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Guide
Understanding Builder Incentives
PLACEHOLDER ARTICLE COPY. Incentives are real money, but they aren't all worth the same to you. Here's how we value them.
The four common incentive types
- Permanent or temporary interest-rate buydowns
- Closing-cost credits tied to the builder's lender
- Design-center or option allowances
- Price or lot-premium reductions on standing inventory
How to compare them honestly
Convert every incentive into monthly dollars or cash at closing. A $20,000 design allowance you wouldn't have spent is not the same as $20,000 off the price. A 1% permanent buydown usually beats both.
Timing matters
Incentives are heaviest on homes the builder needs to close this quarter. That's why our quick move-in board is worth watching. Terms change constantly — always verify current terms with the builder or with us.
Placeholder article content. Details, incentives and builder terms change frequently — verify current terms with the builder or with Brian & Holly.