Why Buyers Struggle With Washington Builder Contracts (2025 Guide)

Buying new construction in Washington sounds simple: pick a floor plan, choose your finishes, sign the contract, and wait for the keys. But once buyers get into the paperwork, timelines, and builder rules, most quickly realize it’s not as straightforward as expected.

Builder contracts are completely different from the standard NWMLS forms used for resale homes. They’re longer, more complex, and written by the builder’s attorneys — not for buyer protection.

After helping clients navigate new construction across Pierce County, Thurston County, and the JBLM corridor, I’ve seen the same struggles come up over and over again. This guide breaks it down clearly, so you walk into your next builder meeting confident and prepared.

1. Builder Contracts Aren’t Standard NWMLS Forms

Most Washington homebuyers expect the familiar NWMLS documents. Builder contracts are not those.

Builder contracts:

• are written by builder attorneys

• heavily protect the builder

• limit your ability to cancel

• reduce your negotiation power

• remove many standard protections

The biggest issue buyers face?
They don’t know what they don’t know.

If you haven’t read The Real Cost of Buying Your First Home in Washington, it breaks down some of the financial surprises new construction buyers face:

 2. Earnest Money Is at Much Higher Risk

In resale transactions, you typically have:

• inspection protections

• appraisal protections

• financing protections

In builder contracts, most or all of those protections disappear.

Common clauses include:

• builder keeps your earnest money if you fail to close

• no protection if your rate lock expires

• no protection if your loan is denied

• strict deadlines to complete financing

This is one of the biggest areas where buyers unknowingly put money at risk.

To understand how appraisal issues play into new construction risk, this blog is helpful:
Why Washington Buyers Overpay (And How to Avoid It – 2025 Guide)
 

3. Inspection Power is Limited or Removed Entirely

Many buyers assume they’ll be able to do a full inspection.

But builder contracts often say:

• inspections allowed for “informational purposes only”

• no repairs will be made

• buyer cannot cancel based on inspection findings

And yes — even new construction homes in Washington have issues.

Buyers are shocked when they see things like:

• missing insulation

• incomplete wiring

• reversed hot/cold valves

• incorrect roof flashing

• drainage issues (major in Pierce County)

A great breakdown of what often shows up in builder inspections can be found here:
Common Inspection Problems in Pierce County
 

4. Upgrade Pricing Is Where Buyers Accidentally Blow Their Budget

Builders make a significant portion of profit through upgrades.

Examples I’ve seen locally:

• $8K–$15K flooring packages

• $12K for AC

• $3K for wiring packages

• $6K+ for appliances

• $10K+ for landscaping

• thousands for cabinet color changes

Because upgrades are financed into the loan, buyers often don’t realize how much they’re stacking onto their monthly payment until it’s too late.

If you want to see how buyers overspend without realizing it, this is a strong companion blog:
Why Washington Buyers Overpay (And How to Avoid It – 2025 Guide)
 

5. Builder Timelines Are Unpredictable — And Buyers Can’t Control Them

Builders rarely commit to exact closing dates.

Most builder contracts include:

• large construction windows

• the right to delay closing

• strict rules about when buyers must close

• consequences if buyers cannot close on time

This hits military families PCSing into JBLM especially hard.

To understand how timing affects your move, this blog is essential:
 Timing the Washington Market: How to Plan Your Buy/Sell Move Without Surprises
 

6. Preferred Lenders Are Often Required

In Washington, most builders offer incentives only if buyers use their lender.

This can include:

• closing cost credits

• upgrade credits

• interest-rate incentives

But it also often means:

• tighter timelines

• fewer loan options

• pricing that benefits the builder, not the buyer

It’s one of the most misunderstood parts of new construction.

7. Warranties Don’t Cover As Much As Buyers Expect

Washington builders typically provide:

• 1-year workmanship warranty

• 2-year systems warranty

• 10-year structural warranty

But warranties typically do not cover:

• landscaping

• yard drainage

• window condensation

• settlement cracks

• cosmetic items after move-in

Buyers often feel frustrated after learning what isn’t included.

8. Builders Allow Very Little Customization

Most buyers walk in expecting a semi-custom experience.

What they actually get is:

• limited structural options

• cutoff dates for design choices

• no changes after framing

• no outside contractors allowed

• limited flexibility on paint, wiring, or layout

Buyers often feel “boxed in” without realizing this is standard for production builders.

9. “Move-In Ready” Doesn’t Mean Fully Finished

In resale homes, buyers expect:

• blinds

• landscaping

• fencing

• garage openers

• fully-clean interiors

In new construction?

Those are often upgrades.

I’ve seen homes delivered:

• without grass

• without backyard topsoil

• without screens

• with construction dust still present

This surprises many first-time buyers.

10. Buyers Don’t Know What Protections They Should Ask For

The biggest struggle is that buyers simply don’t know what questions to ask.

Before signing, buyers should understand:

• what happens if rates rise?

• what happens if the appraisal comes in low?

• what happens if their income changes?

• what happens if closing is delayed?

• what happens if defects show up after move-in?

A great companion to this is the blog explaining where buyers lose deals at the very end:
Why Washington Buyers Lose Homes During the Final Walkthrough (2025 Guide)
 

Final Thoughts

New construction can be an amazing option — but only when buyers understand the contract, timeline, and financial structure. With the right guidance, you can walk into the process fully protected, confident, and ready to make informed choices.

 If you're planning a new-construction purchase in Washington, I’d love to help you review the contract, understand the risks, and build a plan that actually fits your budget and timeline.

 Written by: Lani Fisher — Washington Realtor Helping Everyday Buyers & Sellers With Confidence