Thinking about building or buying a new home in Foley? You’re not alone. With steady in-migration to Baldwin County and easy access to Gulf Coast amenities, new construction is in demand. You want a smart plan that covers costs, permits, utilities, flood risk, timelines, and quality checks so you can move in with confidence. This guide gives you clear steps and local context to help you choose the right lot, the right builder, and the right financing. Let’s dive in.
Why Foley new construction makes sense
Foley sits just inland from Gulf Shores and Orange Beach, which means you get proximity to beaches and recreation without being on the sand. The city functions as a regional retail and services hub, and that draws both full-time residents and second-home buyers. As a result, you’ll see a mix of builder communities, small infill projects, and custom homes.
Local permitting and sales trends shift with interest rates, materials, and labor. If you want the latest snapshot of permits and population change, check high-level sources like the U.S. Census for building permits and demographics. You can start with the U.S. Census overview pages for Building Permits and QuickFacts. For national construction context, you can also review insights from the National Association of Home Builders.
What you can build in Foley
You can choose from several new-construction paths based on your budget and lifestyle:
- Single-family homes in planned subdivisions with HOA amenities and architectural standards.
- Small-lot infill on city utilities within Foley’s limits.
- Custom homes on larger lots in unincorporated Baldwin County, often using septic and well until utilities are extended.
- Limited townhome or small multi-family options where zoning allows.
Each option has different timelines, costs, and utility requirements. Your choice also affects financing and inspections.
Pick the right neighborhood and lot
Location choices drive ongoing costs, lifestyle perks, and resale potential. Focus on these factors:
- Utilities: Inside city limits, you typically have city water and sewer. Outside the city, you may need septic and a well. Verify tap fees, connection availability, and timing.
- Flood and elevation: Use the FEMA Flood Map Service Center to confirm the lot’s flood zone. Some lots may require elevated foundations or separate flood insurance.
- Covenants and HOAs: Review covenants, architectural guidelines, fees, and enforcement. Ask who manages the HOA now and what the plan is for long-term control.
- Daily life: Consider traffic patterns, proximity to retail and services, and planned nearby development.
When in doubt, confirm zoning and utilities with the City of Foley or Baldwin County before you write an offer. The city’s main site is a good starting point for permits and code information at the City of Foley. County-level questions for unincorporated areas can begin at Baldwin County’s site.
Permits and inspections in Foley
Permitting authority depends on location. Inside city limits, the City of Foley Building Department handles permits and inspections. In unincorporated Baldwin County, the county permitting offices are in charge. Builders usually pull permits, but you should ask whose name the permit is in and confirm that each stage is approved.
Expect staged inspections such as foundation and footings, rough-in for plumbing, mechanical and electrical, framing, insulation, and final inspection. Keep copies of all inspection reports in your project file.
Building codes and energy features
Your new home must meet state and local building codes, plus any local amendments. These include structural, electrical, plumbing, mechanical, and energy requirements. Many builders go beyond the minimums. Ask for specifics on insulation R-values, HVAC efficiency ratings, window specs, and duct sealing. Energy upgrades can lower monthly costs and help with resale.
Utilities, tap fees, and stormwater
Inside Foley, city water and sewer are generally available, but you should verify connection points, capacity, and any tap or impact fees for your lot. Outside the city, a septic system and well may be required, which changes your permitting, inspection steps, and budget. New subdivisions must meet stormwater rules, so ask how drainage is handled on your lot and in common areas.
If your property has wetlands or a drainage easement, you may need extra approvals before you build. Factor this into your timeline and due diligence.
Flood risk and insurance in Baldwin County
Coastal and riverine flooding exists across the region. The best way to assess a specific site is to check the FEMA Flood Map Service Center. If your lot is in a mapped flood zone, your lender may require flood insurance. Even if it is not required, you can still choose to buy a policy for added protection. Your foundation design and elevation can affect premiums.
Financing your new build
You have several ways to finance new construction in Foley. Common choices include:
- Construction-to-permanent loans that convert to a mortgage when the home is complete.
- Standalone construction loans paired with a separate permanent mortgage.
- VA construction loans or USDA options for qualified buyers and eligible locations.
- Conventional programs from local banks with interest-only draw periods during construction.
Ask lenders about down payment requirements, reserves for change orders, draw schedules, and rate locks. Compare offers from multiple local institutions to find the best fit for your build.
Realistic budget planning
Create a budget that covers both expected and surprise items:
- Lot price, land clearing, grading, and tree removal.
- Permit and inspection fees, water and sewer tap fees, and utility connections.
- Site-specific costs like soil remediation, septic systems, and retaining walls.
- Builder allowances and likely change orders for finishes and fixtures.
- Closing costs, title insurance, recording fees, and HOA setup or dues.
Builders often provide incentives in markets with higher interest rates. You may see closing-cost help, design upgrades, or interest-rate buydowns. Ask sales reps for current incentives and put everything in writing.
Timeline and common delays
A typical single-family build in the area ranges from several months to about a year. The schedule depends on your plan, level of customization, utilities, and weather. Delays can come from permit turnaround times, material lead times, subcontractor availability, hurricane season storms, or unexpected site conditions like poor soils.
To protect your timeline, set a communication schedule with your builder and ask for updates at each milestone. If you are financing the build, coordinate draw inspections early so money flows on time.
Quality checks, inspections, and warranties
Even when builders pass required inspections, you should hire independent inspectors at key stages. Consider inspections after foundation, framing and rough-in, insulation, and a full pre-closing inspection. Third-party eyes help catch items that can be corrected before move-in.
Most builders offer express warranties such as one year for workmanship, two years for systems, and up to 10 years for structural components. Terms vary by builder and provider. Keep copies of warranty documents and note the process and deadlines for filing claims. If you want general guidance on what new-home warranties often cover, the National Association of Home Builders is a useful reference.
Appraisal, resale, and HOAs
Early phases in a new subdivision can be tricky for appraisers if there are limited comparable sales. Appraised values may lag contract pricing in some cases. You can support value by selecting quality materials, energy-efficient features, and a lot location with convenient access to amenities.
Most new subdivisions have HOAs with covenants. Review architectural rules, landscaping requirements, rental policies, fees, and reserves. Ask how and when control will transition from the builder to the homeowners.
If you plan to sell later, keep your closing documents, warranty information, and a log of any service work. A builder with a strong local reputation and documented energy features can help your home stand out.
How to vet a Foley-area builder
You deserve a builder with the right credentials and clear communication. Take these steps:
- Verify licensing and complaint history with the Alabama Licensing Board for General Contractors.
- Check the Home Builders Association of Alabama for directories and best practices.
- Ask for recent references, a list of subcontractors, proof of liability and worker’s comp insurance, sample contracts, and details on change-order pricing.
- Tour completed homes and active job sites to see workmanship and job safety in person.
A simple buyer checklist
Use this as your quick-start plan:
- Confirm utilities for the lot, including water, sewer, or septic, and any tap fees.
- Pull the FEMA flood map for the address and discuss insurance implications with your lender and insurer.
- Get pre-approved for your construction or construction-to-permanent loan early.
- Review the builder’s contract for base price, included features, allowances, timelines, and dispute resolution.
- Schedule third-party inspections at key stages and a full pre-closing inspection.
- Collect all warranty documents and know who handles service after closing.
For sellers and developers of new inventory
If you are bringing new homes to market, set pricing with absorption trends in mind and plan for incentives when needed. Make sure your disclosures meet Alabama requirements. Have a clear warranty service plan and a roadmap for HOA formation and turnover to homeowners.
How we help you build with confidence
New construction in Foley offers lifestyle and value, but the details matter. You want a trusted local guide who understands utilities, flood maps, permits, financing, and builder contracts, and who can protect your interests from lot selection to final walk-through. Our team makes the process simpler and safer by coordinating due diligence, recommending trusted local pros, and negotiating upgrades and incentives that fit your goals.
If you are ready to explore new builds or custom options in Foley, reach out to the Top Tier Team. We treat you like family and guide you step by step from your first tour to your final inspection.
FAQs
How long does new construction usually take in Foley?
- Most single-family builds range from several months to about a year, depending on permits, utilities, weather, material lead times, and subcontractor availability.
Are city water and sewer available for all Foley lots?
- Inside city limits, water and sewer are generally available but you should verify specific hookups and tap fees; outside city limits, lots often require septic and a well until utilities are extended.
Do I need flood insurance for a new home in Foley?
- If the property is in a FEMA-designated flood zone, lenders typically require a separate flood policy, and you can check a lot’s designation at the FEMA Flood Map Service Center.
What financing options work for new construction near Foley?
- Common choices include construction-to-permanent loans, standalone construction loans with a later mortgage, and options like VA or USDA for eligible buyers and locations.
How can I check a builder’s license in Alabama?
- You can verify licensing and review complaint history with the Alabama Licensing Board for General Contractors and ask for proof of insurance and references.
What inspections should I order during a build?
- Hire third-party inspections at key milestones such as foundation, framing and rough-ins, insulation, and a detailed pre-closing inspection to catch issues before move-in.
