Buying a brand-new home in New Hampshire is an exciting opportunity. From selecting finishes to moving into a never-lived-in space, it’s a fresh start in a market where fresh starts are increasingly hard to come by. With the statewide median single-family home price hitting a record $535,000 in 2025 and inventory stuck at roughly two months’ supply, 16% of all home purchases nationally now involve new construction—the highest share since 2006, according to the National Association of Realtors’ 2025 Profile of Home Buyers and Sellers. But many buyers assume that buying from a builder is straightforward enough to go it alone. The reality is quite different. New construction transactions are among the most complex purchases in real estate, and having your own buyer’s agent is not just helpful—it’s essential to protecting your financial interests.
The Builder’s Sales Team Works for the Builder—Not You
When you visit a model home or sales office, you’re typically greeted by a site agent employed by the builder. They’re knowledgeable, polished, and often genuinely helpful. But they are contractually obligated to the builder’s interests—not yours. Their job is to sell the property on the builder’s terms, at the builder’s price, on the builder’s timeline. They are not required to disclose comparable sales data that might suggest the home is overpriced, they won’t volunteer that certain upgrades have poor return on investment, and they have no obligation to flag contract clauses that disadvantage you. Without your own representation, you’re negotiating one of the largest financial transactions of your life against a professional sales team—and you’re doing it alone.
This matters more than many buyers realize. According to the 2025 NAR Profile, 88% of all homebuyers worked with a real estate agent or broker. Buyers overwhelmingly cite negotiation assistance, help understanding the purchase process, and guidance on making competitive offers as the top reasons they value agent representation. In new construction specifically, these services are arguably even more critical because builder contracts are fundamentally different from standard real estate purchase agreements—and the stakes of misunderstanding them are significantly higher.
New Construction Contracts Are Not Standard Purchase Agreements
One of the most important reasons to have your own agent when buying new construction is the contract itself. Unlike a typical resale transaction where both parties often use a standardized state or association purchase agreement, builder contracts are proprietary documents drafted by the builder’s attorneys to protect the builder’s interests. These contracts can run 30–60 pages and contain provisions that many buyers don’t fully understand. A buyer’s agent experienced in new construction knows exactly what to look for.
Here are some of the most consequential clauses your agent will review and, where possible, negotiate on your behalf:
- Escalation clauses: Many builder contracts include provisions that allow the purchase price to increase if material costs rise during construction. These clauses effectively shift the risk of cost overruns from the builder to you. Some are narrowly written with caps and cancellation rights; others are broadly worded and can result in five- or even six-figure price increases with no exit option for the buyer. A 2025 analysis by the Berlin Patten law firm found that escalation clause language varies enormously between builders, and many buyers don’t realize that their “fixed price” contract may not be fixed at all. Your agent can help you understand, negotiate, or cap these provisions.
- Binding arbitration clauses: Many builders require buyers to resolve any disputes through binding arbitration rather than the court system. While arbitration can be efficient, it also means you waive your right to a jury trial and typically cannot appeal an unfavorable decision. Some arbitration clauses even require the use of an arbitration service selected by the builder. An experienced agent will flag these provisions so you can make an informed decision.
- Termination and cancellation clauses: Builder contracts frequently include provisions allowing the builder to terminate the agreement for virtually any reason or no reason at all, while limiting or eliminating the buyer’s ability to cancel. If a builder terminates, the buyer may forfeit some or all of their deposit—which can be substantial. Your agent ensures these provisions are reciprocal or, at minimum, that your deposit is protected.
- Completion timeline provisions: Builders rarely commit to firm completion dates. Contracts often use “estimated completion” language and include unilateral extension clauses that allow the builder to push deadlines with little or no consequence. Many contracts offer the buyer no remedies for prolonged delays—no per-day compensation, no termination rights, and no rate-lock protection. Your agent can negotiate for meaningful timeline accountability, including cancellation rights if construction exceeds a reasonable period.
- Warranty limitations: Builder warranties typically cover structural defects (10 years), mechanical systems (2 years), and workmanship (1 year), but the fine print matters enormously. Some warranties disclaim liability for entire categories of defects, impose strict notice requirements, or require the builder’s own inspectors to assess claims. Your agent ensures you understand what’s covered, what’s excluded, and what remedies you actually have.
Why Registration Timing Is Critical
This is one of the most important and least understood aspects of buying new construction: most builders require your agent to be present or formally registered on your very first visit to the sales office. Once you sign in at a model home without listing a buyer’s agent, the builder may refuse to recognize—or compensate—any agent you bring in later. The builder’s position is that their sales team “procured” you as a buyer, and therefore no outside agent is entitled to participate in the transaction.
This policy is nearly universal among both national production builders and local custom builders in New Hampshire. It means that if you casually tour a model home on a Saturday afternoon without your agent, you may have permanently forfeited your right to independent representation on that property. The solution is simple but essential: engage a buyer’s agent before you visit any new construction site, and either bring them with you on your first visit or have them register on your behalf in advance.
The NAR Settlement and What It Means for New Construction Buyers
The August 2024 NAR settlement fundamentally changed how buyer agent compensation works nationwide, and understanding these changes is especially important for new construction purchasers. Under the new rules, buyers must sign a written buyer representation agreement with their agent before touring any home listed on the MLS. This agreement specifies the services the agent will provide and the compensation they will receive, and it conspicuously discloses that agent commissions are fully negotiable and not set by law.
For new construction purchases, the practical impact has been modest. Most builders continue to offer buyer agent compensation as part of their sales structure—a survey by Real Brokerage found that 63% of sellers (including builders) continue to cover buyer-broker commissions post-settlement, and 55% of agents reported commission offers at 2.5% or higher. Builders have historically budgeted for buyer agent compensation because they recognize that agents bring qualified, motivated buyers and help facilitate smooth closings. In New Hampshire, where the New Hampshire Association of Realtors updated its forms in 2024 to include new Buyer Representation Agreements (both exclusive and non-exclusive) and Buyer Facilitator Relationship Agreements, the framework for transparent compensation is well established.
The key takeaway: having a buyer’s agent for new construction typically costs you nothing out of pocket, since the builder customarily pays the buyer agent’s commission from the proceeds of the sale. But you must formalize the relationship before touring—both because builders require early registration and because the NAR settlement now mandates written agreements before showings.
How a Buyer’s Agent Adds Value Throughout the New Construction Process
The value of buyer representation in new construction extends far beyond contract review. Here’s how an experienced agent earns their commission at every stage of the process:
Builder and Community Selection. Not all builders are created equal, and New Hampshire is notable for having no statewide general contractor licensing requirement—anyone can legally operate as a builder. An experienced local agent knows which builders deliver quality workmanship, maintain their timelines, honor warranty commitments, and treat buyers fairly. They’ve seen the finished product from multiple builders across dozens of transactions, and they’ll steer you toward developers with strong track records and away from those with histories of construction defects, delays, or poor customer service. In a state where building permits hit 5,822 units in 2024—a 20-year high—the number of active builders has expanded, making experienced guidance more valuable than ever.
Lot Selection and Site Evaluation. In New Hampshire, lot selection is particularly consequential. Rocky terrain, variable soil conditions, ledge, flood zones, and wetland setbacks are common, and they directly impact construction costs and long-term property value. Your agent can help you evaluate sun exposure, privacy, drainage patterns, proximity to utility connections, and future development plans for adjacent parcels. They’ll also help you understand the implications of lot premiums—corner lots, cul-de-sac lots, and lots backing to conservation land often command $10,000–$50,000 premiums, and your agent can advise on whether those premiums reflect genuine long-term value.
Pricing Analysis and Negotiation. Builders price homes to maximize their margins. Your agent provides comparable sales data from the local MLS—including resale prices in nearby neighborhoods and recent closings within the same development—to help you determine whether the builder’s asking price is competitive. Negotiation in new construction isn’t always about price; experienced agents know that builders are often more flexible on upgrades, closing cost contributions, rate buydowns through their preferred lender, or lot premium reductions than they are on base price. These concessions can be worth $10,000–$30,000 or more without affecting the builder’s headline sale price, which they’re motivated to protect for future appraisals in the development.
Upgrade Guidance. Builder design centers are designed to maximize revenue. The $5,000 kitchen cabinet allowance in the contract may cover basic stock cabinetry but fall far short of the semi-custom options displayed in the model home. An experienced agent helps you distinguish between upgrades that add real value (hardwood flooring, kitchen layout improvements, energy-efficient windows, additional electrical outlets and rough-in plumbing) and those that offer poor return on investment (high-end light fixtures, custom paint colors, and premium appliance packages that can often be sourced independently after closing at significantly lower cost). This guidance alone can save buyers thousands of dollars.
Construction Monitoring and Milestone Inspections. Your agent stays engaged throughout the build, conducting walkthroughs at critical milestones: foundation completion, framing, pre-drywall (when insulation, wiring, and plumbing are visible and verifiable), and final. Even brand-new homes can have defects. According to home inspection industry data, approximately one in four homes inspected reveal issues that could lead to costly repairs, and construction defects in new homes are not uncommon—the National Association of Home Builders’ 2024 Cost of Construction Survey noted that construction costs now account for 64.4% of the average new home price (up from 60.8% in 2022), creating pressure on builders to cut costs in ways that may affect quality. Inspectors on new construction routinely identify missing insulation, incorrect grading, improper flashing, code compliance gaps, HVAC installation errors, and plumbing or electrical issues. Your agent coordinates independent inspections (separate from the builder’s own quality checks) and ensures identified issues are documented and corrected before closing.
Timeline Management. New construction timelines are notoriously fluid. Weather (particularly New Hampshire winters), labor shortages, permit backlogs, and supply chain disruptions can push completion dates by weeks or months. Your agent monitors the schedule, communicates regularly with the builder’s project manager, and holds the builder accountable to contractual timelines. If delays threaten your mortgage rate lock, your agent coordinates with your lender on extension options and ensures the builder bears appropriate responsibility for delay-related costs.
Final Walk-Through and Punch List. The final walk-through is your last opportunity to document deficiencies before taking ownership. An experienced agent knows what to look for: proper grading away from the foundation, functioning appliances and fixtures, correctly installed flooring and trim, properly sealed windows and doors, and compliance with the specifications outlined in your contract. They’ll create a detailed punch list and ensure the builder commits to a completion timeline for all remaining items before you close.
What Happens When You Don’t Have Representation
Buyers who purchase new construction without agent representation face real and quantifiable risks. Without independent guidance, buyers may:
- Overpay on upgrades: Builders mark up design center selections by 30–50% or more compared to retail or contractor pricing. Without an agent to identify which upgrades to select through the builder and which to handle independently, buyers routinely overspend by $15,000–$25,000.
- Miss unfavorable contract terms: Escalation clauses, binding arbitration provisions, one-sided termination rights, and warranty limitations are standard in builder contracts. Unrepresented buyers typically accept these terms without negotiation.
- Forgo inspections: Many unrepresented buyers assume a new home doesn’t need inspection because it was built to code. Code compliance is a minimum standard, not a quality guarantee. Independent inspections at framing and pre-drywall stages are critical for catching issues that become invisible (and expensive) once drywall is installed.
- Lose leverage on defects: Without an agent documenting conditions at each construction milestone, buyers who discover post-closing defects may lack the documentation needed to compel the builder to honor warranty obligations. Builders frequently impose strict notice requirements and short windows for filing warranty claims.
- Accept the builder’s preferred lender without comparison: Builders often incentivize buyers to use their affiliated lender through closing cost credits or upgrade packages. While these incentives can be genuinely valuable, some preferred lender arrangements come with higher interest rates or fees that offset the incentive value. Your agent ensures you compare the total cost of financing, not just the incentive.
New Construction in Today’s New Hampshire Market
The case for buyer representation is especially strong in New Hampshire’s current market. With building permits at a 20-year high (5,822 units in 2024), zoning reforms opening new development opportunities statewide, and resale inventory at roughly one-third the level from a decade ago, more Granite State buyers are pursuing new construction than at any time in recent memory. Construction costs averaging $238 per square foot for standard builds, custom homes ranging from $200–$350 per square foot, and total project budgets routinely exceeding $500,000 make the financial stakes significant.
Meanwhile, the regulatory landscape is evolving rapidly. House Bill 577 (effective July 2025) expanded accessory dwelling unit rights to allow detached ADUs by right on any single-family lot. House Bill 631 now requires towns to allow residential development in commercial zones. These changes are accelerating new construction activity in communities across the state, and buyers need agents who understand both the opportunities and the complexities these reforms create.
The 2025 NHAR Affordability Index stands at just 58—meaning the median household income covers only 58% of what’s needed to qualify for the median-priced home. In this environment, every dollar of negotiated savings on upgrades, every unfavorable contract clause that gets revised, and every construction defect that gets caught before closing matters enormously. A buyer’s agent pays for themselves many times over.
Choosing the Right Buyer’s Agent for New Construction
Not every agent has meaningful new construction experience. When selecting an agent to represent you on a new build, look for the following:
- Demonstrated new construction experience: Ask how many new construction transactions they’ve handled, which builders they’ve worked with, and what issues they’ve encountered and resolved.
- Builder relationship knowledge: An experienced agent knows the local builders, their reputations, their standard contract terms, and their negotiation tendencies. This institutional knowledge is invaluable.
- Contract literacy: Your agent should be able to walk you through the builder’s contract page by page, identify provisions that need attention, and recommend a real estate attorney for formal legal review of complex terms.
- Construction process understanding: From permitting and site work through framing, mechanicals, insulation, and finish work, your agent should understand the sequence of construction well enough to identify milestone inspection opportunities and potential quality concerns.
- Local market expertise: In New Hampshire, where construction conditions vary dramatically by region—Seacoast lot costs differ enormously from Lakes Region, and rocky inland terrain creates different site work challenges than sandy coastal soils—local knowledge is essential to evaluating both pricing and construction feasibility.
The Bottom Line
New construction homes offer tremendous opportunity—but they also present unique challenges that differ fundamentally from buying a resale property. The builder’s sales team represents the builder. The contract is written to protect the builder. The timeline, upgrade pricing, and warranty terms all favor the builder unless someone is negotiating on your behalf. That someone is your buyer’s agent.
Before you step into a single model home, before you sign a single registration card, and before you fall in love with the granite countertops in the builder’s showcase kitchen, make sure you have the independent representation you deserve. It will cost you nothing and could save you tens of thousands of dollars.
Ready to explore new construction with an experienced buyer’s agent? Contact us to discuss your goals, timeline, and the builders and communities that best fit your needs in the Granite State.