Understanding Builder
Incentives in Upstate SC
From interest rate buy-downs to thousands in free upgrades, discover how to leverage builder promotions to save money on your new home.
What Are Builder Incentives?
To drive sales in new communities, builders frequently offer financial incentives. These aren't always advertised openly on Zillow or standard property listings, which is why having an experienced new construction Realtor is crucial. Here are the three most common incentives you'll see in the Upstate market.
1. Interest Rate Buy-Downs
This is currently the most valuable incentive in the market. Builders partner with preferred lenders to "buy down" your mortgage rate, often getting you a rate 1% to 2% lower than the national average. This can save you hundreds of dollars on your monthly payment and tens of thousands over the life of the loan.
2. Closing Cost Assistance
Builders will often offer a flat credit (e.g., $5,000 to $15,000) toward your closing costs if you use their preferred lender and title company. This drastically reduces the amount of cash you need to bring to the closing table.
3. Design Center Upgrades
Instead of dropping the base price of the home, builders prefer to give you allowances for the design center. You might receive $10,000 to spend on luxury vinyl plank flooring, quartz countertops, upgraded cabinetry, or premium appliances.
Interactive Rate Buy-Down Calculator
See exactly how much a builder's rate incentive can save you on your monthly payment compared to standard market rates.
Adjust Your Scenario
* Principal & Interest only. Taxes and insurance not included.
Standard Market
$2,303/mo
Interest Rate: 6.1%
Loan Amount: $380,000
Builder Incentive
$2,017/mo
Interest Rate: 4.9%
Loan Amount: $380,000
Your Total Savings
That's $3,432 back in your pocket every year!
The "Preferred Lender" Catch
Almost all builder incentives are tied to using their preferred lender. While these lenders often have great programs tailored to the builder, it is always smart to get a secondary quote from an independent local lender to ensure the "incentive" isn't being offset by higher loan origination fees. We always help our clients compare these estimates side-by-side.
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