What to Know Before Buying New Construction in Bethesda, MD

What should buyers know before purchasing new construction in Bethesda, MD?

New construction in Bethesda means dealing with a builder’s contract written by the builder’s attorney, a sales agent who works for the builder — not you — and transfer taxes the developer may not split with you. Montgomery County permit timelines run 12–18 months, construction costs frequently exceed $500/sq ft for custom homes, and Maryland’s statutory warranty covers workmanship for one year, systems for two, and structure for five. Having your own buyer’s agent costs you nothing (nearly all developers will pay your agent’s commission) and protects you from the start.

By Pey Behin | May 8, 2026

The appeal of new construction is obvious. You pick your finishes, nothing is broken, and there’s no competing with another buyer who fell in love with the kitchen backsplash. In Bethesda, Potomac, and North Bethesda, new construction also tends to hold value well — buyers here are willing to pay a premium for something they can customize.

But buying new construction is a different transaction than buying resale. The rules aren’t the same, the contract isn’t the same, and the agent in the model home is not on your side. Here’s what to understand before you fall in love with a floor plan.

The Builder’s Sales Agent Works for the Builder

This is the most misunderstood part of buying new construction, and it costs buyers real money.

When you walk into a builder’s model home or sales office in the Bethesda area, the agent sitting at the desk is employed by the builder. They’re paid to sell you a home — at full price, with full upgrades, with terms that favor the builder. They’re friendly, knowledgeable about the community, and completely on the other side of the table from you.

Having your own buyer’s agent costs you nothing. The builder pays that commission regardless — it’s already baked into the deal. What you get in exchange is someone reviewing the contract before you sign it, flagging terms that don’t protect you, negotiating on your behalf, and walking you through every step from deposit to closing.

If you walk into a sales office without your own representation, the builder knows it. And some builders will use that to their advantage.

The Contract Is Written by the Builder’s Attorney

Builder contracts are not the standard Maryland Regional Association of Realtors residential contract. They’re proprietary documents drafted to protect the builder — and they often contain language that would never appear in a resale deal.

Common issues in new construction contracts:

• No penalty for builder delays. If your home takes 22 months instead of 14, you may have no recourse — and no way to exit the contract without losing your deposit.
• The builder can change features. Contracts sometimes allow the builder to substitute materials or modify specifications as long as the substitution is “comparable” — a term they get to define.
• Punch lists and leverage. If the builder receives final payment before your punch list items are corrected, you’ve lost your primary negotiating tool. Never close without a thorough final walkthrough and open items documented in writing.

Have an attorney review the contract. On a $900,000+ purchase in Montgomery County, this is not optional.

Transfer Taxes Work Differently With Builders

In a standard resale transaction in Maryland, it’s customary for the seller to split the transfer and recordation taxes with the buyer. In Montgomery County, those combined taxes run roughly 2.2% of the purchase price — on a $1.2M home, that’s about $26,400 total, typically split down the middle.

Many builders won’t split. You could be responsible for the full amount.

This is a negotiable point — but you need to ask about it before you’re emotionally committed to the community. On a $1.1M new construction townhouse in North Bethesda, the difference between the builder splitting taxes and not is roughly $12,000 out of your pocket at closing. That’s real money that doesn’t show up anywhere in the purchase price headline.

Montgomery County Timelines Are Longer Than Most

If you’re planning on moving into a Bethesda-area new construction home by a specific date, build in significant buffer.

Montgomery County has more complex permitting requirements than most Maryland jurisdictions — stormwater management, forest conservation requirements, and zoning reviews all add time that buyers coming from other markets don’t expect. Average construction timelines run 12–18 months from permit approval to certificate of occupancy. Complex lots or custom designs can push to 24 months.

That matters practically: if you have a lease ending, a school enrollment deadline, or a need to coordinate settlement with a home sale, the uncertainty of a builder timeline creates real complications. Get the timeline expectations in writing, and ask how the builder has performed against projections on recent completions in the same community.

Base Price Is Not Your Price

The price on the sign outside the model home is a base price. It reflects the home with standard-grade finishes, no lot premiums, and none of the upgrades you’ll see when you tour the beautifully staged model — which is always the version with every upgrade installed.

Design center visits are where the budget expands. Hardwood floors, upgraded cabinets, tile selections, smart home packages, expanded outdoor spaces — it adds up fast. In the Bethesda and North Bethesda market, upgrades routinely push the final all-in price 10–20% above base. Think of it as when you’re buying a new car, there’s a base price and then there’s the price for the model you want.

Before you anchor to the base price, ask the builder’s sales team for the as-built price on several recently closed homes in the same community. That gives you a realistic picture of what buyers are actually paying — not what the marketing headline suggests.

MCPS School Zones and New Construction Don’t Always Match

Montgomery County Public Schools has been through boundary changes in recent years, and new construction communities don’t automatically feed the schools you’d expect based on general neighborhood location. A townhouse community opening in North Bethesda could be zoned to a different elementary school than resale homes two streets over.

Verify school assignments directly with MCPS before school zoning factors into your decision. Don’t rely on Zillow or the builder’s marketing materials — go to the MCPS website, enter the specific address, and confirm in writing.

The Warranty Is Only as Good as the Builder

Maryland law requires every new home builder to provide a statutory warranty: one year on workmanship, two years on mechanical systems (HVAC, plumbing, electrical), and five years on structural defects. Many reputable builders extend that to a 10-year structural warranty through third-party programs.

But a warranty is only useful if the builder is around to honor it — and reputable. Montgomery County requires builders to be licensed, and the county’s Office of Consumer Protection maintains records on contractor licensing and complaints. There have been documented local cases of builders who violated code, did shoddy work, and left buyers with six-figure repair bills.

Before you sign, check the builder’s license status, ask for references from buyers who closed at least 18 months ago, and look for any public record of code violations or licensing issues.

HOA or No HOA — Know Before You Buy

New construction communities in Bethesda vary widely on HOA structure. Some larger planned developments come with HOAs that cover exterior maintenance, shared amenities, and architectural guidelines. Others are built and sold without any HOA.

HOA fees directly affect your carrying costs. A $400/month HOA adds $4,800 a year to ownership — something that doesn’t show up in the mortgage payment estimate. On the other hand, HOA communities often cover maintenance items that would otherwise be your cost, and amenities that justify the fee for some buyers.

Ask for the HOA documents upfront, including current financials, reserve fund status, and any pending special assessments. Maryland law gives you a right to review HOA documents and cancel the contract within a specified period after receiving them — use that window.

New construction in Bethesda and North Bethesda can be a great buy — but only if you go in knowing the differences from resale. The builder’s contract, the tax structure, the timeline risk, and the upgrade pricing all require eyes that aren’t dazzled by the model home.

If you’re evaluating new construction communities in Bethesda, Potomac, North Bethesda, or Chevy Chase, I’m happy to walk through the numbers with you — including what comparable resale homes are selling for — so you can make a decision based on real data. Reach out anytime.

Frequently Asked Questions

Do I need my own agent when buying new construction in Bethesda?

Yes — and it costs you nothing. In most cases, the builder pays the buyer’s agent commission. The builder’s on-site sales agent works for the builder, not you. Having your own agent means someone is reviewing the contract on your behalf and advocating for your interests throughout the process.

Will a Bethesda builder split transfer taxes with me?

Not always. In resale transactions, Maryland sellers typically split the transfer and recordation taxes with the buyer — which runs roughly 2.2% of the purchase price in Montgomery County. Many builders refuse to split these costs, meaning you could owe the full amount yourself. Clarify this before you sign anything.

How long does new construction take in Montgomery County?

Expect 12 to 18 months from permit approval to certificate of occupancy for most new construction in Montgomery County, though complex projects or difficult lots can stretch to 24 months. Montgomery County has longer permitting timelines than many other Maryland jurisdictions due to stormwater management and forest conservation requirements.

What warranty does a new construction home come with in Maryland?

Maryland law requires builders to provide a statutory warranty covering workmanship defects for one year, systems (HVAC, plumbing, electrical) for two years, and structural defects for five years. Many reputable builders also offer extended 10-year structural warranties through third-party programs. Get every warranty commitment in writing before closing.

What is an upgrade trap in new construction?

Builder base prices in Bethesda-area new construction are often set low to attract buyers — the real cost emerges when you select finishes, flooring, cabinets, and fixtures in the design center. Upgrades frequently add 10–20% or more above base price. Always ask for the as-built price on comparable recent sales before anchoring to the base price.

About Pey Behin
Pey Behin is a residential real estate agent serving the Washington, DC metro area, with a focus on Bethesda, Montgomery County, and Northern Virginia. He works with buyers and sellers who want clear strategy, data-driven pricing, and direct guidance throughout the transaction process. His approach combines market analytics, negotiation expertise, and modern marketing to position clients effectively in competitive conditions.