Do I need a buyer's agent for new construction in Illinois?

You don't legally need one, but you should use one. The builder's sales agent represents the builder exclusively. A buyer's agent represents your interests, negotiates incentives and upgrades on your behalf, and costs you nothing — the builder pays the commission. Register your agent on your first model home visit, as most builders require this.

What warranty does a new construction home in Illinois come with?

Under the Illinois New Home Warranty Act, builders must provide: 1 year on workmanship and materials, 2 years on mechanical systems (plumbing, electrical, HVAC), and 10 years on structural defects. Some builders offer extended warranties beyond these minimums.

Should I use the builder's lender for new construction in Illinois?

Evaluate it carefully. Builder incentives tied to their preferred lender can be significant ($5,000–$15,000 in credits). Get a competing outside quote on the same day and compare the full cost including rate, APR, and the incentive value. Sometimes the preferred lender wins; sometimes outside financing is better.

Why are property taxes higher after the first year on new construction in Illinois?

New construction in Illinois is often initially assessed at vacant land value. Once the county assessor reflects the completed home's value — typically 1–2 assessment cycles after closing — property taxes increase substantially. Budget for this increase and ask your agent or attorney to estimate the likely assessed value before you close.

Buying New Construction in Illinois: What Every Buyer Needs to Know

New construction is booming across the Chicago south and southwest suburbs — particularly in Will County communities like Frankfort, New Lenox, Mokena, and Homer Glen where land is still available for master-planned subdivisions. Buying a newly built home is fundamentally different from buying an existing home, and buyers who don’t understand the differences often leave money on the table or accept terms that disadvantage them significantly.

New Construction vs. Existing Home: Key Differences

The purchase process, negotiation dynamics, and protections available differ meaningfully between new and existing homes:

The seller is a corporation, not a person: Builder contracts are drafted by the builder’s attorneys to protect the builder — not you. They are not the standard Illinois Association of Realtors forms used in existing home sales.
Builder’s agent represents the builder: The sales agent in the model home works for the builder. They are not your advocate. Bringing your own buyer’s agent (at no cost to you — the builder pays the commission) gives you professional representation.
Negotiation works differently: Builders rarely budge on price, but frequently offer incentives — upgraded appliances, closing cost credits, lot premiums waived, or design center upgrades. Knowing what to ask for is critical.
Timeline uncertainty: New construction delivery dates slip. Build contracts typically give the builder significant flexibility on delivery timelines. If you have a rate lock or a lease ending, you need to plan for delays.

The Builder’s Contract: What to Watch For

Builder purchase agreements in Illinois are heavily one-sided by design. Have a real estate attorney review the contract before you sign. Key provisions to scrutinize:

Earnest money terms: Builders often require substantial earnest money (1–3% of purchase price) with limited refund provisions. Understand exactly what circumstances allow you to recover your deposit.
Change order procedures: Any modifications after signing can trigger significant cost additions. Get the scope of allowable changes in writing.
Warranty terms: Illinois builders are required by the Illinois New Home Warranty Act to provide warranties: 1 year on workmanship, 2 years on mechanical systems, and 10 years on structural defects. Verify the builder’s warranty meets or exceeds these minimums.
Arbitration clauses: Many builder contracts require disputes to go to binding arbitration rather than court. Understand the implications before signing.
Financing contingency limitations: Some builders limit or eliminate standard financing contingencies. If your financing falls through, the contract terms determine whether you lose your earnest money.
Right to modify plans: Builders sometimes reserve the right to change floor plans, specifications, or finishes due to material availability. Know what substitutions are permissible.

Use Your Own Buyer’s Agent

This point bears repeating: bring your own buyer’s agent to new construction purchases. The builder’s on-site sales rep is paid by and represents the builder exclusively. A buyer’s agent represents you, costs you nothing (paid from builder’s commission budget), and can:

Negotiate upgrades, incentives, and lot premiums on your behalf
Flag contract terms that disadvantage you
Help you compare the builder’s financing incentives against outside lenders
Coordinate your independent home inspection
Manage the timeline and closing process

Note: most builders require the buyer’s agent to be registered on the first visit. If you tour the model home without your agent, you may forfeit the right to have representation on that purchase.

Builder’s Preferred Lender: Should You Use It?

Builders frequently offer closing cost credits or upgrade incentives to buyers who use their preferred lender. These incentives can be substantial — sometimes $5,000 to $15,000 in credits — and are worth evaluating seriously.

However, don’t assume the preferred lender offers the best rate. Get a competing quote from an outside lender on the same day and compare the total cost (rate + APR + credits). Sometimes the builder’s incentive more than compensates for a slightly higher rate; sometimes it doesn’t. The math is transaction-specific.

Get an Independent Home Inspection

New doesn’t mean perfect. New construction homes regularly have defects — improper grading, plumbing issues, HVAC problems, insulation gaps, and structural shortcuts that slip past builder quality control. An independent home inspection before closing and a separate pre-drywall inspection (while walls are open) catch issues that would otherwise be covered up.

Some buyers skip inspections on new homes assuming everything is perfect. This is a mistake. The builder’s warranty covers defects, but you have to identify them first — and some issues are far easier to address before drywall than after.

Illinois New Home Warranty Act

Illinois law provides mandatory minimum warranty protections for new home buyers:

1 year: Workmanship and materials defects
2 years: Plumbing, electrical, heating, cooling, and mechanical system defects
10 years: Structural defects

Document any issues you notice during the first year carefully and submit warranty claims in writing. Keep copies of all communications with the builder.

Property Taxes on New Construction in Illinois

This catches many Illinois new construction buyers off guard. When you close on a newly built home, the property may still be assessed at vacant land value. Your first full tax bill — reflecting the improved value of the completed home — can arrive 1–2 years after closing and be significantly higher than your initial estimate.

Ask your real estate attorney and agent to project the likely assessed value of the completed home using nearby comparable sales. Budget for a tax increase in your second or third year of ownership. Will County and Cook County each have distinct assessment cycles and rates.