About three out of four homes we build sell before they’re finished. That surprises some people. If you’ve only bought or rented finished homes, buying one that still has open walls can feel like a leap.
It doesn’t have to be. We’re based in Milford and build new homes across Sussex and Kent County. Here’s how buying one from us works, step by step.
Why buy before it’s finished?
- It’s brand new. No old roof, no tired furnace, nothing to fix after you move in.
- You may get to pick your finishes. Depending on where the build is, you can choose things like flooring, cabinets, countertops and paint colors.
- You get first shot. You don’t have to compete with everyone who shows up once the house is done.
- You see how it’s built. You can see the framing and the work that normally gets covered up.
Step 1: Get preapproved
Talk to a lender first. They’ll tell you what you can afford and which loan fits you.
If you’re a first-time buyer, ask about Delaware State Housing Authority (DSHA) programs. Some can help with your down payment and closing costs.
If you don’t have a lender, we’ve worked with Luminate Mortgage and Keystone Funding for years and can tell you what that’s been like. You’re free to use any lender you want.
One tip: if your closing is a few months away, ask your lender about rate lock options and what they cost.
Step 2: Walk the house with us
We’ll meet you at the site and show you what’s done and what’s left. Ask anything. We’d rather answer questions now than surprise you later.
Step 3: Sign a purchase agreement
Once you’re ready, we sign a purchase agreement. You’ll put down earnest money, usually a few thousand dollars. It’s held by the closing attorney you choose. Whether it’s refundable depends on the terms of the agreement, and we’ll go over them with you.
If you want finishes outside what we normally use, we also ask for a non-refundable selections deposit. It’s usually a few thousand dollars, depending on what you choose. Special-order materials often can’t be returned, so if a buyer backs out, we’re stuck with them. The deposit covers that, and it’s credited toward your purchase price at closing. We’ll tell you the exact amount before you sign anything.
Step 4: Pick your finishes
Each selection has its own deadline. It’s set by when that material has to be ordered to keep the build on schedule. Items that take longer to arrive get ordered earlier. We’ll tell you the deadline for each one, so there’s no guessing.
Swapping one finish for a similar one usually costs nothing extra. Upgrades cost extra, depending on the finish.
The earlier you buy, the more you get to choose.
Step 5: Watch it get built
Most of our houses take about four months from foundation to certificate of occupancy (the town or county’s OK to move in).
Every week, you’ll get an email update with photos of the progress. At key milestones, we’ll walk the house with you in person.
Weather, inspections and material delivery can push a date. If something moves, you’ll hear it from us first.
Step 6: Inspections and final walkthrough
The town or county inspects the house at each stage of the build. You’re also welcome to bring your own home inspector, and we encourage it.
Before closing, we’ll do a final walkthrough together and make a punch list of anything that needs touching up. The punch list gets done before closing, not after.
Step 7: Close and move in
Your lender orders an appraisal, and we set a closing date. Closing cost assistance may be available. Ask us about it early so your lender can plan for it.
Then you get the keys to a house nobody has lived in.
After you move in
Every home comes with a one-year builder warranty. Some parts of the house, like the HVAC system and the roof, also carry their own warranties from the manufacturer or installer. Those can cover you beyond the first year. We’ll give you that paperwork at closing so you know who covers what.
Working with your own agent
Have your own agent? That’s fine. The process is the same, and we keep you both informed. You decide whether updates go through your agent or come to both of you.
Questions to ask any builder (and our answers)
| Question | Our answer |
|---|---|
| How much is the deposit, and is any of it refundable? | Earnest money is usually a few thousand dollars. The purchase agreement sets whether it’s refundable. If you pick finishes outside what we normally use, there’s also a non-refundable selections deposit, usually a few thousand dollars, credited toward your price at closing. |
| When is the cutoff for each finish selection? | It depends on when each material has to be ordered. We tell you every deadline. |
| How will I know how the build is going? | A weekly email with photos, plus walkthroughs at key milestones. |
| Can I bring my own inspector? | Yes, and we encourage it. |
| Is the punch list finished before closing? | Yes. |
| What warranty comes with the house? | A one-year builder warranty. Parts like the HVAC system and roof also carry their own warranties. |
Want to see one of our homes while it’s being built? Call or text Kyle at 302-760-3900.
Tyler Nicholls, a co-owner of Telos Properties LLC, is a Delaware real estate licensee.