New Construction Homes

Why Choose New Construction?

Building a new home offers distinct advantages over buying resale:

Energy Efficient: New homes are built to modern energy codes, reducing heating and cooling costs dramatically.
Latest Technology: Smart home features, modern electrical systems, efficient HVAC, and quality insulation.
Builder Warranties: Structural warranties (typically 10 years) and appliance warranties provide peace of mind.
No Hidden Defects: New homes haven't been lived in. You know exactly what you're getting.
Customization Options: Many builders allow you to choose finishes, colors, and layouts before construction.
Zero Maintenance Risk: You won't encounter 50-year-old plumbing or electrical systems needing replacement.
Future Appreciation: New developments often appreciate as neighborhoods mature and amenities are added.

Major New Construction Developments in St. John's Metro

Galway

Location: West of Paradise, Conception Bay South area.

Style: Planned suburban community with townhouses and single-family homes.

Price Range: $350,000-480,000

Developers: Tarry & Shea Building Group, Bird Construction.

Features: New schools, parks, community center, modern infrastructure.

Southlands

Location: Paradise/Mount Pearl area.

Style: Upscale single-family homes with modern finishes.

Price Range: $400,000-550,000

Developers: Multiple home builders.

Features: High-end finishes, modern designs, established neighborhood with mature amenities.

Kenmount Terrace

Location: Paradise, off Kenmount Road.

Style: Townhouses and condominiums.

Price Range: $320,000-420,000

Developers: Various townhouse builders.

Features: Low-maintenance living, walkable to shops and restaurants, growing community.

CBS (Conception Bay South)

Location: Eastern Newfoundland, 15 min from St. John's.

Style: Family-friendly suburban homes and townhouses.

Price Range: $280,000-400,000

Developers: Local and regional builders.

Features: Oceanside views, more affordable than downtown, strong school system, commute-friendly.

Mount Pearl Expansion

Location: South of St. John's.

Style: Mix of bungalows, split-levels, and townhouses.

Price Range: $360,000-500,000

Developers: Multiple builders.

Features: Best schools in NL, established community, parks, family-oriented.

Corner Brook & West Coast

Location: 2.5 hours west of St. John's.

Style: Modern homes in rural setting.

Price Range: $220,000-350,000

Developers: Local builders.

Features: Lower prices, strong job market in mining/forestry, growing community, outdoor recreation.

Understanding the Building Process

Phase 1: Lot Selection & Pre-Construction

You select your lot and builder. Review the property survey, site plan, and utility connections. Understand the timeline: design phase, permit applications, and expected start date. Ask about customization options available.

Phase 2: Design & Specifications

Work with builder on floor plan, finishes, colors, and upgrades. Review the contract carefully. Understand what's included in base price vs. upgrades. Get written specifications for all materials and systems. Lock in selections early to avoid construction delays.

Phase 3: Site Preparation & Foundation

Builder obtains permits and begins excavation. Foundation is poured and allowed to cure. This phase typically takes 4-8 weeks. You'll receive progress updates and photos.

Phase 4: Framing & Exterior

Walls are framed, roof is installed, siding/exterior applied. This is when the home's shape becomes visible. Duration: 6-12 weeks depending on complexity and weather.

Phase 5: Mechanical & Interior

Electrical, plumbing, HVAC systems are installed. Insulation and drywall are completed. Interior finishes (flooring, paint, fixtures) are applied. This phase is 8-16 weeks.

Phase 6: Final Inspections & Closing

Municipal inspections verify compliance with building codes. Builder performs final walk-through with you to identify any punch-list items (minor fixes needed). Once approved, you close and take possession. Final phase: 2-4 weeks.

Working with Builders: What You Should Know

Establish Reputation: Ask your agent or check Better Business Bureau and customer reviews before signing with a builder.
Review the Contract Carefully: Understand payment schedule, warranty terms, what's included/excluded, completion date, and penalty clauses.
Know Payment Schedule: Typical payment milestones: 10% deposit at signing, 25% at foundation, 50% at framing, 75% at rough-in, 100% at close. Never pay 100% before you verify completion.
Inspect Progress Regularly: Visit the site regularly (with builder permission) to monitor quality and progress. Take photos.
Document Everything in Writing: Any changes, upgrades, or discussions should be documented in writing with signed change orders. Verbal agreements are worthless.
Understand Warranty Coverage: New homes include structural warranty (10 years) and appliance warranties. Know what's covered and what's not.
Get Independent Home Inspection: Even new homes should be inspected by an independent professional before closing. You're still protected by your right to inspect.
Final Walkthrough: Before closing, conduct a thorough walkthrough with builder. Create a "punch list" of items needing attention. Don't close until you're satisfied.

Builder Warranty Programs: Atlantic Home Warranty

Most NL builders participate in Atlantic Home Warranty, a third-party warranty program that protects buyers:

Coverage Periods:
- Year 1: Defects in materials and workmanship
- Years 2-5: Major structural defects
- Years 6-10: Major structural defects (foundation, framing)

What's Covered:
- Structural elements (foundation, framing, roof, exterior walls)
- Electrical, plumbing, HVAC systems
- Insulation and air tightness
- Fixtures and appliances (builder-supplied)

What's NOT Covered:
- Normal wear and tear
- Cosmetic issues (paint, minor dents)
- Damage from abuse or improper maintenance
- Items modified or repaired by non-licensed contractors

Filing a Claim: Contact builder first for warranty issues. If unresolved, contact Atlantic Home Warranty. They'll assess and authorize repairs or compensation.

Financing a New Home Build

Financing new construction is similar to resale but has some differences:

Construction Loan: Some lenders offer construction loans that disburse funds as building progresses. You pay interest only during construction phase, then it converts to a mortgage at closing.
Regular Mortgage: You can also get a traditional mortgage pre-approval. At closing, funds are released and construction loan is paid off.
Builder Financing Incentives: Some builders offer closing cost assistance or upgraded appliances if you finance with their preferred lender. Evaluate carefully—don't sacrifice better rates for perks.
Rate Lock: Lock in your interest rate as early as possible. Building timelines can extend due to weather or supply chain issues. You want rate certainty.
Down Payment: Typically 20% down required for new construction mortgages (10% minimum for some lenders).

Closing Costs & Additional Expenses

Land Transfer Tax: Due at closing (see mortgage calculator for NL rates)
Legal Fees: $1,500-2,500 for lawyer review and closing
Home Inspection: $400-600 (recommended even for new homes)
Title Insurance: $300-500 (recommended)
Utility Connection: $0-500 depending on builder's provision
Septic/Well Testing: If applicable (rare in urban areas)
Property Tax Adjustment: Prorated taxes paid at closing
Home Insurance: Mandatory; required before closing

New Construction vs. Resale: Comparison

New Construction Pros

Energy efficient, lower utility bills
No surprises, building to code
Warranty protection
Customization options
Modern systems and technology
No inspection surprises

New Construction Cons

Longer timeline to possession
Price subject to market changes
Contractor delays possible
Less negotiating room on price
May be in developing neighborhood
Landscaping not mature

Resale Home Pros

Immediate possession
Negotiable price
Established neighborhood
Mature landscaping and trees
Can inspect before purchase
Known inspection history

Resale Home Cons

Higher utility costs (older homes)
Hidden defects possible
Repairs needed soon
Dated systems and finishes
Inspection surprises
Less energy efficient

Questions to Ask Before Choosing a Builder

How long have you been building homes in NL?
Can you provide references from past clients? (Contact them!)
What warranty program do you use? (Atlantic Home Warranty or other?)
What's included in the base price? What are upgrade costs?
What's your payment schedule? Can we modify it?
What's the expected completion timeline? What if you're delayed?
Do I have customization options? Can I choose finishes?
What happens if I want changes after construction starts?
Who handles inspections—you or an independent inspector?
What's your warranty claim process? How responsive are you to issues?

Explore New Construction with Royal LePage Turner Realty

Royal LePage Turner Realty works with leading builders throughout St. John's metro and represents buyers in new construction purchases. We can guide you through the builder selection process, review contracts, monitor construction progress, and ensure you get the best deal.

Talk to Us About New Construction Options

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