Builder Incentives: Are You Really Getting the Best Deal?

A lower interest rate. Closing cost credit. Free upgrades.

Builder incentives can look pretty attractive when you're shopping for a new construction home.

And sometimes they are.

But the biggest incentive isn't automatically the best deal.

Look at the Entire Purchase

If one builder is offering $15,000 in incentives but the home costs more or includes fewer features, another property may still be the better value.

Compare things like:

• Purchase price
  
  
• Interest rate
  
  
• Closing costs
  
  
• Appliances
  
  
• Landscaping
  
  
• Window coverings
  
  
• Basement finish
  
  
• Garage finish
  
  
• Deck or patio
  
  
• Builder warranty
  
  

A home that looks less expensive upfront may require considerably more money after closing.

Understand the Financing

Some builder incentives are tied to using a preferred lender or title company.

That doesn't automatically make them a bad option, but you should compare the entire loan, not only the advertised rate.

Ask about the interest rate, APR, lender fees and total cash needed to close.

Compare Homes, Not Promotions

A promotion can expire.

The house is what you're actually buying.

Before choosing a new construction home based on an incentive, make sure the property itself is still the best option for your budget and long-term plans.

Google Business Profile Post

That builder incentive looks great, but is it actually the best deal?

A lower rate or closing cost credit is only one piece of the equation.

I shared what new construction buyers should compare before choosing a home based on the promotion alone.