New construction, step by step
Building a New Home in Coffee County, TN
Many people searching around Manchester want something new, either a home a builder is putting up in a subdivision or a custom home on their own land. Both paths have steps that are easy to miss. Here is how I guide buyers through new construction in Coffee County.
Two ways to buy new
Buying from a builder. A builder owns the lot, builds the home and sells it to you, often using the builder's own contract. You may pick finishes, but the plan and lot are set.
Building on your own land. You buy a lot or acreage and hire a builder to build for you. You get more control, and more decisions to make.
Check the builder's license
In Tennessee, a contractor license from the Board for Licensing Contractors is required before a contractor bids, offers a price or contracts on a project of $25,000 or more. You can look up a license through the Tennessee Department of Commerce and Insurance. Ask every builder for their license number and check it before you sign.
Permits for building in the county
Outside the Manchester and Tullahoma city limits, the Coffee County Codes Compliance office at 1329 McArthur Street in Manchester issues building permits and handles zoning and inspections. Inside city limits, the city handles permits. The county posts a building permit fee table based on project value. Ask your builder who will pull the permits and confirm it in your contract.
Septic comes before the foundation
If the home will not be on public sewer, it needs a septic permit from the Tennessee Department of Environment and Conservation. TDEC says the site evaluation can take up to 45 days after a complete application, and the house site and property lines must be staked and the area mowed before the visit. After the system is installed, TDEC inspects it before it is covered and issues a certificate of completion. Do not let anyone grade the house site before the soil evaluation. See my land buying guide.
Utilities
Confirm early where electric, water and internet will come from and what it costs to connect. Duck River Electric Membership Corporation serves much of the county outside Tullahoma. See my utilities guide.
Financing
Building on your own land usually calls for a construction loan or a construction to permanent loan. USDA Rural Development lists participating lenders for a single close construction to permanent loan in eligible rural areas. Veterans may be able to use VA financing; see my VA loan guide. Talk with a lender before you sign a building contract.
Inspections still matter
A new home is inspected by the building department for code, but that is not the same as an inspection for you. Many buyers hire their own licensed home inspector at key stages and before closing. Tennessee requires home inspectors to be licensed by the Department of Commerce and Insurance.
Should you have your own agent?
The builder's sales staff works for the builder. Having your own agent means someone is on your side reading the contract, asking about warranties and timelines, and tracking deadlines. Some builders have rules about when an agent must first be involved, so ask before your first visit and bring your agent from the start. Since August 2024, agents who are MLS participants must have a written agreement with buyers before touring. See my buyer representation guide.
Questions to ask any builder
- What is included in the base price and what costs extra?
- What warranty do you provide, and what does it cover?
- Who handles permits and the septic permit?
- What happens if construction runs late?
Ready to explore new construction?
I am glad to help you compare builders, lots and plans around Manchester. Start with the buyer guide.
Common questions
Does a builder need a license in Tennessee?
Yes. A contractor license is required before bidding or contracting on projects of $25,000 or more.
Who issues building permits in rural Coffee County?
The Coffee County Codes Compliance office in Manchester handles building permits and zoning outside city limits.
Should I use my own agent to buy new construction?
Having your own agent gives you someone on your side for the contract, warranties and deadlines. Ask the builder about agent rules before your first visit.
Matt Sargent is a Tennessee licensed affiliate broker with Keller Williams who helps buyers and sellers in Manchester and Coffee County. Call (615) 497 1658 or send a message.