Why Phoenix Builders Offer Incentives Instead of Price Cuts

By Monique Walker

Monique Walker has 21 years of experience successfully buying and selling homes in the Phoenix market. She knows the neighborhoods, schools, and the local economy. Monique and her team do all the leg work, keeping you up-to-date with new listings and conditions as they impact the market.

Whether new construction or an existing home is the better buy right now depends on your situation, yet one part of the new-build equation is rarely explained to buyers. Understanding how builders protect their pricing can change what you ultimately walk away with.

Builders protect the sticker price first. Given the choice, a builder will almost always offer incentives rather than lower a home’s price. The reasoning is rooted in the community itself, since reducing one home’s price drops the value of every other home in that neighborhood.

Incentives often cover meaningful costs. Rather than cutting the price, builders tend to buy your rate down or cover your closing costs, and some may even throw in upgrades if you ask. Each of these puts real value in your hands while the price on paper stays the same.

The base price opens negotiation. The figure on a builder’s price sheet marks the starting point of a negotiation rather than its conclusion. Approaching it that way opens the door to asking for those incentives instead of assuming the number is final.

If you’re considering new construction in Phoenix, my team and I would love to show youthe new builds available and what to ask the builder. Call me at 602-413-8195, email me at Monique@MoniqueSells.com, or visit moniquesells.com. I’d be glad to walk through your options with you.