Buyers Benefit From New Home Incentives, Rebates and Discount Offers

The jungles of real estate market have been riddled with terrifying upturns and dangerous lending. The once never ending increases have plummeted housing prices to the ground. While painful for sellers, investors, and builders, the market is now boding well for potential buyers in the form of enticing buyer incentives. Many home builders have found themselves in a state of urgency to sell their new homes as quickly as possible. Considering most new home constructions are based on various phases, it may be difficult for builders to continue their progress without their initial buyers. Carrying costs and construction loans must be paid back, making time of the essence in regards to selling property expediently.

Incentives for Buyers
• Free Rides. Tough times for sellers have lead to promises of free vehicles for buyers. Check the fine print because these offers may be referring to leases. You will have a temporary vehicle that will have driving and insurance stipulations.
• Travel. Vacations have been offered to entice buyers. These attention grabbing incentives only offer short term benefits. This should not be a deciding factor for buyers, rather an added bonus. Make sure to examine the rules of home buying.
• Furniture. Home furnishings used in staging are in the home to exhibit the best assets of a property. Sellers are now offering to sell various furniture pieces that compliment the home. Buyers are enticed by this offer if there is appeal to the items. This saves on purchasing furniture, but beware this could be included in the closing costs.
• Warranty. Depending on the age of the home, a warranty might be a very sweet deal. Make sure to understand what is actually covered through the warranty. To get the best offer, insist on choosing the insurance provider and policy to ensure getting the best deal.
• The real estate rebates from commissions range widely from about 20% to 75%. Considering the higher prices of homes and the subsequently higher commissions paid, these rebates can equate to several thousand dollars. The other form of real estate rebates offered by real estate agents is in the form of gift cards to home furnishing retailers and home improvement stores. The value of these gift cards may also be determined as a percentage of an agent's commission. New construction rebates are also offered by builders to help move inventory.
• Low Interest Rates. Mortgage professionals have issued such home buyer incentive offers as charging no points or making the first year of mortgage payments for home buyers. Other mortgage incentives include mortgage rate adjustments for limited time or mortgage buy down. Lowering a 6.5 percent rate to 4.5 for the first year and 5.5 percent for the second allows substantial saving for the first couple of years.
• Reduced Price. Housing costs are falling. Properties that have been on the market for an abundant period of time have caused prices to fall and sellers are offering price reductions to help make deals go through smoothly.
• Covering Closing Costs. A portion of the closing costs may be prepaid for the buyer. Lenders place limitations on the amount a buyer can receive. Typically 3% is the max allowed. This could still offer a couple thousands of dollars savings.
• Upgrades. Home builders have extended home buyer incentive offers to buyers including free upgrades on new construction homes. Anything from top-of-the-line appliances to swimming pools may be offered to entice buyers. Upgrades are one of the best incentives because these are the type of incentives that will add value to your home. Equity beats promotions any day of the week.

Negotiating Incentives
Here are some of the tricks of the trade when negotiating for incentives.
• Know the inventory. Get the lowdown on the inventory your builder or agent is holding. Find out how many properties they are holding on to and for how long have they been trying to sell. Knowing this can put you in a very good position for negotiating price. The more the builder has and the longer it's been on the market, the bigger reduction of price you can negotiate.
• Scope the competition. The market is segmented by the surrounding area. Know what the competition is offering. This could be an indicator for what your negotiating options are. If builder x is offering this, what can builder y offer to get the sale. Don't be afraid to pit them against one another if the possibility arises.
• Talk to the neighbors. Step out of your comfort level and get to know the neighbors take on the negotiation process. Find out what they were able to get from the builder and what they wish they would have asked for. Take a welcoming gift to be more approachable and hopefully you will get valuable information.
• Lower that Price. After understanding the neighboring prices for similar homes, also look at economic growth within the area. If the local job market is in the slums, use that fact for negotiating. Homes in areas with an undesirable job market should be ripe for negotiating a price reduction.
• Ask for upgrades. If you don't ask, they might not offer. When builders sell their homes they are part of public record. Some buyers may get upset if the house next door got a bigger break. One way to negotiate is to look for upgrades and incentives that will help build equity in your home, while your builder can save face and keep the housing costs from plummeting.
• Be realistic. Buyers market yes, yard sale no. Be realistic in your negotiations. If you want to come out with the best deal make sure you have evidence backing your offer.

Buyer incentives are gaining popularity in real estate markets. To make the most out of these incentives, buyers should follow the basic home buying tips. Seek out a real estate professional for help based on experience not gimmicks. Understand the details surrounding the incentives offered and how these conditions may affect you. Lastly, ASK! If you don't ask, you may not get offered these incentives.

Remember, home builder upgrades provide more value to a home for the buyer as well for future sales. When considering which incentives to negotiate, keep the bottom line in mind. Upgrades and lower interest rates will make the best option for a return on your investment, while furniture and vacations are nice bonuses, but you will see no financial return on these items.