What You Need to Know Before Buying a New Construction Home in Philadelphia
Buying a brand-new home can be incredibly exciting—especially when you’re the first one to ever live there. But new construction comes with its own set of questions and myths, and it’s important to know what you’re getting into before you commit.
If you’re thinking about buying a new build in Philadelphia, this guide is for you.
What Is Considered a “New Build”?
A new build is any home that’s freshly constructed and has never been lived in. That includes:
Move-in ready homes that were just completed
Homes in newly developed communities
Custom homes built for a specific buyer
As long as it's brand new and you’d be the first owner—it counts as a new build! If you want to see what a typical modern new build looks like in Philadelphia, check out our YouTube video tour of Abode, a recent project that highlights the style, features, and layout many Philly buyers are looking for.
7 Common Myths About Buying New Construction Homes
Let’s clear up some of the most common misunderstandings buyers have when it comes to new construction in Philly.
Myth #1: New Homes Are Always More Expensive
Not necessarily! In Philadelphia, new construction homes can start around $260,000—comparable to many older homes in the area.
Even better? New builds can actually save you money over time. Here’s how:
Tax abatements – Many new homes in Philly qualify for a 10-year property tax abatement, significantly reducing your annual tax bill and putting thousands back in your pocket over the years.
Lower maintenance costs – Since everything is brand new—roof, plumbing, electrical, appliances—you’re much less likely to face costly repairs in the first few years of ownership.
Builder warranties – Most reputable builders offer warranties that cover key components of your home. These often include:
A 1-year warranty for general workmanship and materials (covering items like doors, windows, flooring, and paint)
A 2-year warranty for major systems like HVAC, plumbing, and electrical
A 10-year structural warranty for the foundation and load-bearing elements of the home
These warranties can provide peace of mind and save you thousands in repair or replacement costs if any covered issues arise.
Altogether, these benefits can make a new construction home more affordable and less stressful than many buyers expect.
Myth #2: Financing a New Home Is More Difficult
Actually, it can be easier—especially in Philadelphia’s active new construction market.
Many local builders partner with preferred lenders who are familiar with their projects and timelines. These relationships can simplify the process for buyers, especially first-timers, by offering:
Streamlined loan approvals – Preferred lenders already understand the builder’s process, which means fewer back-and-forths and faster turnarounds on paperwork and approvals.
Incentives for buyers – In Philly, it’s common for builders to offer financial perks if you use their lender. These may include credits toward closing costs, reduced origination fees, or buy-down options for lower interest rates in the first year or two of the mortgage.
Favorable loan terms – Because new construction is generally considered a low-risk investment, lenders may offer:
Lower interest rates
Fewer conditions to close
Faster underwriting and closing timelines
Plus, if you're using programs like Philly First Home, many preferred lenders are already familiar with the grant requirements and can help guide you through both the grant and the mortgage application at the same time.
Bottom line: In Philadelphia, financing a new construction home can be just as easy—or even easier—than buying a resale, especially when you're working with a builder's preferred lender who knows the local landscape.
Myth #3: You Don’t Need a Home Inspection for New Construction
Yes, you absolutely do. Just because a home is brand new doesn’t mean it’s perfect.
In Philadelphia, many new construction homes are built quickly to meet demand—and while most developers aim for quality, mistakes can happen. We’ve seen issues like:
Improper wiring or loose electrical panels
Poorly installed insulation or missing firestopping
HVAC systems not calibrated correctly
Grading issues that lead to water pooling near the foundation—a big concern in Philly’s older neighborhoods with uneven terrain or alleyways
Hiring an independent home inspector—one who isn’t affiliated with the builder—is a smart move. They’ll do a full top-to-bottom check, including the roof, foundation, plumbing, electrical, and drainage. This helps you catch small issues before your warranty period expires or before you move in and discover something the hard way.
In Philadelphia, where housing codes vary by neighborhood and enforcement can be inconsistent, having your own inspector is the best way to protect your investment—new build or not.
Myth #4: New Homes Lose Value Quickly
Not true. A new home isn’t like a car—it doesn’t automatically lose value the moment you close.
In Philadelphia, new construction homes, especially in emerging neighborhoods like Brewerytown, Grays Ferry, or West Kensington, often gain value quickly as surrounding development ramps up. Buying early in a new phase of construction or in a transitioning area can mean you start building equity before you even move in.
Here’s why:
Early buyers in new developments often benefit from below-market pricing. As more homes are built and sold—and as amenities like cafes, parks, and shops move in—demand goes up, and so do home values.
Tax abatements make your home more appealing to future buyers, which can strengthen resale value later on.
In a city like Philly, where land is limited and demand for modern, move-in-ready homes remains strong, well-located new construction tends to hold its value well, especially compared to older homes that may require ongoing maintenance.
Of course, not all new homes are equal. Location, quality of construction, and surrounding development all matter. But with smart timing and a knowledgeable agent, a new build can be a solid investment—not a financial risk.
Myth #5: You Don’t Need a Real Estate Agent
Technically, no—you’re not required to use an agent. But skipping one can cost you.
In new construction, having a buyer’s agent on your side is a major advantage, especially in a city like Philadelphia, where zoning, tax abatements, and builder reputations vary from one neighborhood to the next.
Here’s what a skilled agent can do for you:
Negotiate upgrades and pricing – Many Philly builders are open to offering incentives—like hardwood flooring, better kitchen finishes, or closing cost credits—but they’re not going to advertise it. A buyer’s agent knows where there’s room to negotiate.
Review builder contracts – These contracts are different from standard resale agreements. Your agent will work with a real estate attorney (if needed) to ensure you understand warranty terms, change order policies, and timelines—all before you sign.
Keep your timeline on track – Delays in construction are common. Your agent can help coordinate inspections, lender requirements, and walkthroughs so nothing falls through the cracks.
Advocate for you when issues arise – If something goes wrong—a missed upgrade, delayed closing, or post-settlement repairs—your agent is your voice in getting it resolved fairly.
And remember: the builder’s sales agent represents the builder. Their job is to protect the builder’s interests—not yours.
Having an experienced Philadelphia agent in your corner means you’re not going through the process alone. you’re getting expert guidance tailored to the city’s fast-moving and sometimes complex new construction market.
Myth #6: You Can’t Negotiate with the Builder
Many buyers assume that builders set prices and terms in stone. But in Philadelphia’s new construction market, that’s often not the case.
Builders typically have more flexibility than you might think, especially in competitive neighborhoods like Fishtown, Point Breeze, and Northern Liberties, where several developments are underway and they want to keep sales moving.
Here are some common areas where you can negotiate:
Lot location – Premium lots or those with better views sometimes come with a premium price, but builders may offer discounts or upgrades on less desirable lots to balance sales.
Closing costs – Builders often include closing cost assistance or credits to help buyers with upfront expenses, which can save you thousands at closing.
Financing fees – If you use the builder’s preferred lender, you might be able to negotiate reduced or waived origination fees or points.
Design upgrades – Builders want to showcase their homes, and may be willing to include popular upgrades like hardwood floors, upgraded cabinetry, or better appliances at no extra cost.
Having a real estate agent who specializes in new construction in Philadelphia makes a big difference. They know which builders are more flexible, what’s typical for each neighborhood, and how to negotiate effectively without jeopardizing your relationship with the builder.
Myth #7: New Builds Take Forever to Finish
While some new construction projects can take a long time, many new homes in Philadelphia are move-in ready much sooner than you think.
As of early 2025, about 37% of new construction homes in Philly are already completed and ready for immediate occupancy, according to Realtor.com. That means you could be moving into a brand-new home within weeks—not months.
This is especially true in neighborhoods like Fishtown, East Kensington, and South Philadelphia, where builders are focusing on delivering finished homes quickly to meet strong buyer demand.
Plus, many builders offer spec homes or model units that you can tour and purchase right away, skipping the wait typically associated with custom builds.
So if you want a new home without the lengthy construction timeline, Philadelphia’s current market has plenty of great options ready for you.
A Few More Tips for New Construction Buyers:
10-Year Tax Abatement: Philadelphia offers a valuable 10-year property tax abatement on most new construction homes. Starting in 2022, this benefit is phased out gradually—you get 100% abatement in the first year, then it decreases by 10% each year until it fully expires after 10 years.
Important: The tax abatement is not automatic. Make sure it is explicitly filed and included in your sales agreement to ensure you receive the savings.
First-Time Homebuyer Assistance: Many new builds in Philadelphia qualify for first-time homebuyer grants, down payment assistance, or other local programs. Your real estate agent can help you identify and apply for these opportunities to make buying easier.
Buying a new construction home in Philadelphia can be one of the smartest investments you make—if you do it with the right information and guidance.
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