Builders of new construction homes in Greenville, SC and in the surrounding area will often launch a community and its floorplans by introducing incentives to prospective buyers. So what are incentives and how can they save you money on the purchase of your new build home?
Incentives: What are They and When are They Offered?
Incentives are promotions offered by builders/developers that will help to cut the cost of the home and lot. Becoming increasingly common, these promotions help to entice cash-strapped buyers to make an offer. It is important to note that these discounts aren’t always as simple as they seem.
Below we will provide more information on residential homebuilding incentives and why it's important to have a realtor by your side navigating the ins and outs of these promotions and how to get the best deal on your new home.
Much like a coupon, and incentive helps to create a better deal on the new home, lot, or both. Often times an incentive will be one or several of the following:
- Cash towards upgrades
- Sign a contract before a particular date and all closing costs are paid
- Buying down an interest rate if you use their lender
- Extensive home warranties
- Free appliances/appliance packages
Most all residential builders will offer incentives in the beginning building phase to drum up attention from buyers in the area and beyond. Now incentives are not always given in the beginning, in fact they can be offered at any phase of the development. This is especially true for the end phase when there may still be lots left in the community. Sometimes if the market is lagging, builders will also introduce lower interest rates and cash at close to help buyers who would otherwise opt out of building a new home.
Incentives sometimes are not advertised and will require a call to a sales office. This is where having a realtor comes in handy. Your realtor can go with you and help read through the fine print, review floorplans and lots, and help look at the incentives offered. Whether you have a budget or no budget at all, having a buyer's agent will help you know exactly where your money is going.
Financial Incentives: How Do They Work with Builders?
Since builders work closely with certain preferred lenders, most financial incentives will be based on the buyer using the lender that accepts the terms of the financial incentive. So if a buyer has a lender who is already helping them, then financial incentives may not be available to them.
With a realtor, buyers will have inside knowledge to the incentives that are available and their stipulations. Also, an agent will be able to help you deduce which community, lot, and floorplan will offer you what you are wanting and needing in your new construction home.
Real estate agents will be aware of any penalties, delays, etc. that could be associated with bringing your own lender to the closing table. They can review all of the contracts with you and the sales office to ensure there are no surprises or caveats that could slow or stop buying your brand new home.
Other Deals and Discounts
When purchasing a new construction home be sure to consider other deals and discounts that may apply. From military to first time home buyers and over 55, builders may have a private discount available that can be applied in addition to the incentives mentioned above.
Above we went over what incentives are, when they are offered, and the different types that are generally available. We also went over the need of having an real estate agent with you during the process. If you have questions about new construction homes in Greenville, SC or would like information on starting the buying process for a new build home, contact the PRODUCER Realty Team today at 864-438-5050.