Builder incentives have long been part of the new-home buying experience, helping builders attract buyers and stand out in a competitive market. But as affordability pressures continue, incentives have become more prominent, more generous, and, in some cases, far more creative.
The most popular builder incentives remain rate buydowns, help with closing costs, and flexible builder credits.
“When affordability is the primary concern, builders tend to focus on incentives that lower the upfront or monthly cost of homeownership,” says Ali Wolf, chief economist for Zonda and NewHomeSource.
However, affordability isn’t the only force shaping builder incentives. As builders compete for buyers’ attention, they’re introducing more lifestyle-focused offers, inventive contests, and other promotions that generate buzz while highlighting the experience of owning a new home.
“For many shoppers, a mortgage rate buydown is appreciated, but it is not what excites them most. Instead, they are looking for features that help them personalize and enhance their home from day one. Free pools, design center credits, upgraded finishes, and fully landscaped backyards make the purchase feel more aspirational and help buyers envision a better quality of life in their new home,” says Wolf.
Creative promotions around housing aren’t new. In 1997, Kaufman & Broad partnered with Fox and Pepsi to build and give away a real-life replica of the Simpsons’ home, one of the earliest examples of a builder using pop culture to capture buyers’ attention.
More recently, builders have looked beyond traditional incentives to create memorable marketing campaigns, including Taylor Morrison’s partnership with sparkling water brand Liquid Death. The contest gives one winner a new home with “Liquid Death” flowing from every faucet, including outdoor hoses and showerheads.
Obviously, few buyers are choosing a builder based on sparkling water running through the plumbing. But the promotion reflects a broader trend: builders are getting more creative as they compete for buyers’ attention. While most incentives are far more practical, many are also becoming more lifestyle-focused, personalized, and region-specific.
Here are some of the more interesting incentives builders are offering today.
Sweet Treats
Food incentives and home tours have been around for generations. Reportedly, one of the earliest use of incentives occurred during an open house back in the 1950s, when prospective buyers were offered a Coca-Cola during their home tour, and the buyer of the house was promised a brand-new Cadillac as an incentive.
Today, David Weekley Homes is using some of the same strategy to “sweeten the deal” for house hunters (minus the Cadillac). Tour any of their model homes in the Houston area until the end of August and have a popsicle or ice cream treat during the visit.
Free Pool
Community pools are a sought-after amenity in master-planned communities, but having a pool right in the backyard is an attractive feature too.
Del Webb is offering buyers a free pool in its Parrish, Florida, community, Sunchase. The promotion is for buyers who build new on select Echelon Series homes.
Fly & Buy (or Try)
Here are a few incentives for buyers who prefer to tour communities in real life.
M/I Homes is offering a Fly & Buy incentive, covering up to $2,000 in travel expenses, for buyers who purchase M/I Tampa-area homes before Nov. 30, closing by Dec. 31.
Taylor Morrison is offering a Fly (or drive) & Buy incentive for several of its Florida communities for new-home contracts entered by Dec. 31. Buyers that purchase during a visit will receive a voucher for $5,000 off the purchase price if they travel 50 miles or more to the community.
Del Webb offers an overnight package incentive nationally that lets buyers stay overnight in a fully furnished new home, explore the community in a golf cart (if available), connect with residents, and participate in classes and community amenities.
Free Golf Cart
It wasn’t uncommon a couple of decades ago for builders to throw in a new car as an incentive. Buyers today can still get new wheels, but in a more practical way, with a new golf cart.
At Taylor Morrison’s Esplanade Lake Club community in Fort Myers, buyers can take advantage of their “new home, new wheels” promotion, where they’ll get a new golf cart.
Meanwhile, buyers at Brookfield Residential’s Cottage at Kissing Tree in the Austin area, receive a free golf cart with purchase.
Outdoor Features
Well-designed outdoor spaces are important to buyers, as homes generally scale down in size. Several builders are leaning into this trend with incentives to match.
In the D.C. area, buyers at The Retreat at Glenn Dale, can benefit from a free 12-foot-by-18-foot deck (and up to four steps), combined with other incentives, on various homes, while buyers at MacLean Custom Homes can choose between a free deck or $20,000 in other incentives.
At various Drees Homes communities across the country, including Starnes Creek Estates in Franklin, buyers can take advantage of the Drees Summer Sale, where buyers can use up to $20,000 for outdoor features. Buyers can choose to use that credit elsewhere in their purchase, but Drees recommends a covered patio, outdoor kitchen, or outdoor fireplace.
At David Weekley Homes’ Elevate at Wolf Ranch in Colorado Springs, buyers can receive a free rooftop deck.
Free Generator
Storm preparedness is top of mind for homeowners. Highland Homes is offering Houston-area buyers peace of mind by throwing in a free generator, in partnership with Generac. Offer good through the end of August.
Finished Basement
A finished basement adds valuable living space without increasing a home’s footprint, making it one of the more practical incentives available to buyers.
Fieldstone Homes is throwing in a finished basement in select homes in The Crossings Rear Load, in Heber, Utah.
Tri Pointe Homes is offering a finished basement in various communities throughout Colorado.
This article was originally published on NewHomeSource.com.
