How to Get the Best Incentives When Buying New Construction

If you’re in the market for a new-construction home, you may be wondering about builder incentives and how to get the best deal possible. In this blog post, we’ll cover the basics of builder incentives, as well as how we can negotiate the best incentives and upgrades from the builder for you!

First, let’s talk about builder incentives. These are basically special offers or discounts that builders offer to buyers in order to encourage them to purchase a new-construction home. These incentives can take many different forms, including things like free upgrades, reduced closing costs, or even cash back at closing.

One of the key things to understand about builder incentives is that they are typically only offered for a limited time. This means that if you’re interested in taking advantage of an incentive, you’ll need to act quickly.

So, now that we’ve covered the basics of builder incentives, let’s move on to how we can negotiate the best incentives and upgrades from the builder on your behalf to make sure you get the best deal possible.

1. Be flexible with your move-in date. One of the easiest ways to get a good deal on a new-construction home is to be flexible with your move-in date. Builders are often eager to fill their inventory, and if you’re willing to move in sooner rather than later, we may be able to negotiate a better deal. We will connect with the builder over your projected move-in date, and make sure the best incentives line up.
2. Negotiate on upgrades. Another way to save money on a new-construction home is to negotiate on upgrades. Many builders offer a variety of upgrade options, such as upgraded appliances or finishes, and these upgrades can add thousands of dollars to the price of a home. We will help you understand the value of these upgrades and if they are worth negotiating in the deal. If you are willing to forgo certain upgrades, another incentive the builder is offering may likely be of greater value.
3. Shop around. Finally, one of the best ways to get a good deal on a new-construction home is to shop around. Don’t just settle for the first builder you find – take the time to explore your options and compare prices. This will give you a better idea of what’s available and allow you to negotiate from a position of strength. We will shop with you. Many of the builder deals and inventory out there are already in our email inbox and we can connect with the top deals.

With interest rates on a 30-year fixed-rate mortgage more than double what they were a year ago and currently in the 7% range currently we’re seeing builder incentives focused almost exclusively on providing buyers with a more affordable monthly payment.

One possible incentive that may be offered is a permanent interest rate buy-down, funded by the builder, that creates a lower monthly payment for homebuyers and reduces financing costs over the life of the loan. Another incentive being offered is extended interest rate locks, paid for by builders, which allow homebuyers to lock in today’s interest rates and insulate themselves against any future rate increases.

One other important financing incentive homebuyers should know about is that some builders actually purchased “rate locks” when rates were lower than they are today and can offer loans below current market rates to their buyers.

In conclusion, builder incentives and negotiation can be key to getting a great deal on a new-construction home. By being flexible with your move-in date, negotiating on upgrades, and shopping around, you can save thousands of dollars on your new home.

Our team specializes in getting our clients the best incentives for their new home purchases based on their situation. We will walk you thru the incentives that different builders are offering and make sure you are getting the best deal before moving forward. If you are considering buying new construction now or in the future reach out to us at 512-308-3244 or [email protected]