Building A Home? Learn About New Home Rebates

The housing market is booming. As such, sellers are doing everything in their power to attract buyers. With new home construction, in particular, some builders are attempting to catch the eyes of buyers by offering rebates, with some of these programs including cash-in-hand options. However, just because this incentive is advertised, it does not mean it is automatic or right for you; learn some of the things to look for.

Hire an Agent

Builders typically have sales agents that manage every aspect of the build process from helping with your design plans to providing guidance on financing options. However, above everything else, the sales agent is there to protect the builder. You need someone who will look out for your best interest and ensure that that rebates and every other aspect of the deal benefit you. 

Look at the Fine Print

Always look at the fine print if you are weighing multiple rebate options; not all offers are the same. Consider a builder offering two rebate options, for example. Option 1 offers a $10,000 incentive but requires you to use their in-house lender, which has a 4.25% interest rate. Option 2 only offers a $5,000 incentive, but gives you the option of using another lender, which is offering you a 3.5% rate. When you compare the fine print, the smaller incentive gives a better long-term return.

Consider Non-Cash Rebates

Cash is always great, but you should also consider rebates that come in other forms. For example, if the builder is offering a $10,000 rebate, you could ask to receive this incentive in the form of design credits. With this option, you could apply this money towards construction improvements for your home, such as hardwood floors instead of laminate, or a larger walk-in shower. Using the incentive this way adds value to your home and lowers your out-of-pocket costs.

Negotiate the Rebate in the Contract

Do not make the mistake of simply asking about the rebate and discussing it with the builder. You need to ensure it is in the contract. With real estate transactions, only that which is included within the contract is considered valid. For this reason, if you fail to include the rebate details in the contract, the builder could deny them. If you work with a real estate agent, they will handle this step for you. 

Ensure you keep all of these tips in mind to close on your beautiful new construction home with your rebate in hand. For more information about new home rebates, contact a local professional.