Builder Incentive Question

NEW -> Contingent Buyer Assistance Program

xanthem_IHB

New member
Hopefully someone can answer this. Is it possible to apply your builder incentive to the price of your house if you are located in a premium location such as an ocean view or corner lot. Is that considered an upgrade or does it only apply to flooring, appliances, etc... Thanks in advance.
 
Nope. BUT, you can always make an offer. Double whatever you will be really happy with.



sooo, if the house was 710k and incentives for 30k, offer 670 and 40k of incentives. Back up your offer with SOLD comps in the area.
 
Sure you can. Taking it of the price is not the best way to use the incentive because for every $10,000 you take of the price only saves you about 60 to 70 dollars a month. Divide that into 10,000 and it will take you 11 to 12 years to get that back. Plus the appraiser is going to take it off the price anyways if the seller pays anything or a credit at the design center. Be smart and use the incentive on the financing end of the deal as you are seeing a dollar for dollar realization of your money than using it for upgrades(Mark Up). Negotiate and submit an offer and you may be able to get you cake(Lower Price) and eat it too(Closing costs paid, buydown paid by the seller). Good luck.
 
[quote author="OCCOBRA" date=1221877248]Sure you can. Taking it of the price is not the best way to use the incentive because for every $10,000 you take of the price only saves you about 60 to 70 dollars a month. Divide that into 10,000 and it will take you 11 to 12 years to get that back. Plus the appraiser is going to take it off the price anyways if the seller pays anything or a credit at the design center. Be smart and use the incentive on the financing end of the deal as you are seeing a dollar for dollar realization of your money than using it for upgrades(Mark Up). Negotiate and submit an offer and you may be able to get you cake(Lower Price) and eat it too(Closing costs paid, buydown paid by the seller). Good luck.</blockquote>


+1. Of course you want to lower your purchase price, but there is more value in getting closing costs paid, along with any associated points (ex. negotiate a 1 point buy down). Also figure out what builder incentives are important. For example, if not already included, I would get hardwood floors. That's something you don't want to be dealing with once you move in.
 
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