What to Know Before Signing a Builder Contract in Treasure Valley

Buying a new construction home in Treasure Valley, Idaho, is an exciting opportunity, especially with the range of builders and neighborhoods available in places like Meridian, Eagle, Nampa, Star, and Kuna. But before you sign on the dotted line, it’s important to understand that a builder contract is very different from a traditional real estate purchase agreement. In this guide, I’ll walk you through the key things you need to know before signing a builder contract - and how to avoid common pitfalls that can cost you thousands later.

Table of Contents

• Why Builder Contracts Are Different (and Why It Matters)
• 1. Understand the Base Price vs. Final Price
• 2. Know Your Earnest Money Rights
• 3. Financing Requirements
• 4. Review the Timeline and Construction Delays
• 5. Builder Incentives and Upgrade Credits
• 6. Understand the Warranty and What It Covers
• 7. Inspections: Can You Still Hire Your Own?
• 8. What Happens if Prices Drop?
• 9. Resale Restrictions and Rental Rules
• 10. Always Work with a Local New Construction Agent
• Final Thoughts: Don’t Sign Until You’re Informed

Why Builder Contracts Are Different (and Why It Matters)

You’re Not on Equal Ground

When you sign a builder contract, you’re signing their paperwork - not a standard state-approved agreement. That means it’s written by their attorneys, with their interests in mind. Most builder contracts are one-sided, and while some are fair, others include restrictive clauses that can hurt you.

No Inspection Contingency

Unlike resale homes, most builder contracts do not include an inspection contingency. That means if something’s wrong with the home, your only option might be a warranty claim later - not canceling or renegotiating during escrow.

Strict Timelines and Builder Rights

Many builder contracts include broad clauses allowing the builder to delay closing, change materials, or even cancel the agreement. You need to understand these timelines and how delays will be handled before committing.

1. Understand the Base Price vs. Final Price

The Base Price Is Just the Starting Point

What you see on the builder’s website is usually the base price. That doesn’t include:

• Lot premium (varies by location, view, size)
• Structural upgrades (e.g. adding a bonus room, extended patio, or RV garage)
• Design center finishes (countertops, flooring, cabinets)
• Appliance packages or landscaping

It’s common to add $50,000 to $150,000+ to the base price depending on your selections.

Ask for a Price Sheet Breakdown

Don’t just ask, “How much is the home?” Ask for a full breakdown of base price, lot premium, structural upgrades, and estimated design center costs. If possible, ask to see a sample build-out from a previous buyer.

2. Know Your Earnest Money Rights

Earnest Money Is Often Non-Refundable

Unlike traditional sales where earnest money is refundable with contingencies, many builder contracts make earnest money non-refundable once you sign - even before construction starts.

What Happens if You Cancel?

Make sure you understand under what conditions you can cancel and still get your money back. If your loan is denied or if the builder doesn’t perform, do you lose your deposit? Some builders allow for cancellation within 3-5 days; others do not.

3. Financing Requirements

Some Builders Require You to Use Their Preferred Lender

You’re not legally required to use a builder’s lender, but many offer large incentives ($10,000-$40,000) that are only available if you use their preferred lender.

Get Pre-Approved Early

Some builders require a full approval, not just a pre-qual, before signing. Be prepared with your documentation, especially if you're buying a home that won't be completed for 6-12 months.

Understand Rate Lock Options

If you’re building a home from dirt, your closing may be 6-9 months away. Talk with your lender about long-term rate locks or float-down options to protect yourself from rising interest rates.

4. Review the Timeline and Construction Delays

Estimated Completion Dates Are Not Guaranteed

Builder timelines are estimates. Material shortages, labor delays, weather, and permitting can all slow down the process. Make sure your plans (like a home sale or lease ending) are flexible.

What Happens if There’s a Delay?

Some builder contracts allow for unlimited extensions. Others allow buyers to cancel after a certain point. Be clear on your rights if the build runs 3-6 months behind schedule.

Ask About Video Updates or Site Access

Some builders (especially those working with experienced relocation agents like our team) will provide video updates and allow limited site access. Others restrict access entirely.

5. Builder Incentives and Upgrade Credits

Incentives Change Often

Builder incentives can include:

• Closing cost credits
• Rate buydowns
• Design center credits
• Appliance or backyard packages

These change monthly based on builder goals. Always ask what the current incentives are and whether they're tied to using their lender.

Beware of Inflated Base Prices

Sometimes, builders will increase the base price and then offer big “discounts” that aren’t really savings. Compare homes by total cost, not just the advertised discount.

6. Understand the Warranty and What It Covers

Most Builders Offer 1-2-10 Warranty Coverage

• 1 year for cosmetic defects (paint, trim, minor drywall cracks)
• 2 years for mechanical systems (HVAC, plumbing, electrical)
• 10 years for structural issues (foundation, framing)

Not All Builders Are Equal

Some builders offer third-party warranties or extended coverage, while others handle everything in-house. Ask who to contact for issues and how warranty claims are processed.

7. Inspections: Can You Still Hire Your Own?

Third-Party Inspections Are Usually Allowed

Even if there’s no contingency, you can usually hire a third-party inspector during or after construction.

Ask if You Can Attend the Orientation or Final Walkthrough

Some builders allow your agent or inspector to be present. This is your last chance to catch cosmetic issues or construction defects before moving in.

8. What Happens if Prices Drop?

Price Drops Do Not Affect Your Contract

If prices go down or the builder offers new incentives after you sign, you're typically locked into your original price and terms.

Ask About Adjustment Clauses

Some builders will price match within a short window or allow you to apply new incentives if you haven't finalized your design selections yet. Always ask.

9. Resale Restrictions and Rental Rules

Some Builders Have Restrictions on Resale

Ask if there are:

• No resale rules for a period of time
• Required approvals to list the home
• Penalties for canceling before closing

HOAs May Restrict Rentals

Even if the builder doesn’t restrict rentals, the community's HOA might. Ask whether:

• Short-term rentals (Airbnb) are allowed
• Long-term leases are permitted
• Minimum lease periods are required

10. Always Work with a Local New Construction Agent

The Builder Rep Works for the Builder

That friendly on-site sales rep? They represent the builder, not you. Their job is to sell the home and protect the builder's interest.

Your Agent Protects Your Interests

As an experienced relocation agent who specializes in new construction, I:

• Negotiate upgrades and credits
• Review the contract with you
• Coordinate inspections and walkthroughs
• Provide video updates for out-of-state buyers

And best of all, the builder pays my fee - not you.

Final Thoughts: Don’t Sign Until You’re Informed

Signing a builder contract without understanding the terms can lead to major regrets. Whether you’re building from dirt or buying a nearly completed spec home, be sure you know what you’re getting into.

If you’re relocating to Treasure Valley and want help navigating the builder landscape, I’m here to help. Reach out via phone, text, or email, and we can schedule a quick call to walk through your goals and create a game plan together.

Download our Boise Relocation Guide