How Do Builder Incentives Impact Home Value?

Builder incentives are a way for builders and buyers to come together in a way that benefits both parties: the buyer gets attractive discounts and deals, while the builder gets a long-term customer. There’s plenty of perks that come along with builder incentives, and if you’re in the market for a newly built home, they’re certainly worth looking into. An important aspect of builder incentives to understand, however, is how they affect the value of your home.

What Benefits Do Builder Incentives Offer?

Builder incentives vary from builder to builder, but the most common kinds either assist with closing costs or with certain upgrades or customization for the home. Incentives that assist with closing costs, ironically enough, usually have to do with knocking down up front costs of the home. Customization and upgrade deals typically have to do with appliances and features, such as roofing, flooring, landscaping, countertops, and refrigerators, to name a few.

You might be wondering why these incentives matter, and if they’re worth investing in. That depends on what you’re looking for in both the home and the incentives. It’s worth looking into them when selecting a builder, since they’ll likely have different offers and perks, and you’ll want to know all you can about them before the build starts. To learn more about builder incentives and how to get the most out of them, visit this article about negotiating builder incentives.

How Do These Benefits Affect the Value of a Home?

There are a few different factors involved in calculating the value of a newly built home. The location, size, condition, features, the quality of the construction and the conditions of the market all matter when appraising the value of a house, though there’s usually more to the process. How, then, do builder incentives factor in here?

It partially depends on what the incentives are. Customization and/or upgrades for the home, depending on what they are, will impact the value in different ways. The type and quality of the materials and appliances involved will have an impact on the value of the home, and that impact can be positive or negative. It’s worth noting down as many specific appliances, features, and materials as you can so that you know the value of each item, and how they contribute to the overall value of the home.

Things are a bit different when it comes to the financial side of builder incentives. Most builder incentives related to closing costs, like discounted leases or lower mortgage rates, will seem attractive purely on the basis of saving money in the short term. It’s important to know that a lot of these perks usually come with a catch. For example, you might be able to get a good deal on a loan, but only if you use the builder’s preferred lender. Like with the physical upgrades, the value of your home can rise or fall depending on what incentives you decide to invest in. This article provides examples of how both physical and monetary incentives can affect home value, and other helpful tips to know about builder incentives.

To learn more about builder incentives and the home construction process, visit newhomesource.com/learn.