Buying a brand-new home is an exciting opportunity — but if you're new to the world of new construction, you might hear a lot of terms that sound confusing. Builders, sales agents, and lenders often use industry lingo that can feel overwhelming at first.

Understanding these key terms can make the entire process smoother and help you feel more confident as you move through each step.

Here’s a breakdown of the essential terms you’ll want to know before buying a new construction home:

Allowance

An allowance is a set budget your builder gives you to customize certain features in the home, such as flooring, lighting, or countertops. If you exceed the allowance, the extra cost will come out of your pocket — so keeping track is important if you want to stay within budget.

Certificate of Occupancy (CO)

A Certificate of Occupancy is an official document issued by the local government that certifies the home is safe, built to code, and ready to move into. Without it, you legally cannot occupy the property.

Change Order

A change order is a formal amendment to your original construction contract. It can cover changes to materials, design, or construction timelines — and often results in extra costs or delays. It’s smart to limit change orders whenever possible to stay on track.

Covenants, Conditions & Restrictions (CC&Rs)

CC&Rs are the rules set by the homeowners association (HOA) governing what you can and can’t do with your property. They might cover everything from acceptable paint colors to parking rules and landscaping guidelines. Always review these carefully before purchasing in a community.

Floor Plan vs. Home Plan

A floor plan shows the layout of the interior spaces — rooms, walls, windows, and doors. A home plan includes the entire structure, including both the interior and the exterior design. Knowing the difference helps you visualize your future home accurately.

Homebuilder Warranty

A homebuilder warranty typically covers materials, workmanship, and systems like plumbing, electrical, and HVAC for one to two years. Most builders also offer a separate structural warranty lasting eight to ten years. Always ask for warranty details before closing.

Plat vs. Plot

A plat is an official map that defines the boundaries between different parcels of land in a development. A plot refers to the individual lot or piece of land you're purchasing. Understanding these terms is important when selecting your lot in a new community.

Presale Home

A presale home is one you buy before construction is complete — sometimes even before construction starts. This option often allows for more customization, but requires patience as you wait for the home to be finished.

Punch List

A punch list is a checklist of small repairs, touch-ups, or final details that need to be completed before closing. It could include things like fixing paint imperfections, adjusting doors, or replacing missing hardware.

Rough-in

The rough-in phase happens midway through construction. It's when the plumbing, electrical wiring, and HVAC ductwork are installed, but before walls and finishes go up. This stage gives you a behind-the-scenes look at the "guts" of your future home.

Spec Home / Quick Move-In (QMI)

A spec home is a new construction home that the builder starts building without a specific buyer lined up. A Quick Move-In (QMI) home is a spec home that's almost complete and ready for move-in within a short timeframe. These homes are ideal if you need something sooner but may offer fewer customization options.

Walk-through

A walk-through is the final inspection of your new home before closing. It gives you a chance to spot any outstanding issues that need to be corrected and learn how to operate your new home’s systems.

Final Thoughts

Buying a new construction home can be an amazing opportunity — but understanding the terminology can make all the difference. A little knowledge now can help you save time, avoid unnecessary stress, and move through the process with confidence.

If you're thinking about purchasing a new construction home in the Tampa area, I’d be happy to help guide you through the process from start to finish.

Thanks for being here — until next time.