Builders can offer big incentives to attract home buyers. Here’s what to know before jumping on promotions.
ATLANTA — With Atlanta’s housing market still sluggish, many builders are offering big incentives to get cash-strapped buyers through the door.
Some are offering lower interest rates, paying closing costs, and including appliances like washers and dryers.
Damon Smith is one of those buyers who was offered an incentive. He’s excited to finally be a homeowner after renting in Atlanta for years.
“My goal was to be in a house by the time I was 35. I’m 36 now, but it finally happened, and it feels great,” Smith said.
He felt sidelined by Atlanta’s rising home prices and interest rates above 7%. That is until he found a new community in College Park, where the builder offered to pay $10,000 in closing costs and a 4.75% interest rate.
“For me, I wanted to jump on that. Not only were they offering incentives that were good for me, but it would help me to keep more money in my pocket to be able to furnish this home and do other things,” Smith explained.
However, while incentives are becoming increasingly common in the current housing market, many realtors recommend knowing the conditions that come with these promotions before jumping on any of them.
For example, realtor with Keller Williams in Buckhead, Hubert Tate, said that many builders and developers are offering incentives but then it’s necessary to use their in-house lender or mortgage broker.
“For some folks, it works; for others, it doesn’t work at all,” Tate said.
Tate also said it’s important to work with a realtor you trust so they can make sure the savings being offered aren’t being tacked on as other fees in the transaction.
He stated that buyer incentives are advertised, but sometimes they are not. That’s why it’s a good idea to have your real estate agent ask the builder about any flexibility they have, he said.
But at least for Damon Smith in particular, he told 11Alive that his home-buying process went smoothly. Now, he’s ready to furnish his home, and he’s hoping to keep more money in his pocket each month.
