The Dallas real estate market is constantly changing, and in 2023 it has undergone a significant transformation due to a mortgage rate increase.
For many homebuyers, the high cost of borrowing has made it difficult to purchase a home. So home sellers’ concessions and builder incentives have emerged to help them cope with the added financial burden.
This blog post will explore these trends and show how you can take advantage of these unique opportunities in the Dallas area real estate market.
Let’s start with Existing Homes:
If you’re looking to buy a pre-owned home in the Dallas area, you may be pleased to know that many sellers are currently offering concessions to help offset the impact of rising mortgage rates.
What Are Seller’s Concessions?
Seller’s concessions are an incentive that home sellers offer homebuyers to help them cover the costs associated with the home-buying process.
These concessions mainly apply to pre-owned homes and can include various expenses such as appraisal fees, attorney fees, repairs, discount points, inspection fees, loan origination fees, property taxes, recording fees, and title insurance fees.
The exact amount and type of concessions depend on the seller.
All concessions are 100% negotiable
Why Do Home Sellers Offer Concessions?
In a market where mortgage rates are high, sellers are under pressure to sell their homes, and concessions are one way to attract potential buyers.
Offering concessions gives the seller a competitive advantage, and it helps them to sell their home faster.
Additionally, sellers who offer concessions tend to receive better offers and are perceived as being more flexible and accommodating.
What to Watch Out For When Using Seller’s Concessions?
While seller’s concessions can be a great way to save money, you need to be careful not to overuse them.
If you ask for too many concessions, the seller may refuse to sell the home to you. The mortgage may not allow for seller’s concessions above certain level.
Therefore, it is essential to consider your finances and understand how concessions will impact your mortgage.
New Construction Homes:
Many home builders in the Dallas area offer generous incentives to potential buyers.
What Are Builder Incentives?
While similar to seller’s concessions, which are offered by individual home sellers, builder incentives are specific to new construction builders.
The builder incentives may include anything from free appliances or upgrades to lowered closing costs.
As of April 2023, the builder incentives in the Dallas area typically come in the form of a contribution to the homebuyer’s closing costs, which can make a significant difference in the overall affordability of a new home.
The amount of the incentive can vary greatly, but it can be anywhere from $5000 up to $20000.
However, it’s important to note that builder incentives are not always available and can change frequently.
These incentives are often tied to specific locations and inventory homes that need to be sold quickly.
As your trusted Realtor, I will stay up-to-date on all relevant incentives and concessions to ensure you know all your options when purchasing a new home.
Factors That Affect Builder Incentives:
Builder incentives are affected by several factors.
Timing: Specific promotions run for a limited time. So it is essential to act quickly before the promotion expires.
Location: Not all new home communities offer incentives because of high demand. Many sought-after communities have waiting lists.
Inventory-specific: Builders may offer incentives to sell a specific inventory home.
The Caveat:
It’s worth noting that many builder incentives come with specific conditions attached.
For example, the builder’s contribution is often only available if you use their preferred or affiliated lender.
Additionally, the amount and type of builder contribution are typically not negotiable, leaving homebuyers with little flexibility.
How to Take Advantage of Home Seller Concessions and Builder Incentives
When it comes to buying a home, it’s important to take advantage of any seller concessions or builder incentives available to you.
As your Realtor, I will make sure you receive all of the available concessions and incentives, even those that aren’t advertised.
Don’t be afraid to ask the home seller or builder if there are any perks available.
This could include things like having the seller cover the title policy or contribute to closing costs, or asking the builder to throw in free appliances or blinds.
Some incentives may not be advertised, so it never hurts to ask. By taking advantage of these opportunities, you could save thousands of dollars in the home buying process.
Read: When is the Best Time to Buy a New Construction Home in Dallas?
Read: New Construction Home vs. Pre-Owned Home In Dallas: Which one to buy? Pros and Cons to Consider
In conclusion, the real estate market in Dallas in 2023 may prove challenging for potential homebuyers due to increasing mortgage rates.
However, seller’s concessions and builder incentives can help alleviate some of the financial burdens of purchasing a home.
Knowing how these concessions work can help you navigate the market and potentially save you thousands of dollars.
Remember, whether you are considering purchasing an existing or new construction home, always carefully review the terms and conditions of any concession or incentive before signing a contract.
Looking to buy a home in the Dallas-Fort Worth area?
Call/Text 214.940.8149
As your Realtor®, I want to help you find the perfect home, whether it’s a new construction home or an existing one. If you’re a first time homebuyer, or relocating to the Dallas area and need help finding a new home I’ll guide you through the process and help find the best home for your needs.
