New Construction in West Palm Beach: The Buying Process

Thinking about buying new construction in West Palm Beach but not sure where to start? You are not alone. The process looks different from buying a resale home, and small choices can affect your budget, timeline, and insurance. In this guide, you will learn the exact steps, local checkpoints, and contract terms to watch so you can move forward with confidence. Let’s dive in.

Why choose new construction here

You get modern building codes, energy-conscious design, and the chance to tailor finishes. In South Florida, many buyers also value wind and flood resilience built into newer homes. The trade-off is timing. High demand in the West Palm Beach–Boca Raton–Delray Beach corridor can affect lot releases, build slots, and incentives, so planning early matters.

What shapes costs and timing locally

Palm Beach County and the City of West Palm Beach oversee permits and Certificates of Occupancy. Permit backlogs, plan reviews, or inspector availability can push schedules. Materials and labor pricing, lot premiums, impact and utility connection fees, and HOA amenities also shape your final number. Seasonal risks like hurricane season, plus supply lead times for windows and appliances, can add time.

Step-by-step buying process

1) Research builders and communities

Decide on the product type that fits your needs:

• Spec homes that are complete or close to it can close fastest.
• Inventory homes are built but unsold and often offer quicker move-in.
• Pre-construction on a lot or plan offers the most choice but the longest timeline.

Verify the builder’s Florida license, past projects, warranty practices, and any complaint history. Confirm the community type, HOA rules, and what the base price includes versus upgrades.

2) Reserve your lot and secure pricing

Builders often require a reservation and deposit to hold a lot or specific plan. Before paying, ask how deposits are held, escrow versus a builder account, and when they are refundable. Request the full purchase contract and all community documents in advance so you can review terms without pressure.

3) Review and negotiate the contract

Builder forms are designed to protect the builder. Focus on:

• Total price, lot premium, and allowances for options.
• Deposit schedule and refund conditions.
• Build timeline, milestones, and what counts as a delay.
• Liquidated damages for buyer or builder delays.
• Temporary occupancy rights, if any, before final closing.
• Dispute resolution, attorney fees, and limits on remedies.
• HOA or master association rules, covenants, and fees.

Have an experienced buyer’s agent and a Florida real estate attorney review the paperwork. The on-site sales rep works for the builder.

4) Set up financing early

Your options depend on the home type and stage:

• Conventional mortgage on a finished spec or inventory home.
• Construction-to-permanent loan that converts to a mortgage at completion.
• Builder incentives that may favor a preferred lender.

Get pre-approved and ask how long you can lock a rate if construction runs long. If you consider a builder’s lender, compare the incentive against rate, fees, and your net cost.

5) Make selections and manage change orders

Builders set deadlines for finish selections. Missing them can limit choices and raise costs. Ask for written pricing and schedule impact for any change order before you approve it. Keep a running list of selections and signed addenda.

6) Inspect during the build

Local inspectors check key stages and the final home, but you should also hire an independent inspector. A pre-drywall inspection can catch framing or mechanical issues while they are visible. A final inspection before closing helps you build a punch list and verify that systems operate as expected.

7) CO, temporary occupancy, and closing

Closing typically follows the final Certificate of Occupancy and lender sign-off. If a temporary certificate or early occupancy is proposed, confirm your lender and insurance accept it and document who is responsible for unfinished items. Verify that all permits are closed and that any municipal punch-list items are resolved or escrowed.

8) After closing: warranties and service

Most builders offer a limited warranty. Common patterns include one year for workmanship, two years for systems, and longer coverage for structural items, but terms vary. Learn how to file service requests, response times, and any required notice before a dispute. Keep all manuals, serial numbers, and service logs.

Key contract terms to watch

Deposits and escrow protection

Confirm if deposits are refundable and under what conditions. Preference is to have funds held in escrow, not a builder operating account. Ask for clear language that limits forfeiture to specific buyer breaches.

Price, allowances, and escalation

Ask if there is an escalation clause tied to materials or labor. Get a written list of what is included, allowance amounts, and a current price sheet for options. Clarify what happens if an item is backordered and a substitution is needed.

Closing timing and delays

Find out if the date is firm or if you have an estimated window. Review allowed extensions for weather, permitting, or supply issues, and whether the builder provides any liquidated damages for delays.

Occupancy before final closing

If the contract allows a temporary certificate of occupancy, confirm insurance coverage, lender approval, and responsibility for punch-list items and utilities during that period.

Change orders and specialty work

Document costs, paid amounts, and who warrants specialty items like custom cabinetry or built-ins. Confirm payment methods for balances due on upgrades.

HOA and master association items

Obtain the covenants and bylaws, budgets, reserve information, and the developer transition plan. Ask when owner control begins and when assessments start.

Warranties and holdbacks

Confirm coverage length, exclusions, and the exact claim process. Ask if the builder allows an escrowed holdback at closing for unresolved items, and whether your lender requires it.

Dispute resolution

Many builder contracts include arbitration clauses, limits on damages, and short claim windows. Review any pre-suit notice requirements and understand your obligations before signing.

Local due diligence checklist

• Verify the builder’s Florida license and any disciplinary history.
• Request the full builder contract and addenda before paying a deposit.
• Review HOA documents, budgets, and governance timeline.
• Ask for copies of permits and plans filed with Palm Beach County or the City of West Palm Beach.
• Check the property’s FEMA flood designation and obtain an elevation certificate if needed.
• Engage a buyer’s agent, a Florida real estate attorney, and an independent inspector.
• Confirm impact fees, utility connections, and who pays each item.
• Confirm status of permits, inspections, and final CO before closing.
• If you plan to claim homestead, note property tax assessment timing and required filings.

Timeline and cost expectations

Spec or inventory homes can close in weeks to a few months. Pre-construction homes can take many months to a year or longer. Local drivers of extension include permitting cycles, material lead times, labor availability, and severe weather. Costs to plan for include lot premiums, options and upgrades, impact and utility fees, HOA dues, and insurance.

Insurance, wind, and flood essentials

New homes here often include wind-rated windows and reinforced roofs that can help with insurance. Coastal location and flood exposure still drive premiums, so get quotes early. Ask about wind mitigation credits, the home’s roof covering classification, and flood-zone requirements if the lot is in a special hazard area. An insurance agent who knows Palm Beach County can help you compare options.

Tips for a smooth closing

• Start insurance and loan approval early to match the construction timeline.
• Put all selections, upgrades, and changes in writing.
• Schedule a pre-drywall inspection and a detailed final inspection.
• Keep a punch list and confirm how items will be handled after closing.
• Avoid rushed temporary occupancy unless your lender and insurer approve it.

How Denise Torres can help

You deserve a calm, organized process from first visit to final walk-through. With buyer representation that includes remote and concierge support, curated builder introductions, inspection coordination, and clear contract guidance, you can focus on the big picture while we manage the details. If you are weighing new construction in West Palm Beach or nearby coastal communities, connect with Denise Torres to plan your next steps.

FAQs

How long does new construction take in West Palm Beach?

• Spec and inventory homes often close in weeks to a few months, while pre-construction builds can take many months to a year or more due to permitting, supply, and weather.

Are builder deposits refundable in Palm Beach County?

• It depends on the contract; confirm refund triggers in writing and prefer deposits held in escrow rather than a builder operating account.

Can I hire my own inspector for a new build?

• Yes, and it is recommended; schedule a pre-drywall inspection plus a final inspection to create a punch list before closing.

Do I need a buyer’s agent or attorney for a builder home?

• Yes, it is wise; the on-site rep works for the builder, so a buyer’s agent and a Florida real estate attorney help protect your interests and review contract terms.

What if the builder delays closing beyond the estimate?

• Your remedy depends on the contract; many agreements allow extensions for weather, permitting, or materials, so review delay clauses and any liquidated damages.

Is a brand-new home cheaper to insure near the coast?

• Not always; newer codes help, but wind and flood exposure drive premiums, so secure quotes early and ask about wind mitigation credits.