Homebuilders Boost Incentives for Buyers—Including Cash at Closing

Homebuilders are boosting incentives to lure in buyers looking for affordability, according to a Realtor.com® Days of Deals report.

Unlike sellers of existing homes, who can simply wait out the market, builders face the pressing need to sell hundreds or even thousands of homes. They're responding with a wave of promotions designed to ease affordability hurdles and attract buyers.

Realtor.com launched its interactive Days of Deals tracker—spotlighting how builders across the country are sweetening the deal for home shoppers.

“Existing homeowners can always choose not to sell and simply remain in their home," said Hannah Jones, senior economic research analyst at Realtor.com. "Builders, by contrast, must move a large pipeline of inventory and are highly motivated to do so. In today’s challenging market, where buyers are looking for relief from high housing costs, builders are both willing and able to provide incentives, whether through cash credits, rate buydowns, or upgrades, to get homes sold."

Types of promotions

Builders are offering a range of incentives to help buyers clear the biggest barriers to homeownership.

"Right now we are seeing very large closing cost incentives," Tiffany Sears, a Charlotte, NC-based real estate agent, told Realtor.com. "I have seen amounts close to $15,000. Builders typically use a portion of this amount to buy down the rate. Most builders have a set builder deposit, so in some cases, buyers are getting money back at closing!"

These promotions generally fall into five categories:

Cash at closing: Closing costs can add up to as much as 7% of a home’s price—a hefty expense on top of the down payment. Builders are helping by offering credits that buyers can apply toward these costs.

Flex cash: Like cash at closing, flex cash can go toward closing expenses, but it can also be used for home upgrades. Buyers may opt for premium finishes or features if their upfront costs are already manageable.

Included appliances: Refrigerators, washers, dryers, and dishwashers are not always included in new home sales. To offset these added expenses, many builders now include appliances as part of the purchase.

Upgrades: From flooring to finishes, some builders are offering free amenity upgrades to buyers who close on a home.

Reduced rates: With mortgage rates hovering in the high 6s, the most powerful incentive is the chance to lower monthly payments. Builders can use in-house financing or lender partnerships to offer buyers preferred rates.

“Mortgage rate buydowns are the most widely advertised builder incentive, and they pack the biggest punch. At typical new home prices, a half-point rate reduction can save buyers around $168 per month, or more than $2,000 per year. Because those savings extend across the life of the loan, rate reductions make ownership far more sustainable than one-time perks, and are especially appealing to buyers squeezed by high monthly costs,” Jones said.

Top ZIPs for builder promotions

The Days of Deals campaign highlights the ZIP codes where builder incentives are most common. These markets often share the same conditions: rising inventory, slower sales, and motivated builders eager to stand out.

In Celina, TX (75009), new-home prices have dropped 16.3% year over year while inventory has surged nearly 88%. With homes sitting longer, builders are leaning heavily on incentives ranging from reduced rates to cash credits and upgrades.

In Ponte Vedra, FL (32081), new-construction prices remain well above the metro’s median, but demand has cooled and homes linger for more than 111 days on the market. Builders there are offering reduced rates, flex cash, and cash at closing.

“In markets like Celina and Ponte Vedra, new-home inventory has climbed while demand has cooled, putting downward pressure on prices and stretching out time on market. With buyers spoiled for choice, builders in these areas are leaning on promotions to stand out from the competition and keep sales moving,” says Jones.

In Westfield, IN (46074), new builds are priced well above the local median, and inventory is tighter than last year, yet existing-home supply has risen. Builders are responding with rate reductions and flex cash to attract buyers.

In Surprise, AZ (85387), new-construction listings outnumber existing ones by more than two to one, with ample inventory and flat prices. Builders are using reduced rates and cash at closing to help homes sell faster.

And in Angier, NC (27501), the most affordable ZIP on the list, new-home inventory has grown while sales have slowed. Cash at closing is the most common promotion, with flex cash and rate reductions also available.

"We are currently in a buyer's market here in the Charlotte area, so we are seeing builders as well as resale homes offering seller concessions. It is a great time to buy!" says Sears. "In our area, builders have already mapped out how the incentive can be used. In some cases, we can negotiate a move in package (blinds and appliances) that would be onto of any closing cost incentive."

What it means for buyers

For home shoppers, these incentives can ease the two biggest obstacles to buying: upfront costs and monthly payments.

“In the short term, rate buydowns lower the monthly cash flow required, while cash credits reduce the upfront hurdle of closing costs, together easing the two biggest barriers to homeownership," says Jones.

"If a reduced rate is permanent, or if the buyer refinances later, the long-term savings and equity gains often tilt the balance decisively toward buying, especially in markets where rents continue to rise. However, if a buydown is temporary, buyers must be prepared for higher payments when the discount period ends," she added.

The Days of Deals report shows that, even in a tough housing market, builders are finding creative ways to make ownership more attainable. For buyers willing to shop around, now may be the time to find a new home deal worth seizing.