In today’s challenging housing market, builders face a unique pressure: unlike sellers of existing homes, who can choose to wait for the right buyer, builders must move hundreds—or even thousands—of homes to maintain healthy cash flow and inventory levels. With high mortgage rates and elevated home prices keeping many buyers on the sidelines, incentives have become a crucial tool to attract buyers and close deals more quickly.
Realtor.com’s Days of Deals report highlights how builders across the country are using promotions strategically to meet this challenge—and what you can learn from their approach.
Why Incentives Matter Now
Current market conditions make affordability a top concern for buyers. Mortgage rates in the high 6% range and rising home prices reduce purchasing power, often making renting a more financially appealing option. Builders, however, have the flexibility to address these hurdles directly through targeted incentives.
Promotions such as cash at closing, flex cash, included appliances, upgrades, and reduced rates do more than just sweeten the deal—they remove barriers to ownership and give buyers tangible reasons to act now rather than wait.
Top Incentive Types Builders Are Using
1. Cash at Closing
Closing costs can reach up to 7% of a home’s purchase price—a major upfront expense for buyers. By offering cash credits at closing, builders help reduce this hurdle, making the purchase process more accessible.
2. Flex Cash
Flex cash offers even more versatility. Buyers can use it toward closing costs or upgrade packages, giving them the flexibility to improve their home without paying out of pocket.
3. Included Appliances and Upgrades
Some builders sweeten deals by including essential appliances or premium home upgrades, such as flooring and finishes, at no additional cost. These perks can differentiate a community in a crowded market.
4. Reduced Mortgage Rates
Arguably the most impactful incentive in 2025 is rate buydowns, lower monthly payments, making homeownership more sustainable over the long term. Builders with in-house financing options or lender partnerships can leverage this to attract buyers and maintain competitive pricing.
What the Data Shows
According