New construction homes offer the exciting opportunity to design a space tailored to your lifestyle and taste—but the process is a little different than purchasing a resale property. One important thing to understand upfront: many custom and semi-custom home builders structure their contracts in two phases, which can affect your overall timeline and final budget.

The Two-Stage Contract Process.
When you purchase a new construction home, it’s common for builders to divide the contract into two key parts:

1. Structural Contract.
This is the first stage of the process, where you'll decide on the major elements of your new home—things like the floor plan, number of bedrooms and bathrooms, garage orientation, and other structural options.
At this stage, a deposit is typically required to secure your build and lock in your lot. However, it’s important to note that this is not your final price.

2. Design & Finishes Contract.
After the structural details are finalized, you'll move into the customization phase. This is where you'll select your finishes—flooring, cabinetry, countertops, lighting, appliances, paint colors, and more. These choices are often made at a separate design center appointment or in collaboration with the builder’s in-house designer.
Depending on your selections, this stage can significantly impact the total cost of the home.

Why the Final Sales Price Can Change
Because these two stages happen separately—and because upgrades can vary widely in price—you likely won’t have a firm final sales price until you’re well into the process. It’s helpful to go in with a clear idea of your budget and to communicate openly with your builder (and your agent) about any limits or priorities.