Buying New Construction in Falcon or Eastern Colorado Springs? Read This First
By Heather Harkema | Harkema Home Team | October 2026
Thinking about buying a brand-new home in Falcon or eastern Colorado Springs?
You’re certainly not alone. :)
Drive east along Woodmen Road, Highway 24, or through the growing neighborhoods around Banning Lewis Ranch, and you’ll see why buyers are taking notice. New communities, model homes, modern floor plans, and builder incentives are creating plenty of opportunities.
And let’s face it. There’s something exciting about being the first person to live in a new home!
But after working in real estate since 1992, I’ve learned something important: Buying new construction isn’t necessarily simpler than buying an existing home. It’s just different.
I’ve also raised my two children in Falcon and watched this area grow over the years. I know how much the community matters beyond the four walls of a house.
Before you tour your first model home or sign a builder’s contract, here are some things I’d encourage you to know.
1. The Builder’s Sales Representative Works for the Builder
This is probably the most important point I can share.
When you visit a model home, the salesperson may be knowledgeable, helpful, and genuinely friendly.
But their job is to represent the builder’s interests.
That doesn’t mean they’re doing anything wrong. It simply means they aren’t automatically representing you as the buyer.
You can have your own real estate professional helping you evaluate new construction.
An experienced buyer’s representative can help compare communities, research competing homes, evaluate builder incentives, coordinate important deadlines, and guide you through the purchase process.
One caution: builders have different rules regarding buyer-agent registration and compensation. Some require your agent to be identified before your first visit or online registration.
Buyer representation and compensation should be discussed and agreed upon in writing.
🏡 My advice: Before walking into a model home in Falcon, Percheron, or Banning Lewis Ranch, let’s talk. I’ll help you understand your representation options from the beginning.
2. The Advertised Price May Not Be the Final Price
That beautiful model home may have features that aren’t included in the advertised base price.
Depending on the builder and community, upgrades could include flooring, countertops, appliances, lighting, landscaping, additional electrical features, or structural options.
A home advertised at one price may cost considerably more once selections and other expenses are included.
Ask for a written breakdown of:
Base home price and lot premium.
Standard features versus upgrades.
Design-center allowances and option costs.
Landscaping, fencing, and window coverings.
HOA dues and metropolitan district taxes.
Closing costs and any financing incentives.
I always encourage buyers to compare the total cost of ownership, not just the price on the sign.
A slightly more expensive home with better included features may sometimes be the better value.
3. Understand Metropolitan District Taxes Before You Buy
This is especially important in newer Colorado communities.
Some developments use metropolitan districts to finance infrastructure such as roads, water systems, drainage facilities, and other public improvements.
These districts can levy property taxes and, where authorized, impose fees. That can affect your ongoing housing costs.
Two homes with similar purchase prices may have very different tax obligations.
Colorado requires certain metropolitan district disclosures in qualifying property transactions, including information about district powers, financing, and estimated property taxes.
But receiving a disclosure isn’t the same as understanding it.
Before signing, find out which taxing districts apply, review the property’s estimated taxes after construction, and ask whether district debt or other obligations could affect future costs.
For official information on Colorado’s metropolitan district disclosure requirements:
My advice: Don’t rely solely on an estimated monthly payment from a model-home brochure. Have your lender review the full anticipated taxes, insurance, HOA dues, and other recurring obligations.
4. Builder Incentives Can Be Valuable — But Compare the Details
You may see advertisements offering mortgage-rate buydowns, closing-cost assistance, appliance packages, or design upgrades.
Some offers can provide real savings.
Others may require using a particular lender, choosing an inventory home, or closing before a specified deadline.
A temporary interest-rate buydown is also different from a permanent rate reduction.
Before accepting an incentive, compare the full loan terms, including:
Interest rate and annual percentage rate (APR).
Loan fees and points.
Temporary versus permanent buydowns.
Cash required at closing.
Total monthly payment and long-term costs.
Tip: Don’t assume the largest advertised incentive is automatically the best financial option.
Sometimes the better choice becomes clear only after comparing written loan estimates.
5. Read the Builder’s Contract Carefully
Here’s another area where new construction can differ from a traditional resale purchase.
Builders may use their own purchase agreements instead of the standard Colorado Real Estate Commission-approved contract.
Those agreements can contain different provisions regarding deposits, construction delays, financing, inspections, change orders, cancellations, and remedies.
An important Colorado law took effect on August 12, 2026. When a principal to a transaction, including a homebuilder, requires a buyer to use its own purchase contract, the buyer’s real estate broker must advise the buyer to seek legal advice from a licensed attorney before signing.
That’s an important consumer protection.
You can read the legislation here:
A real estate broker can help you navigate the transaction, but questions about the legal meaning or enforceability of a builder’s contract belong with a qualified Colorado attorney.
🔑 My advice: Understand what happens to your deposit if financing falls through, construction is delayed, or your plans change. Don’t rely on verbal assurances when the written contract controls.
6. Never Skip Independent Home Inspections
A brand-new home can still have construction defects or unfinished work.
New doesn’t mean perfect.
Even when municipal or county inspections have taken place, an independent home inspection can provide another layer of protection.
Depending on the construction stage and builder access policies, consider discussing:
A pre-drywall inspection.
A final inspection before closing.
Radon testing.
A follow-up inspection before an applicable builder warranty expires.
Confirm what inspections are allowed, when they can occur, and how identified items will be addressed.
And don’t assume every issue will automatically be covered by a builder warranty.
Review the written warranty, exclusions, procedures, and deadlines carefully.
7. Find Out What’s Planned Around Your New Home
This is a big one in eastern Colorado Springs.
A home may have beautiful open views today, but the surrounding area could change significantly over the next several years.
For example, Percheron, Banning Lewis Ranch, and other emerging neighborhoods include multiple phases of planned residential and community development.
That vacant land nearby could eventually become another neighborhood, a roadway, commercial space, or a public facility.
Before purchasing, review the available land-use plans and ask which improvements are already approved versus merely proposed.
Also consider construction traffic, noise, and how long nearby development might continue.
A master plan is not a guarantee. Community amenities, construction schedules, and future phases can change.
For a closer look at the growth occurring across the region, read my recent article:
8. Consider Schools, Water, Utilities, and Your Daily Commute
When I was raising my children in Falcon, I understood how important everyday convenience was to family life.
A home isn’t just a floor plan.
It’s the drive to work,
trips to the grocery store,
nearby recreation, schools,
and the services you rely on.
When comparing communities, verify current school boundaries directly with the district. School assignments may change as an area develops.
Ask who provides water, sewer, electricity, and other utilities, and understand the applicable rates and fees.
With continued growth along Woodmen Road and Highway 24, transportation improvements are planned, but construction schedules and future traffic conditions can change.
My recommendation is simple: Drive your anticipated commute during the hours you’ll actually travel.
A neighborhood that looks convenient on a map may feel different during weekday traffic.
And if you’re considering a more rural property near Falcon or Peyton, be sure to understand the differences in utilities, wells, septic systems, road maintenance, and property restrictions where applicable.
9. New Construction or an Existing Home: Which Is Better?
There’s no universal answer.
New construction may offer modern layouts, updated building systems, builder warranties, and the ability to choose certain finishes.
An existing home may offer mature landscaping, a completed neighborhood, established amenities, or a larger lot.
And depending on current inventory, an existing home may provide greater negotiating opportunities than you expect.
Here’s how I encourage buyers to approach the decision:
Compare the homes, neighborhoods, and complete financial picture—not just which property is newer.
If a new home fits your priorities, wonderful. If an established neighborhood offers better value or location for your needs, that’s worth considering too.
🏠 Exploring homes in Falcon or eastern Colorado Springs?
I’d be happy to help you compare new construction and resale opportunities without pressure!
Frequently Asked Questions About Buying New Construction in Falcon
Do I need a real estate agent when buying from a builder?
You aren’t required to use a buyer’s agent, but you can choose professional representation. A builder’s sales representative does not automatically represent your interests. If you want your own agent, discuss representation before registering with a builder.
Can I negotiate with a new-home builder?
Sometimes. Depending on market conditions and the builder’s inventory, negotiations may involve price, upgrades, closing costs, or financing incentives. Nothing is guaranteed.
Are property taxes higher on new construction in Falcon?
Not necessarily. Property taxes depend on the specific property, assessed value, and applicable taxing districts. Some newer developments have metropolitan district obligations that can increase total costs.
Should I get a home inspection on a brand-new house?
Yes, an independent inspection is generally worth considering. Discuss the timing and inspection access with your inspector and builder.
Is Falcon a good location for new construction?
Falcon offers a variety of housing choices and a growing regional setting. Whether it’s the right location depends on your budget, desired property, commute, amenities, and long-term needs.
Should I contact an agent before visiting a model home?
If you want buyer representation, it’s smart to discuss it beforehand. Builders’ registration and compensation policies vary, and early registration decisions may affect later representation arrangements.
My Final Advice: Buy the Right Home, Not Just the Newest One
I’ve watched Falcon grow over the years, and I understand why so many people are interested in this part of Colorado.
There are exciting housing opportunities here.
But after more than 30 years in real estate, I’ve learned that the best decisions come from asking good questions, understanding the costs, and having the right information before committing.
A beautiful kitchen is wonderful. So is a sensible mortgage payment, a neighborhood that fits your needs, and confidence in the home you’re purchasing.
If you’re thinking about buying new construction in Falcon, Percheron, Banning Lewis Ranch, or anywhere in eastern Colorado Springs, I’d love to help.
Let’s compare your options before you sign anything.
No pressure. Just friendly, experienced, straightforward guidance.
Heather Harkema
Harkema Home Team | HomeSmart
Serving Falcon, Peyton, Colorado Springs, Black Forest, Monument, and surrounding Pikes Peak communities.
Sources and Further Reading
Colorado General Assembly — HB26-1426: Updated Real Estate Broker Requirements
Colorado General Assembly — SB21-262: Metropolitan District Transparency and Disclosures
Colorado Department of Regulatory Agencies — Real Estate Broker Advisory, August 2026
Colorado Department of Transportation — US Highway 24 Improvements
Related Heather Harkema Article — The Future of Colorado Springs Housing
Important Real Estate Information
Information current as of October 2026. Builder policies, contracts, financing incentives, tax estimates, community amenities, school assignments, and development schedules are subject to change. Buyers should independently verify property-specific information with the appropriate providers and agencies.
This article is for general educational purposes and does not constitute legal, tax, financial, or investment advice. References to developments or builders do not imply affiliation or endorsement.
