New Construction Incentives and Builder Inventory

New Construction Incentives and Builder Inventory

Published | Written by Brandon Holley

Disclosure: Transcribed from video. The wording may be off. 

As you know, the real estate market is changing, so what does that mean for you as a buyer? It's all good news when it comes to new construction. Check it out!

Hey, everyone! My name is Brandon Holley, and I am the owner broker at holly holmes realty here in Austin, Texas. And today, we are continuing to talk about new construction because that's what this channel is all about. When I started real estate about six years ago, I was trying to figure out exactly what it was that I was going to do in order to get business and what I started with was helping tenants find lease properties after I helped them get into something I would work with them over the next year in order to get them ready to buy a home now most of these lease tenants were first-time home buyers, so the down payment was an issue and what I found was new construction was perfect for them because of the incentives that builders give now obviously you don't have to be a first time home buyer to get these incentives. However, if you find yourself in a similar situation and want to buy a home, new construction is honestly the way to go, and here are a few reasons why.

Let's start by talking about the incentives and how they benefit you. Most builders will offer some incentive if you use their preferred lender. Over the past few years, it's been around five to seven thousand dollars which is great because that pays for your closing costs. However, many builders are now pumping that up to ten thousand to fifteen thousand dollars, which is huge because not only does that cover your closing costs, but you can use some of that money to buy down the rate. Now I have a completely different video that's talking about interest rates. I'll drop that in the description below if you'd like to check it out, but overall these incentives are huge for you as a buyer. It makes it so important for you to at least talk to a new construction company, speak to a builder and see if this is something you can do because, honestly, the money might be there for you right now.

If you did not already know, the builder pays my commission which is good for you because you don't owe me a dime. I'm just here to assist you and facilitate the transaction. However, one thing that builders have not been doing over the past few years is paying us the full 30 commission. Normally, it's one percent or two percent, and that's fine; however, now builders are trying to sell their properties because the markets have slowed down a little bit, and they're offering realtors three percent, four percent, even five percent commission. So if you're working with me, I am happy to pass some of that along to you.

If you're interested in something like that, I would love for you to hit subscribe and also drop a comment below like the video because what I'm trying to do is help you out, so if you're interested in that at all, please get in touch with me and let's talk.

I misspoke a little bit whenever I said they are getting rid of properties because that's the last thing they're doing. However, these builders are offering massive incentives and lowering the prices to sell off some of the homes they have built to make room to build more. So you are putting more inventory on the market, which is huge for you as a buyer. We've been plagued with low inventory for the past two and a half years in the real estate market. If you've been looking on Zillow or thought about buying anything over the past few years, you see how quickly things move. Well, buyers are getting some of their options back, which is nice. Again all I can say is that if you are interested in buying, reach out to an agent. I would love for you to reach out to me, but no matter what, if you know an agent, reach out to somebody because you don't have to take too many steps to view some of these communities. Talk to one of those lenders happy to get something set up for you, but that's the first step because you'll be surprised by what you could afford compared to what you're probably paying in rent right now.

If you are thinking about buying, you've also wondered if now is the right time threats of inflation, a recession, rising interest rates, housing prices, all of that stuff is a worry.

Many buyers right now, and trust me, I am going to be the first one to tell you that if now is not the time, don't purchase a home I don't want anybody to be in a bad situation; however, if you have not gone through the steps to see if it could be if it could benefit you you might want to do that I have a lot of clients that don't think that they can buy at this time however with the builder's incentives and a little help from me they've been able to purchase, and they were renting somewhere for two thousand dollars a month, and they just bought a house, and their mortgage is hundred dollars a month now I know that is four hundred dollars more however that four hundred dollars extra is at least going towards your new home instead of the landlords also there are some things right now with higher interest rates that will change rates always
go up they come down home prices always go up, and they come down a little bit, so right now, you buy with the interest rate is high here in a few years, when interest rates go back down, you can refinance, and that will drop your payment probably by three four hundred dollars, and then the house prices go up, and yours doesn't because you have already bought your home um now again I don't want to push anybody into anything however, if you have questions, please ask them. It will not hurt anybody. I love whenever people reach out to me with questions because that's what I do. If I don't know the answer, I'll find it for you. Even if now is not the time, it could be the time here in two or three years, so start now, find out the information see where you're at, and hopefully know if you can make it happen. Thank you for checking out my video hit like and subscribe for information about new construction and new communities every Thursday at noon.

*Disclaimer - All neighborhoods are different. Please speak to an agent to get all the facts straight. Also, equity is not guaranteed and fluctuates with the real estate market.

If you have questions about new construction, please reach out to me. The builder pays the commission, and it is my job to be knowledgeable about these communities. 

Brandon Holley

Broker - Holley Homes Realty 

Phone - 512.487.9242

Email -

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