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 to the Days of Deals report, some ZIP codes are seeing particularly high levels of builder promotions:
Celina, TX (75009) – New-home inventory is up nearly 88% year over year, while prices have fallen 16.3%. Builders here offer a mix of reduced rates, cash at closing, and upgrades to move homes quickly.
Ponte Vedra, FL (32081) – Homes linger on the market for over 111 days. Incentives like flex cash and cash at closing help maintain buyer interest in this high-priced region.
Westfield, IN (46074) – Builders focus on reduced rates, with flex cash as a secondary promotion to maintain momentum in a tight inventory market.
Surprise, AZ (85387) – Inventory outpaces demand, prompting builders to combine reduced rates with cash at closing.
Angier, NC (27501) – The most affordable market on the list; cash at closing is the most common promotion, supplemented by flex cash and rate reductions.
Across the country, reduced rates are the most commonly advertised incentive, appearing in more than two-thirds of builder communities, while flex cash, appliances included, and upgrades are offered less frequently but can provide a competitive edge.
How Builders and Agents Can Use This Insight
1. Benchmark your incentives: Compare your offerings to regional and national trends to ensure your promotions are competitive.
2. Highlight the right deals: Sales teams should emphasize incentives that most effectively reduce upfront costs or monthly payments, especially in higher-priced or slower-moving markets.
3. Stack incentives strategically: Combining rate reductions with flex cash or upgrades can make your homes stand out without cutting into margins unnecessarily.
4. Communicate Value Clearly – Buyers need to understand how incentives impact their total cost of ownership. Use calculators or side-by-side comparisons to show real savings.
In a market where affordability challenges keep many buyers hesitant, smartly designed incentives can make the difference between homes sitting on the market and selling quickly. Builders who understand which promotions resonate most with buyers, and how to stack them effectively, can turn inventory pressure into opportunity.
We have created a comprehensive Incentives Guide that explains the types of builder promotions, how they work, what questions to ask builders when exploring different options, and includes a file where consumers can input all their information to make an informed decision.
Agents and builders can download this guide to share directly with prospects, helping them understand their options and move confidently toward homeownership.
