Thinking about a new-construction home in Melissa but getting lost in builder speak? You’re not alone. Terms like base price, lot premium, MUD, and CO can make a simple decision feel complicated. This guide translates the jargon into plain English and adds Melissa-specific tips so you can compare builders, protect your budget, and move in with confidence. Let’s dive in.
Why Melissa new builds are unique
Melissa is growing fast, with new subdivisions and master-planned communities across Collin County. Many neighborhoods build in phases, so you should expect active construction nearby for several years after your closing. That is normal for the area.
Permits, inspections, and the Certificate of Occupancy are handled by city or county building officials. Confirm who issues the CO for your specific lot so you know the timeline to move in.
MUDs are common in Texas developments and can add a separate line to your annual property taxes for many years. Also confirm the full property tax rate for your lot, including city, county, school district, and any MUD taxes, and learn how homestead and other exemptions may apply.
School district boundaries and assignments can change as new phases open. If schools matter to your plan, verify the latest boundary maps before you buy. Utility providers can also vary by subdivision, so confirm who provides water, sewer, electric, and internet for your specific lot, and whether any future hookup fees apply.
Money terms you need to know
Base price
The base price is the cost for the floor plan with standard features on a standard lot. It usually excludes lot premiums and most upgrades. Compare base prices only after reviewing the builder’s “included features” list.
Lot premium
A lot premium is an added charge for a specific lot, such as a larger corner lot or preferred orientation. Premiums vary by phase and are sometimes negotiable. Ask in writing about refund rules if the lot or phase changes.
Allowance
An allowance is a set dollar amount for a category like cabinets, lighting, or countertops. If your selections exceed the allowance, you pay the difference. Get the details in writing, including what the allowance covers, per‑item limits, and whether labor is included.
Upgrade vs. option
An upgrade changes the home from the standard package and adds cost, such as higher-end flooring. An option can mean a layout change or a selectable item. Make sure your contract clearly separates standard items from paid upgrades or structural options.
Concession or incentive
Builders may offer incentives, such as a rate buydown, closing cost credit, or appliance package. Compare incentives to a true price reduction and check if they require you to use a preferred lender.
Earnest money and option fee
In Texas, you typically pay earnest money to show good faith. An option fee may give you the right to cancel within a set time. For new construction, terms can differ from resale contracts, so read refund rules and how these fees apply to your build.
Contract and home types
Inventory or spec home
A spec home is built without a buyer under contract and is usually available for a quicker move-in. You get less customization but a shorter timeline.
To-be-built contract
A to-be-built home lets you select a lot, plan, and many finishes. Expect a longer timeline with possible delays from weather, permits, or materials.
Model home
Model homes show finishes and furniture to market the community. If buying a model, ask for a written list that separates standard items from the upgrades you see.
Sales agreements and Texas forms
Builders often use specialized new-home contracts and addenda. Review all forms carefully with your trusted advisor or an attorney so you understand timelines, change orders, and warranty terms.
Construction stages, simplified
Lot reservation or pre-construction deposit
Many builders let you hold a lot before signing the full contract. Confirm whether the deposit is refundable and under what conditions.
Site prep and foundation
Slab-on-grade is common in North Texas. Foundation type affects cost and future repairs. Ask about soil preparation and engineering for your lot.
Framing, rough-ins, and MEP
Framing creates the home’s structure. Rough-ins for plumbing, electrical, and HVAC happen before drywall. MEP stands for mechanical, electrical, and plumbing.
Drywall, trim, and finishes
After rough-ins, drywall is installed, then trim, cabinets, countertops, flooring, and paint. This is when many upgrades and options appear.
Final walkthrough and punch list
You and the builder list items to fix or finish before or shortly after closing. Document everything, take photos, and agree on timelines for completion.
Certificate of Occupancy
The Certificate of Occupancy is the official approval for move-in. Some contracts require a final CO before closing, while others allow closing with temporary occupancy. Confirm the policy for your home.
Warranties, inspections, and energy basics
Builder warranty
A common warranty structure is one year on workmanship, two years on mechanical systems, and ten years on major structural elements. Get the warranty in writing and ask who handles service requests and how claims work.
Third-party warranty providers
Many builders partner with independent warranty companies. Ask for the provider’s documents and review coverage limits and the claims process.
Independent inspections
Even new homes benefit from inspections. A pre-drywall inspection can catch framing and system issues while they are still visible. A final inspection helps you build a strong punch list.
Energy and code compliance
Builders must meet local codes. Ask for documentation on insulation R-values, window ratings, and HVAC efficiency, including SEER ratings. Request confirmation that HVAC sizing was calculated properly, often referred to as a Manual J load calculation.
Land and title basics
Plat, CC&Rs, and easements
Review the plat map for lot lines, drainage, and utility easements. Deed restrictions and HOA rules can guide exterior materials, fences, and additions. Setbacks and easements affect how you can use the yard later.
Floodplain and elevation
Check flood maps if you are concerned about drainage or insurance. Ask for an elevation certificate if needed, especially on lots near drainage areas or creeks shown on the plat.
Quick buyer checklist for Melissa
Before signing
- Request the builder’s written inclusions for the base price and a sample spec sheet for your lot and plan.
- Confirm lot premium, orientation, setbacks, easements, HOA status, and whether the lot is in a MUD.
- Ask for the full estimated property tax rate, including city, county, school district, and any MUD.
- Verify who holds earnest money, whether an option fee applies, and refund rules.
- Get the construction timeline, milestone dates, and how delays are handled.
- Review sample warranty documents and confirm coverage periods and provider.
During construction
- Schedule major milestone inspections, especially pre-drywall.
- Keep all change orders in writing with cost and schedule impact.
- Know your communication path: sales rep, construction manager, and escalation steps.
Before closing
- Complete a final walkthrough and document a punch list with photos and dates.
- Confirm the Certificate of Occupancy or any temporary occupancy terms.
- Order an independent final inspection.
- Verify that every promised upgrade and inclusion appears on the final settlement figures.
After closing
- Submit warranty items in writing with photos and keep acknowledgments.
- Learn HOA rules and payment schedules.
- Track warranty response times and follow up as needed.
Smart negotiation tips
- Compare total cost, not just base price. Include lot premium, options, and expected closing costs.
- If base price is firm, ask about incentives, lot premium adjustments, or credits toward upgrades.
- Time matters. Builders may be more flexible at the end of a sales period or when moving inventory.
- Capture every promise in writing and confirm how incentives appear on your closing documents.
Next steps
Buying new construction in Melissa can be smooth and rewarding when you know the terms and the local process. Focus on documented inclusions, MUD and tax details, inspection milestones, warranty coverage, and a clear path to your Certificate of Occupancy. If you want a step-by-step plan and local guidance from lot selection to final walkthrough, connect with Jeremy Jordan for a straightforward, no-pressure consultation.
FAQs
Should you hire an inspector for a brand-new Melissa home?
- Yes, schedule a pre-drywall and a final inspection; independent inspections often find issues the builder will fix and give you documentation for punch-list items.
How negotiable are new-build prices in Melissa?
- It depends on the builder and market; base prices are often firm, but you may get incentives, lot premium adjustments, or upgrade credits, especially when inventory is higher.
What is a MUD tax in Collin County new developments?
- A Municipal Utility District finances infrastructure and is repaid through additional property taxes; confirm whether your lot is in a MUD and review projected assessments before you buy.
What does a typical builder warranty cover on new homes?
- Many builders provide one year on workmanship, two years on mechanical systems, and ten years on major structural elements; get the provider and claims process in writing.
How long does new-home construction take in Melissa, TX?
- Timelines vary by builder and plan; quick-move-in homes can be ready in weeks to a few months, while to-be-built homes often take longer due to weather, permits, and materials.
Can you use your own lender for a new build in Melissa?
- Yes, you can use your own lender, though builders may offer incentives with preferred lenders; compare the total cost of incentives versus your best loan terms.
