Buying New Construction in Utah: What Buyers Should Know Before Building

Buying a new construction home in Utah can feel like the “cleanest” path to homeownership: modern floor plans, fewer immediate repairs, builder warranties, and the excitement of choosing finishes. But new construction comes with its own rules—especially around contracts, timelines, pricing, inspections, and long-term costs.

This guide is written for Utah buyers (and out-of-state relocation buyers) who want a realistic, current understanding of what to watch for before signing anything.

1) Know what you’re buying: spec, to-be-built, or custom

New construction isn’t one thing. Your risks and leverage depend on the build type:

• Spec / Quick Move-In (already built or nearly built):More like a resale purchase. You can usually see the home, walk it, and close faster.

• To-be-built (production builder):You choose a lot + floor plan + finishes. More moving parts: design deadlines, change orders, delays.

• Custom/semi-custom:Highest personalization—and the most complexity (plans, bids, allowances, timelines, lender requirements).

Buyer takeaway: the earlier the build stage, the more you need to protect yourself with process—not just optimism.

2) Builder contracts are not the same as a resale contract

Many new construction deals use builder-prepared contracts and addenda that are different from a typical resale purchase. Utah has state-approved real estate forms (including the REPC), but new construction often adds builder terms and timelines that shift risk toward the buyer.

Common “surprises” inside builder paperwork

• Non-refundable deposits after certain deadlines

• Strict design-center timelines (missed deadlines = default selections)

• Builder discretion for material substitutions

• Completion dates framed as estimates (not guarantees)

• Limits on remedies if closing is delayed

Action: Treat the contract like a blueprint. If you don’t understand a clause, have a real estate agent review it before you sign.

3) Pricing isn’t just “base price” — it’s base + lot + options + upgrades

New construction pricing often comes in layers:

1. Base price (advertised)

2. Lot premium (cul-de-sac, views, larger lots, corner lots)

3. Structural options (extra bedroom, 3rd car garage, extended patio)

4. Design selections (cabinets, flooring, counters, fixtures)

5. Post-contract upgrades (blinds, landscaping, fencing, epoxy floors)

The most common budget miss

Buyers budget for the home but forget the “finish the house” items:

• backyard/landscaping

• fences

• window coverings

• appliances (sometimes)

• water softener (common in many areas)

• garage shelving/finishes

Rule of thumb: Ask the builder for a realistic “move-in complete” cost list early—and plan a buffer.

4) Incentives are real—understand what you’re trading for them

In today’s market, builders may offer incentives like:

• closing cost credits

• interest rate buydowns through preferred lenders

• design-center credits

• upgrade packages

These can be valuable, but they often come with a condition: use the builder’s lender and/or title company.

Smart buyer move: Compare the incentive against competing financing quotes and fees. Sometimes the incentive is a win; sometimes it’s a wash.

5) Timeline expectations: plan for delays like an adult

Utah builds year-round, but timelines can still shift due to:

• permitting and inspections (city/county schedules)

• weather

• subcontractor availability

• material substitutions and backorders

Two practical tips

• If you must move by a fixed date, consider quick move-in/spec homes.

• Avoid committing to non-flexible move-out plans until you’re close to a certificate of occupancy / final stages.

6) Get your own inspections—even on a brand-new home

A new home can still have issues. Municipal inspections focus on code compliance—not the detailed quality checks a buyer cares about.

Best practice: hire an independent inspector for:

• Pre-drywall inspection (before insulation and drywall)

• Final inspection (before closing)

• Optional: 11-month warranty inspection before the builder warranty period hits key deadlines

This is especially important because Utah law limits defective construction claims largely to contract/warranty routes in many cases—meaning your paperwork and documentation matter.

7) Understand Utah’s building codes and efficiency standards

Utah has adopted modern building codes, including the 2021 International Codes effective statewide (with Utah amendments). Utah also has a statewide Utah Energy Code based on the IECC with Utah-specific changes.

What this means for you

• New homes should generally be more efficient than older homes

• Comfort and utility costs still vary by builder, insulation quality, HVAC sizing, and sealing

What to ask the builder

• What efficiency features are standard vs upgrade?

• HVAC type and sizing approach

• Insulation levels and air sealing practices

• Window performance level

8) Don’t ignore radon and site conditions

Many Utah areas have elevated radon potential. EPA radon zone maps show portions of Utah categorized as higher potential, and Utah-specific mapping also highlights radon hazard areas.

Ask:

• Is radon mitigation installed or available as an option?

• If not installed, can the home be roughed-in for mitigation?

Also consider site and soil realities:

• slope lots (retaining walls, drainage)

• expansive soils in some regions (foundation considerations)

• grading and water flow (especially spring runoff)

9) HOA + community rules can shape your lifestyle more than you expect

Many new communities have HOAs with rules on:

• fencing types/heights

• parking (trailers, RVs)

• landscaping and turf limits

• exterior modifications and sheds

• short-term rentals

Before you choose the lot: read the CC&Rs and confirm what matters to you (parking, yard use, pets, rentals, etc.).

10) Landscaping and water-wise expectations are increasing

Utah’s water conversation is not theoretical—new landscapes are increasingly guided toward water-wise approaches. The state provides homeowner landscape resources to support water-efficient design and irrigation schedules, and USU Extension publishes water-wise plant guidance.

Practical buyer questions

• Is the landscaping included? If not, what is the expected cost range?

• Are there turf limits or water-wise requirements from the city/HOA?

• Is there secondary water? (If applicable, how is it billed/managed?)

11) The walkthrough and punch list are not a formality

Before closing, you should do:

• a detailed walkthrough

• a written punch list

• confirmation of warranty process and response timelines

Pro tip: photograph everything, keep email records, and organize documents by date. This makes warranty claims smoother if issues appear after move-in.

12) A simple “before you sign” checklist

If you only do 11 things, do these:

1. Confirm build type (spec vs to-be-built vs custom) and timeline reality

2. Get the full pricing stack (base + lot + structural + design + “finish the house”)

3. Read the contract deposit rules and refund triggers carefully

4. Compare incentives against true financing costs

5. Confirm what standard includes (appliances, A/C, landscaping, fencing, blinds)

6. Review HOA rules before selecting a lot

7. Plan independent inspections (pre-drywall + final)

8. Ask about energy features and HVAC specifics

9. Address radon (mitigation or rough-in)

10. Plan a buffer for delays and post-close costs

11. Use a real estate agent or specialist. The construction companies agents only have their best interests at heart. Get an agent to protect you, especially since the builder will pay their commissions and you don't.

Bottom line

Buying new construction in Utah can be an excellent move—especially for relocation buyers who want modern design, lower maintenance, and predictable communities. The best outcomes come from treating the purchase like a project: clear budget layers, contract clarity, independent inspections, and realistic timelines.