LAS VEGAS (KTNV) — New home builders are getting creative, and they are trying to encourage home buyers to sign on the dotted line by offering incentives during a time when borrowing money has become less affordable as interest rates are up.
Home builders are waving costs like closing fees and buying down interest rates. Sara Younis is a first-time home buyer who says by purchasing a new home she is saving thousands of dollars.
"You get scared it is a lot of money you are putting down, it's a commitment for 30 years," Younis said.
After about a year of looking for a home, the wait was finally over.
"With new homes, they have a lot of incentives so even though rates are at 7 and even 8% now they have incentives, and they have buydowns," said Younis.
After the fourth interest rate hike by the federal reserve back in early November, Younis was concerned about the affordability of purchasing a home. She found a realtor, did her research on new homes and found a match in North Las Vegas. What won her over were the aggressive home builder incentives saving hundreds of dollars in her monthly payment.
"If I was to go preowned 5.75 was what I got approved for and I ended up with a 3.99 interest rate," said Younis.
But that wasn't all, she also got all new appliances included, and closing costs waived. Over in Southwest Las Vegas, another new development being built by Touchstone Living called "First" is under construction and just like Sara’s new development, the builder is also offering an incentive buy down on mortgage loans for first-time home buyers at an interest rate of 4.875%, closing costs estimated at about 8,000 dollars are also waived, and new appliances are included…
Tom McCormick the President of Touchstone Living says right now the biggest problem for buyers is the monthly payment.
“We believe especially with the solar system we are saving you anywhere from 25,000 to 40,000 dollars in included features,” McCormick said.
Daniel Caldera with The Agency in Las Vegas says this race for buyers using attractive cost reductions is rare.
"We haven't seen any incentives like that for a really long time so it's very nice to have the wiggle room, where before it would be what it is, and now you can negotiate,” Caldera said.
Sara says she had to take advantage.
"Once you dip your toes in and you realize you are paying the same in your rental at least now your building equity it was really good,” Younis said.
Sara also says representation is critical, she encourages all buyers to find realtors that will make sure they get their money’s worth.
