You've seen the banner. "Special rate." "Closing credit." "Design dollars." It's on the flyer, it's on the sign out front, and it makes the home sound like it's on sale. Cedar Park and northwest Austin have plenty of new communities, and just about every one of them has something on a banner.
I'm Felix, a Texas Realtor here in Austin. Before you reach the end of this post, I'm going to show you two things. First, the one question I ask about every builder incentive before I ask how big it is. Second, the one thing that can happen on your first visit to a new-home community that you can't take back. Stay with me. Let's start with what a flyer is built to do.
What the flyer shows you, and what it leaves out
A flyer has one job: get you through the door. That's not a knock on anyone. It's just what a flyer is for. The headline number is the part that fits in big type. The conditions are the part that goes in small type.
This week I read the published offers from several builders working in the Austin area. I'm not going to name them, because this isn't about any one company. Here's the pattern I saw, and it's worth knowing:
- Deadlines. Offers had end dates, and many were tied to when a purchase agreement is signed and when the home has to close.
- Select homes only. Offers applied to certain homes or home sites, not every home in a community.
- A named lender. Several offers were tied to financing through the builder's affiliated or preferred lender.
- Rates that change. Some of the low rates were temporary buydowns, where the payment steps up after the early years. The headline rate and the APR printed next to it were different numbers.
- Credits with limits. Closing-cost credits can be capped and can leave out items like prepaid taxes and insurance. Some say any unused portion is forfeited.
- Timing. One builder's own fine print said that locking a rate does not guarantee the home will be finished before the lock runs out.
Builders change these offers often, so what I read this week may not be what you see next week. I won't guess what will be on the table next month. What I do is read the current terms with you.
The question I ask before I ask how big it is
Here's the first thing I promised.
Before I look at the size of an incentive, I ask: what is this money allowed to be used for, and what does it ask of me in return? A big number that can't be used where you'd use it isn't worth much. A smaller number that fits your plan can be worth more. And "in return" matters: a deadline, a lender, a particular home. When the answer is in the builder's own words on paper, you can compare it. When it's only on the banner, you can't.
I'm a Realtor, not an attorney or a lender, so I don't interpret the legal terms or tell you which loan to take. What I do is read the incentive with you, line by line, and make sure the right professionals are in the room. Now for the part most buyers skip.
Why I walk the home with you
Here's the second thing I promised, and it starts with a simple fact: the sales team in a builder's office works for the builder. The contract and the incentive terms come from the builder's side of the table. If you walk in alone, nobody in that room works for you. That isn't a knock on anyone. It's just whose job it is.
My services are fiduciary in nature, so I can only work for clients. When you open a file, I'm on your side of the table. And my first move isn't a spreadsheet. It's walking the home with you.
Why? Because an incentive belongs to a specific home, and a flyer can't tell you one thing about the home in front of you. I have experience in building homes and large commercial projects, so when we walk a home, finished or still under construction, I look at the home itself and tell you what I notice. I'm a Realtor, not an inspector or an engineer, and if you'd like a licensed inspector there too, that's your call.
Then we sit down with the builder together. You hear what the builder says, I hear it too, and we talk about the home and the offer in the same conversation. You aren't carrying questions home and hoping you remembered them all.
The first visit you can't take back
Here's the thing about your first visit that I promised. Some builders ask that a buyer's representative register you, in person, on your very first visit to a community. If you visit alone first, that visit can change what's possible on your side. You can't un-visit. That's why I'd rather be with you before you go.
Already visited a sales office on your own? That's okay. Tell me, and we'll sort out where you stand.
I go over my fee with you in writing before we tour anything, so there are no surprises on that either.
There are two other phone calls that belong in this conversation, and neither one is to the builder. I'll tell you which two in the next section.
The two phone calls that belong in this conversation
Here are the two I mentioned.
- A lender, in writing. When an incentive is tied to a builder's lender, it's worth seeing a written offer from a lender of your own choosing next to it. You're free to choose any lender you like. My page on Austin mortgage lender guidance shows how I help you compare your options. I have no referral, marketing or affiliate arrangement with any lender, insurer or warranty company, and I encourage you to shop around.
- Insurance and a warranty. A new home still needs homeowners insurance lined up before closing, and whether you want a warranty is your decision. They are different products from different companies, and each one spells out its own coverage in writing. My page on home insurance and warranty explains how I get both started early so nothing turns into a last-minute scramble.
Leaning toward a townhome instead of a detached home? My page on Cedar Park townhomes goes through that path. Weighing areas in northwest Austin? My post on the Arboretum expansion lays out what has been announced and what hasn't. Announced plans are not results, and I won't guess what any project does to a home's value. For the short version of everything above, see my builder incentives page.
How it works with me
- You open a file. I text you and send my agreement today.
- We talk. Your must-haves, your timeline and the communities you're curious about.
- We walk the home together, before your first visit to a sales office.
- We talk with the builder together. One conversation, both of us in it.
- You choose. Every lender, insurer and warranty company is your decision.
- Closing. I attend every closing, and I'm there at the table with you.
Questions I get about builder incentives
Why isn't the incentive on the flyer the whole story?
A flyer shows the headline number. The conditions sit in the fine print: which homes qualify, what the money can be used for, which lender it may be tied to, and the dates. I read those terms with you before you sign anything.
Do I need my own agent for new construction in Cedar Park?
The builder's sales team represents the builder, not you. If you walk in alone, nobody in the room is working for you. My services are fiduciary in nature, so I can only work for clients. When you open a file, I'm on your side of the table.
Why do you walk the home with me and talk with the builder together?
An incentive belongs to a specific home, and a flyer can't tell you about the home in front of you. I have experience in building homes and large commercial projects, so I look at the home itself with you. Then we talk with the builder together, so you hear the same conversation I hear.
Do I have to use the builder's lender to get an incentive?
Some offers are tied to a specific lender. Whether that is right for you is your decision. You are free to choose any lender you like, and I encourage you to compare a written offer from a lender of your choice. I have no referral, marketing or affiliate arrangement with any lender, insurer or warranty company.
Do I need to think about insurance and a warranty on a new home?
Yes, early. Homeowners insurance and a home warranty are different products from different companies, and each one spells out its own coverage in writing. I help you get insurance quotes started and a warranty decision made before closing, and you choose every company.
What if I already visited a sales office on my own?
That's okay. Tell me, and we'll sort out where you stand. Some builders ask that a buyer's representative register you on your first visit, and a visit can't be taken back, so it's best to tell me before you go again.
Will you be at my closing?
Yes. I attend every closing, and I'm there at the table with you.
Why now
Builder offers have end dates, and builders change them often. Buyers who open a file before their first visit get my attention first, and they walk into the sales office with someone in their corner. Open a file today, and I'll text you and send the agreement today.
Important: I'm a Texas Realtor, not an attorney, lender, insurance agent or inspector. Incentive terms, loan terms, insurance and warranty coverage come from the companies involved, in writing. Nothing in this post is legal, tax, lending or insurance advice, and nothing here is a recommendation of any company. You are free to choose any lender, insurer or warranty company you like.
Related: Builder Incentives · Austin Mortgage Lender Guidance · Home Insurance and Warranty · Cedar Park Townhomes · Do I Need a Realtor for New Construction?
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