Issue #18 | November 05, 2026

Remember the housing frenzy of 2021 and 2022? Builders had waiting lists. Buyers competed for lots and floor plans. And if you had the nerve to negotiate, the salesperson had a ready answer:

"Buy now to lock in today's price!"

Fast-forward to today. Completed homes are sitting empty. Builders have bills to pay, sales goals to meet, and fewer buyers walking through the door.

Now the conversation sounds a little different.

"How can we work with you to get this deal done?"

Same builders. Same business. A completely different attitude.

The same high mortgage rates keeping buyers on the sidelines are creating opportunities for informed buyers who know how to negotiate and aren't scared to take action!

And some of the biggest savings aren't advertised on the price tag.

According to the National Association of Home Builders, 43% of builders cut prices in October. The average reduction was 6%, and 65% reported offering sales incentives.

On a $600,000 home, a 6% reduction represents $36,000.

That's a lot of money to leave on the negotiating table.

And builders are doing more than cutting prices.

Across Texas, familiar names like Perry Homes, Highland Homes, and David Weekley Homes have been promoting financing incentives, closing-cost assistance, and other offers to attract buyers.

Perry Homes has advertised incentives reaching $50,000 or more in certain Texas markets. Highland Homes has promoted first-year mortgage rates below 5% on qualifying homes in several major Texas markets.

The offers vary, and not every buyer or home qualifies. But the message is unmistakable.

Builders want to make deals again…

Here's something most buyers never consider.

A builder with ten similar homes priced at $600,000 doesn't necessarily want to sell one for $550,000. That lower sale price becomes evidence appraisers and future buyers can use when evaluating the remaining homes.

So instead of slashing the advertised price, builders often find other ways to make deals more attractive.

They can contribute toward mortgage financing, help pay closing costs, or include upgrades that would otherwise come out of the buyer's pocket.

Consider a $600,000 home with 5% down. At a 7.25% mortgage rate, the principal and interest payment is approximately $3,888 a month.

Reduce that rate to 5.25%, and the payment falls to approximately $3,148. 

That's $740 a month. Nearly $8,900 a year.

A permanent reduction of that size isn't free, and its actual cost depends on the lender and financing arrangement. But it illustrates why buyers should look beyond the advertised price and ask what the builder is willing to contribute.

The real question isn't simply, "How much will you take off the price?"

It's "What's the best total deal you can put together for me?"

Now here is where things get interesting...  Imagine two homes in the same community.

One hasn't been built yet. You can choose your lot, select your finishes, and wait for construction.

The other is finished. The appliances are installed, the landscaping is in, and the builder is paying to carry an empty house that hasn't produced a sale.

Which one do you think the builder might be more motivated to sell?

The completed home represents money already spent. Every additional month means more carrying costs and capital tied up in unsold inventory.

That doesn't make every completed home a bargain. But it gives informed buyers a reason to investigate.

You might have to compromise on the countertops. But you could gain something far more valuable: negotiating leverage.

Here's a question I'd ask before making an offer:

"Which completed home in this community would the builder most like to sell before the end of the month?"

And don't stop with one builder... When several builders are competing in the same area, their incentives can become negotiating ammunition.

Here's the irony.

When mortgage rates fall, more buyers enter the market. Competition increases, and builders have less reason to negotiate.

When rates remain high, buyers sit on the sidelines. But builders still have homes to sell.

The very thing discouraging buyers can create negotiating opportunities for those who are ready to act.

Of course, a lower advertised mortgage rate isn't automatically a better deal. Buyers still need to compare financing costs, understand the terms, and make sure the payment is affordable.

But waiting for the perfect interest rate has a cost of its own. The incentives available in a slower market can disappear when competition returns.

A few years ago, buyers were competing for the privilege of purchasing a new home.

Today, builders are competing for buyers.

That's a remarkable reversal, and one that informed buyers shouldn't overlook.

Before visiting a builder's model home, talk with an independent real estate advisor who can compare communities, investigate completed inventory, and negotiate on your behalf.

Remember, the salesperson in the model home works for the builder. Their job is to protect the builder's interests.

Make sure someone is protecting yours.

And if you've been waiting for the perfect time to buy, consider this:

The best opportunity might not be the day mortgage rates finally fall. It might be the day you discover just how badly a builder wants to make a deal.