KENNA BUYER GUIDE · COLORADO NEW CONSTRUCTION
Do You Need a Buyer's Agent for New Construction in Colorado?
You can buy directly from a builder, but that does not mean the builder's sales process represents your side of the purchase.
Kenna Real Estate Group helps Colorado buyers compare the whole new-construction purchase—the builder, community, homesite, all-in price, incentives, recurring property costs, contract milestones, and the issues that still need independent review.
If you want your own representation, involve your agent before you register with a builder or visit the model home. Builder registration and compensation policies differ, and waiting until after you have selected a home or signed paperwork can limit what your agent can do.
In Colorado, that can include metro-district taxes, soils and grading, radon, builder-specific contracts, lot orientation, and the difference between the advertised base price and the completed home's actual cost.
Bring Your Agent In Early
Builder registration policies can affect whether your agent is recognized in the transaction. If you already have representation, involve your agent before your first model-home visit or online registration.
Compare the All-In Price
Base price is only the starting point on many new homes. Lot premiums, structural options, design selections, incentives, taxes, and recurring community costs can materially change the decision.
Know What Needs Independent Review
Your agent can help coordinate the transaction, but builder contracts, inspections, soils, engineering, financing, and legal questions may require other qualified professionals.
HOW KENNA APPROACHES NEW CONSTRUCTION
We Compare the Whole Purchase, Not Just the Model Home
When Kenna Real Estate Group helps a buyer evaluate new construction, the comparison goes beyond floor plan and base price.
We look at the pieces that can materially change the purchase:
- the actual homesite and lot premium
- structural options versus cosmetic upgrades
- builder incentives and financing tradeoffs
- metro-district and HOA costs
- soils and site information
- builder-contract deadlines and deposits
- inspection access
- projected completion timing
- what is included in writing
- how the finished home compares with other available new and resale options
The goal is not to tell you that one builder or community is “best.”
It is to help you understand what you are actually buying, what it is likely to cost, and what still needs independent verification before you commit.
WHO REPRESENTS YOU
The Builder's Sales Team Represents the Builder's Side
The on-site sales team can be extremely helpful.
They know the community, available homesites, floor plans, construction schedule, included features, upgrade packages, and builder processes.
But do not assume that someone working in the sales office represents you simply because they are helping you purchase the home.
Colorado recognizes different brokerage relationships, including agency and transaction-brokerage. The Colorado Division of Real Estate explains how those relationships work.
If you want a broker working on your side of the transaction, establish that relationship separately and understand the services and compensation you have agreed to.
Bring Your Agent In Before You Register
Builders can have their own rules for registering buyers and recognizing outside brokers.
Those policies are not universal.
If you are already working with a buyer's agent, tell the agent which communities you want to see before walking into the sales office or completing an online registration.
Questions worth resolving early include:
- Does the builder require my agent to register me?
- Does the agent need to accompany me on the first visit?
- How long does the registration remain valid?
- Is the builder offering compensation to a buyer's brokerage?
- What does my buyer agreement require if the builder contributes less than the compensation I agreed to?
Do not assume the builder will automatically pay your buyer's agent.
Find out how representation and compensation will work before you become committed to a particular home or builder.
WHAT THE HOME REALLY COSTS
Know Which Upgrades Are Hard to Change Later
Not every builder option deserves equal attention.
Separate decisions that affect the structure of the home from finishes that can reasonably be changed after closing.
Depending on the builder, early decisions may include:
- floor-plan changes
- garage configuration
- basement configuration
- doors and windows
- plumbing locations
- electrical layout
- structural openings
- additional rooms
Cabinet hardware, light fixtures, paint, or some flooring selections are different kinds of decisions.
Before paying a builder premium for an upgrade, ask:
Is this difficult or expensive to change later, or could I reasonably do it after closing?
That keeps the budget focused on the parts of the home that are hardest to recreate.
Compare the Lot as Carefully as the Floor Plan
Two identical floor plans can produce very different homes depending on the homesite.
Look beyond the lot-premium number.
Consider:
- orientation
- grade and drainage
- walkout, garden-level, or standard basement
- retaining walls
- usable yard area
- adjacent streets
- neighboring homesites
- open-space boundaries
- utility or drainage easements
- sidewalks and trails
- planned community facilities
- future development around the lot
- driveway and garage orientation
Ask what is built, approved, planned, or merely conceptual.
A view from the model home does not establish what will eventually be next to the property you purchase.
COLORADO PROPERTY CHECKS
Check the Soils and Site Information
Soils deserve particular attention in Colorado.
The Colorado Geological Survey identifies expansive or swelling soils as a significant geologic hazard in parts of the state, including populated areas along the Front Range.
That does not mean a particular new home has a soil problem.
It means the soils and site documents supplied for the property deserve more than a quick signature.
Ask for the available soils, geologic, foundation, grading, and site information that applies to the property.
The Colorado Geological Survey provides a guide to swelling soils for Colorado homebuyers and homeowners.
If those documents raise technical questions about foundations, drainage, grading, or site conditions, use an appropriate engineer or other qualified professional.
Your real estate agent should help identify the issue—not pretend to be the engineer.
Check the Metro District Before You Compare Payments
Many Colorado new-home communities involve a metropolitan district or another special taxing district.
Do not compare affordability using only the purchase price and mortgage payment.
Ask:
- Is the property inside one or more metro districts?
- What mill levies currently apply?
- What does the district disclosure say about debt and taxing authority?
- What property-tax estimate is being used for the completed home?
- Are there separate HOA dues or other recurring community charges?
Colorado requires specified disclosures for residential property located within metropolitan districts.
Review the disclosure for the actual property, not merely general marketing material for the community.
A tax amount associated with vacant land or partially completed construction may also be a poor basis for estimating the taxes on the completed home.
The useful number is the expected ongoing housing cost, not just the builder's sales price.
HOA and Metro District Are Not the Same Thing
A community may have an HOA, a metropolitan district, both, or neither.
Do not combine them mentally into one generic “community fee.”
For an HOA, investigate items such as:
- current dues
- what the dues include
- design or architectural restrictions
- landscaping responsibilities
- parking restrictions
- rental provisions
- fencing rules
- amenities
- applicable transfer or other charges
For a metro district, focus separately on taxes, fees, services, debt, and taxing authority.
They serve different purposes and can affect the cost of ownership differently.
Ask About Radon Even in a New Home
New construction does not eliminate the radon question.
The Colorado Department of Public Health and Environment says radon is common throughout Colorado and provides guidance for radon-resistant new construction.
Ask what radon-resistant components were installed in the home.
A passive radon system also does not tell you the home's measured radon level.
CDPHE recommends testing homes for radon and provides Colorado radon and real-estate guidance.
CONTRACTS + MONEY
Know What Happens to Your Deposit
New-construction deposits can work differently from what buyers expect in a resale transaction.
Before sending money, identify:
- how much is due with the initial contract
- whether additional deposits are required
- whether design selections require additional deposits
- when deposits become nonrefundable under the contract
- what happens if financing fails
- what happens if the buyer cannot close
- what happens if construction is delayed
- what cancellation rights the written contract provides
Do not rely on a verbal explanation when the written agreement controls the transaction.
If losing a deposit under a particular scenario would materially affect you, understand that provision before signing.
Compare Builder Incentives in Dollars
Builders may offer incentives tied to a particular home, closing date, lender, title company, or financing structure.
Those incentives can be valuable.
But “$25,000 in incentives” does not establish which option gives you the most value.
Depending on the offer, an incentive might be applied toward:
- closing costs
- an interest-rate buydown
- design selections
- purchase-price reduction
- appliances or options
- another permitted transaction cost
If an incentive depends on using the builder's preferred lender, compare the resulting financing with other available choices.
Once Loan Estimates are available, compare the actual loan terms and estimated costs.
The Consumer Financial Protection Bureau explains how to read a Loan Estimate.
A Rate Buydown and a Price Reduction Are Not the Same Thing
New-home buyers are often given choices such as:
Take the lower rate.
Use the incentive toward closing costs.
Take money off the purchase price.
Those choices do different things.
A rate buydown changes the financing.
A price reduction changes the purchase price and loan amount.
A closing-cost credit changes the amount of cash you may need at closing.
Ask the lender to run the alternatives using the actual loan.
Then compare:
- monthly payment
- cash to close
- lender charges
- points or credits
- how long the rate benefit lasts
- how long you expect to keep the mortgage
Choose the incentive based on what it actually does for your purchase rather than the headline dollar amount.
CONSTRUCTION + INSPECTIONS
New Does Not Mean Skip the Inspection
A municipal inspection, builder quality-control process, builder warranty, and independent buyer inspection are not the same thing.
If you want independent inspections, determine before signing the builder contract what inspections are permitted and when the inspector can access the property.
Depending on the construction stage and builder access, a buyer may consider inspections around:
- pre-drywall
- substantial completion
- before closing
- an applicable warranty milestone
Not every builder permits every inspection stage.
Your agent can help coordinate permitted access and contract deadlines.
The inspector evaluates construction and condition.
Your real estate agent should not promise that the home was built correctly or substitute for a technical inspection.
Use the Final Walkthrough for More Than Paint Touch-Ups
The final walkthrough or builder orientation is an opportunity to understand the home you are actually receiving.
Look beyond cosmetic punch-list items.
Identify how to operate or locate important components such as:
- main water shutoff
- electrical panel
- HVAC controls
- irrigation controls
- sump pump, when present
- radon equipment, when present
- smart-home equipment
- garage-door equipment
- appliances
- warranty contacts and claim procedures
Document agreed punch-list items.
Understand which items are expected to be completed before closing and which, if any, the builder intends to address afterward.
Read the Builder Warranty Before You Need It
“Builder warranty” is not enough information.
Get the actual warranty and understand:
- what is covered
- what is excluded
- how claims must be submitted
- applicable deadlines
- who performs warranty work
- homeowner maintenance responsibilities
- how urgent items are handled
Keep the warranty with your contract, option sheets, change orders, inspection reports, closing documents, and photographs.
Questions about warranty language can require legal advice.
Questions about whether a building component is performing correctly may require an inspector, engineer, contractor, or other qualified professional.
Track Every Selection and Change in Writing
Model homes are designed to show possibilities.
Do not assume everything you see in the model is included in the home you are buying.
For the actual property, verify in writing:
- floor plan
- elevation
- structural options
- design selections
- appliances
- lighting
- flooring
- cabinets and counters
- landscaping
- fencing
- window coverings
- smart-home equipment
- basement finish
- garage features
- exterior improvements
Keep the builder's specifications, option sheets, change orders, and addenda.
When something changes, make sure the change is documented.
Quick Move-In or To-Be-Built?
These are both new construction, but they are different purchases.
Quick Move-In Home
More is already decided.
The lot, floor plan, structural options, and finishes are usually substantially established.
You can evaluate more of the actual finished product, and the construction timeline is typically shorter.
The tradeoff is less ability to customize.
To-Be-Built Home
More decisions happen before the home exists.
You may choose the homesite, structural options, and design selections.
Deposits, change orders, selection deadlines, and construction timing become more important because you are committing to much of the purchase before you can walk through the completed home.
Plan for Construction Timing Changes
A projected completion date is useful for planning.
Do not automatically treat it as a guaranteed move-in date unless the contract actually makes it one.
This matters if your purchase is connected to:
- selling another home
- ending a lease
- relocating to Colorado
- temporary housing
- mortgage rate-lock timing
- movers or storage
- school or work schedules
Ask what the contract says about construction timing and what happens when completion moves earlier or later.
The more expensive a timing change would be for you, the earlier you should understand that risk.
WHAT YOUR AGENT SHOULD ACTUALLY DO
New-Construction Representation Is More Than Touring Model Homes
The value of having your own agent is not simply having someone accompany you through the sales office.
Useful new-construction representation should help you:
- compare builders, communities, homes, and lots
- separate base price from likely all-in cost
- identify structural decisions versus cosmetic upgrades
- track incentives and compare their actual value
- understand brokerage representation and compensation
- identify builder-contract provisions that deserve legal review
- track deposits and transaction deadlines
- coordinate with your lender
- examine metro-district, HOA, and recurring property costs
- identify soils, radon, and other Colorado-specific documents worth investigating
- coordinate permitted inspections and walkthroughs
- keep selections and builder commitments documented
- compare the completed home with what you contracted to purchase
- work through transaction questions with the appropriate builder contact
- tell you when the question belongs with an inspector, engineer, lender, title professional, or attorney instead
That last point matters.
A good new-construction agent should know the limits of the agent's role instead of pretending to be the builder, inspector, engineer, lender, or lawyer.
BEFORE YOU REGISTER WITH A BUILDER
Compare the Purchase With Kenna Before You Commit
Kenna Real Estate Group can help you compare Colorado builders, communities, quick move-in homes, homesites, incentives, metro districts, HOA costs, financing considerations, and the property-specific issues that can change the decision.
You should know what is included, what the completed home is likely to cost, which questions still need a lender, inspector, engineer, or attorney, and who is representing your side of the transaction before you sign.