Just like any other market, home builders and those in the industry know that there are highs and lows. There are times when it is impossible to keep up with the demand, with buyers constantly coming in. Then, there are times when things are slow and it seems impossible to get even one or two new houses built. When this happens, incentives are offered to encourage people to take a second look at one or more of the lots in the community.
Upgrades Within the House Itself
As the buyer looks around the design studio and sees all of the different ways to customize his or her new house, there are tons of different options to choose from. Most people come into the studio with a budget and don’t want to venture too far away from the amount of money they plan to spend. Home builders may offer to give a buyer some extra money to spend on the property. In some cases, specific upgrades are offered, such as granite countertops or tile as opposed to linoleum in the kitchen and bathrooms. Other times, the buyer is just given an extra amount of money that can be spent however he or she chooses.
Buyers like the idea that they can make customized changes to their living space and they do not have to come up with the money to cover the costs. It gives them the freedom to pick and choose options that they may not have been able to consider when they first started looking into buying a new house.
Upgrades to the Property
Different lots often come with specific premiums. They may be larger than other lots in the community or back up to a common area as opposed to another house. Either way, the buyer is going to pay more for this lot than one of the others. As an added incentive, home builders may offer a special lot with a reduced premium or with no premium at all. Other incentives include things like special landscaping in the front or backyard, or even the addition of a pool.
Other Incentives Unrelated to the Property
In some instances, financing through home builders’ company will give a buyer a better interest rate or even reduce the amount of money needed for a down payment. If a person is right on the edge of being about to afford a certain house, this type of discount can make a huge difference. This type of offer is usually written down so that potential buyers have an opportunity to figure out the details and see if this is an offer worth taking advantage of.
The incentives and upgrades often correlate with the company’s desire to sell the houses or complete a property. There is no guarantee that when you walk in to check on a specific model that the discounts will be offered.