New Construction Home Building FAQs (Birmingham, Alabama Guide)

The real first step is figuring out your budget and construction loan options. Once you know what you can invest, the next step is choosing and purchasing buildable land or selecting a homesite within a new-construction community. From there, you can begin working with a builder or architect to design your home.

This depends on the size, location, floor plan, materials, and whether you’re building a custom home or production/tract home.

Typical ranges in Alabama:

$150–$300+ per sq ft for most builds
Custom, luxury, or architect-designed homes can exceed $350+ per sq ft.

Don’t forget to factor in:

Land cost
Permits
Utility connections
Site prep and grading
Driveways, landscaping, and outdoor spaces

Most homes take 6–12 months, depending on weather, materials, builder availability, architectural complexity, and permitting timelines. A fully custom build may take longer.

Custom Home: You choose everything — layout, finishes, features, materials, and design. It’s completely personalized.

Production Home: Pre-designed floor plans in a planned community with structured options. Faster, simpler, and typically more affordable.

Most buyers use a construction-to-permanent loan, which funds the build in phases and then converts into a standard mortgage after completion.

If you’re purchasing from a production builder, they often carry the construction loan themselves. You simply close with your regular mortgage when the home is complete.

Research builders in your area by reading reviews, asking for referrals, and checking their portfolios. Look for a builder who has experience with the type of home you want and has a reputation for quality work and on-time delivery. It’s important to meet with several builders before making your decision.

Yes!  But not just any real estate agent will do.  You want to work with a New Construction Buyer’s Agent – Hey!  That’s me!  Most people don’t know that an agent working onsite for a builder is duty bound to protect the builder’s interest and not yours.  You may also need help evaluating land or negotiating with the builder. A proper New Construction Buyer’s Agent can also provide guidance on local zoning laws, permits, and the value of homes in the area as well as provide the necessary connections inside the industry such as architects, plan designers, interior designers, and lenders.

Building a home typically requires permits for things like zoning, building, electrical, plumbing, and environmental regulations. The specific permits vary by location and the complexity of your project. Your builder will handle the permitting process for you.

It depends on the builder and the stage of construction.  Changes during construction (known as change orders) can delay the project and increase costs. It’s important to finalize as much of the design as possible before breaking ground to avoid costly delays or redesigns.

A floor plan is a simplified diagram that shows the layout of your home, including room sizes, door and window placement, and traffic flow. A blueprint is a detailed technical drawing used by builders, showing specifications like structural elements, electrical wiring, plumbing, and materials.

Hidden costs can include things like land preparation (clearing, grading, and leveling), utility hookups (water, gas, electricity), landscaping, permits, and fees. Additionally, many homebuyers overlook the cost of appliances, window treatments, and outdoor spaces like decks or patios.

The foundation, framing, and roofing are often the most expensive parts of the home-building process. Labor and materials for these elements can take up a significant portion of the budget. Custom finishes, like high-end countertops or flooring, can also add to the cost.

Zoning laws dictate how land can be used in certain areas, including regulations on building size, height, and placement. They can affect what kind of home you can build and where. It’s important to understand the zoning requirements of your land before designing your home.

A home warranty covers repairs or replacements for specific systems and appliances within your new home, usually for the first year or more. Many builders offer a home warranty, and it’s a good idea to have one to cover any defects or issues that arise after you move in.

Not necessarily. You need to ensure that the land is zoned for residential use and that it’s suitable for construction (proper soil, drainage, etc.). Some areas may have restrictions based on environmental factors, community standards, or homeowners association (HOA) rules.

Building codes are regulations that set the minimum standards for construction in your area. They cover safety, health, and environmental concerns, ensuring that your home is built to certain specifications. Your builder will follow these codes during construction, and your home must pass inspections to ensure compliance.

The main benefits of building a home include the ability to customize everything to your tastes, having modern, energy-efficient systems, and not needing immediate repairs. However, building can take longer and may be more expensive than buying an existing home, especially when factoring in land costs and potential delays.