Phoenix New Construction Guide — 2026

Phoenix New Construction Home Guide 2026:
What Builders Won't Tell You Before You Sign

The complete insider's guide to buying new construction in the Phoenix metro — builder contracts, CFD/SID fees, the upgrade game, ARS §12-1361 warranties, and the 15 questions every buyer must ask before signing anything.

By Ryan Moxley, REALTOR® — Published June 27, 2026 — 30-min read

What's In This Guide

The New Construction Reality in Phoenix Builder Contract vs AAR Purchase Contract Standard vs Designer Upgrades CFD/SID — The Hidden Property Tax ARS §12-1361 Builder Warranty 15 Questions to Ask Every Builder New Construction vs Resale Choosing a Buyer's Agent Contact Ryan Frequently Asked Questions
Section 1

The New Construction Reality in Phoenix

Phoenix is not like other major metros when it comes to new construction. While buyers in Seattle, Boston, or Chicago typically encounter a market dominated by resale homes, the Phoenix metro has a fundamentally different market structure. New construction is not a niche category here. In many submarkets, it is the dominant form of available inventory.

By multiple measures, the Phoenix metropolitan area ranks among the top two or three metros in the nation for new construction activity. The combination of abundant developable land, a business-friendly regulatory environment in Arizona, relatively streamlined permitting compared to coastal cities, and a population growth engine that has run hot for decades has made Phoenix the destination of choice for nearly every major national homebuilder. When you are looking for a home in Phoenix — especially if your search takes you to the outer ring suburbs — you are shopping in a new construction market whether you realize it or not.

In the inner-ring, more established neighborhoods of Phoenix, Tempe, Scottsdale, and Mesa, resale homes dominate. But push your search outward to Goodyear, Buckeye, Surprise, Queen Creek, Maricopa, and the fast-growing communities in the far East Valley and West Valley, and the picture shifts dramatically. In these submarkets, it is entirely common for 40% to 60% of all active for-sale inventory to be new construction homes at various stages of completion. That includes pre-dirt lots where you select a floor plan, homes actively under framing, and move-in-ready spec homes that a builder has constructed on speculation and is now pricing to sell. Understanding that you are operating in this kind of market is step one of making a smart purchase decision.

The scale of the Phoenix new construction market has direct implications for buyers. Because builders are selling so much volume, they have developed sophisticated sales systems, preferred lender relationships, and design center processes that maximize their revenue on every transaction. These systems are not designed to be adversarial to buyers — they are designed to move product efficiently and profitably. But navigating them without preparation, and without representation from an agent who knows how they work, leaves buyers at a significant disadvantage.

The Phoenix Builder Landscape

Every major national homebuilder has a significant presence in the Phoenix metro, and most have been here for decades. Taylor Morrison was founded in Arizona and maintains its corporate headquarters in Scottsdale — it has deep roots in the Phoenix market and particular strength in the mid-to-premium price range across the East Valley and North Scottsdale. DR Horton, the largest homebuilder by volume in the United States, operates aggressively across Phoenix's suburban growth corridors with both its core DR Horton brand and its entry-level Express Homes label. Lennar brings its "Everything's Included" bundled upgrade model, which is philosophically different from builders who itemize every option separately. PulteGroup operates three distinct brands simultaneously in Phoenix — Pulte Homes at the mid-tier, Centex at the entry level, and Del Webb specifically for the 55+ active adult segment. Meritage Homes has distinguished itself on energy efficiency, which matters enormously in the Phoenix climate where air conditioning is not a luxury but a survival necessity.

Understanding which builders operate in which price ranges and communities — and how their contracts, quality, and customer service track records differ — is a significant part of making a smart new construction purchase. A buyer evaluating a $400,000 DR Horton home in Surprise needs different information than one looking at a $900,000 Shea Homes property in Gilbert or a $1.5 million Toll Brothers home in North Scottsdale. The processes, the quality expectations, the warranty service experiences, and the negotiating dynamics are all different.

BuilderMarket PositionAZ HQ / NotesPrice RangeKey Characteristic
DR Horton / Express HomesEntry to midNational; highest Phoenix volume$300K–$600KLargest US homebuilder; efficient production; Express brand for under $400K
LennarEntry to midNational; major AZ presence$330K–$700K"Everything's Included" — upgrades bundled; smart home tech standard
Taylor MorrisonMid to premiumFounded AZ; HQ Scottsdale$450K–$1.2MDeep AZ roots; design flexibility; strong East Valley and N. Scottsdale presence
Pulte HomesMidNational; PulteGroup brand$420K–$850KLife-Tested Home Design focus; Del Webb and Centex sister brands
CentexEntryPulteGroup brand$300K–$480KEntry-level PulteGroup volume product; efficient construction
Del Webb55+ active adultPulteGroup brand; long AZ history$320K–$1.2MInvented the active adult community concept; Sun City Grand, Buckeye communities
Meritage HomesMid to premiumNational; strong AZ presence$400K–$900KEnergy efficiency leader; spray foam insulation standard; highly relevant in AZ heat
Shea HomesPremiumPrivate company; selective AZ communities$550K–$1.5M+Build quality reputation; Trilogy brand for 55+; Province, Encanterra communities
K. HovnanianMid to premiumNational; active in Phoenix metro$430K–$950KDesign Studio customization approach; strong option selection
David WeekleyPremiumPrivate; selected AZ communities$550K–$1.4MCustomer service reputation; strong warranty follow-through; build-to-order
Tri Pointe HomesPremiumNational; premium AZ submarkets$600K–$1.6MDesign-forward; thoughtfully planned communities; quality finishes
Richmond AmericanMid to premiumMDC Holdings; active metro-wide$420K–$1.1MBuild-to-order model; buyer selects options pre-construction; broad option menu
Toll BrothersLuxuryNational; Scottsdale, luxury East Valley$850K–$5M+National luxury builder; higher-end standard finishes; extensive customization

Each of these builders has different contract terms, different design center philosophies, different preferred lender affiliations, and different track records on warranty service. Your experience buying from Lennar — with its bundled "Everything's Included" pricing where the upgrade selection is simplified — will be fundamentally different from buying from Richmond American, where you work through an extensive option menu to configure your home, or from David Weekley, where the sales team spends considerable time understanding your lifestyle before recommending floor plans. Part of what an experienced buyer's agent brings to a new construction purchase is direct, current knowledge of how each builder's process works, which communities are in strong demand versus which have inventory pressure, and what the real negotiation levers are at each builder at any given moment in the market cycle.

One more thing to understand about the Phoenix new construction landscape: the market is cyclical within individual communities even when the broader market is stable. A builder opening a new phase of 80 lots in Queen Creek will price those lots aggressively to generate momentum and establish early comparable sales. As the phase sells and the builder's confidence in demand grows, prices rise — sometimes $10,000 to $30,000 between phase releases that are just months apart. A builder sitting on 30 spec homes that have been on the market for 60 to 90 days has entirely different motivations. Knowing where in the builder's sales cycle you are, and what leverage that creates or denies you, is critical context for any negotiation strategy.

Section 2

Builder Contract vs Standard AAR Purchase Contract

This is the most important section of this guide, and the place where most new construction buyers — particularly first-time new construction buyers — run into serious trouble. The contract you sign when buying a resale home and the contract you sign when buying new construction from a builder are fundamentally different documents with fundamentally different protections — or more accurately, fundamentally different lack of protections — for the buyer.

The Critical Difference: Who Wrote the Contract?

When you purchase a resale home in Arizona, the transaction is governed by the Arizona Association of Realtors (AAR) Residential Purchase Contract. This is an industry-standard form that has been negotiated, refined, and tested over decades. It was designed to be roughly balanced between buyers and sellers, its provisions have been interpreted in Arizona courts, it incorporates statutory requirements and disclosures mandated by Arizona law, and every experienced real estate agent on both sides of the transaction knows every clause from memory. It is not a perfect document — no contract is — but it is a known quantity with established buyer protections.

When you purchase new construction from a builder, you sign the builder's own purchase contract. This document was not designed by the AAR. It was drafted by the builder's legal team with one primary objective: to protect the builder's interests, limit the builder's liability, and maximize the builder's ability to manage its construction timeline, pricing, and business operations. There is nothing legally wrong with builders having contracts that protect them — but buyers need to understand clearly that these contracts are NOT the balanced, tested AAR form. They are heavily weighted in the builder's favor, and if you sign without understanding the implications, you may find yourself in a position where the builder has extensive rights you did not anticipate and your remedies are far more limited than you assumed.

The Most Important Thing to Know

A builder's sales agent works for the builder. Their job is to sell homes for the builder at the best possible price and terms for the builder. They cannot give you unbiased legal advice about the builder's contract. Hire your own buyer's agent and, for significant contract concerns, your own real estate attorney. These protections cost you very little — your buyer's agent is paid by the builder — and the protection is enormous.

Key Builder Contract Terms — Explained in Full

1. Deposit Structure and Refundability

Standard AAR resale contracts typically involve a relatively modest earnest money deposit, often 1% or a flat $5,000 to $10,000 amount, that is held in a neutral escrow account and returned in full if the buyer cancels during the standard 10-day inspection period. Builder contracts work very differently, and at a much higher financial stakes level. You will typically make multiple deposits at different stages of the purchase process, and the refundability of those deposits varies enormously from contract to contract — and is often not clearly explained by the builder's sales team in the initial enthusiasm of the sales experience.

The initial signing deposit is commonly 1% to 5% of the purchase price. On a $550,000 home, that is $5,500 to $27,500 leaving your bank account at contract signing. Then, when you attend your design center appointments to select finishes and upgrades, builders frequently require additional "option deposits" of $10,000 to $30,000 or more to lock in your upgrade selections. These design center deposits may be entirely non-refundable from the moment you make them, or may be refundable only under very narrow, specifically enumerated circumstances. Read the refund provisions of your contract with exceptional care before signing anything, and before attending any design center appointment.

The situations in which deposits are typically refundable include: the builder cannot obtain necessary permits within a specified period; the home cannot be completed by a longstop date in the contract; or the home fails to appraise and you cannot qualify for financing on revised terms. The situations in which deposits are NOT refundable typically include: you change your mind; your financial situation changes; interest rates have moved and you can no longer comfortably afford the payment; you can't qualify for financing due to changes in your credit profile; or you exercise a cancellation for any reason not specifically listed as a buyer-out in the contract language. Know which bucket your cancellation reason falls into before you are in a position where you might need to cancel.

2. The Inspection Period vs the Punch List Process

The AAR Residential Purchase Contract includes a standard 10-day inspection period during which the buyer can conduct any inspections they choose and, after reviewing the results, either accept the property as-is, negotiate repairs using the BINSR (Buyer's Inspection Notice and Seller's Response), or cancel the contract entirely and receive their earnest money back. This is one of the most powerful buyer protections in Arizona real estate. Builder contracts for new construction typically do not include this standard inspection period, for an obvious reason: in most cases, the home isn't built yet when you sign, so there is nothing to inspect at that stage.

Instead of a BINSR-based process, new construction uses a "punch list" process at or near the completion of construction. As the home approaches completion, the buyer participates in a walk-through with the builder's construction superintendent or warranty manager. During this walk-through, both parties identify items that need correction before or at closing — paint touch-ups, door adjustments, incomplete trim work, grout cleanup, appliance function verification, garage door adjustment. The builder commits to addressing punch list items, and most items genuinely are addressed. But this process has meaningful limitations compared to the BINSR approach: you typically cannot cancel the contract based on what you find during a punch list walk-through; the punch list process focuses on visible, surface-level issues rather than the deeper systems inspection a professional home inspector would perform; and the timing and scope of punch list repair commitments are defined by the builder's contract, not by a neutral industry form.

This is precisely why I recommend hiring an independent professional home inspector at the pre-drywall stage (when framing, plumbing rough-in, and electrical rough-in are all visible) and again at Month 11 of ownership (just before the one-year workmanship warranty expires). These inspections catch issues that neither the punch list walk-through nor your own eyes during a final walk-through would identify, and they create documented evidence of any issues before warranty periods expire.

3. Price Lock and Material Escalation Clauses

One of the genuine advantages of most new construction purchase contracts is price lock — the purchase price you agree to at signing is typically the price you pay at closing, regardless of what happens to construction material costs, labor costs, or land values during the build period. If lumber prices spike 20% during your build, that's the builder's problem, not yours, under a standard price-locked contract. This price certainty is real and valuable, and it is one of the meaningful advantages new construction offers over a resale transaction.

However, buyers should know that some builders — particularly in the wake of the severe supply chain disruptions of 2020 through 2022, when lumber and materials costs increased dramatically mid-construction — introduced material escalation clauses into their contracts. These clauses allow the builder to increase your purchase price if material costs exceed a certain threshold during the build period. Such clauses are less common now than they were during peak supply chain disruption, but they have not entirely disappeared. If you see language in your builder's contract referring to material cost adjustments, escalation provisions, or price modification rights, pay extremely close attention. Understand the trigger conditions, any cap on the escalation amount, whether you receive advance notice, and whether you have a right to cancel without penalty if an escalation is invoked.

4. Close of Escrow Flexibility and the Rate Lock Problem

One of the most practically challenging aspects of new construction for buyers in the current mortgage rate environment is timeline uncertainty. Builder contracts almost universally include provisions giving the builder significant flexibility to push the close of escrow date. Construction delays are common and have many causes: weather (including the monsoon season in Phoenix during July and August), municipal inspection backlogs, permit processing delays, subcontractor scheduling conflicts, supply chain disruptions for specific materials, and simply the complexity of managing dozens of simultaneous construction projects across a community. Builder contracts typically address this by giving the builder the right to extend the closing date by weeks or even months without paying penalties to the buyer for the delay.

Why does this matter so much financially? Because mortgage rate locks are expensive to extend. A standard rate lock costs a lender a specific amount to hold your rate for a specific period — usually 30 to 60 days for a standard resale transaction. For new construction, where the build may take 8 to 18 months, builders typically offer extended rate lock programs through their preferred lenders. If you're locking with an outside lender, you face a real problem: standard rate locks of 60 to 90 days cost significantly more per day than standard locks, and if the builder delays closing, you either pay to extend your lock (at 0.125% to 0.25% of the loan amount per 30 days — $625 to $1,250 on a $500,000 loan per 30-day extension) or you allow the lock to expire and relock at whatever current market rates happen to be. Plan for this from the beginning of the financing conversation with your lender.

5. Preferred Lender Incentives — Do the Full Math

Every major builder operating in Phoenix offers buyer incentives for using their preferred (builder-affiliated) lender. These incentives come as closing cost credits, design center upgrade credits, rate buydown contributions, or combinations of all three. The stated value commonly ranges from $5,000 to $30,000 or more, and builder sales teams advertise them prominently because they are genuinely significant-sounding amounts. They look like clear wins. They frequently are not — at least not without careful comparison shopping.

Here is the fundamental math that builder sales teams do not volunteer. A mortgage interest rate that is 0.25% higher than the best rate available from a competitive outside lender costs approximately $87 per month more in interest on a $500,000 loan. Over five years, that is $5,220 in additional interest paid. Over seven years — roughly the median tenure in a home — that is $7,308. Over the life of a 30-year loan, the difference is approximately $31,200 in additional total interest paid. If the builder's incentive is $10,000 in closing cost credits, and the rate differential is 0.25%, you break even in interest cost terms in roughly six years — and after that, the outside lender financing was mathematically superior. If the rate differential is 0.375% or greater, even larger incentives may not overcome the long-term interest cost difference.

The correct approach: request a complete Loan Estimate from the builder's preferred lender AND from at least two outside lenders. Under RESPA, lenders are required to provide the standard Loan Estimate form within three business days of application. Compare these line by line: interest rate, APR, estimated monthly payment, and total interest paid over 5, 10, and 30 years. Ask your buyer's agent to help you run this comparison — the math is straightforward but the implications are significant. Sometimes the builder's preferred lender is genuinely competitive and the incentive is essentially free money. More often, there is a meaningful trade-off that favors outside lender financing for buyers who plan to stay in the home more than five to seven years.

6. Lot Premiums

Within any given builder community, not all lots carry the same base price. Builders charge "lot premiums" for locations within the community that have desirable characteristics: cul-de-sac positioning (limited drive-through traffic, typically a wider lot back), backing onto open space or a natural wash (no rear neighbors, a rare and valuable feature in Phoenix's dense suburban development patterns), corner lots (more windows, typically more natural light), elevated lots with view potential, greenbelt or park-adjacent lots, and lots positioned away from the community's main entry road, commercial adjacencies, or high-traffic amenity areas. Lot premiums in Phoenix new construction communities can range from $5,000 for a minor location advantage to $50,000 or more for a highly sought-after premium location within a desirable phase.

Lot premiums have genuine real estate value in most cases. A resale home on a premium lot within a community does typically command a higher sale price than an identical floor plan on a standard interior lot — the market recognizes the value of open space backing, of cul-de-sac privacy, of view positioning. But lot premiums are also one of the areas where, under the right market conditions, builder's agents and buyer's agents can negotiate. If a community has been open longer than expected, if a phase is winding down with premium lots still available, or if you are buying a spec home that includes a lot premium already built into its price, your buyer's agent may have leverage to negotiate reduction or elimination of the lot premium in lieu of an explicit price reduction. This is exactly the type of negotiation that requires someone in your corner whose job is to advocate for you.

7. Cancellation Rights

In a standard AAR resale contract, buyer cancellation rights are comparatively robust. You can cancel during the inspection period for any reason and receive your earnest money back. You can cancel if the home doesn't appraise and the seller refuses to reduce the price to meet appraisal. You can cancel if you are unable to obtain mortgage financing despite good faith efforts (documented properly through the financing contingency process). Builder contracts are far more restrictive on cancellation rights. The circumstances under which you can exit with your deposit returned are typically explicitly and narrowly enumerated — a short list of specific scenarios, not a broad right to cancel if your situation changes. Understand this clearly before you sign. If life changes — job loss, health event, divorce, significant change in financial circumstances — and you find yourself needing to exit a builder contract, your options may be limited and your deposits may be at significant risk of forfeiture. This is not unique to any specific builder; it is a feature of how new construction contracts work industry-wide.

Bottom Line on Builder Contracts

Never sign a builder's purchase contract without having your buyer's agent review every material term with you. For large deposits or provisions you don't fully understand, consider a one-hour consultation with an Arizona real estate attorney — typically $200 to $400 — which is a small fraction of 1% of the transaction value and can save you from a very expensive misunderstanding. The builder's contract is a professional legal document prepared by professional lawyers to protect the builder. You deserve the same quality of professional guidance protecting your interests.

Section 3

Standard vs Designer Upgrades — Mastering the Design Center

After you sign the builder's purchase contract, one of the most exciting — and most expensive — parts of the new construction process begins: the design center visit. This is where you transform the bare floor plan into the actual home you'll live in. It's also where many buyers make expensive mistakes that cost thousands unnecessarily or leave them wishing they had upgraded items that now require expensive renovation to change.

How the Design Center Process Works

Every major builder operates a design center — sometimes called a Studio, Design Gallery, or Inspiration Center — where buyers meet with a design consultant to select flooring, cabinets, countertops, fixtures, lighting, exterior finishes, and structural choices. The design center experience is carefully curated by professionals who understand both interior design and consumer psychology. The displays are beautiful and cohesive; the samples are arranged to show upgrades at their best; the consultant is helpful and knowledgeable; and the environment is specifically designed to encourage spending. Builders typically make higher profit margins on design center upgrades than on the base home, so motivating buyers to upgrade is a core part of the business model.

Design appointments are usually scheduled for one or two full-day sessions that occur within the first few weeks of contract signing — often before framing has even begun. You are making lasting decisions about items you'll live with for ten or more years in a compressed timeframe, with beautiful samples around you, under mild time pressure. Going in with a clear strategy about what to upgrade and what to skip is not optional; it is essential to making financially sound decisions in that environment.

One critical timing note: some selections are classified as "structural options" that must be decided at or near contract signing because they affect the actual construction of the home. Adding a loft above the living room, converting a flex space, adding a bay window extension, extending the garage depth or width for a third car or RV — these structural changes require decisions before framing. If you want any structural modifications to the standard floor plan, know this before you sign, discuss it explicitly with the builder's sales team at contract time, and understand the cost at that point rather than arriving at the design center expecting to add structural changes that are no longer possible.

Upgrades to Prioritize — High ROI in the Phoenix Context

Upgrade CategoryRecWhy It Matters in AZDesign Center Cost RangeRetrofit Cost After Closing
Structural options (loft, bonus room, 5th bedroom, extended garage, bay windows)DO ITCannot add structure later without major permitted renovation; this is the only affordable window$5,000–$30,000+ depending on scopeStructural addition: $60,000–$200,000+; effectively cost-prohibitive for most changes
Flooring in living areas (LVP or tile vs base carpet)DO ITTile and LVP outperform carpet dramatically in AZ dust, pet traffic, and high-humidity monsoon season; base carpet in AZ living areas shows wear in 5–7 years$3,000–$14,000 for main living areasCarpet removal + new flooring installation: $4,000–$18,000; design center upgrade is cheaper
Electrical: extra outlets, ceiling fan pre-wires, USB/USB-C, EV charger conduit, dedicated circuitsDO ITIn AZ, ceiling fans in every room are essential; EV charger rough-in is table stakes for resale; adding circuits post-construction requires opening drywall$50–$600 per item at construction stageCeiling fan pre-wire retrofit: $300–$800 (drywall access required); EV conduit: $800–$2,500 after construction
HVAC upgrade to 16–18 SEER from builder base (typically 14–15 SEER)DO ITPhoenix cooling season runs April through October; AC runs nearly continuously June through September; higher SEER directly reduces your monthly APS/SRP bill every month for the life of the equipment$1,500–$4,500 upgrade costFull HVAC replacement: $8,000–$18,000; upgrade now is dramatically cheaper per unit of efficiency gained
Insulation upgrade (spray foam attic or enhanced batt insulation)DO ITAZ attic temperatures reach 150°F+ in summer; the attic is your primary thermal battlefield; spray foam dramatically outperforms blown-in fiberglass in AZ conditions; pays back in 2–4 years of utility savings$2,000–$7,000 upgrade costSpray foam retrofit: $3,000–$9,000 with significant access disruption; much better value at construction
Extended covered patio or patio upgradeDO ITOutdoor living from October through April is central to the AZ lifestyle; a larger covered patio extends usable outdoor space; AZ resale buyers specifically prioritize covered outdoor living areas$3,000–$12,000 at constructionPermitted patio addition: $15,000–$50,000+ as a post-closing project; meaningful savings to do at build
Cabinet upgrades (soft-close hinges/drawers, dovetail box construction, taller upper cabinets)CONSIDERCabinets are used hundreds of times per week; quality construction matters for longevity; base builder cabinets are functional but may feel low-quality over years of daily use$3,500–$18,000 depending on scopeFull kitchen cabinet replacement: $18,000–$60,000+ including demolition and installation; design center upgrade is significantly more cost-effective
Quartz or premium countertops vs laminate baseCONSIDERHigh impact on kitchen and bath feel; AZ buyers at $450K+ expect quartz; good resale ROI; laminate is durable but signals entry-level in resale comps$2,500–$8,000 over laminate baseCountertop replacement: $4,500–$12,000 including demolition; cost savings for doing at design center are real

Upgrades to Skip — Buy Better Options After Closing

Upgrade CategoryRecWhy to SkipBetter Alternative
Appliance packages (refrigerator, range, dishwasher upgrades)SKIPBuilder marks up appliances significantly; your choices are limited to what the builder has contracted; you can get better products at lower prices with more selection from retailBuy your own at Costco, Best Buy, AJ Madison, or local appliance dealers; negotiate package pricing; get exactly the brands, features, and warranties you want
Garage door upgradesSKIPAftermarket garage doors from Clopay, Wayne Dalton, Amarr offer wider selection and often better quality at comparable or lower prices than builder upgrade optionsReplace standard builder door after closing; excellent doors with insulation are $1,200–$2,800 installed from an independent dealer
Cabinet hardware (knobs and pulls)SKIPBuilder charges $8–$15 per pull installed; you can buy excellent quality pulls from Rejuvenation, Schoolhouse, Hardware stores for $2–$8 each and install in one afternoon with a screwdriverBuy after closing; choose hardware that perfectly matches your finished space and furnishings rather than guessing from a sample at the design center
Ceiling fansSKIPBuilder ceiling fans are generic and significantly overpriced; charge of $400–$800 per fan at design center for products you can buy for $75–$250 and have installed for similar labor costBuy Hunter, Minka Aire, or Big Ass Fans ceiling fans; hire an electrician or handyman to install (assuming fan pre-wire was done); total cost typically 40–60% less than builder upgrade
Landscaping packagesSKIPBuilder landscaping packages are minimal starter plantings that don't reflect your taste, microclimate, or HOA requirements; AZ landscaping is highly specific and best designed by local professionalsBudget $6,000–$25,000 separately for professional AZ landscaping; hire a local company that knows AZ native plants, drip irrigation, gravel systems, and HOA guidelines
Builder smart home packagesSKIPBuilder smart home systems are often proprietary, limited in capability, and tied to specific platforms that may become obsolete; technology evolves rapidly and today's builder bundle is tomorrow's outdated systemBuy Ring doorbell, Nest thermostat, SmartThings hub, or your preferred ecosystem after closing; greater flexibility, better products, lower cost, easier to update as technology improves
Interior light fixtures (chandeliers, pendants)USUALLY SKIPBuilder fixture selections are limited; pricing at retail lighting showrooms, Wayfair, or Restoration Hardware often matches or beats builder upgrade pricing with vastly greater selectionAccept builder base fixtures; replace decorative pendants and chandeliers after closing to match your furniture and taste; electrician swaps take 20–30 minutes per fixture
Interior paint upgradesUSUALLY SKIPBuilder will paint in standard neutral colors; many buyers repaint key rooms within the first two years anyway as their furniture, art, and taste settle in; paint is the cheapest cosmetic upgrade you can do yourselfAccept standard builder paint; repaint after move-in with colors precisely matched to your furnishings; professional interior painters can do a full house for $3,000–$6,000

How and When to Negotiate at the Design Center

Builders have strong business incentives to maintain their stated base prices, because every home they sell becomes a "comparable sale" that supports the appraisal of future homes in the community. A builder who discounts their $560,000 homes to $530,000 to move slow inventory creates a serious problem when the next phase opens at $585,000 and the appraiser uses the $530,000 discounted sales as comparables. For this reason, most builders are significantly more willing to offer free upgrades, additional design center credits, HOA fee contributions, or closing cost assistance than they are to cut the stated purchase price. These concessions don't appear in the public sale price record and don't affect future appraisals.

The best moments to negotiate design center credits and concessions are: late in a selling phase when the builder has premium lots remaining but needs to close the phase out; during periods of elevated market inventory when the builder has more competition from resale homes; when you are buying a spec or inventory home that has been on the market more than 60 days; and in the final months of a builder's fiscal year or quarter when sales managers have internal pressure to close deals. Your buyer's agent, who maintains relationships with builder sales managers and tracks market conditions across multiple communities, is your best intelligence source on when these leverage opportunities exist.

When you do negotiate, specific upgrade packages — "I'll sign today if you include the quartz countertop upgrade and the flooring upgrade in the living room" — are more effective than open-ended discount requests. The builder's sales manager can approve a specific upgrade package without creating a documented discount that appears in public records. Know what you want, have your agent present the request professionally, and be prepared to move quickly if the builder agrees — these concessions are usually contingent on a prompt, same-day signing.

Section 4

CFD/SID — The Hidden Property Tax That Could Cost You $1,000–$3,000 Per Year

Of all the issues specific to new construction in Arizona that buyers are unprepared for, Community Facilities Districts and Special Improvement Districts are the one that generates the most financial shock. A buyer who budgets based on Maricopa County's base property tax rate but doesn't account for a CFD assessment may find their monthly housing cost $100 to $250 higher than they planned — every month, for the next 20 to 30 years. This is not a minor disclosure. It deserves serious research and deliberate budgeting before you sign any new construction contract.

What Are CFDs and SIDs — The Full Explanation

Community Facilities Districts (CFDs) and Special Improvement Districts (SIDs) are both governmental entities authorized under Arizona Revised Statutes Title 48. They are formed through cooperation between a developer and the local municipality or county where a new residential development is being built. Their purpose: to issue tax-exempt municipal bonds that finance the public infrastructure necessary to support a new community before that community can generate sufficient property tax revenue to pay for that infrastructure through the normal municipal budget process.

The infrastructure financed through CFDs and SIDs can include primary arterial roads and community interior street networks; water supply infrastructure including wells, water treatment systems, and distribution mains; wastewater collection and treatment systems; community park systems and recreational facilities; fire station construction; school site preparation (and occasionally school facility construction in partnership with school districts); and community amenity centers, swimming pools, and fitness facilities. In large master-planned communities, the infrastructure investment can total tens to hundreds of millions of dollars.

Once the bonds are issued and the infrastructure is built, the bonds are repaid over their life — typically 20 to 30 years from the date of issuance — through a secondary property tax assessment levied annually on every parcel within the district boundaries. This assessment appears on your property tax bill as a line item separate from your regular (primary) property taxes. It is not optional, cannot be negotiated away from the seller, and transfers automatically to every subsequent buyer of a home within the district boundaries. It runs for the full life of the bond, regardless of when you buy the home relative to when the community was established.

Why New Communities Have CFDs but Established Neighborhoods Don't

When a developer builds a new master-planned community on raw land in Surprise, Queen Creek, or Buckeye, all of the infrastructure that supports that community has to be created from scratch at substantial cost. Established neighborhoods in Tempe, Chandler, central Scottsdale, or central Phoenix do not carry CFD assessments because their infrastructure was financed and paid off long ago — through the general municipal tax base, through developer contributions recorded in decades-old development agreements, through revenue bonds paid off by water utility customers. The infrastructure in those established areas is a paid asset of the municipality.

This is why the absence of a CFD assessment is one of the genuine financial advantages of buying a resale home in an established Phoenix-area neighborhood. A 2005-built resale home in Chandler has no CFD assessment. A 2025-built new construction home three miles away in a master-planned community may carry a $1,200 to $1,800 per year CFD assessment running through 2050 or beyond. Both homes may have similar list prices. They do not have similar total costs of ownership, and any buyer comparing them should account for this difference in their analysis.

Community TypeTypical CFD/SID Annual CostAssessment DurationInfrastructure FundedNotes
Master-planned community (basic infrastructure)$500–$1,000/yr20–25 years from bond issuancePrimary arterial road contributions; water/sewer mains; entry monument and parks; streetscaping and community irrigationMost common tier; found in many large suburban communities throughout West and East Valley; per-home cost is lower because infrastructure cost is divided across many homes
Master-planned community (extensive amenities and infrastructure)$1,000–$2,000/yr25–30 yearsMulti-field park systems; community center and aquatic center; fire station contributions; major road infrastructure packages; school site contributionsCommunities with robust, resort-level infrastructure comparable to Verrado in Buckeye or Morrison Ranch in Gilbert; buyer gets genuinely exceptional amenities but pays for them annually over decades
55+ resort-style active adult community$800–$1,500/yr20–25 yearsClubhouse and amenity center construction; aquatic facilities; fitness center infrastructure; community trail systems; common area landscaping and irrigation infrastructurePebbleCreek-type and similar resort active adult communities; amenity infrastructure is expensive to build and is financed through CFD; residents receive resort-quality amenities in exchange
Luxury master-planned community$1,500–$3,000+/yr25–30 yearsExtensive infrastructure portfolio including guard-gated entry systems; premium community amenities; specialty recreational facilities; significant arterial road contributions; premium landscaping infrastructure throughoutHigh-end new communities; assessment reflects the premium nature and cost of the infrastructure financed; buyers are typically at price points where the monthly impact is proportionally smaller relative to income
Small infill or boutique new community$0–$500/yrVaries; may be shorterLimited; site-specific improvements only; connection to existing municipal infrastructureSmaller communities and infill developments that connect to existing urban infrastructure often have no CFD or only a minimal assessment; check carefully because exceptions exist

The Real Financial Impact — Buying Power Equivalence

Let's make the CFD impact concrete with a direct comparison. Suppose you are evaluating two homes: a new construction home in a master-planned community in Queen Creek priced at $540,000 with a $1,500/year CFD assessment, and a resale home in an established Chandler neighborhood priced at $540,000 with no CFD assessment. You have a 20% down payment and a $432,000 mortgage at 7.25%.

Your estimated monthly PITI (principal, interest, taxes, insurance) on the Chandler resale might be approximately $3,380. That same PITI calculation for the Queen Creek new construction home includes $125/month in CFD assessment (the $1,500/year divided by 12), bringing the total to $3,505/month. That $125 monthly difference, at a 7.25% mortgage rate, is equivalent in buying power terms to approximately $17,500 in additional home price. The new construction home priced at $540,000 with a $1,500/year CFD has the same monthly housing cost as a resale priced at approximately $557,500 with no CFD. That is a meaningful difference when you're making budget-sensitive decisions about which home to buy.

For a $2,400/year CFD, the equivalence is $200/month and approximately $28,000 in additional purchase price terms. For a $3,000/year CFD, it's $250/month and roughly $35,000 in buying power impact. Always factor CFD assessments into your total monthly housing budget comparison, not just the sticker prices.

How to Research CFD/SID Status Before You Sign

1

Ask the Builder Directly — In Writing

Your very first question when visiting any Phoenix new construction community should be: "Does this community have a Community Facilities District (CFD) or Special Improvement District (SID) assessment on the property taxes? If so, what is the estimated current annual assessment, what does it fund, when were the bonds issued, and how many years remain?" Request a written answer, not just a verbal one. A reputable builder will have this information readily available in their disclosure documents. Evasiveness or uncertainty on this question is itself a significant red flag worth investigating before you go further in the purchase process.

2

Review the SPDS (Seller Property Disclosure Statement)

Under ARS §33-422, all sellers in Arizona — including builders — must disclose material facts about a property. CFD and SID assessments are material facts required to be disclosed on the SPDS. Request a copy of the builder's SPDS before you sign any contract and review it carefully for any references to special assessments, CFDs, SIDs, supplemental property taxes, or secondary tax obligations. Note that builder SPDS disclosures for new construction are sometimes less detailed than resale SPDS documents because builders have more limited knowledge of the property's history — the home doesn't exist yet — but CFD/SID disclosure should be present and specific.

3

Check the Maricopa County Assessor Website

For any property that already has an APN (Assessor Parcel Number) assigned — which includes most spec homes and many lots in active developments — you can look up the full property tax detail at mcassessor.maricopa.gov. The property detail page shows both primary taxes (the standard county property tax based on assessed value) and secondary taxes (which include CFD/SID assessments). If a secondary tax amount is listed, click through to its detail. The Maricopa County Treasurer's office at mctreasurer.maricopa.gov also shows outstanding tax liens and special assessment obligations by parcel number.

4

Review Community CC&Rs and the Arizona Department of Real Estate Public Report

The community's Covenants, Conditions, and Restrictions (CC&Rs) and the Arizona Department of Real Estate Public Report (required for all new residential subdivisions) contain references to any CFD or SID formation. Your buyer's agent or the title company can obtain and review these documents during your due diligence process. The Public Report is a statutory disclosure document — it is required to disclose all known assessments and fees associated with ownership in the subdivision.

Ryan's Take on CFD Communities

I don't tell clients to avoid communities with CFDs — some of the best-run, most beautiful, best-amenitied communities in the Phoenix area have them, and the infrastructure they fund genuinely enhances quality of life for residents. What I tell every new construction buyer is this: know exactly what you're buying before you sign. Factor the CFD assessment into your total monthly housing budget comparison. Ask how many years remain on the assessment bonds. And when comparing new construction to resale at similar price points, make sure you're comparing total cost of ownership, not just sticker price. With full information, some CFD communities are outstanding values. Without that information, you may be surprised by a tax bill that doesn't align with what you budgeted.

Section 5

ARS §12-1361 — The Arizona Builder's Warranty You Need to Know

One of the most significant and genuine advantages of buying new construction over resale is the statutory warranty protection Arizona law mandates for every new home. Under ARS §12-1361, the Arizona Right to Repair statute, every licensed builder of new residential construction in Arizona must provide warranty coverage in three distinct tiers. Understanding these tiers — and knowing how to deploy them strategically — can save you tens of thousands of dollars over your first decade of ownership.

Warranty TierDurationWhat It CoversCommon ExamplesBuyer Action Required
Workmanship Warranty1 YearVisible defects and quality of construction workmanship across all phases of the build; cosmetic and finish issues discoverable through normal observationPaint defects and bleed-through; drywall cracks from settlement (especially at door frame corners and window openings); door sticking or misalignment; window operation issues; trim gaps; grout failures; tile cracking or lippage; stucco surface cracking beyond normal hairline settlement; incomplete or improper finish work anywhere in the homeInspect at Month 3 for early settlement issues; conduct thorough inspection at Month 11 (before expiration); submit all claims in writing before 1-year anniversary
Mechanical Systems Warranty8 YearsPlumbing systems and components; HVAC equipment and ductwork; electrical systems; and other mechanical systems and components installed as part of the original constructionHVAC system failures or significant performance degradation; plumbing leaks within walls, ceilings, or under slab; electrical system defects; water heater failures attributable to installation defects; ductwork failures or disconnections; ventilation system performance failures; plumbing fixture failures due to installation issuesMaintain HVAC service records (show filter changes, annual service); document and report mechanical issues promptly; keep receipts for any maintenance performed to demonstrate you maintained the systems properly
Structural Warranty10 YearsFoundation integrity and performance; load-bearing structural elements including beams, columns, and load-bearing walls; structural roof framing; any defect that materially impairs the structural integrity or load-bearing function of the homeFoundation cracking beyond normal settlement parameters; differential foundation settling causing structural displacement; structural framing failures; load-bearing wall failures; major structural roof failures; subfloor structural failures; any defect causing measurable structural movement or compromising the home's structural stabilityPhotograph and document foundation and structural elements annually; note any significant changes in crack patterns; consult a licensed structural engineer at your own expense if you observe concerning changes before reporting to builder

How to Use Your Builder Warranty Strategically

The Month 3 Inspection

In the first three months after closing on a new construction home, the structure goes through a normal process that builders call "settlement." The house settles onto its foundation as soil compresses and adjusts to the weight of the structure; wood framing adjusts to its equilibrium moisture content in the dry Arizona climate; drywall responds to temperature cycles. This normal settlement produces predictable, visible effects: hairline cracks in drywall particularly at the corners of door frames and window openings; minor gaps appearing between trim pieces and drywall; doors that operate smoothly initially but begin to stick slightly; windows that operated perfectly at closing but now require more force. All of these are typical workmanship warranty items that the builder should address at no cost to you.

At Month 3, walk through every room in the home systematically with a notebook, a flashlight, and your phone camera. Test every door for smooth, latching operation with no significant sticking. Test every window for proper operation, locking, and sealing. Look closely at every drywall corner and seam, particularly around openings. Examine tile grout in showers, at floor-to-wall transitions, and in any tiled areas for cracking or separating. Look under every sink for moisture or drips. Check exterior stucco for any significant cracking patterns. Compile your complete list and submit it to the builder's warranty department by email, requesting written confirmation of receipt and a timeline for repair. Keep the email and confirmation in a dedicated folder.

The Month 11 Inspection — Your Most Important Warranty Action

The one-year workmanship warranty expires on the one-year anniversary of your close of escrow date. After that date, the builder has no statutory obligation to address workmanship defects at no charge. This makes hiring a professional independent home inspector at Month 10 or 11 — before the warranty expires — the single most important warranty-related action you will take as a new construction homeowner.

A professional inspector at this stage will systematically evaluate everything accessible: attic insulation and ventilation performance; all electrical panel breakers and labeling; HVAC performance (temperature differential, static pressure, duct connections); plumbing flow and drainage at every fixture; all windows and exterior doors; garage door safety sensors and auto-reverse function; exterior drainage and grading around the foundation; and every visible finish surface throughout the home. They will produce a written report with photographs of every identified issue. That report becomes your warranty claim document. Submit it to the builder's warranty department in writing within the warranty period, with a specific request for response within the timeframe specified in your contract, and retain copies of everything.

The cost of a professional inspection at Month 11 — typically $350 to $500 — is one of the best investments a new construction homeowner can make. I have seen Month 11 inspections result in builder corrections worth $5,000 to $25,000 in repairs that the homeowner would otherwise have paid for out of pocket after warranty expiration.

Documentation Creates Your Legal Record

Arizona courts have decided many warranty disputes between homeowners and builders. The outcomes in these cases correlate strongly with documentation quality, not just with the merits of the underlying claim. Cases where homeowners have lost despite having legitimate warranty issues are frequently ones where the homeowner reported problems verbally by phone but cannot demonstrate what was said, when, or what the builder's response was. Cases where homeowners have prevailed have a clear paper trail: email submissions with timestamps, written builder acknowledgments, follow-up emails when repairs were not completed as committed, and photographs with date-stamped EXIF data from the camera.

Every single warranty interaction with your builder should have a written record. If you speak with the warranty department by phone, follow up the call with an email the same day: "Per our conversation today with [Name] at [Time], I reported the following issues: [list]. You committed to [repair/response/timeline]. Please confirm via reply." This approach costs you nothing except a few minutes and creates exactly the kind of documented record that supports your position if a dispute ever develops. Never rely on a phone conversation alone for any warranty matter of significance.

When Builders Don't Respond to Warranty Claims

Most builders address warranty claims in reasonable good faith for the simple reason that unresolved warranty claims generate negative reviews, damaged reputation, and eventual legal exposure. But some builders — particularly smaller or less-capitalized ones — may be slow to respond, attempt to minimize claims, or in worst cases, refuse legitimate warranty obligations. ARS §12-1361 is not merely a contractual provision — it is a statutory obligation that creates enforceable legal rights for homeowners. If a builder acknowledges a warranty claim and fails to complete repair within a reasonable time, or if a builder disputes a claim in bad faith, a homeowner can pursue legal remedies under the statute. An Arizona construction defect attorney can advise you on your specific situation. Many such attorneys take significant construction defect cases on a contingency fee basis, meaning no upfront cost to you if the damages justify the case.

Section 6

15 Questions to Ask Every Phoenix Builder Before You Sign

Walk into every builder's model home with this list. The quality of a builder's answers — and their willingness to answer directly and in writing — tells you as much as the answers themselves. A builder that is evasive about CFD costs, vague about deposit refund provisions, or discourages you from having your own representation is giving you critical information about what the post-signing experience will look like.

#Question to AskWhy It MattersWhat a Good Answer Looks Like
1What is the lot premium for this specific lot, and is it negotiable?Lot premiums add $5,000–$50,000+ to your price; they are sometimes negotiable late in a phase or on spec inventoryA specific dollar amount stated clearly; openness to discussing the lot premium's value and potential for negotiation; no deflection or "that's just the price"
2What is your estimated close of escrow, and what are my options if construction is delayed beyond that date?COE delays are common in new construction; rate locks expire; you need to understand builder delay rights and your optionsAn honest range, not just a best-case date; clear explanation of what happens if they miss the estimate; transparency about rate lock options and costs
3Does this community have a CFD or SID? What is the estimated annual assessment and how many years remain on the bonds?CFD/SID adds $500–$3,000+/year to your housing cost for 20–30 years; this must be factored into your budget comparisonImmediate, specific answer with dollar amount, maturity date or years remaining, and willingness to provide written documentation
4What is the preferred lender incentive, and can I compare your lender's rate against outside lenders before committing?Preferred lender incentives are only valuable if the rate is competitive; you need the right to shop your loan freelyClear statement of incentive amount; confirmation that you can get outside quotes; no pressure or conditions restricting your ability to shop lenders
5Which structural options must I decide today vs at my design center appointment, and are there any options that close permanently when framing begins?Structural changes are cheap now and expensive or impossible later; you need a complete list of time-sensitive decisionsA specific, complete list of decisions that must be made before framing; no surprises discovered after signing
6What is the HOA fee, what does it specifically cover, and are there any sub-HOAs with additional fees?Many master-planned communities have both a master HOA and sub-HOAs; the combined fee is your true HOA costSpecific monthly/annual amounts for every HOA layer; complete list of what's covered and what's not; no vague "it depends"
7How far into the current selling phase are you, and will prices increase for the next phase?Understanding sales velocity and pricing trajectory tells you whether now is the right time to buy or whether waiting could cost moreHonest assessment of remaining lots in current phase; disclosure of planned price increases for upcoming phases; this also reveals your negotiating position
8What standing inventory homes do you currently have available, and what are their completion timelines?Spec and inventory homes offer faster closings but less customization; knowing what's available helps match your timeline to your optionsClear inventory list with stages of completion (framing, drywall, complete) and estimated completion dates; willingness to walk you through all available inventory
9What are the deposit amounts at each stage, and under what specific circumstances are each deposit refundable?Deposit forfeitures in new construction can mean $15,000–$60,000+ in lost funds; refund provisions must be understood before signingWritten, specific breakdown of deposit amounts, timing, and exact refund triggers; no vague language; willingness to put it in writing before you sign
10Will you allow my own buyer's agent to represent me, and will you pay their commission?Buyer's agent representation costs you nothing but protects you substantially; any resistance to buyer representation is a major red flag"Absolutely — register your agent before your first visit and their commission is included in our standard buyer's agent program" with a specific commission rate disclosed
11What is your Arizona Registrar of Contractors (AZROC) license number so I can verify your standing?All AZ builders must be licensed; AZROC records show license status, complaint history, and any disciplinary actions at roc.az.govImmediate, specific license number provided without hesitation; encouragement to verify online
12What specific circumstances allow me to cancel this contract and receive my full deposit back?Life changes; health events; job changes can force a buyer to exit; you must understand your exit options before committing your depositClear, specific written list of cancellation circumstances and outcomes; nothing vague; willingness to add additional language if reasonable concerns exist
13What is specifically included in the base price, and what are your average buyer's design center expenditures?Builders vary widely on what's "standard"; knowing the base spec before the design center lets you plan your total budget realisticallyWritten list of standard inclusions; honest average design center spend figure (most builders track this and will share it)
14What CC&R restrictions affect my ability to add a pool, solar panels, an RV gate, or exterior modifications after closing?New community CC&Rs can be surprisingly restrictive; knowing this before you buy avoids frustration and disputes after closingCopy of CC&Rs provided for your review before signing; specific guidance on pool, solar, and addition approval processes; honest about architectural committee requirements
15How do I file a warranty claim after closing, what is your committed response time, and who is my specific warranty contact?Warranty service quality varies dramatically between builders; knowing the process and expectations before closing matters enormously to your ownership experienceNamed warranty coordinator; written service timeline commitment; online warranty portal access; willingness to provide references from previous buyers about their warranty experience
Section 7

New Construction vs Resale — The Phoenix Decision

For many Phoenix buyers, the choice between new construction and resale is not merely a preference question. It is a strategic decision that affects timeline, total cost, risk profile, negotiating dynamics, and the nature of the transaction process. Each option has genuine, meaningful advantages. Understanding them honestly is how you make the right choice for your specific situation.

FactorNew ConstructionResaleEdge
Condition and deferred maintenanceEverything brand new; no deferred maintenance; all systems at Day 1; known roof, HVAC, plumbing ageVariable by property; may need updates; HVAC age unknown; roof may need replacement within yearsNew Construction
Timeline to close and move inTo-be-built: 6–18 months; spec homes: 30–90 days (limited options)Standard 30–45 days; predictable; knownResale (usually)
Negotiation flexibilityLimited price negotiation; builders defend comps; concessions come as upgrades not price cutsHighly variable; motivated sellers provide real negotiating opportunity; flexible on contingencies, credits, timelineResale
Customization of finishes and layoutSignificant for to-be-built: floor plan, structural options, all finishes; minimal for spec homesWhat's there is what you get; renovation possible but costly and disruptiveNew Construction
Location accessWherever builder develops — typically outer suburbs; limited urban/in-fill new constructionAny existing neighborhood; access to established areas near employment centers, airports, cultureResale (for location diversity)
Property taxes (CFD/SID)CFD/SID common in new communities; adds $500–$3,000+/year for 20–30 yearsNo CFD/SID in established areas; base Maricopa County rate only (~0.65–0.75%)Resale
Warranty protectionARS §12-1361 statutory: 1-year workmanship, 8-year mechanical, 10-year structuralNo builder warranty; buyer's protection is inspection contingency and BINSR negotiationNew Construction
Energy efficiencyModern building codes; better insulation, windows, HVAC SEER standards than older homes; lower utility billsOlder homes often significantly less efficient; AZ summers in a 2005 home can mean $400–$700+/month electric bills vs $200–$350 in new constructionNew Construction (especially in AZ)
Landscaping and outdoor maturityStarter desert landscaping; no mature trees; minimal shade; takes years to establishEstablished landscaping; mature trees; real shade; established curb appeal; yard that took years to developResale
Rate lock complexityExtended locks needed; lock extension costs money; builder delays risk lock expiry; rate risk over long build periodStandard 30–60 day lock; closes on known timeline; no rate lock uncertaintyResale
Contract process and protectionsBuilder's proprietary contract; weighted toward builder; punch list vs BINSR; design center pressure; preferred lender pushStandard AAR contract; tested and balanced; well-understood by all parties; stronger buyer contingency frameworkResale
Community infrastructure readinessNew and purpose-built; but amenities may not open until community reaches occupancy thresholds; schools and services may lag population growthEstablished infrastructure; proven services and schools with known performance records; neighborhood character establishedDepends on priorities

When New Construction is the Right Choice

New construction is typically the right choice when you have 9 to 18 months before you need to be in a new home; when customizing your finishes and potentially your floor plan is a meaningful priority; when energy efficiency and low maintenance for the first 10 to 15 years of ownership are important; when you're buying in a suburban submarket where the strongest options happen to be new; when you have an experienced buyer's agent who can navigate the builder contract and design center process; and when you've done the CFD/SID math and the total ownership cost still works comfortably in your budget. In these circumstances, new construction in Phoenix can be an outstanding long-term investment in a home you designed to your precise preferences.

When Resale is the Right Choice

Resale is typically the right choice when you need to be in a home within 60 to 90 days; when location in an established neighborhood is a top priority; when maximum negotiating flexibility and deal-specific leverage are important to you; when mature landscaping, established neighborhood character, and community relationships matter; when the CFD/SID math on target new construction communities makes the total ownership cost comparison unfavorable; or when your target price range and location have strong resale inventory available. For many buyers — particularly those relocating to Phoenix from other cities and prioritizing proximity to specific employers, schools, or urban amenities — resale in an established neighborhood is the better strategic fit.

For many Phoenix buyers in 2026, the wisest approach is to let both categories remain open and evaluate the full range of available options — new construction and resale — without predetermining the answer. The best home for your specific circumstances may be a Lennar spec home in Gilbert with move-in availability in 45 days, or it may be a 2018-built resale in Chandler that has all the upgrades already done and is priced favorably. An experienced agent who knows both categories will present you with an honest, comprehensive comparison.

Section 8

Why You Need Your Own Buyer's Agent for New Construction

One of the most persistent and costly misconceptions among new construction buyers is that they don't need their own real estate agent when buying from a builder. After all, the builder has a professional sales agent in the model home. Why would you need another one?

The answer is simple and non-negotiable: the builder's sales agent works for the builder. Their professional and legal obligation runs to the builder who pays their salary and commission. Their job is to sell homes at the best possible price and terms for the builder — to fill phases quickly, to protect the builder's comparable sales prices, to minimize concessions, to guide buyers toward the builder's preferred lender and design center choices that maximize builder revenue. They are professionals at what they do, and in most cases they are genuinely pleasant and helpful people who want you to have a good experience. But they cannot give you unbiased advice about the builder's contract, they cannot negotiate on your behalf against the builder's interests, and they cannot advocate for you when your interests and the builder's interests diverge. They have a legal obligation to the builder, not to you.

What a Buyer's Agent Provides in a New Construction Transaction

When Ryan Moxley represents you in a new construction purchase, his legal and professional obligation runs to you — not to the builder. In practical terms, this means he reviews the builder's purchase contract with you before signing and flags any provisions that are particularly unfavorable, unusual, or that require careful consideration; helps you understand the design center process and advises on which upgrades are worth the investment versus which to skip; negotiates on your behalf for lot premium reductions, upgrade incentives, or closing cost credits when market conditions support it; analyzes the CFD/SID situation for any community you're considering and helps you understand the true total cost of ownership; helps you compare the builder's preferred lender offer against outside lender alternatives with clear math; advises you on your Month 11 inspection timing and helps you prepare a comprehensive warranty claim; and applies current, direct knowledge of how each builder's process, quality, and warranty service track records compare across the Phoenix market.

This representation costs you nothing. Builders have priced buyer's agent commissions into every home's pricing structure as a standard cost of doing business. If you don't bring your own agent, the builder retains that budget internally. You do not save money by forgoing representation. You simply give up the professional advocacy that would have cost you nothing and protected you substantially.

The Builder Registration Rule

Most Phoenix area builders require that your buyer's agent be registered as your representative at your first visit to the model home or sales office. If you visit a builder community without registering your agent first, the builder may attempt to classify you as an "unrepresented buyer" and restrict your agent's ability to participate in the transaction later. To avoid this: contact Ryan before your first visit to any builder community. He can register with the builder on your behalf, or accompany you on your first visit. This ensures your representation is properly established from the beginning of the relationship, and you receive the full benefit of professional advocacy throughout the purchase process.

Ryan's New Construction Experience

Ryan represents buyers in new construction transactions regularly across the Phoenix metro — from entry-level DR Horton communities in Surprise and Buckeye to Taylor Morrison homes in Gilbert and Queen Creek to Toll Brothers luxury communities in North Scottsdale. He maintains active relationships with area managers and sales teams at all major builders operating in the Valley, which means he knows which communities currently have inventory pressure, which builders are offering meaningful concessions, and how each builder's warranty process actually works in practice. Call Ryan at (480) 227-9143 before you visit your first model home.

Ask Ryan About New Construction

Have questions about a specific builder, community, or contract? Ryan works with new construction buyers across the Phoenix metro and knows which communities and builders are worth your time right now.

FAQ

Frequently Asked Questions — Phoenix New Construction

Is buying new construction a good idea in Phoenix AZ?

Buying new construction in Phoenix can be an excellent decision — but only if you approach it with full information and proper representation. Phoenix is one of the highest new-construction-percentage metros in the United States. In outlying submarkets like Goodyear, Queen Creek, Maricopa, and Surprise, 40% to 60% of active for-sale inventory is new construction at any given time. The genuine advantages are substantial: everything is brand new with no deferred maintenance; you receive ARS §12-1361 statutory warranty protection covering one-year workmanship, eight-year mechanical systems, and ten-year structural elements; you can often customize your finishes and in some cases your floor plan layout; and new construction typically offers superior energy efficiency compared to homes built before current building codes — a genuinely significant factor in the Phoenix climate where air conditioning runs from April through October.

The risks are equally real and deserve equal attention. Builder contracts heavily favor the builder. CFD/SID assessments can add $500 to $3,000 or more per year to your property tax bill for the next 20 to 30 years, and they must be factored into your total cost-of-ownership comparison. The preferred lender incentive can cost you more in long-term interest than you save in upfront credits if you don't compare it carefully. The design center process can lead to upgrade spending that doesn't deliver proportionate value at resale. And the timeline for a to-be-built home creates rate lock and life-circumstances risk that a 45-day resale close does not. Work with an experienced buyer's agent who knows the Phoenix new construction market, go in with your eyes fully open, do your CFD research, compare lenders carefully, and new construction in Phoenix can be a very smart long-term purchase.

What are CFD/SID fees in Arizona new construction?

CFD stands for Community Facilities District and SID stands for Special Improvement District. Both are authorized under Arizona Revised Statutes Title 48 and allow municipalities or counties to finance the public infrastructure required to support new residential developments through bonds. These bonds are repaid via a secondary property tax assessment levied on every home in the district, on top of the regular primary property taxes. The assessment runs for 20 to 30 years from the date the bonds were issued and transfers automatically to every subsequent buyer of a home within the district.

Annual CFD/SID costs in Phoenix-area new construction communities range from approximately $500 per year in communities with basic infrastructure districts to $3,000 or more per year in luxury master-planned communities or resort-style active adult communities with extensive amenity infrastructure. A $1,500/year CFD assessment equals $125 per month in additional housing cost — equivalent in monthly cash flow terms to approximately $17,500 in additional purchase price at a 7.25% mortgage rate. To research whether a specific home has a CFD/SID assessment: ask the builder directly and request a written answer with the specific annual amount and years remaining; check the SPDS disclosure document; and look up the property by APN on the Maricopa County Assessor website at mcassessor.maricopa.gov, where secondary tax assessments are listed separately from primary taxes.

What warranty does a new construction home come with in Arizona?

Under Arizona Revised Statutes §12-1361, the Arizona Right to Repair Act, all licensed builders of new residential homes in Arizona are required by law to provide warranty coverage in three tiers. The one-year workmanship warranty covers visible defects and cosmetic construction issues — paint defects, drywall cracks from settlement, door adjustments, trim gaps, grout issues, and the general quality of all finish work throughout the home. The eight-year mechanical warranty covers HVAC systems, plumbing, electrical systems, and other mechanical components. In the Phoenix climate, where air conditioning systems run nearly continuously from April through October, this warranty has particularly high practical value. The ten-year structural warranty covers the foundation, load-bearing structural elements, and any defect that materially impairs the structural integrity of the home.

To maximize your protection under ARS §12-1361: hire an independent professional home inspector at Month 10 or 11 (before the one-year workmanship warranty expires) and submit a comprehensive documented list of all identified issues to the builder's warranty department in writing before the anniversary date. Always submit warranty claims by email rather than phone call to create a time-stamped record. If the builder fails to respond to documented warranty claims in a reasonable time, ARS §12-1361 provides a statutory basis for legal remedies — consult an Arizona construction defect attorney if needed, as many take significant warranty cases on a contingency fee basis.

Should I use the builder's lender or my own when buying new construction in Phoenix?

Always compare the builder's preferred lender against at least two outside lenders before committing. Builders offer $5,000 to $30,000 or more in closing cost credits, upgrade incentives, or rate buydown assistance to buyers who use their affiliated lender — and these incentives are genuinely significant-sounding amounts. But the math doesn't always favor accepting them without careful analysis. Builder-affiliated lenders often offer interest rates that are 0.125% to 0.375% higher than what you could obtain from a competitive outside lender in the same market environment. On a $500,000 loan, a rate differential of 0.25% costs approximately $87 more per month in interest — $5,220 over five years, $7,308 over seven years, and $31,200 over the life of a 30-year loan.

If the builder's incentive is $10,000 in closing cost credits and the rate differential is 0.25%, you break even on total cost in approximately six years — and every year thereafter, the lower-rate outside lender financing was mathematically superior. The correct approach is to request a complete Loan Estimate (a standardized federal form required within three business days of application under RESPA) from both the builder's preferred lender and at least two outside lenders. Compare interest rate, APR, estimated monthly payment, and total interest paid over five, ten, and thirty years. Ask your buyer's agent to help you run this comparison. Sometimes the builder's preferred lender is genuinely competitive and the incentive is essentially free money. More often, there is a meaningful trade-off worth understanding before you commit.