There are so many advantages to buying a new home. You get a home built the way you want, a home warranty plan that covers your home for years to come, and exceptional value in your investment - to name a few.
Another benefit that is sometimes overlooked are the incentives builders provide to encourage you to buy from them. But with so many to choose from, how do you discern the great deals from the not-so-good ones? How do you know which is the best incentive for you? To help you out we’ve provided you with four builder incentives to look out for as you search for your new home.
1. Free Upgrades
One of the most popular and most common perks builders will offer to are free upgrades. Often, builders will offer the homeowner a set dollar value, $15,000 as an example, that can be put towards upgrades of the buyer’s choosing.
If you're looking to keep your costs down, this may be a great incentive for you to act on. However, always be mindful of the fine print on these offers. Some builders may limit free upgrades to certain aspects of your home, whether that be flooring, fixtures or something else. This means you’ll still receive free upgrades, but they'll be specific to those offered by the builder.
To ensure the upgrades offered really are free, compare the cost of any upgrades between builders, as well as how much it would cost to pay a contractor to do the work for you. Being informed about all your options and requirements is always the best course of action.
2. Better Specifications
Another incentive offered by builders is the opportunity to purchase the same floor-plan but with higher specifications. This means instead of picking and choosing upgrades for your new home, you can purchase a home with better products already built in.
While this will make your home more expensive than if you chose to select from the free upgrades, you ultimately save money. If you tally up everything you'd have to pay to add them individually, it can be less expensive to purchase a home with better specifications outright.
This is a great incentive for those able to spend a little more on their home upfront. You'll benefit in the long run with a higher overall value and get to enjoy a high-quality home.
3. Discounts on Quick Possession Homes
Among the various other benefits of buying a quick-possession home, you may see some great discounts as well. Depending on the housing market and the number of move-in ready homes a builder has available, they may offer reduced pricing. It's in their interest to sell these quickly, so they might be willing to make it worth your while.
4. Reduced Additional Costs
Sometimes builders choose to pay some of your insurance costs or property taxes, waive closing costs, or provide discounted pricing. While these incentives aren't as noticeable as new quartz countertops, they'll help minimize those hidden costs you might not have thought about. Depending on how competitive the local housing market is, builders have even been known to buy your existing home from you if you can’t find a buyer.
However, as with the other incentives mentioned above, ask builders the conditions attached to these incentives. For example, if the builder offers a cash discount, you need to read the fine print to make sure you actually qualify for it. You may find the offer is only included when purchasing a particular type of home, or in a select community.
Get Incentives Working for You
When exploring the various incentives a builder can offer, be sure to choose the ones that align with your home buying goals.
For example, if you're a first-time buyer with a limited budget, free upgrades will add value to your home without upping the price (again, always make sure to understand the qualification requirements).
In addition to builder promotions, many developers will offer other incentives to purchase as well, such as a certain amount of money towards the landscaping of your property, included landscaping, or in the case of a rear-laned home, an included garage.
Ultimately, builders want your business and are willing to offer great deals. But before you make your decision, be sure to weigh which incentive would serve your best interests.