Florida is one of the largest new construction markets in the country. Major builders like D.R. Horton, Lennar, Pulte, KB Home, and Toll Brothers build extensively throughout the state. If you're considering new construction in Florida, the buying process differs significantly from resale — and the differences favor the builder unless you know what to watch for.
Builder Contracts Are Not Standard Real Estate Contracts
When you buy a resale home in Florida, you'll use the standard Florida Realtors/Florida Bar contract, which has been carefully balanced between buyer and seller protections over many years. When you buy new construction, you sign the builder's contract — written entirely in the builder's favor.
Key differences to watch for:
- Earnest money at risk: Builder contracts often require larger earnest money deposits (3–10% vs. 1–3% typical for resale) and may keep your deposit if you cancel for almost any reason.
- Completion timeline flexibility: Builders reserve the right to delay completion by 6–12+ months with limited buyer remedies. If rates rise during your wait, you may be stuck with a higher payment than you budgeted.
- Change order pricing: Upgrades offered in the design center are priced at significant markups — often 30–60% above what you'd pay to have them done after closing by a local contractor.
- Limited inspection rights: Many builder contracts restrict when and how often you can bring independent inspectors onto the property during construction.
Hire Your Own Real Estate Attorney
Before signing any new construction contract, have a Florida real estate attorney review it. This typically costs $300–$600 and is the best money you'll spend in the transaction. An experienced Florida real estate attorney will identify the contract provisions most likely to harm you and can sometimes negotiate modifications — particularly on earnest money forfeiture terms.
Get Your Own Inspector — Not Just the Builder's
Florida builders are required to have their work inspected by county building inspectors. This is not sufficient protection for buyers. County inspections verify code minimum compliance; they don't check for construction quality, workmanship, or cosmetic issues that matter to homeowners.
Hire an independent Florida-licensed home inspector for three inspections: pre-drywall (when framing, electrical, and plumbing are exposed), pre-closing, and a final walkthrough. The pre-drywall inspection is the most valuable — problems visible in framing are expensive to fix once they're covered by drywall.
The Design Center Upgrade Trap
New construction design centers are beautiful showrooms designed to encourage spending. Upgrades that seem essential in the showroom are often the lowest ROI spend in a new home. The classic advice: take the base finishes the builder includes, move in, live in the space, then do upgrades on your own timeline with your own contractors at competitive prices.
Exceptions: upgrades that are genuinely difficult to add later (structural changes, in-slab plumbing for a bar or island, electrical panel capacity, attic insulation upgrades). These are worth considering at the builder stage. Cosmetic upgrades (countertops, flooring, fixtures) are almost always cheaper to do post-closing through a local contractor or big-box retailer.
Builder Warranties in Florida
Florida law requires new construction builders to provide:
- 1 year warranty on workmanship defects
- 2 years on mechanical systems (plumbing, electrical, HVAC, structural components)
- 10 years on major structural defects
Document any defect in writing immediately upon discovery and send the notice to the builder via certified mail. The warranty process has specific notice requirements, and failing to follow them can waive your rights. Keep a maintenance log and inspection photos from your pre-closing walkthrough.
New Construction vs. Resale: The True Cost Comparison
New construction often appears cheaper per square foot until you add the realistic upgrades most buyers make. A $350,000 base-price home with $40,000 in design center upgrades (modest by Florida standards) competes with a resale home at $390,000 that includes those finishes already. Factor in the builder premium honestly before assuming new beats resale.
New construction's real advantages: builder warranty coverage, modern systems (plumbing, electrical, HVAC), energy efficiency, and in some markets, more amenity-rich communities. These advantages are real — just priced honestly.
Checklist: New Construction in Florida
- Hire a Florida real estate attorney to review the contract before signing
- Hire an independent inspector for pre-drywall, pre-CO, and final walkthrough inspections
- Resist design center upgrades for cosmetic items — do them post-closing for less
- Lock your mortgage rate early — or use the builder's preferred lender only if they offer meaningful concessions
- Get insurance quotes before choosing a lot — coastal community insurance will be high regardless of build quality
- Document everything in writing — verbal promises from sales agents are not binding