New Construction Homes

Homeowner Summary

A new construction home should be the lowest-maintenance, most efficient home you will ever own. Everything is new, under warranty, built to the latest codes, and should not need major repairs for years. But "new" does not mean "perfect." New homes go through a settling and break-in period during the first 1-2 years where minor defects emerge, systems need adjustment, and the structure adapts to its environment. Understanding this process, knowing your warranty, and conducting a thorough 11-month walkthrough are the keys to maximizing the value of your new home.

Builder warranties typically follow a three-tier structure: 1 year for workmanship and materials (paint, caulk, drywall, grout, doors, trim), 2 years for mechanical systems (HVAC, plumbing, electrical), and 10 years for structural components (foundation, load-bearing walls, roof structure). These timelines are not generous; they are the minimum window to identify and report defects. Issues not reported within the warranty period become the homeowner's responsibility, even if the defect existed from day one.

The most common new-home defects are cosmetic settling issues (nail pops, drywall cracks, grout cracks), which are normal and typically covered under the 1-year warranty. More significant defects include grading and drainage issues (the lot was not properly sloped and water pools near the foundation), HVAC performance problems (system not properly commissioned, ductwork leaking), and plumbing issues (leaking connections behind walls). These are why the 11-month walkthrough (conducted just before the 1-year warranty expires) is the single most important maintenance action for a new home.

How It Works

New construction goes through several phases after you take possession:

The Settling Period (0-24 months): Lumber used in framing has a moisture content that gradually equalizes with the local environment. As wood dries and shrinks slightly, minor movement occurs throughout the structure. This is completely normal and produces: nail pops (fastener heads pushing through drywall as studs shrink), hairline drywall cracks (typically at corners of windows and doors, at corners of rooms, and at joints between ceiling and wall), minor gaps in trim and molding, and slight grout cracking in tile installations. None of these indicate structural problems; they are the natural result of a new structure drying out.

Energy Code Compliance: New homes must meet the energy code adopted by the local jurisdiction, most commonly the International Energy Conservation Code (IECC). The 2021 IECC (and the even more stringent 2024 edition being adopted in many areas) requires: blower door testing (air tightness verification), duct leakage testing, specific insulation R-values by climate zone, high-performance windows, and LED lighting. This means your new home should be significantly more efficient than an existing home, but only if these requirements were properly implemented and tested.

Builder Warranty Structure:

• Year 1 (Workmanship): Covers defects in materials and workmanship. This includes: paint, caulking, drywall, grout, flooring, doors, windows (operation, not glass breakage), trim, cabinetry, countertops, grading, and drainage. Most builders have specific thresholds (nail pops smaller than 1/4", cracks less than 1/16" wide, etc.) that they do not consider defects.
• Year 2 (Systems): Covers defects in distribution systems: HVAC (ductwork, equipment, refrigerant lines), plumbing (supply lines, drain lines, fixtures), and electrical (wiring, panel, outlets, switches). This does NOT cover appliances (which have their own manufacturer warranties, typically 1 year).
• Year 10 (Structural): Covers defects in load-bearing components: foundation, floor framing, wall framing, roof framing. This is a narrow warranty covering structural failure or significant movement, not cosmetic issues caused by settling.

Third-Party Warranties: Some builders use third-party warranty companies (2-10 Home Buyers Warranty, StrucSure, PWSC) instead of self-insuring. These provide a layer of protection if the builder goes out of business but may have stricter claim processes. Review the warranty document carefully to understand who administers it and what the dispute resolution process is.

Maintenance Guide

DIY (Homeowner)

• Month 1: Walk through and document everything. Note any cosmetic issues, test every fixture, run every appliance, operate every window and door. Submit a punch list to the builder.
• Months 1-6: Observe how the home performs across seasons. Note any HVAC issues, water intrusion, drainage patterns during rain, and settling symptoms.
• Month 6: Conduct a mid-year walkthrough. Document nail pops, cracks, gaps, and any system issues that have emerged. Some builders offer a 6-month warranty visit.
• Monthly: Replace HVAC filter (critical during construction cleanup period; the first 3-6 months may require more frequent changes due to residual construction dust), test smoke/CO detectors, run all plumbing fixtures briefly (unused drains can dry out and allow sewer gas in)
• Quarterly: Check caulking at tub/shower/sink intersections, check exterior caulk around windows and doors, inspect grading around foundation
• Month 11: Conduct the critical 11-month walkthrough (see checklist below). Submit all warranty claims before the 1-year deadline.
• Month 23: Conduct the 23-month walkthrough for systems warranty items. Verify HVAC performance, check all plumbing, test all electrical.
• Annually (ongoing): Standard homeowner maintenance begins. HVAC tune-up, gutter cleaning, exterior inspection, etc.

Professional

• 11-month walkthrough: Consider hiring an independent home inspector ($300-$500) to conduct a thorough inspection before the 1-year warranty expires. They will catch issues you might miss.
• HVAC commissioning check: At 6-12 months, have an independent HVAC technician (not the builder's subcontractor) verify proper system operation: refrigerant charge, airflow, temperature differential, duct leakage
• Month 12-18: Energy audit to verify the home meets its rated energy performance (blower door test, duct leakage test, thermal imaging). If the home underperforms, report to the builder under the 2-year systems warranty.
• Annual HVAC tune-up: Begin regular professional maintenance after the builder's warranty period. Some builders require professional maintenance to keep the warranty valid.

Warning Signs

• Water pooling near the foundation after rain (grading issue; report to builder immediately, as this can cause foundation problems)
• Cracks in drywall wider than 1/8 inch or stair-stepping in foundation/brick (may indicate structural movement beyond normal settling)
• HVAC struggling to maintain temperature (undersized system, duct leaks, or commissioning issue)
• Higher than expected energy bills for a new code-compliant home (envelope or HVAC defects)
• Musty smell in basement, crawlspace, or attic (moisture intrusion from construction defect)
• Doors or windows not closing properly that were fine at move-in (excessive settling or structural issue)
• Water stains on ceiling or walls within the first year (plumbing leak behind walls or roof defect)
• Nail pops larger than 1/4" or recurring after repair (possible framing issue, not just settling)
• Efflorescence (white mineral deposits) on foundation walls or basement floor (moisture passing through concrete)
• Gaps between foundation and framing, or between floors and walls (beyond normal settling)

When to Replace vs Repair

In a new home, the answer is almost always "warranty claim, not repair at your expense." Key principles:

• Document everything with photos, dates, and written descriptions. Verbal complaints are difficult to enforce.
• Submit claims in writing to the builder. Keep copies of all correspondence. Use the builder's warranty claim process.
• Meet deadlines: The warranty clock is not flexible. Submit all workmanship claims before month 12. Submit all systems claims before month 24. Structural claims must be submitted within the 10-year window.
• Cosmetic vs defect: Understand the builder's warranty standards document (they will have one). Nail pops, hairline cracks, and minor settling are typically addressed in a single warranty visit. Items below the builder's defined threshold are considered normal.
• Appliances: File warranty claims directly with the appliance manufacturer, not the builder. Keep all appliance warranty cards and registration.
• After warranty expiration: Standard repair-vs-replace rules apply. The advantage of a new home is that no system should need replacement for 8-15+ years if properly maintained.

Pro Detail

Specifications & Sizing

IECC 2021 Requirements (Selected, by Climate Zone):

| Component | Zone 3 | Zone 4 | Zone 5 | Zone 6 | |-----------|--------|--------|--------|--------| | Ceiling insulation | R-38 | R-49 | R-49 | R-49 | | Wall insulation | R-20 or R-13+5ci | R-20 or R-13+5ci | R-20 or R-13+5ci | R-20+5ci or R-13+10ci | | Floor insulation | R-19 | R-19 | R-30 | R-30 | | Window U-factor | 0.30 | 0.30 | 0.30 | 0.28 | | Air tightness | 3 ACH50 | 3 ACH50 | 3 ACH50 | 3 ACH50 | | Duct leakage | 4 CFM25/100sqft | 4 CFM25/100sqft | 4 CFM25/100sqft | 4 CFM25/100sqft |

HVAC Sizing for New Homes:

• Manual J required by most codes and ACCA standards
• Common error: oversizing. Many builders install 1 ton per 400 sq ft when a tight new home may only need 1 ton per 600-800 sq ft.
• Oversized HVAC: short cycles, poor humidity control, uneven temperatures, premature wear
• Request the Manual J calculation from the builder. Verify it was done for your specific home, not a generic model.

Common New-Home Defect Rates (Industry Data):

• Nail pops/drywall cracks: 90%+ of homes (normal settling)
• Grout cracks (tile): 60-70% of homes (normal)
• Grading/drainage issues: 15-25% of homes
• HVAC performance issues: 10-20% of homes
• Plumbing leaks (behind walls): 5-10% of homes
• Window installation defects: 5-15% of homes
• Structural defects: 1-3% of homes

Common Failure Modes

| Component | Defect Type | Typical Timing | Detection Method | |-----------|------------|----------------|-----------------| | Grading/drainage | Soil settlement, improper slope | 3-12 months | Visual after rain; pooling near foundation | | HVAC ductwork | Disconnected or leaking ducts | Immediate | Hot/cold rooms; energy bills; duct test | | HVAC refrigerant | Improper charge at install | 1-6 months | Temperature split; system performance | | Plumbing (behind walls) | Loose connection, improper joint | 1-12 months | Water stains, moisture readings | | Window flashing | Improper integration with WRB | 6-24 months | Water stains around windows during rain | | Siding/exterior | Improper fastening or flashing | 1-5 years | Water intrusion, siding buckling | | Foundation | Excessive cracking beyond settling | 1-10 years | Crack monitoring, door/window operation | | Attic ventilation | Insufficient or improperly balanced | Immediate | Attic temperature, moisture, ice dams |

Diagnostic Procedures

1. 11-Month Walkthrough Checklist (Critical Items):

   • Exterior: Grade slope (6 inches drop in first 10 feet from foundation), gutter and downspout drainage, siding condition and caulk, concrete flatwork for cracks, driveway condition, landscaping health
   • Foundation/Basement: Cracks (measure width, photograph), moisture or water intrusion, efflorescence, floor slab cracks
   • Attic: Insulation coverage and depth (verify R-value), ventilation (soffit vents not blocked by insulation), duct connections, roof sheathing condition, no daylight visible, bathroom vents terminate through roof (not into attic)
   • HVAC: Run heating and cooling modes, measure supply/return temperature split, check all registers for airflow, inspect duct connections visible in attic/basement, check filter size and condition, verify thermostat programming
   • Plumbing: Run every fixture, check under every sink for leaks, flush all toilets, inspect water heater connections, check exterior hose bibs
   • Electrical: Test every outlet (GFCI trip/reset), test every switch, check panel for proper labeling, verify smoke/CO detector locations per code
   • Interior: Document all nail pops, drywall cracks, door operation, window operation, floor squeaks, grout cracks, countertop seams, cabinet alignment

2. Energy performance verification: Compare actual utility bills against the home's HERS rating projected consumption. If actual exceeds projected by more than 20%, request blower door and duct leakage retesting under the 2-year systems warranty.

3. HVAC commissioning: Measure static pressure in the duct system (should be below 0.5" w.c. for most residential systems). Measure airflow at each register and compare against the HVAC design. Verify refrigerant charge per manufacturer specifications (weigh-in charge or superheat/subcooling per conditions). Check for duct leakage in unconditioned spaces.

Code & Compliance

• IECC 2021+: Current energy code for most new construction. Requires testing (blower door, duct leakage) at completion. Request test results from the builder.
• IRC 2021: Structural, mechanical, plumbing, and electrical code for residential construction. Inspections during construction should verify compliance.
• Building permit and inspections: New homes require multiple inspections: foundation, framing, rough-in (electrical, plumbing, HVAC), insulation, and final. Request copies of all inspection reports.
• Certificate of occupancy (CO): Issued when the building department verifies the home passes final inspection. This is not a guarantee of quality; it means minimum code compliance was verified at time of inspection.
• ENERGY STAR Certified: Some builders certify homes to ENERGY STAR standards (above code). This requires third-party HERS rating and verification.
• Builder registration/licensing: Requirements vary by state. Some states require builder registration, bonds, and warranty fund participation.
• Statute of limitations/repose: State laws limit how long after construction a homeowner can bring a claim for construction defects. Typically 6-10 years for most claims, up to 12 years for some states. Structural claims may have longer windows.

Cost Guide

| Item | Cost Range | Notes | |------|-----------|-------| | Independent 11-month inspection | $300-$500 | Worth every penny; hire an inspector, not the builder | | Independent HVAC commissioning | $200-$400 | Verify what the builder claims | | Blower door test (independent) | $200-$400 | Compare against builder's test results | | Nail pop/drywall repair (DIY) | $20-$50 | Spackle, sand, prime, paint | | Nail pop/drywall repair (professional) | $200-$500 per visit | Multiple repairs in one trip | | Grading correction | $500-$3,000 | If builder does not resolve under warranty | | HVAC duct repair/resealing | $500-$2,000 | Should be warranty if within 2 years | | Window flashing correction | $500-$3,000 per window | Complex; should be warranty work | | Construction defect attorney consultation | $200-$500 | If builder refuses valid warranty claims | | Annual maintenance (first 5 years) | $500-$1,500 | Lower than older homes; mainly filters, tune-ups |

Energy Impact

New construction homes built to IECC 2021 or later are among the most energy-efficient homes available:

• Expected consumption: 30-50% less than pre-2000 homes of equivalent size
• HERS Index: Typically 55-70 for code-minimum homes; 40-55 for ENERGY STAR certified; under 40 for above-code programs
• Annual cost: $1,200-$2,000/year for a 2,500 sq ft code-built home (climate-dependent)
• Solar-ready: Many new homes are built solar-ready (conduit from panel to roof, structural capacity for panels) even if solar is not initially installed
• EV-ready: Increasingly common for new homes to include a 240V outlet in the garage for future EV charging
• Performance gap: Studies show 10-30% of new homes underperform their rated efficiency due to installation quality issues (duct leaks, insulation gaps, improper HVAC commissioning). Independent testing within the warranty period can catch and correct these issues.

Shipshape Integration

SAM provides exceptional value for new construction by establishing performance baselines from day one and tracking every system through the warranty period and beyond:

• Warranty deadline tracking: SAM maintains a countdown to every warranty milestone (1-year workmanship, 2-year systems, 10-year structural, appliance warranties) and alerts the homeowner in advance. No warranty deadline is missed.
• Performance baselining: SAM establishes energy consumption, HVAC performance, and system operation baselines during the first year of occupancy. These baselines become the reference for all future performance monitoring, enabling early detection of any degradation.
• 11-month walkthrough support: SAM provides a comprehensive digital checklist for the 11-month walkthrough, organized by system and location. Items are documented with photos and timestamps, creating an evidence package for warranty claims.
• Settlement monitoring: SAM tracks door and window operation, floor level changes (where sensors allow), and correlates with seasonal temperature and humidity patterns to distinguish normal settling from structural concerns.
• HVAC commissioning verification: SAM monitors supply/return temperature differentials, runtime cycles, and energy consumption from day one. If HVAC performance does not match rated specifications, SAM flags the discrepancy while the system is still under warranty.
• Energy performance validation: SAM compares actual energy consumption against the HERS-rated projection. If the home consistently exceeds its rated consumption, SAM documents the variance and recommends independent testing under the 2-year systems warranty.
• Home Health Score: New homes start with a high baseline score. SAM monitors to ensure that score remains high and flags any early degradation. For new construction, the score should not decline for the first 5-8 years if the home was properly built and maintained.
• Dealer integration: SAM connects the homeowner with qualified dealers for warranty-period inspections (11-month walkthrough, HVAC commissioning) and for ongoing maintenance once warranties expire. The transition from builder warranty to proactive maintenance is seamless.