New Construction
New Construction Homes: How to Negotiate Builder Deals & Save $22,000+
Negotiation strategies specific to new construction homes, including builder incentives, rate buydowns, upgrade credits, and closing cost concessions.
What You Will Learn
Many buyers assume the price on a new construction home is non-negotiable, but that is simply not true. Builders have more flexibility than you might think, especially when it comes to incentives that can save you tens of thousands of dollars. In this video, Patrick explains exactly how to negotiate with builders and what types of concessions are on the table.
From rate buydowns and closing cost credits to free upgrades and design center allowances, builders use creative incentives to move inventory. Patrick draws on his experience helping clients buy new construction in San Antonio, Bulverde, Stone Oak, and throughout the Texas Hill Country to show you what is realistic to ask for and how to get it. For a closer look at how builder incentives work, watch Patrick explain builder incentives in detail.
Key Takeaways
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Builder Incentives Can Be Worth More Than a Price Reduction
Builders often prefer offering incentives like rate buydowns, closing cost credits, or free upgrades over cutting the base price. Patrick explains why and how to negotiate for the incentives that matter most to you.
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Rate Buydowns From Builders Can Lower Your Monthly Payment
Many builders offer preferred lender relationships that include temporary or permanent rate buydowns. Patrick explains how a 3-2-1 buydown can significantly lower your payment in the early years of homeownership.
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Inventory Homes Are the Most Negotiable
Homes that are already built or nearing completion are costing the builder money every month in carrying costs. Patrick explains why these are your best opportunity for significant discounts and concessions.
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Design Center Upgrades Have the Highest Markup
Upgrades in the design center are often marked up significantly. Patrick recommends negotiating for upgrade credits or focusing on structural options that add real value rather than cosmetic finishes you can do later for less.
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Having Your Own Agent Protects Your Interests
Many buyers go directly to the builder thinking they will get a better deal, but Patrick explains why having your own representation ensures you get the best price and terms, and it costs you nothing because the builder pays the commission.
Continue Learning
Watch Patrick compare new construction versus existing homes to help you decide which is the better fit for your situation.
Follow the First-Time Homebuyer Roadmap to understand where new construction fits into your overall home buying plan.
Looking at New Construction in San Antonio?
Patrick can represent you when negotiating with builders and help you get the best deal on your new home.
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