gaining an edge as Big Tech strengthens its grip on the stock market.

Only about 20 per cent of stock pickers have outperfromed the S&P 500 this year, according to Strategas Securities, which marks the worst performance since 2021.

IPO debuts of SpaceX, Anthropic PBC and OpenAI are expected to magnify the concentration at the top.

The S&P 500 is up 16 per cent this quarter.

Read more here.

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Opening a joint account with adult children may seem like a simple way to avoid probate fees or the delays of inheritance pay outs, but there are risks.

Ida Khajadourian of Richardson Wealth explains how joint ownership, often intended as a simple estate-planning shortcut, can create serious tax, legal, and family consequences if not structured properly.

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There’s a famous Mark Twain quote about real estate: “Buy land, they’re not making it anymore.”

It’s good advice most of the time, but, these days, Canadian developers already have more than they want.

With new condo project launches grinding to a standstill in the Toronto — there were zero in the first quarter, the slowest in at least three decades — many are being forced to swallow high carrying costs, leaving them to contemplate alternative uses for their land.

Mitchell Cohen, chief operating officer of Westdale Properties, which has pressed the hold button on about 12 of its projects, doesn’t sound too worried.

“We are just waiting and seeing,” said Cohen, who is now into his fifth decade in the industry. “Putting them on hold is very costly. We have to pay our taxes, security, and we have to pay the bank. But real estate rewards patience — if it’s paired with discipline.”

Like Cohen, most residential developers seem in no hurry to sell, with depressed prices leading to very little liquidity.

Cohen said his company is now “investigating all avenues” regarding its sites, and he’s open to new ideas. Many condo developers have switched gears and are now converting their entire projects to rental housing , but the executive said he’s cautious about jumping on the bandwagon that has seen more purpose-built rental construction in decades.

“It’s not always a silver bullet. People are moving into purpose-built rentals like it’s a safe harbour, but it just happens to be the only boat leaving the dock right now,” said Cohen. “We have to be analytical before we lock in on the wrong assumption.”

Cracks are already appearing in the apartment rental market , which has been heavily affected by a drop in demand due to reduced immigration and foreign student enrolment.

Condo research firm Urbanation Inc. said the vacancy rate in stabilized buildings completed since 2000 in the Greater Toronto Hamilton area was 5.4 per cent in the first quarter of this year, more than double the rate two years ago.

New projects are increasingly under pressure, with two-thirds offering incentives to renters and almost half of new projects including two months free rent with a lease.

Looking for alternatives in today’s market , Brookfield Property Partners and Larco Investments raised eyebrows this past week when it was revealed they want to rezone at least some space at a property that was long the home of an HBC department store at Toronto’s Yonge and Bloor intersection into self-storage.

It’s a move Cohen was quick to applaud.

“I was not shocked at all. That proves my point that real estate developers need to adapt to a changing market,” he said, adding that can mean alternative uses in the short-term, such as allowing pickleball or food trucks on a piece of land. ”It doesn’t pay the freight, but it’s better than a vacant lot.”

Shaun Hildebrand, president of Urbanation, said land trades have been rare, but what is moving is down 50 per cent from the market peak, based on price per buildable square foot.

“People were way overpaying, but it’s hard to draw much from (prices today) because the samples (of sales) are small,” said Hildebrand.

Urbanation’s latest data from the fourth quarter of 2025 shows that the total transaction value of all Greater Toronto Area land sales was 56 per cent below the five-year average of $1.74 billion, at about $762 million.

“Some projects that were going to be condos have been pivoted to rental,” said Hildebrand, noting 11,500 condos that were being marketed in the Greater Toronto Hamilton Area have been cancelled since the start of 2024, with about 4,000 converted to rental.

He said the market today is favouring bigger players with deeper balance sheets who can hold on to land longer, and leading some to take on smaller projects, which have lower capital costs and risks.

“There just isn’t going to be big towers; there will be more mid-rise that are easier to manage financially,” he said. “Anyone selling land is kind of in a distressed position. Others are just waiting for market conditions to improve.”

Adam Jacobs, head of research in Canada for Colliers, said the condo situation has sucked some energy out of the real estate sector. He said the whole condo model, which is based on pre-sales of about 70 per cent to fund a project, could evolve in the future.

“Are you signing up to buy a pre-construction condo that won’t be delivered until 2032?” said Jacobs.

The backlog of unsold condos will have to be cleared before there is more demand for land to build even more of them. That’s even with changes to remove the harmonized sales tax from new homes in Ontario and a reduction in development charges, said Jacobs.

The Greater Toronto Area has seen more distressed land transactions as sales have slowed. Jacobs said there were 78 of those land deals in 2024 and 2025, compared to 49 in the previous three years.

“Residential land is where the distress is happening,” said Jacobs, noting land loans can be eight per cent to 10 per cent. “People thought there would be all these distressed sales offices or malls, but that day never comes because the lenders don’t want to or the cycle changes. But for land, you are just sitting there with no income. We need a way to make construction viable now, not five years from now. There are some policy levers being pulled.”

Mark Goodman, a principal broker at Vancouver-based Goodman Commercial Inc., said lenders he is talking with said the wave of distressed land hitting the market over the next 24 months is just getting started.

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While he says there is a clear uptick in sales from even “big developers,” the real estate veteran said land prices may also be reaching an acceptable level for developers, allowing them to make deals work.

“We’re finally seeing enough data points to trigger a reset in market pricing,” said Goodman.

In the interim, for developers like Cohen, the name of the game is wait. “Markets come back, they always do,” he said.

• Email: gmarr@postmedia.com

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Kapitol is building NextDC’s M3 Melbourne data centre in West Footscray.

Big builders are shifting away from low-margin, high-volume work as the construction sector faces a squeeze from rising input costs and higher interest rates.

These forces have driven builders to pull back from jobs that will have more volatile returns, and they are instead chasing projects that will offer more certainty.

Hubexo APAC president Ashleigh Porter said the industry faced a permanent structural shift and called out the heightened cost of delivery driven by persistent inflation and friction in the global supply chain.

“Amidst chronic labour deficits and tightening regulatory oversight, the sector is becoming leaner and more resilient,” she said.

The firm’s annual sector rankings showed the top 50 builders commenced 722 projects this year, aligning with last year’s numbers, and the total value of those starts soared by 32 per cent to $43.9bn.

The analyst said that top builders were trading traditional, high-risk procurement systems for data-driven solutions, which has been the model adopted by top-ranked builder, Kapitol. Building apartment towers and data centres in Victoria drove its workbook.

Andrew Deveson, co-founder and director at Kapitol, said the company had sought to avoid the classic construction problem of a race to the bottom and low margins. Instead it was seeking to solve industry-wide challenges using technological solutions.

“We use AI as a core way of solving problems,” he said, with workflows automated to improve quality. While it has been challenging in the fragmented industry with complicated supply chains, he said it was an advantage.

“We’re always thinking about how to grow our business with systemic scale and repeatability,” he said. “We have taken a lot of inspiration from airline industry.”

The company is seeking to avoid the trap of lifting revenue and having profitable years before hitting problems by ensuring that it has the correct systems in place. Mr Deveson is optimistic the data-centre boom will create more apprentices and boost local manufacturing as more assets are built. “I suspect it will be a long-term asset for the country,” he said.

Builders are after large-scale and high-quality developments, which Hubexo said reflected strong underlying demand.

The top 10 firms had $22.9bn in new starts, despite breaking ground on 15 per cent fewer projects year-on-year.

Some builders had a dramatic rise, with Kapitol leapfrogging its rivals as it undertook hi-tech projects. The Melbourne-based builder commenced 17 high-value projects in 2025, exceeding $3.5bn in combined value.

The listed Lendlease, which topped the construction league in 2022, climbed to second place in this year’s edition with nine commencements valued at almost $3.3bn.

Marco Rossi’s Built secured its third consecutive top-three finish, leading the market in activity with 69 projects totalling $2.8bn.

CIMIC Group unit CPB Contractors secured fourth place with just under $2.5bn in starts, followed by the private Icon at almost $2.3bn, marking their third consecutive year as a top-10 presence.

Both ADCO Constructions and Hutchinson Builders had top-10 finishes for the fifth consecutive year. NSW-based Richard Crookes Constructions climbed to eighth, while Multiplex was ninth.

Apartment developer Deicorp rounded out the top 10 with $1.4bn in starts, a return to form as the company held that ranking in 2022 and 2023.

Hubexo said the building sector was evolving in response to shifting economic pressures and was well-placed to shape Australia’s built environment in the years ahead.

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Buying a new construction home can sound like a dream for many homebuyers, but it can look different from purchasing an existing property. Whether you’re building from the ground up or buying a move-in-ready new build, there are additional steps, timelines, and decisions to consider.

In this Redfin article, we’ll cover everything you need to know about buying a new construction home. Whether you’re looking at an upcoming development in Sacramento, CA, or looking at land outside of Milwaukee, WI, here’s what to consider before getting started.

Key takeaways 

• New construction homes are built from scratch as part of a planned community or on land you purchase. 
• They’re typically more expensive than existing homes due to higher construction and development costs.
• New-builds can take a few months to a year to build, depending on the size, layout, and location.

1. Determine a budget

The first step of buying a new construction home is to determine a budget. While you’ll need to decide between building a home from the ground up or purchasing a newly built home, knowing how much house you can afford can help guide your decision. 

Building a home is often more expensive due to the price of materials and labor. For example, a 2025 NAHB study, the average sales price for a new single-family home in 2024 was $665,298. In comparison, the US median sale price is $429,129, according to February 2026 Redfin data. It’s a good idea to set a budget early, so you know what’s truly affordable. 

2. Decide between building a home or a move-in-ready home

Knowing your budget can help you decide whether to build a home or buy a move-in-ready property. Here’s what you need to know about each option:

Option 1: Build a home from the ground up

Your first option is to build a home from scratch. There are two ways you can do this – buy land and build a home, or buy a lot in a planned community. Buying land and building a home is typically more complicated. You’ll need to find land that’s suitable to build on, commit to a builder, file permits, establish sewer, water, and electricity lines, and much more. This whole process could take 1 to 2 years.

For many buyers, the easier option is to buy a lot in a planned community that hasn’t started construction yet. In this case, there will already be a builder, permits filed, and utility lines set up, while still giving you the option to choose a layout and finishes. Homes in planned communities typically take several months to complete, but be sure to ask the builder for their projected timeline. 

Option 2: Buy a move-in-ready home

Your second option is to buy a move-in-ready or spec home. These homes are typically in the process of being built or were recently finished. If the home is currently being built, you can likely negotiate finishes like paint color, flooring, and appliance packages. 

You’ll still have some freedom to customize your home, but usually, major structural changes are off the table. Your agent will have a good idea of what to negotiate in a move-in-ready home.

3. Consider what loan is right for you

Once you’ve decided between buying a move-in-ready home or building a home, you’ll need to evaluate the available loan options. 

Here are the most common loan types to consider when buying a new home:

• Construction-only loan: If you decide to buy land to build a home on, a construction loan is an option. These are short-term, high-interest loans that are used to finance the construction process. Typically, these loans only last for a year and cover the cost of land, building materials, permits, and labor. After this ends, you’ll likely need to get a traditional mortgage. 
• Construction-to-permanent loan: These loans cover the construction process, but convert to a traditional mortgage once the home is completed. You’ll need a down payment, but you’ll only pay closing costs once, which can be beneficial.
• Conventional mortgage: A conventional mortgage is one of the most common mortgages. If you’re buying a new home or one that’s located in a planned community, this can be a good option. 

Keep in mind that there are plenty of loan options available, including FHA, VA, and USDA loans. Speaking with a lender can help you decide which loan type fits your goals.

4. Find a real estate agent

Working with a real estate agent is a good plan regardless of the type of home you’re buying. If you’re looking to buy land, finding an agent with experience in land, such as rural, off-grid, or recreational, is key, as they can identify opportunities and potential risks. A real estate agent can also help you buy a home in a planned community, such as making an offer, negotiating on upgrades, and ensuring the closing process goes smoothly. 

5. Choose an area you want to live in

Determining where to build or buy a home affects everything from your daily commute and property taxes to access to amenities and utilities. Typically new construction homes are built farther away from the city center or in suburban areas. If you’re planning to buy land, it’s likely to be in a more remote location.

Many new construction homes are sold as part of a subdivision development, with parcels of land for sale. Depending on the area, you may find these lots are smaller than you expect, with close boundaries to your neighbors.

Buying land requires you to think about everything from electricity, internet reliability, utilities, and access to amenities. Factor in how long it will take you to complete daily errands, commute time, access to major highways and roads, proximity to friends and family, and more. Depending on your goals, the trade-off may be worth it.

6. Compare home builders

Choosing the right home builder is equally important as finding the right real estate agent. The National Association of Home Builders’ (NAHB) directory is a good place to begin your search. Start by reading online reviews, confirming the builder is licensed, and reviewing their floor plans.

With homes in a planned community, there are usually a few floor plans or models to choose from. You’ll want to look at these to see if they align with your needs and wants in a new home. Depending on the builder, they may be open to changing the layout to accommodate your wishes.

There are plenty of important questions to ask potential builders, but some include:

• What are the standard finishes versus the upgraded features?
• What warranty policies do you provide?
• What is the projected timeline for the home to be built?
• How long have you been in business, and are you licensed and insured?
• Do you have any spec homes I can tour?

7. Negotiate changes and sign a contract with a builder

Once you’ve decided on a builder, you’ll get a contract to review outlining the projected completion date, your deposit, building materials, finishes, and more. If your home is part of a planned community, certain interior features such as standard appliances, carpet, base paint colors, and trim may already be included in the price. 

Typically, you’ll have the option to select add-ons such as hardwood floors, upgraded appliances, or crown molding for a higher price. Keep in mind, you can try to negotiate these higher-end features into the existing purchase price.  

Your real estate agent can help you read through the contract, negotiate, and make sure everything you’ve agreed upon is included. They’ll also help you evaluate the builder’s warranties, what occurs if building material prices increase, or how to negotiate changes during the building process. 

8. Have a home inspection and final walkthrough

After the home is built, you’ll still want a professional home inspection. Most new-builds include phase inspections, where a home inspector checks the home at certain stages of the building process. Even if a home has undergone phase inspections, a final inspection can help identify any issues that were missed or developed later. 

If there are issues with wiring, plumbing, or cosmetic mistakes, you can negotiate those repairs with your contractor before officially closing on the home. Home inspections typically cost a few hundred dollars, but this could save you from paying for a major repair in the future.

You’ll also want to have a final walkthrough to make sure everything you agreed upon is finished and cleaned up in the home. Most of the time, you and the builder will create a “punch list,” which is a list of all final repairs that need to be completed before closing day. This includes repairs after the home inspection and minor issues such as floor scratches or paint drips.

9. Close on the house

When you’ve cleared the home inspection and applied for your mortgage, you’ll be in the closing process. Your agent and lender will guide you through the process, such as reviewing the closing disclosure, bringing the right paperwork, and more. On closing day, you’ll receive the keys and be able to move in. 

FAQs about buying a new construction home

How long does it take to build a new construction home?

On average, it takes about 4 to 8 months to build a home in a subdivision. To build a home on land, it can take anywhere from 1 to 2 years. Keep in mind, this varies depending on your location, access to building materials, and the complexity of the project. 

Can I negotiate on a new build?

Yes, but not in the way you may expect. Most builders won’t negotiate on a home’s base price, but you may be able to negotiate on upgrades, a longer warranty, or other concessions. 

What is a new build versus a spec home?

A new-build is a home that you purchased before it was built, giving you the option to pick a layout, paint colors, finishes, and landscaping. A spec home is a new home that was not built for a specific buyer, so it typically just has the baseline features. 

Do I still need a down payment for a new build?

Yes, unless you have a zero-down payment loan like a VA or USDA loan. You’ll also likely need a builder’s deposit, which is a nonrefundable payment of around 10% of the home’s cost. It acts as an earnest money deposit and covers initial building costs.

Construction has started on northwest Tasmania’s new $60 million shopping centre, due for completion in mid-2027, which will feature a huge new Woolworths as its anchor tenant, along with a Chemist Warehouse.

Called Stony Rise Village, the new shopping precinct in Devonport will span more than 6,300 sqm and the Woolworths will be the largest supermarket in the region.

The new Chemist Warehouse also marks the national retailer’s first superstore in the northwest. The shopping village will also play host to medical services, takeaway food, and beauty services.

Bringing Stony Rise to life, L-R: Fairbrother’s Marcus Perkins, Premier Jeremy Rockliff, Tipalea’s Scott Spanton, Mayor Alison Jarman, and Felix Ellis MP. Picture: Supplied

Stony Rise Village sits on the corner of Stony Rise Road and Friend Street, next to the homemaker centre.

At its sod turning event held on Friday, mayor of Devonport, councillor Alison Jarman, said the new shopping centre will provide more than 1,200 employment opportunities.

“This new centre sends a clear message: Devonport is growing, it’s open for business, and it has confidence in its future,” Cr Jarman said.

“Developments like Stony Rise Village generate far more than retail jobs. The flow-on benefits across construction, transport, manufacturing and food services will support businesses right across the region.”

A gold plated employment winner for Tasmania’s northwest? Picture: Supplied

Tasmanian Premier Jeremy Rockliff and Member for Braddon, Felix Ellis MP, also attended.

The firm responsible for bringing the shopping centre to life is Tipalea Partners, and its CEO Scott Spanton says leasing commitments have already hit 70%.

“It has been a journey to get to this point. We have been overwhelmed by the support we have had so far from both the community, Council and State political leaders – not to mention the outstanding results from our pre-leasing campaign.”

Premier Jeremy Rockliff at the sod-turning event. PIcture: Supplied

A shopping precinct for the future

Stony Rise Village will boast several features that developers say sets it apart from other retail hubs in the region.

Contractors Fairbrother Northern Tasmania will be responsible for the fitout of inground services.

It will feature EV charging stations, a weather station, and free WiFi, as well as wireless charging stations. There will also be parking for parents and the elderly, as well as RVs for those tripping around the Apple Isle.

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Construction is running at record levels but the war could pose threats to the industry. Picture Glenn Hampson.

The building sector hovered around record levels last year as total activity hit $318bn, amid a surge in investment in energy infrastructure, data centres and apartments, according to the Rider Levett Bucknall’s latest construction market update.

However, the industry’s strong performance is under threat from forces ranging from rising costs to uncertainty that has hit since conflict in the Middle East broke out.

The troubles have also slowed commercial deal-making across Australia as players reassess risks.

RLB warned that geopolitical risks could further add to emerging cost pressures, with conflict in Iran and the Middle East potentially increasing construction input costs via higher oil and freight prices.

Disruptions and delays to shipping routes may also raise prices for materials such as diesel, bitumen, steel and cement.

“The Middle East conflict introduces upside risk to construction costs and increases the potential for delays, although it is too early to quantify the magnitude,” RLB Oceania director of research and development Oliver Nichols.

He said if the conflict was short‑lived and oil prices retreated, the overall impact on construction costs was likely to be limited.

The most immediate channel is via higher oil prices as about 20 per cent of global oil supply passes through the shuttered Strait of Hormuz. “If elevated oil prices persist, energy‑intensive and freight‑heavy inputs are likely to see further increases, including civil movements, asphalt and bitumen, followed by materials such as steel and cement,” Mr Nichols said.

Interest rates are the other big swing factor. RLB warned that if the Reserve Bank lifted the cash rate to 4.35 per cent, construction sector work done would be about $42bn lower – a 3.5 per cent dip – over the 2026-27 to 2029-30 period than on its forecast in late 2025.

RLB said cost pressures already appeared to be returning.

Building construction costs increased at an annualised rate of 4.9 per cent in the second half of 2025, while house-building costs rebounded after falling in late 2024 and early 2025.

Persistent shortages of skilled labour, affecting trades as well as engineers and construction managers, are biting. Developers also face limited competition among Tier 1 contractors on major projects, with insolvency risks still haunting the sector.

However, Mr Nichols said the national project pipeline remained strong, particularly in WA, SA and Queensland, where approvals and project starts are speeding up.

“While construction cost escalation moderated in 2025, renewed pricing pressure is emerging as large public and private projects compete for labour and contractor capacity,” he said.

RLB forecasts construction costs to rise between 4 and 6 per cent nationally in 2026, with stronger increases expected in Adelaide (5.1 per cent), Brisbane (5 per cent), Darwin (5.2 per cent), Perth (5.4 per cent) and the Gold Coast and Townsville (6 per cent).

Engineering construction has strengthened on the back of investment in solar, wind and hydro projects, alongside major water infrastructure upgrades.

Residential construction also rebounded in 2025, rising 7.3 per cent, with apartment projects accounting for much of the growth. Non-residential construction remained stable, although investment in data centres, hospitals and aged care facilities jumped.

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Buying a new construction home can sound like a dream, with top-of-the-line features and your ideal layout. The price tag, however, can sometimes put it out of reach. The good news is that there’s often room to negotiate — it just looks different than negotiating with a traditional seller.

In this Redfin article, we’ll cover what you can negotiate when buying a new home and strategies to get the best deal. Whether you’re looking at a new-build in Raleigh, NC, or a home in Sacramento, CA, here’s what you can expect during new construction negotiations. 

Key takeaways

• Negotiating the base price on a new construction home can be more difficult.
• You’re more likely to be able to negotiate upgrades, warranties, and concessions.
• You’ll have more leverage if the home is already built or the builder needs to close fast.

Can you negotiate on a new construction home?

In short, yes, but maybe not in the way you’d expect. Builders are usually reluctant to drop the base price, since it affects the appraised value of other homes in the community. Instead, they’re more likely to offer incentives such as upgraded finishes, assistance with closing costs, or flexible move-in dates, especially if the home is already built or sales are slow.

However, some builders may be receptive to negotiation, so it doesn’t hurt to try. There are some things to keep in mind to help you get the best deal on a new construction home. 

How to negotiate the price of a new construction home

While builders may not budge much on base price, you can often negotiate other perks. Let’s take a look at some of your options.

Consider negotiating concessions, fees, or HOA costs

One way to negotiate on a new construction home is by asking for the builder to pay for certain fees or concessions. Sometimes your builder has a preferred lender who offers incentives to prospective buyers, such as closing cost assistance, lower interest rates, or paid home inspections. It’s always a good idea to shop around before committing to a lender to make sure you’re getting the best deal. 

The builder may also agree to cover HOA costs for a specified amount of time as an incentive for you to buy the property. This can help reduce initial costs without affecting the purchase price. Keep in mind that you’ll eventually need to pay for these HOA fees, so you’ll want to make sure that they fit into your budget. 

Negotiate the home’s layout and upgraded features

Buying a new construction home can give you more freedom to design a home that meets your needs. While you may not be able to negotiate the purchase price, you can negotiate a better layout or for upgraded features. 

If the home building process has not begun, you can ask about changing the floorplan to accommodate your needs. It’s unlikely that the builder will agree to any major structural changes if the home is already built.

Asking for upgraded features or top-of-the-line appliances is another way to get a better deal without changing the purchase price. Some features to consider include better appliances, high-quality countertops, lighting packages, and smart home systems. These features can be easier to swap out or add to the home if it’s already built or close to completion. 

Ask for a better warranty

Many new construction properties already offer a “builder’s warranty” as part of the home purchase. These warranties typically have one-year coverage for structural and flooring issues, and two-year coverage for electrical, plumbing, and HVAC systems. You can see if the builder is willing to extend the warranty’s coverage or if they can include additional items, such as appliances, in the policy.

Determine if negotiating the base price is possible

In most cases, builders are going to be hesitant to negotiate the price of a new build, especially if the homes were recently listed. Reducing the price of one home could cause other buyers to try to negotiate a lower price. However, there are a few times when negotiating the price down may work. 

If there are only a few homes left for sale, or only the model home is available, the builder may agree to a lower price in order to sell the remaining properties. Likewise, if the builder is not seeing any of the new homes sell, they may consider reducing the price to get the homes off the market. 

What can be more difficult to negotiate on a new home?

While there are several things you can negotiate, there are some things that may be more difficult to negotiate. Let’s take a look at them:

Lot price

Typically, if all the lots in a new community are the same quality, it’s going to be difficult to negotiate the price down. Some lots have a premium fee if they’re in a more desirable location, so it’s unlikely that you’ll be able to reduce this cost. 

Earlier move-in date

You may be able to push out your move-in date, but it’s unlikely that you’ll be able to speed it up. Builders are typically working on a tight timeline to begin with, especially if they’re in the process of building a planned unit development. Sometimes these timelines may even be pushed out due to a lack of building supplies, backorders, or construction challenges. 

Base or purchase price

Other than a few exceptions, it’s unlikely that the builder will agree to lowering the purchase price by much. Due to a variety of factors, such as building costs, it’s more likely that the home could cost more than what you initially expect. 

Some builders include an escalation clause that allows them to increase the price if building material costs increase. However, a good real estate agent can help you navigate this and prevent an unrealistic escalation clause. 

Major structural changes if the home is already built

As mentioned above, it’s unlikely that a builder will be willing to make major layout or structural changes after the home has been built. You may have better luck asking for these changes before the home building process has begun or is in the early stages. 

5 tips to help with negotiations on a new build

1. Work with a local real estate agent who has experience with new construction homes. They’ll know builder pricing strategies, contract terms, and timelines for negotiating. 
2. Research the home and recent sales of comparable new construction homes in the area. Look at the price per square foot, builder reputation and inventory, sales pace, and contract details to determine if the listing price is fair. 
3. Research builders before making an offer. Look into their reputation, standard contract terms, upgrade pricing, and build timelines.
4. Negotiate on already built homes. If the builder has several unsold or uncompleted homes on the market, they may be willing to negotiate on price. 
5. Get any agreed-upon negotiations in writing. Builder reps may promise perks verbally, but they don’t count unless they’re in your contract. Double-check all incentives, upgrades, and timelines are documented.

FAQs about negotiating new construction home prices

What is a new construction home?

A new construction home is a new-build that has never been lived in and is typically sold by builders or developers. These homes can include custom builds, move-in-ready spec homes, and homes in new residential developments. 

How much should you negotiate on a new construction home?

If you want to negotiate the listing price, 1 to 5% off can be a good starting point. You’re likely to have a better outcome negotiating other perks like updates, closing cost assistance, or home warranties.

Can you negotiate on spec homes?

Yes, you can negotiate on both spec and move-in-ready homes, but you’re likely to have more success with move-in-ready homes. If you’re looking to customize your home, consider negotiating updates with the builder on a spec home.

How do I know I’m getting a good deal with a new construction home?

Working with an experienced agent can help ensure you’re getting a good deal on a new construction home. Learning about the local market, builders, comparable properties, and the home itself can make you more confident that you’re getting the best price. 

Renders of Teak development at Mudgeeraba.

A landmark multimillion-dollar development is set to revolutionise a Gold Coast suburb with a new pub and retail hub.

Construction is set to start on Teak, a mixed-use commercial development in Mudgeeraba offering space for 14 tenants.

Renders of Teak development at Mudgeeraba.

Renders of Teak development at Mudgeeraba.

Renders of Teak development at Mudgeeraba.

It’s the first commercial project for local residents Lauren and Mitch Milne, who have completed 10 residential developments in the past five years.

Teak replaces the historic Woodchoppers Pub on Railway St, which is set to be demolished this week.

The new development is expected to become a hub for both operators and the wider community with new opportunities for hospitality, health and fitness, medical and retail businesses.

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Renders of Teak development at Mudgeeraba.

Woodchoppers Pub will be demolished to make way for Teak.

Renders of Teak development at Mudgeeraba.

Councillor Glenn Tozer says Teak represents confidence in Mudgeeraba’s future. Photo: Annette Dew

Division 9 Councillor Glenn Tozer said developments like Teak played a critical role in strengthening Mudgeeraba’s local economy.

“This project creates new commercial opportunities that will attract quality businesses across hospitality, health and fitness, and retail — industries that directly benefit local residents and enhance the vitality of the village,” Cr Tozer said.

Renders of Teak development at Mudgeeraba.

A key feature of the development is its nod to local heritage — the original Woodchoppers site will be paid homage through a new restaurant and pub secured by The Australian German Club.

“It’s encouraging to see a development that acknowledges the history of an iconic site while reimagining it for a growing community,” Cr Tozer said.

“Retaining a hospitality offering here ensures that the spirit of the Woodchoppers site lives on,

while delivering a modern destination that reflects where Mudgeeraba is heading.”

Renders of Teak development at Mudgeeraba.

Construction, to be handled by NthStar Constructions, is expected to take 12 months.

A number of commercial sites remain for sale or lease, offering businesses and investors an opportunity to secure a position in one of Mudgeeraba’s most prominent new developments.

“Teak represents confidence in Mudgeeraba’s future,” Cr Tozer said.

“It sends a clear message that this is a place worth investing in — a community that supports business, growth and quality development.”

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