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Did You Know? Common builder incentives in Texas | Dallas Real Estate Agent

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Did You Know? Common builder incentives in Texas | Dallas Real Estate Agent


If you are in the market for a new construction home from one of the top builders like Toll Brothers, David Weekley, Huntington Homes, DR Horton or any of the reputable builders in DFW, make sure that you understand the common incentives builders can offer at any given time.

General Incentives Offered by Builders in Texas to New Construction Home Buyers

Here is a list of incentives that are offered by builders in Texas. Please remember that at any given time, only a few of these incentives are offered by any builder to new home buyers in Texas including the Dallas metro area.

  • Prepaid Closing Costs: Builders sometimes will pay a certain amount towards the closing costs to reduce the final cash to close for the buyer. Builders can offer to pay all, or a share, of the closing costs on a home. Typical costs for new construction homes in Texas can range from 1% to 3% of the sales price.

  • Free Technology Upgrades: Some builders offer free technology upgrade packages to buyers. This may include smart home devices, smart door locks, smart thermostat, smart video doorbells, smart switches, surge protectors for the whole home etc.

  • "Free" Upgrades: Builders usually offer premium upgrades for buyers that can include granite countertops, swimming pools, media rooms, hardwood floors, an extended patio with a kitchen in the backyard, high-end appliances and much more. E.g. On a home with a base price of $500,000, a builder may offer $40,000 in upgrades to the buyers that the buyers can use at the design center to pick the upgrades.

  • Waiver of premium lots: Builders may be willing to waive off the “premium” for the premium lots - e.g. lots with the following characteristics - flat lot, corner lot, view lot, larger lot or a cul-de-sac lot. Builders may charge anything from $5000 to $25,000 as a lot premium for a home with a base price of $500,000.

Contact us today at 469-269-6541 to get help in maximizing the incentives offered by new home builders to the new home buyers in Texas!
  • Profession specific incentives: Sometimes builders offer discounts for buyers in special occupations like Law enforcement, Fire Department & Healthcare Personnel

  • Mortgage Payments: Builders can offer to pay mortgage payments on behalf of the home's owner for a few months after closing.

  • Property Taxes: Builders are sometimes willing to pay the property taxes on a home after it's sold. This kind of inducement is usually in the range of six to twelve months of taxes. In Texas, a 400,000 home might incur a property tax bill of $9,000 a year.

  • Home Insurance Premium: Builders may be willing to pre-pay a homeowners insurance policy for up to one year.

  • Free Vacations: The builder may offer a free vacation for a number of family members to popular destinations including a cruise

  • Free Cars: Builder may offer a “free” car to the buyer which is typically a lease for a number of years.

  • Lender Credit: If you decide to use the builder’s preferred lender, one of the biggest incentives for new construction homes are the lender credit programs. These offer home buyers a percentage of their total loan amount as a credit to use toward their closing costs by the lender instead of or in addition to the incentive offered by the builder.

  • Prepaid Association Dues: Most of the homes in the Dallas metro area and Texas have a Home Owner Associations (HOA). If your dues are $100 per month, that's $1,200 a year. Builders sometimes will pay these dues for 6 months or 12 months.

Contact us today at 469-269-6541 to get help in maximizing the incentives offered by new home builders to the new home buyers in Texas!

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