Incentives When Buying a New Home Are At a 4 Year High
Incentives when buying a new home are at a 2 year high.
The problem for most new construction home buyers over the past 2 years is that they have not had any leverage to negotiate. New construction home buyers would love to be able to get a little more for their money, like anyone would. Watch this video and I’ll tell you 4 different kinds of incentives that you can get out of builders right now.
Builders did not have to offer any incentives to sell a home over the past few years. Many new homes were selling when they were still literally on the drawing board in the last few years. The Federal Reserve’s conversations about raising interest rates again this year and the country’s credit rating being downgraded, have both made interest rates rise and have slowed down home buyers. With that happening, home builders are now giving more incentives in order to keep homes selling. Here are 4 incentives that you may be able to get out a builder right now:
1) The most popular incentive right now is an interest rate buy down that could make your interest rate be 1%-2% lower.
2) Builders are giving upgrade credit to buyers. One builder was giving 50% off of upgrades up to $30,000 (meaning $15,000 of those upgrades would be free) a month ago or so. If you want things like quarts countertops, a nicer tile, more decorative ceilings, or even engineered hardwood instead of luxury vinyl plank, you may be able to get those upgrades for free or at a largely discounted rate.
3) You could get upgrades appliances or an appliance that the builder does not usually provide like a refrigerator.
4) When I asked a builder about other incentives for home buyers to buy new construction, he said that most builders will do incentives up to 1% of the purchase price in cost to them.
One thing builders will not do is take a lower sales price, because that sales price will bring down all of the sale prices on the remaining homes in the neighborhood. A builder will give incentives though.
If you want to buy a new construction home, give me a call. I would be happy to guide you through the process.