New Construction and Building: Your Comprehensive Guide to New Homes in Fargo-Moorhead

By Christopher Leigh | August 29, 2025, 11:45 AM CDT

Building a new home in the Fargo-Moorhead area offers a fresh start with modern features tailored to your needs. Whether you’re navigating terms, securing financing, or choosing a builder, the process has unique steps that differ from buying an existing home. This New Construction and Building post, brought to you by Vision Realty, combines expert insights to guide you through every phase of purchasing a new-construction home in North Dakota and Minnesota, ensuring a smooth journey. Currently, a standout opportunity awaits at 2529 36th Ave S, Moorhead, MN 56560—a yet-to-be-built home actively for sale by Vision Realty, allowing you to customize selections while construction plans are still in progress.

Understanding New Construction in Fargo-Moorhead

New-construction homes, making up about one-third of U.S. inventory, provide customization and modern designs. In Fargo-Moorhead, where the market blends urban growth and rural charm, understanding key terms, costs, and steps is essential for a successful build. The listed property at 2529 36th Ave S exemplifies this, offering a chance to shape your dream home.

Key Terms to Know

• Allowance: A set amount in your contract for selecting items like flooring or fixtures. Stick to it to avoid extra upgrade costs, advises Kimberly Garwood of Traton Homes [1].

• Certificate of Occupancy (CO): A municipal document confirming the home meets safety codes, required before move-in, per Charles Chadwick Jr. [1].

• Change Order: An amendment to the contract for design or schedule changes, which may delay construction or add costs [1].

• Covenants, Conditions, and Restrictions (CC&Rs): HOA rules on maintenance, like paint colors or pet policies, to review before buying [1].

• Floor Plan/Home Plan: Floor plans detail interior layouts; home plans cover the full structure, aiding furniture and flow decisions [1].

• Homebuilder Warranty: Covers materials and mechanics for 1-2 years, with a structural warranty up to 10 years, per Garwood [1].

• Plat: A map defining land boundaries, crucial for unbuilt communities [1].

• Presale Home: A home bought before completion, common in planned developments [1].

• Punch List: A list of final repairs (e.g., paint touch-ups) created during the walk-through [1].

• Rough-in: The installation of plumbing, electrical, and HVAC lines, a mid-construction milestone [1].

• Spec Home: A pre-built or in-progress home, often move-in ready within 30 days [1].

• Walk-through: A final inspection with the builder to spot issues before closing [1].

Spotlight Home: 2529 36th Ave S, Moorhead, MN 56560

This yet-to-be-built 3-bedroom, 3-bath home, listed at [View Listing] by Vision Realty, spans 2,098 square feet with a 2-stall attached garage in a 3-level split design. Priced at $366,290 ($174 per square foot), it features a bright living room with high ceilings, a kitchen with pantry, a primary suite with private bath and large closet, and a lower-level family room, third bedroom, laundry, and storage. Located in the Prairie Pkwy 1st Add subdivision on a 44x126 lot, construction hasn’t started, allowing you to choose colors and finishes. With an estimated tax of $4,140 and financing options (cash, conventional, FHA, VA), it’s a prime opportunity to customize now.

Smart Ways to Lower Costs

• Buy Early: Pre-construction purchases in new communities can offer lower prices and built-in equity, suggests Bill Samuel of Blue Ladder Development [2].

• Minimize Upgrades: Opt for base models to save; upgrades like kitchens are cheaper during construction than later renovations [2].

• Negotiate: Some builders may offer slight price reductions, though community pricing consistency is key, per Cliff Johnson of Realtor.com [2].

• Seek Incentives: Look for financing help or upgrades, especially late in the year, as noted by Bob Seeman [2].

Standard Features vs. Upgrades

• Standard Features: Vary by builder; increasingly include appliances (e.g., washers/dryers) due to high rates, per Don Turner of Realtor.com [3].

• Upgrades: Include quartz countertops or hardwood floors; focus on kitchens and bathrooms for best ROI, advises Samuel [3].

• Avoid: Easily replaceable items like lighting or fixtures, per Erica Bell of Miller & Smith [3].

Securing a Loan

• Loan Types: Conventional, FHA, VA, or USDA loans apply; builders handle construction loans, per Kelly Zuccarelli of Wells Fargo [4].

• Choosing a Lender: Consider builder-preferred lenders for incentives or shop outside for specialized loans [4].

• Builder’s Deposit: Typically 5% of the home price, credited toward your down payment, per Jill Gonzalez of WalletHub [4].

• Qualification: Based on credit, income, and debt-to-income ratio; appraisals adjust loan amounts if values shift [4].

• Certificate of Occupancy: Required for closing, adding 45-60 days to the process [4].

• Rate Changes: Use extended rate locks (up to 270 days) or float-down options to manage rising rates [4].

Choosing a Builder

• History: Check websites and reviews, and talk to past clients, suggests Lori Lane of Berkshire Hathaway [5].

• Association: Membership in NAHB signals quality and resources, per Lane [5].

• Timeline: Move-in ready homes are faster; build-from-scratch takes ~6.5 months, with permit delays possible [5].

• Warranty: Seek third-party warranties covering 1 year for defects and 8-10 years structurally [5].

• Incentives: Ask about financing or upgrades, especially in uncertain markets, per Alex Toth of Opendoor [5].

• Changes: Confirm customization options; production builders offer less flexibility [5].

• Design: In-house designers can simplify finish selections [5].

• Community Plans: Explore amenities like pools or gyms [5].

• Expectations: Understand deposit ranges ($5,000-$50,000+) and required walk-throughs [5].

Steps to Buying

• Set a Budget: Assess affordability; new homes average $493,000, warns Don Turner [6].

• Get Preapproved: Use online tools or builder lenders, comparing at least three offers [6].

• Choose a Location: Rank priorities like schools or parks, per Jennifer Landers of Kolter Homes [6].

• Hire an Agent: Use a buyer’s agent (builder pays commission) to review contracts [6].

• Shop Builders: Compare plans and incentives [6].

• Build vs. Buy: Spec homes offer speed; custom builds offer control, taking 6.5 months [6].

• Sign Contract: Include timelines and contingencies; have a lawyer review [6].

• Prepare to Move: Coordinate with your agent if selling; avoid big purchases [6].

• Inspect/Walk-through: Hire an inspector and create a punch list [6].

• Close and Move: Pay the down payment and start mortgage payments [6].

How to Start Your New Construction Journey

Ready to build your dream home? Follow these steps:

• Evaluate Finances: Set a budget and get preapproved.

• Research Locations: Identify Fargo-Moorhead areas meeting your needs.

• Select a Builder: Compare reputations and offerings.

• Review Contracts: Ensure terms align with your goals.

• Plan Move-In: Coordinate timelines with your agent.

Frequently Asked Questions (FAQs)

Q: What is a Certificate of Occupancy (CO)?
A: A CO confirms the home meets safety codes, required before closing, typically adding 45-60 days [1][4].

Q: How long does it take to build a new home?
A: About 6.5 months on average, though delays like permits can extend this [5][6].

Q: Are upgrades worth the cost?
A: Yes, for kitchens and bathrooms; avoid easily replaceable items like lighting [3].

Q: Can I customize 2529 36th Ave S?
A: Yes, since it’s not yet built, you can choose colors and finishes now [6].

Q: What should I ask a builder?
A: Inquire about reputation, timelines, warranties, and community plans [5].

Conclusion

Building a new home in Fargo-Moorhead offers customization and modern living at a manageable cost with the right approach. The active listing at 2529 36th Ave S, Moorhead, MN, listed by Vision Realty, provides a unique chance to tailor a 3-bed, 3-bath, 2,098 sq ft home to your taste before construction begins. By mastering key terms, lowering expenses, securing financing, choosing a reputable builder, and following a structured process, you can turn your vision into reality. Partner with Vision Realty to navigate this exciting journey and find your perfect new-construction home.

Contact Vision Realty in Fargo-Moorhead
Christopher Leigh, Broker, GRI, RSPS, ePRO, REALTOR®
Phone: +1(701) 715-4747
Email: chris@visionrealty.us
Address: 509 Front St, Hawley, MN 56549
Website: visionrealty.us

(Vision Realty provides expert real estate services for buyers, sellers, and investors across Fargo-Moorhead, adhering to all federal, North Dakota, and Minnesota fair housing laws.)

References

1. Realtor.com, “Terms To Know When Buying a New Build,” 2025.

2. Realtor.com, “Smart Ways To Lower New Construction Costs,” 2025.

3. Realtor.com, “Standard Features vs. Upgrades in New Construction,” 2025.

4. Realtor.com, “How To Get a Loan for a New Home,” 2025.

5. Realtor.com, “Questions To Ask When Picking a Homebuilder,” 2025.

6. Realtor.com, “The Steps To Buying a Brand-New Home,” 2025.

Disclaimer

Vision Realty adheres to all federal, North Dakota, and Minnesota fair housing laws, ensuring equal opportunity for all clients. Market data is accurate as of August 2025 but may change. Contact Christopher Leigh for the latest insights. This blog is for informational purposes and may be refined based on feedback.