Exotic vacations, luxury cars, swimming pools, built-in appliances and no closing costs—these are just a few lender incentives that home builders often offer to reel in buyers. These sales inducements can get extreme in a declining sales market.
But, the question remains—should you accept these deals? Are they trustworthy enough?
After all, who wouldn’t want to go on a fully-paid vacation or make use of a free upgrade?
Before you jump to conclusions, let’s delve deeper into how these incentives work and how they might benefit you.
What Do the Lenders Get? Why Are Incentives Offered?
Just like any other business, offers and discounts are a great way to lure potential customers into making a purchase. The laws of supply and demand are the same for builders too; they need to sell their developments in order to raise revenues, and invest them in future construction projects for a profitable cash flow cycle.
How Do You Know If It’s a Good Deal?
Many builders will claim to offer you an “incentive,” when in reality, the additional price of the incentive is adjusted into the sale price they’ll pitch, resulting in a higher overall cost. However, you’ll feel like you’re stepping into a good deal with a “free” upgrade, when actually, you’ll be paying for it.
How To Tell If Something Is Overpriced
It’s easy; if you’ve found an agent that isn’t associated with the builder, and is working only in your best interest. Your agent will research the builders and compare their home building costs, as well as lookout for reputable and affordable local contractors.
You can do this research yourself too; however it’s more effective to appoint an honest agent with sound knowledge of the respective community and the builders for a successful and transparent real estate transaction.
What’s the “Best” Incentive?
The quality of the building materials or the specifications—yes, that’s the best incentive—and we’ll tell you why.
The lucrative incentives and upgrades don’t matter if the quality of construction is compromised. You’ve been dreaming about owning a home for long, and you wouldn’t want the builders to neglect the specifications of the materials used in the construction of your home.
A house with better specifications may appear expensive at the first base price comparison. However, if you closely analyze at the cost of upgrades on the same home specifications, you’ll know that you’re actually saving more money with better specs, with the incentives included.
If you want to learn more about lender incentives Travis County TX reach out to Builder Bucks. Our experienced team can help you get rebates on new construction homes. We also offer buyers and sellers high-quality real estate services, including purchasing pre-owned homes. For more on Real Estate Rebates Texas, call us at (844) 752-8257.
