New construction has its own vocabulary. If you have ever sat across from a builder's sales agent and nodded along while secretly wondering what "CDD" or "post-tension slab" means, this glossary is for you. Every term is defined in the way a real person would explain it — not a textbook.
A
Appraisal
An independent assessment of a home's market value conducted by a licensed appraiser. Required by lenders before closing. For new construction, the appraisal happens when the home is substantially complete.
B
Base Price
The starting price of a floor plan before lot premiums, upgrades, or options are added. This is the price listed on the builder's marketing materials for the most basic version of the home.
Blue Tape Walkthrough
The final walkthrough before closing where you mark defects or unfinished items with blue painter's tape. These items go on a punch list for the builder to address before or shortly after closing.
Builder's Agent (On-Site Sales Agent)
The licensed real estate agent employed by the builder who works in the model home or sales center. They represent the builder's interests, not the buyer's.
Buyer's Agent
A licensed real estate agent who represents the buyer's interests. In new construction, the builder pays the buyer's agent commission — it is free to the buyer.
C
CDD (Community Development District)
A special taxing district that finances community infrastructure — roads, utilities, stormwater systems, and amenities. CDD fees appear on your annual tax bill as a non-ad-valorem assessment and can range from a few hundred to several thousand dollars per year.
Certificate of Occupancy (CO)
A document issued by the local building department certifying that the home meets all building codes and is safe for occupancy. The builder must obtain a CO before you can close.
Construction-to-Permanent Loan
A two-phase loan used primarily for custom builds. The construction phase funds the building process, then converts to a standard mortgage at completion. Requires higher down payment and credit qualifications.
Contingency
A condition in the contract that must be met for the sale to proceed — typically financing, appraisal, and inspection contingencies. If a contingency is not met, the buyer may be able to cancel and recover deposits.
D
Design Center
The builder's showroom where buyers choose finishes and upgrades — countertops, cabinets, flooring, fixtures, paint colors, and more. Pricing is typically marked up 2-4x over retail.
E
Earnest Money Deposit (EMD)
Money paid at contract signing to show good faith. Builder deposits often differ from resale earnest money — they may be non-refundable after contingency periods expire and may increase at milestones.
Elevation
The exterior design or facade of a home. Builders typically offer 3-5 elevation options for each floor plan, varying the roofline, architectural style, and exterior materials.
Elevation Certificate
A document prepared by a licensed surveyor showing the home's elevation relative to the base flood elevation. Required for accurate flood insurance pricing in flood zones.
Escrow
A neutral third-party account that holds funds during the transaction. Earnest money deposits, property taxes, and insurance premiums may all be held in escrow accounts.
Extended Rate Lock
A rate lock lasting longer than the standard 30-60 days, used for new construction where closing may be 6-12 months away. Costs more than a standard lock but protects against rate increases during construction.
F
Float Down
A provision in some rate locks that allows the buyer to take a lower rate if rates drop before closing, while maintaining protection if rates rise.
H
HOA (Homeowners Association)
An organization that manages a residential community, enforces rules (covenants), maintains common areas, and collects monthly or quarterly fees from homeowners.
I
Impact Windows/Doors
Windows and doors designed to withstand hurricane-force winds and flying debris. They meet Miami-Dade County impact standards and qualify for insurance discounts in Florida.
Inventory Home (Quick Move-In)
A home the builder has already completed that is available for immediate purchase and occupancy. Finishes are pre-selected by the builder. Can close in 30-45 days.
L
Lot Premium
An additional charge added to the base price for desirable lot features — water views, conservation backing, corner positions, oversized lots, or cul-de-sac locations.
M
Model Home
A fully furnished and decorated home in a community that serves as a showcase for the builder's floor plans and upgrade options. Included upgrades in the model are typically far beyond standard.
O
Owners Suite
The primary bedroom and bathroom suite in a home. Typically the largest bedroom with an attached bathroom and walk-in closet.
P
Phase (Community Phase)
Builders develop communities in phases — clearing lots, installing infrastructure, and releasing home sites in stages. Earlier phases may have lower pricing; later phases may have better amenities.
Post-Tension Slab
A concrete foundation reinforced with steel cables (tendons) that are tensioned after the concrete cures. Common in Tampa Bay. The cables strengthen the slab and reduce cracking.
Pre-Drywall Inspection
An inspection conducted after framing, plumbing, electrical, and HVAC are installed but before drywall covers them. This is the only opportunity to inspect behind-the-wall work.
Preferred Lender
A mortgage company affiliated with or recommended by the builder. Builders offer incentives for using the preferred lender. Compare the preferred lender's full costs against outside lenders before committing.
Presale (To-Be-Built)
A home that has not yet started construction. The buyer selects a lot, floor plan, and finishes, then waits for the home to be built. Timeline is typically 6-12 months.
Punch List
A written list of defects, unfinished items, or cosmetic issues identified during the walkthrough or inspection that the builder must address before or shortly after closing.
R
Rate Buydown
Paying upfront to reduce the mortgage interest rate. Can be permanent (for the life of the loan) or temporary (reduced rate for the first 1-3 years that steps up to the full rate). Builders sometimes offer buydowns as incentives.
Rough-In
The installation of plumbing, electrical, or HVAC components inside walls and floors before they are covered by drywall and finishes. A rough-in for a future bathroom means the pipes are in place but the fixtures are not installed.
S
Spec Home
A home the builder starts building without a buyer under contract — speculation that it will sell during or after construction. May offer limited customization. Typically closes faster than a presale.
Structural Warranty
A 10-year warranty covering major structural defects — foundation, load-bearing walls, roof structure, and floor systems. The longest and most narrowly defined warranty tier.
Swale
A shallow drainage channel between properties designed to direct stormwater to retention areas. Proper swale grading is critical in flat Florida terrain to prevent flooding.
T
Truss
Pre-fabricated structural framework that supports the roof. Trusses are engineered for specific loads and spans. Hurricane straps connect trusses to the wall framing for wind resistance.
W
Walkthrough
A pre-closing inspection of the home by the buyer (usually with their agent). The buyer checks that the home matches the contract, inspects for defects, and creates a punch list. Typically occurs 1-2 days before closing.
Wind Mitigation Inspection
A separate inspection that documents a home's wind-resistance features — roof shape, roof-to-wall connections, opening protection (impact windows/shutters). Required in Florida to qualify for insurance discounts.
Related Guides
- Step-by-Step Buyer Process — See these terms in action
- Do I Need an Agent? — Why independent representation matters
- Financing Guide — Loan types, rate locks, and deposit terms explained
- FAQ — 20+ common questions answered
- Browse Builders — Every builder in Tampa Bay
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Barrett explains new construction in plain English. No jargon, no pressure. Reach out anytime.