New construction versus resale homes in Texas

Summary

Buying a newly built home in Texas and buying a resale home are different transactions, even when the houses look alike. A builder sells a home that no one has lived in, often in a community that is still being developed, and offers its own incentives and its own affiliated lender. A resale buyer typically gets a seller's disclosure, an established neighborhood and several years of tax and association history. Retirees weigh these differences against practical questions: whether the amenities are open, who controls the homeowners association, whether a municipal utility district or public improvement district adds a tax or assessment, and how the property tax bill will look in the first full year.

This guide explains what Texas statutes and official pages say about those differences, using builder pages fetched on October 8, 2026 as dated examples of how incentives and forward-dated amenities are presented. Builder offers, prices and amenity schedules change often and can be withdrawn, so use the examples to learn what to ask, not what to expect. Confirm every term in your own contract and in the current recorded documents, and consider having a Texas real estate attorney review the contract.

Key takeaways

• Builder closing-cost credits, option credits and rate programs are the builder's own offers with conditions. Del Webb's October 2026 market page states that its offer is subject to change or withdrawal at any time, may apply only to to-be-built homes and treats any unused portion as the seller's property. Get every incentive in writing and compare the lender quote with an outside lender.
• A new lot may sit inside a municipal utility district or public improvement district. Water Code Section 49.452 and Property Code Section 5.014 require written notices before a binding contract; a missing district notice gives the purchaser a right to terminate under the conditions those sections state.
• A seller's disclosure of property condition under Property Code Section 5.008 does not apply to a new residence that has not been occupied, so a buyer from a builder relies more on the contract, the warranty and a personal inspection.
• Property is appraised at market value as of January 1. The 10 percent limit on homestead appraisal increases begins the January 1 after the first year the owner qualifies, so do not assume the first bill will match the builder's or previous year's.
• The general homestead exemption can start in the first year if the preceding owner did not receive it (Section 11.42(f)); the age-65 exemption is effective as of January 1 of the year you qualify. Apply with the appraisal district, generally before May 1.
• Amenities in an under-construction community are forward-dated: Del Webb Lost Pines lists an amenity project with a December 1, 2026 completion date on a state registration, and Veramendi states it looks forward to welcoming residents in early 2027. Ask what the contract says if they are late.
• A developer controls the association until at least one-third of the board is elected by owners under Section 209.00591(c). The Texas Real Estate Commission has no jurisdiction over builders, and Property Code Chapter 27 sets a notice-and-cure process for construction defects.

How the two transactions differ in disclosure

Texas law requires several written notices before a buyer is bound to a contract, and which ones apply depends on the property. The seller's disclosure of property condition in Section 5.008 of the Property Code is the notice most resale buyers receive, in which the seller states the seller's knowledge of the property's condition. The same section lists transfers it does not apply to, and one of them is a transfer of a new residence of not more than one dwelling unit that has not previously been occupied for residential purposes. A buyer from a builder therefore should not expect the same condition disclosure a resale seller provides, and should rely on the contract, the builder's warranty and the buyer's own inspection.

Other notices do apply to new homes. Section 5.012 requires the seller of residential property subject to membership in a property owners' association to give the purchaser a written notice before the contract binds the purchaser, stating that the buyer must be a member of the association, that restrictive covenants have been or will be recorded, and that assessments are owed and can be enforced by lien and foreclosure. Water Code Section 49.452 and Property Code Section 5.014 add notices for properties in certain special districts and public improvement districts, discussed below.

The practical consequence is that a new-construction buyer has to ask for information that a resale buyer might receive automatically. For a home in a community with a property owners' association, Property Code Section 207.003 entitles an owner or purchaser to the restrictions, bylaws, rules and a resale certificate on written request, and the association's budget and reserves may look very different when a builder still owns most lots.

Builder incentives are builder offers

Closing-cost credits, option credits and interest-rate programs advertised by new-home builders are the builder's offers, with the builder's conditions. Del Webb's San Antonio market page, fetched October 8, 2026 and marked October 2026, shows how detailed those conditions are. Its fine print states that the closing costs and options offer is valid only on new contracts for to-be-built homes, is not valid with quick move-in homes or other promotions, and is subject to change or withdrawal at any time without notice. The fine print caps the credit at $25,000 in one series, $40,000 in another and $50,000 in a third, which may be applied toward approved options, closing costs or lot premiums, and says buyers who finance through the builder's affiliated lender may apply up to 3% of the purchase price toward closing costs, not to exceed a maximum closing cost credit of 4% of the purchase price. It states that any unused portion of the incentive is the property of the seller, that the buyer pays closing costs, prepaids or rate lock fees that exceed the incentive, and that the property must be purchased as a principal residence.

The Del Webb pages for New Braunfels at Veramendi describe a rate program called a Builder Forward Commitment, offered through the seller's affiliated lender, to lock in an interest rate for a pool of funds. The page states that the rate is available only to qualified borrowers buying certain homes until the pool is depleted or the rate lock period expires, is limited to new home agreements, and requires that the sale close by a specified date. The page also says a buyer is not required to finance through the affiliated lender to purchase a home, but that using it is necessary to receive those rate offers where available. Sample payments shown in the builder's calculator are based on the introductory rate for adjustable-rate loans, which the page says can change after the fixed period expires. A rate lock or buydown is a financing term, and its value depends on the rate you could get elsewhere and on how long you keep the loan.

Del Webb's Lost Pines community page for Bastrop shows a different amount from its San Antonio page, which illustrates that incentives vary by community and series. Toll Brothers' Regency page for Texas states that offers vary by community and that the builder reserves the right to change or withdraw any offer at any time. Ask for every incentive in writing, with its dollar amount, what it can be applied to, any lender requirement, the deadline and what happens if you change the loan. Then compare the net cost of the new home, after incentives, with resale homes nearby, and compare the builder's lender quote with an outside lender's quote.

Special districts and assessments on new lots

Many new Texas subdivisions are developed with public financing, so a new home may sit inside a municipal utility district or other special district, or a public improvement district. Texas Water Code Section 49.452 requires a person who proposes to sell real property located in a covered district to give the purchaser a written notice, and Section 49.4521 prescribes its content. The covered districts include those governed by Chapter 375 of the Local Government Code and districts that provide water, sanitary sewer, drainage and flood control as their principal function. Section 49.452 requires that the notice be given before a binding contract is executed. If the contract is signed without it, the purchaser may terminate, but if the seller furnishes it at or before closing and the purchaser closes anyway, the purchaser is presumed to have waived the right to terminate. At closing, a separate copy of the notice with current information must be signed, acknowledged and recorded in the deed records of the county.

The prescribed notice has a bold caption, Notice to Purchaser of Special Taxing or Assessment District, and states the district's name, that it may impose taxes and issue bonds, and that it may impose an unlimited rate of tax to pay those bonds. It gives either the current district property tax rate per $100 of assessed valuation or, if the district has not yet imposed taxes, a projected rate. It states any assessment, the amounts of bonds approved by voters and issued for water, sewer and drainage facilities, roads and parks, any standby fee, and whether the district is in a city's extraterritorial jurisdiction or boundaries. The Texas Real Estate Commission publishes Form 59-0 for this notice, effective February 12, 2024, and advises that if the district has its own form the seller should use it. The Texas Commission on Environmental Quality's general guide to Texas water districts explains that the notice is usually the seller's responsibility to provide, that districts must file the information with the county clerk, and that each district designates an agent of notice.

Public improvement districts have a separate notice. Property Code Section 5.014 requires the seller of property in a public improvement district to give the purchaser a written notice that the purchaser is obligated to pay an assessment, that the assessment may be paid in full at any time or otherwise paid in annual installments that vary from year to year, and that failure to pay may result in penalties and interest or a lien and foreclosure. Under Section 5.0141, if a contract is signed without the notice the purchaser may terminate within seven days after receiving it, but only if the municipality or county filed the service plan with the county clerk before the contract date. See the guide to MUDs, PIDs and special districts for how those charges work and show up on a bill, and the guide to HOA, condo and club fees and special assessments for association-level charges.

What a new appraisal does to the property tax bill

Texas appraises taxable property at market value as of January 1, according to Tax Code Section 23.01, and the Comptroller's Texas Property Tax Basics explains that a lien attaches to each taxable property on that date. New construction is appraised using methods the Comptroller describes, including the cost approach, which it calls beneficial for property types with scarce sales data, unique properties and new construction. A builder's unsold, never-occupied home held for sale is treated as inventory under Section 23.12, which defines its market value as the price at which it would sell as a unit to a purchaser who would continue the business. Once you own and occupy the home, it is a residence and is appraised on its own.

Do not assume the first bill will resemble the builder's or the prior year's. The limit on annual increases in a residence homestead's appraised value, 10 percent plus the market value of new improvements under Section 23.23, takes effect on January 1 of the tax year following the first tax year the owner qualifies for the homestead exemption. Until then, the appraisal district may appraise the property at market value. The Comptroller's summary also notes that a new improvement is one made after the most recent appraisal that was not included in the preceding year's appraised value. For a brand-new home, that means the appraised value can step up as the improvement is added to the roll. Ask the appraisal district, the title company or the builder's sales office how the taxing units in the specific subdivision, including any district, set their rates, and see the guide to property taxes and appraisal districts.

The Comptroller also explains that a property owner who moves to a new home must complete a new application to receive most exemptions and to transfer any tax ceiling. See the homestead guide, homestead exemption, the age-65 exemption and the school tax ceiling, for how a school tax ceiling transfers.

Homestead timing in the first year

Exemption eligibility is generally determined by the claimant's qualifications on January 1, under Tax Code Section 11.42(a). The timing rules differ by exemption. Section 11.42(f) lets a person who acquires property after January 1 receive the general residence homestead exemption under Section 11.13, other than the age-65 or disabled exemptions in Section 11.13(c) and (d), for the applicable portion of that tax year immediately on qualification if the preceding owner did not receive the same exemption for that year. A builder-owned home has not been anyone's homestead, so a buyer who moves in and qualifies may be able to claim the general exemption for the rest of the first year. By contrast, Section 11.42(c) makes the age-65 and disabled exemptions effective as of January 1 of the tax year in which the person qualifies, applying to the entire tax year.

The Comptroller says that a property owner must apply for an exemption in most circumstances, that applications are filed with the appraisal district in the county where the property is located, and that the general deadline is before May 1. Section 11.431 allows a late application for a residence homestead exemption if filed not later than two years after the delinquency date for the taxes. Because the lien attaches and the appraisal is set as of January 1, the first bill may reflect the property as it stood on that date rather than your home as finished. Ask the title company how first-year taxes will be prorated at closing, and file the application promptly after you occupy the home. The appraisal district decides whether a property qualifies.

Under-construction communities and forward-dated amenities

A community that is still being built may advertise amenities that do not exist yet. Treat opening dates as targets, not commitments, and check them against a second source. Del Webb's page for Austin at Lost Pines in Bastrop describes a resort-style pool, fitness center, bocce and pickleball courts. The Texas Department of Licensing and Regulation's accessibility registration for the Lost Pines amenity project, registered July 30, 2025, lists a start date of December 1, 2025, a completion date of December 1, 2026, and a scope that includes a fitness center, a pool deck with resort pool, bocce space and pickleball courts. A completion date on a registration is a filing date, not an opening announcement, and the developer's page gave no opening date. See Del Webb Austin at Lost Pines and Bastrop.

Del Webb's page for New Braunfels at Veramendi offers a virtual tour of the future amenity center and states that construction is under way and that it looks forward to welcoming residents in early 2027. That is a forward-dated statement of intent from the developer rather than a scheduled opening. See New Braunfels.

Buyers can protect themselves by asking what the contract says if an amenity is late or changed, which phases the amenity serves, how the association budget treats an amenity that is not yet open, and whether the dues quoted today reflect a fully built community. Dues and fees quoted for a community under construction may change when the amenities open. Ask for the effective date of every figure.

How a builder-controlled association becomes owner-controlled

Most new subdivisions start with an association controlled by the developer. Texas Property Code Section 209.002 defines a development period as a period stated in a declaration during which a declarant reserves a right to facilitate the development, construction and marketing of the subdivision or to direct its size, shape and composition. Section 209.00591(c) says the declaration may provide for a period of declarant control during which the declarant, or persons designated by the declarant, may appoint and remove board members and officers, other than those elected by members. Regardless of the period the declaration provides, on or before the 120th day after 75 percent of the lots that may be created and made subject to the declaration are conveyed to owners other than a declarant or a builder in the business of constructing homes who purchased lots to sell completed homes, at least one-third of the board members must be elected by owners other than the declarant. If the declaration does not state the number of lots, that one-third election must occur not later than the 10th anniversary of the date the declaration was recorded.

Section 209.013 adds that a dedicatory instrument created by a developer or by an association the developer controls may not be amended during the gap between the time the developer loses the majority of the voting rights and the time a new board assumes office, and a provision violating that rule is void. For a buyer, the transition means the rules, budget and reserve decisions may be made by the developer for years. Ask the association for the declaration's development period and the date declarant control ends, the current budget and reserves, and whether the declarant has subsidized dues. Request the resale certificate and compare it with the builder's sales literature.

Warranty and inspection basics

Texas has a statute governing claims for construction defects in residences. Chapter 27 of the Property Code applies to actions to recover damages arising from a construction defect, including by a subsequent purchaser, and defines a contractor to include a builder contracting for a new residence and a person contracting for the sale of a new residence constructed by or on behalf of that person. Section 27.007 requires a contract subject to the chapter to contain a notice in 10-point boldface type stating that the contract is subject to Chapter 27 and that the buyer must give the contractor written notice by certified mail, return receipt requested, not later than the 60th day before filing suit or starting arbitration. If a contract lacks the notice, the claimant may recover a civil penalty of $500 in addition to other remedies. Section 27.004 gives the contractor a period of 35 days after receiving the notice to inspect, up to three inspections on request, and up to 60 days to make a written settlement offer.

The Texas Real Estate Commission's FAQ addresses a buyer whose builder-provided warranty is about to expire with repairs not made. It says the commission does not have jurisdiction over builders, suggests a complaint to the Better Business Bureau or the Texas Attorney General's Consumer Protection Division, and suggests consulting a private attorney before any warranties or other legal remedies expire. Read the builder's written warranty for its term, covered items and claim procedure, and keep your repair requests in writing with dates.

A buyer's own inspection remains useful on a new home. The commission's article on inspections explains that licensed inspectors must follow its Standards of Practice, which define the minimum requirements for an inspection performed for a prospective buyer or seller of a one to four family dwelling, and must give clients the commission's Property Inspection Report Form. It adds that the standards apply when an inspector is hired to inspect a substantially completed property, so ask the inspector how a home still under construction would be handled. Ask what the inspector will and will not cover, and schedule a walkthrough with the builder's representative before closing.

A short comparison to carry into the sales office

On the new-construction side, expect builder incentives that are conditional and can be withdrawn, the possibility of a special district tax or assessment, amenities that may still be under construction, and an association controlled by the developer for some time. Expect no seller's disclosure of condition, so inspection and warranty carry more weight. On the resale side, expect an established neighborhood, a seller's disclosure, a history of association dues and tax bills, and amenities you can visit. Neither is inherently better. A new home may need less near-term maintenance, while a resale home lets you verify what a community is like in daily use. Use the contract, the district and association notices and the appraisal district's records to price either one honestly, and record the date of every figure you are quoted.

Places where this matters most

• BastropThe Bastrop County seat in the Lost Pines forest on the Colorado River, with a small downtown, an emergency room in town, a new 55+ Del Webb community under construction, and a wildfire history that any buyer should understand.
• New BraunfelsA spring-fed river city on the Comal and Guadalupe Rivers between Austin and San Antonio, split between Comal and Guadalupe Counties, with two appraisal districts, two main school districts on the tax rolls and an unusually well-documented water and flood picture.

Communities where this matters most

• Del Webb Austin at Lost PinesA Del Webb community marketed as 55+ inside The Colony master plan in Bastrop, selling single-family homes in three series from $294,990 while its amenity center is under construction.
• Del Webb New Braunfels at VeramendiA Del Webb community marketed as 55+ at 642 Roark Drive in New Braunfels, selling single-family homes in three series from $327,990 while its larger amenity center is under construction for early 2027.

Related guides

• Texas MUDs, PIDs and special districts: how to read the bill and the closing disclosure
• HOA, condo, club and special assessments for Texas retirees: what the charges are and what to ask
• Texas property taxes and appraisal districts: how to compare actual total tax bills
• Texas homestead exemption, the age-65 exemption and the school tax ceiling