Adjustments and Incentives November 2022

Adjustments and Incentives in November 2022 New Home Construction

If you have ever thought about buying a new construction home you will know that it is a unique process from buying a resale home. In the last 2 years the companies have had so many clients willing and ready to purchase that they did not need to market or “go after” clients. That has changed a bit in the last few months! With builders looking to meet end of the year goals I have seen more incentives that can help you get into a new home if that is your desire. Here are some of the adjustments and incentives that I have seen with builders in Gwinnett County, GA in the last 2 weeks:

  • Incentives for upgrades- this is usually the first incentive offered in new home communities. Upgrades can be but are not limited to: flooring (wood floors, higher quality for carpet), tile work, kitchen backsplash, finished basement, crown molding, upgraded kitchen cabinets, appliances, or a finished patio. Usually clients spend 10-20% of the home price on added upgrades and options such as energy efficient choices, design materials and even layout room changes).

  • Price Reductions - after talking to sales agents, reductions are dependent on the community. There are more reductions in areas where communities are completed and they are selling the last of the home inventory. This may include selling model homes if the community had them. As of November 2022 I have seen price reductions from $10,000-40,000 off of the original list price.

  • Increased commission for real estate agents- during the height of the 2020-2022 market new construction builders were offering much lower commissions for real estate agents bringing clients to their communities. Many of the larger companies are now increasing the commission co-op offer for real estate agents (because demand has decreased). Remember, as a buyer you do not pay this commission out of your pocket but it is something you should be aware of.

  • What about smaller, local builders? These companies in my area (Gwinnett County, GA) have been slower to offer incentives for buyers but they are offering some (less impressive)incentives for buyers in this market.

Price reductions and incentives for upgrades are good news if you are a home buyer in the market right now! If you would like to learn more about the market, let’s set up a consultation and find out if buying a new home is a good idea for you. I am a referral agent so if you are looing in ANY state, schedule a free consultation with my calendar below and I will work to connect you with a realtor who can help you in your area of interest.