Builders are Giving Incentives

Homebuilders are in deal mode right now.

Here’s why.

There are more new builds on the market than usual. Now, this doesn’t mean builders are overbuilding. But it does mean they're motivated to sell their current inventory before they build more – and that’s good for buyers like you. It’s why the majority are offering incentives like rate buydowns, closing cost credits, and free upgrades. And roughly one-third are even cutting prices.

As of late 2025

65% of homebuilders are offering sales incentives—a five-year high—to counter sluggish demand and high mortgage rates, according to the NAHB. Common perks include mortgage rate buydowns, closing cost credits, and design upgrades, often totaling significant value to attract buyers. Additionally, nearly 40% of builders have reduced base prices by an average of 5%. 

(National Association of REALTORS®)

The Current Builder Incentive Landscape:

• Prevalence: In August 2025, 66% of builders reported using sales incentives, rising from 62% in July, marking the highest level in over five years.

• Top Incentives: The most common, and effective, incentives include buying down mortgage interest rates, covering closing costs, and offering free or discounted upgrades.

• Price Reductions: About 37%-40% of builders are cutting base prices, averaging a 5% reduction to help affordability.

• Strategy: Builders prefer offering incentives over drastic price cuts to maintain community, appraisal, and property values.

• Target Market: Incentives are particularly aggressive on completed or near-completed "quick move-in" homes to reduce inventory carrying costs. 

  (National Association of REALTORS®)

These incentives are helping to boost new-home sales despite a challenging market, with some incentives equating to $10,000–$20,000+ in value for buyers. 

Bottom Line

The opportunity to get a good deal is there. You just need a partner to help you make the most of it. DM me if you want to know which builders are offering the best incentives.