Lew Sichelman
Incentives have become a normal part of the homebuying experience, particularly with new construction. They’ve become so ubiquitous that builders have had to become ever more creative to set themselves apart from the competition.
Mortgage-rate buydowns, substantial price cuts and help with closing costs are no longer doing the trick. They’re nice, to be sure, but almost every builder is offering them. So now, some are going the extra mile with free pools, travel reimbursements and a host of other bonuses.
As detailed in a recent report in trade journal Builder, food and drink have become front and center at some properties.
In the Houston area, for example, David Weekley Homes recently offered frozen treats to folks who toured any of the builder’s model homes by the end of August. And Taylor Morrison partnered with water brand Liquid Death this summer to award one winner “a new home with ‘Liquid Death’ flowing from every faucet, including outdoor hoses and showerheads,” Heather Wright wrote for Builder.
Speaking of water, a community pool is always a plus. But some people don’t like to share; for them, a pool in the backyard is a must. That’s what Del Webb is counting on at a Parrish, Florida, project, where buyers are given a free pool.
Reminiscent of the old lot developers who flew planeloads of would-be buyers to Florida and Arizona to sell them building sites, some builders are offering to cover travel costs for out-of-town buyers who want to visit their properties.
“Del Webb offers an overnight package incentive nationally that lets buyers stay overnight in a fully furnished new home,” wrote Wright. Prospective buyers can also meet current residents and try out the community’s amenities. Similarly, she wrote, “M/I Homes is offering a Fly and Buy incentive, covering up to $2,000 in travel expenses for buyers who purchase M/I Tampa-area homes before Nov. 30” and close by the end of the year.
Taylor Morrison also has a travel-based incentive in some Florida communities for contracts signed by Dec. 31. According to the magazine, buyers who travel 50 miles or more and purchase a house during their visit will receive a voucher for $5,000 off the purchase price.
Free Golf Carts in the Sun Belt
Years ago, during slow markets, some builders gave away automobiles to lure buyers. Now, free golf carts often suffice. Buyers at a Brookfield Residential property near Austin get one, as do those at a Taylor Morrison community in Fort Myers.
Some builders are offering incentives that lean into buyers’ desire to enjoy the outdoors.
In Glenn Dale, a Maryland suburb of the nation’s capital, buyers can get a free 12-by-18-foot deck, while buyers at MacLean Custom Homes can choose either a deck or $20,000 in other incentives. At a David Weekley community in Colorado Springs, buyers can receive a free rooftop deck.
At certain Drees Homes communities nationwide, a special summer sale allows buyers up to $20,000 for outdoor features.
“Buyers can choose to use that credit elsewhere in their purchase, but Drees recommends a covered patio, outdoor kitchen or outdoor fireplace,” reported Wright.
Back indoors, a number of builders are giving away finished basements, which the magazine calls “one of the more practical incentives” because it “adds valuable living space without increasing a home’s footprint.” Builders offering basements include Fieldstone Homes in Heber, Utah, and Tri Pointe Homes throughout Colorado.
In another practical giveaway, Highland Homes offered a free generator to Houston-area buyers through August. After all, as Builder reported, “Storm preparedness is top-of-mind for homeowners.”
Lew Sichelman has been covering real estate for more than 50 years. He is a regular contributor to numerous shelter magazines and housing and housing-finance industry publications. Readers can contact him at lsichelman@aol.com.
