Buying new construction in Nashville? Read this before the model home

New construction is everywhere in Nashville right now: infill homes on old lots in The Nations and Charlotte Park, tall-and-skinny pairs all over the city, and big master-planned communities out in the surrounding counties. Walking through a finished model home is fun. Everything is new, nothing needs fixing, and the person at the sales desk is genuinely nice.

Here's what a lot of buyers don't realize until later: that person works for the builder. And the decisions you make on your first visit, before you've signed anything, can affect your options for the rest of the deal.

This guide walks through what I tell every buyer who's thinking about a new build. None of it is anti-builder. Plenty of Nashville builders do great work. It's just about walking in with your eyes open.

The sales rep works for the builder

The on-site sales rep is employed by or represents the builder. Their job is to sell the builder's homes at the builder's prices, with the builder's contract. They can answer questions, show you floor plans and walk you through options. What they can't do is negotiate against their own client on your behalf.

That matters most on the things that cost you money:

• Price and incentives. They won't volunteer that the spec home down the street has been sitting for 90 days and the builder would probably take less.
• The contract. Builder contracts are written by the builder's attorneys, and they're usually not the standard forms used in resale deals. More on that below.
• The lender. Incentives tied to the builder's preferred lender can be a good deal, or not. Someone should compare.
• The punch list. When something's wrong at the final walkthrough, it helps to have someone in your corner pushing to get it fixed before closing.

Your first visit matters more than you think

This is the one that catches people. Many builders require your agent to be with you, or to register you, on your very first visit. If you stop by on a Saturday, sign the guest book and tour the model alone, some builders treat you as their own customer from that point on and won't work with an agent you bring in later.

Policies vary by builder and community, so the simple move is to ask before you go, or have your agent call ahead and register you.

What about the buyer agreement?

Since August 2024, agents who work with buyers through the MLS generally have to sign a written agreement with you before touring homes. That agreement spells out what your agent will be paid and how. On new construction, builders often offer compensation to the buyer's agent, but it varies and it's negotiable, so ask what the builder offers and how it fits with your agreement before you sign anything. Your agent should walk you through it plainly.

What's actually negotiable

You'll often hear "the price is the price." Sometimes that's true for the base price, especially in a hot community where the builder doesn't want to lower comps for the homes it still has to sell. But price is rarely the only lever. Here's where buyers commonly find room:

Read the builder's contract slowly

On a resale home in Tennessee, most deals use standard forms that agents and attorneys see every day. Builder contracts are different: they're written for the builder, and every builder's is a little different. Things to look for:

• Earnest money and deposits. How much, and when it becomes non-refundable. Upgrade deposits are often non-refundable once ordered.
• Completion date. On homes still being built, dates can slip. What happens if they do? Can you get out, or are you stuck waiting while your rate lock or lease runs out?
• Financing and appraisal. What happens if your loan falls through or the home appraises low?
• Changes. Can the builder substitute materials or adjust plans, and do you get a say?
• Warranty. What the builder's warranty covers, for how long, and how you file a claim. Some builder contracts also limit other rights you might otherwise have, so read that section closely.
• Disputes. Many builder contracts require arbitration instead of court.

If anything in the contract is unclear to you, have a Tennessee real estate attorney review it before you sign. I'm not an attorney and can't give legal advice, but I can help you spot the questions to ask.

Get it inspected, even though it's new

"It's brand new and the city inspected it" is the most common reason buyers skip an inspection on new construction. But city inspections check that the work meets minimum code. They aren't a quality check on workmanship, and inspectors aren't there all day. Many buyers hire a private inspector at three points:

1. Pre-drywall. Framing, plumbing, wiring and HVAC runs are still visible. This is the one time you can see inside the walls. Ask the builder up front whether they allow it.
2. Before closing. A full inspection before your final walkthrough, so anything found goes on the punch list while the builder still has an incentive to fix it fast.
3. Before the one-year warranty ends. Often called an 11-month inspection. Settling, drainage and small leaks tend to show up in the first year. Get them documented while they're still covered.

Buying an infill home someone else already built and sold? It's worth pulling the permit history too. Here's how to check a Nashville home's permits and code violations for free.

Three Nashville-specific surprises

1. Your first tax bill may be way too low

Tennessee values property as of January 1. If your home was still a construction site then, the tax bill for that year may reflect only the land or a partial value. Tennessee law lets the assessor add a home finished later in the year to the assessment, prorated from when it was completed. The next year's bill reflects the full home.

Why that matters: if your lender set up your escrow based on the low land-only number, your monthly payment can jump when the full bill hits, and you may owe a shortage on top of that. The fix is simple. Budget for the tax on the finished home from day one. My Nashville property tax guide shows exactly how to estimate it.

2. That "house" might be half of an HPR

A lot of Nashville infill is two homes built on what used to be one lot. Often that's set up as a Horizontal Property Regime, or HPR. You own your home, but the land is shared under a master deed with its own rules. They're especially common in neighborhoods like The Nations, Charlotte Park and East Nashville.

HPRs can be a great way into a neighborhood you couldn't otherwise afford. Just know what you're buying: read the master deed and bylaws, find out how shared costs, insurance and exterior maintenance are handled, and confirm whether there's an HOA fee. And most are tall and narrow with lots of stairs, which matters if you want one-level living.

3. Short-term rental plans need checking first

If you're buying a new build hoping to rent it on Airbnb, check Nashville's short-term rental rules for that exact address before you sign. Rules depend on zoning and whether you'll live there, and many neighborhoods don't allow non-owner-occupied rentals. My free Nashville Investor Intel tool can help you check.