Buying a New Construction Home in Utah County: A Buyer's Guide to Builder Incentives, Contracts and Inspections

By Dan VanSweden, REALTOR® | VanSweden Real Estate Group, KW Westfield (Excellence) | Helping Utah buyers and sellers since 2017

Buying a new construction home in Utah County works differently from buying a resale home. You'll sign the builder's own purchase contract, the on-site sales rep works for the builder, and the best incentives are often tied to the builder's preferred lender. Bring your own agent on your first visit, get an independent inspection, and compare incentives on total cost, not just the teaser rate.

New communities keep going up from Saratoga Springs and Lehi to Spanish Fork, Salem and Mapleton. I'm a Spanish Fork–based agent serving Utah, Salt Lake, Davis, Weber and Wasatch counties, and I started out framing houses, so I enjoy walking new builds with buyers. Here's what to know before you sign.

Do I need my own agent to buy a new build in Utah County?

You don't have to have one, but it's usually smart, and on most builder deals the builder pays the buyer's agent commission, so it typically costs you nothing extra. Ask the builder to confirm that in writing for the home you're looking at.

The sales rep in the model home represents the builder. Your own agent can compare the home with nearby resales, read the contract with you and push for upgrades or closing-cost help. One catch: many builders require your agent to be with you, or registered, on your first visit. If you sign the guest book alone, some won't let an agent represent you later.

How do builder incentives and rate buydowns work?

Most incentives are a pot of builder money you can use to lower your rate, pay closing costs or cut the price, and nearly all of them come with conditions.

Here's a real example. As of today, D.R. Horton's Viridian community in Salem advertises a 4.990% rate (6.264% APR) on a 7/6 adjustable-rate conventional loan through its affiliated lender, DHI Mortgage, for buyers who go under contract on or after Oct. 9 and close by Dec. 31, 2026. The rate is fixed for seven years and then adjusts. It requires a small discount point, can't be combined with other offers and requires that lender.

When you compare offers, ask:

• Is it a temporary or a permanent buydown? A 2-1 buydown is low for a year or two and then steps up. Know your year-three payment.
• Is it fixed or adjustable? An ARM can be a fine tool, but know when it adjusts and the caps.
• What's the close-by date? Year-end deadlines are common, and a move-in-ready home is usually the only way to meet them.
• Would a price cut serve me better? A lower price lowers your payment, your property taxes and your down payment for good.

What's different about a builder's purchase contract?

Builders use their own contracts, not the standard Utah Real Estate Purchase Contract (REPC), and those contracts are written to protect the builder. Read every page before you sign.

Things to look for:

• Earnest money and deposits: how much, when it goes hard, and whether design-center upgrades require extra non-refundable deposits.
• Completion dates: to-be-built homes often have estimated, not guaranteed, completion dates. Find out what happens if construction runs long while your rate lock or lease is expiring.
• Lot premiums and upgrades: the base price rarely includes what's in the model. Price the lot, finishes, fencing and landscaping you'll need.
• HOA documents: many new Utah County communities have an HOA. Review the dues, rules, and whether the declaration requires arbitration for construction-defect disputes.

Should I get a home inspection on a brand-new house?

Yes. A city inspection checks for minimum requirements at certain stages, which is not the same as a full inspection done for you. Hire your own licensed home inspector.

Ideally, schedule two inspections: a pre-drywall inspection while the framing, wiring, plumbing and ducts are still visible, and a final inspection before your walkthrough. A 2021 FOX 13 investigation found that Utah new-build owners can have limited options to fix defects after closing, and a construction attorney in that story urged buyers to get a thorough inspection, especially of the exterior where water can get in. Confirm in advance when outside inspectors can come on site.

What does a new home warranty cover in Utah?

Most builders offer a limited warranty, and many cover workmanship for the first year, with longer coverage on certain systems or structure depending on the builder. Get the warranty document before you sign and read what's excluded.

After you move in, keep a running list of issues and submit warranty claims in writing well before the first-year mark. Utah law also sets time limits on construction-defect lawsuits (see Utah Code 78B-2-225), so don't sit on a problem.

Frequently Asked Questions

Is it cheaper to buy new construction or a resale home in Utah County?

It depends on the community and the incentives available that month. A new build can come with rate buydowns or closing-cost help, while a resale may include finished landscaping, fencing and window coverings that you'd pay extra for on a new home. Compare the total cost, not just the list price.

Can I negotiate with a home builder?

Often, yes, though builders usually prefer to offer incentives, upgrades or closing-cost help instead of cutting the base price. Move-in-ready homes, especially near the end of a quarter or year, tend to have the most room. Having your own agent compare recent sales helps you know what's reasonable to ask for.

Do I have to use the builder's preferred lender?

Usually you don't have to, but the biggest incentives are often only available if you do. Get a quote from an outside lender too, so you can compare the rate, fees and total cost and see whether the incentive is worth it.

Thinking about a new build?

I track builder incentives across Utah County every week and I'm happy to walk models and read contracts with you. Call or text me at 801-857-5831. If you need to sell your current home first, start with a free home valuation so you know what you're working with.