If you have been scrolling through Zillow looking at new construction in Leland, Hampstead, or Riverlights, you may have noticed a trend: builders are not dropping their prices. Instead, they are rolling out aggressive financial incentives.

In Q1 of 2025, the "sticker price" of a home is often non-negotiable because builders need to protect the appraisal values of the neighborhood. However, the terms of your purchase are highly negotiable. The most powerful tool currently on the table for buyers in Southeastern North Carolina is the Rate Buydown.

Here is how to cut through the marketing noise and negotiate a deal that actually lowers your monthly payment.

The Strategy: "Flex Cash" is Your Best Friend

Builders like D.R. Horton, Lennar, and Trusst Builder Group are currently offering significant "Flex Cash" incentives—sometimes up to $10,000 to $20,000—to close on inventory homes before the spring rush.

They often advertise this as "Design Center Credit," but smart buyers know to pivot. Granite countertops are nice, but a lower mortgage payment is better.

The Move: Ask the builder to apply that $15,000 incentive toward a Rate Buydown instead of upgrades. In many cases, they will agree because it costs them the same amount but makes the home affordable for you.

Know the Difference: Temporary vs. Permanent Buydowns

When a site agent offers you a "lower rate," you must ask: "Is this temporary or permanent?"

1. The 2-1 Buydown (Temporary)

This is the most flashy offer you will see advertised (e.g., "Rates starting at 3.99%!").

How it works: The builder prepays interest to lower your rate by 2% for the first year and 1% for the second year.

Year 1: 4.5% (Example)
Year 2: 5.5%
Year 3-30: 6.5% (The actual note rate)

Who it's for: Buyers who expect their income to rise or plan to refinance before Year 3. It provides immediate payment relief but no long-term security.

2. The Permanent Buydown (Buying Points)

This is often the smarter play for the long-term investor.

How it works: You use the builder's incentive cash to buy "discount points" that lower the interest rate for the entire life of the loan.

The Result: Instead of a 6.5% rate, you might lock in a fixed 5.75% forever.

Who it's for: Buyers in Brunswick Forest or Compass Pointe who plan to retire in this home and want a stable, predictable payment for the next 20 years.

The "Q1" Leverage

January through March is a sweet spot. Builders have inventory sitting from the holidays that they want off their books before the spring market heats up.

Negotiation Tip: Look for "standing inventory" (homes that are already finished). A builder pays daily holding costs on these homes. They are far more likely to negotiate a massive rate buydown on a finished home in Winnabow than on a dirt lot in Porters Neck that won't be ready for 8 months.

Don't Navigate the Showroom Alone

Site agents work for the builder, not for you. Their job is to sell you the house at the highest price with the least amount of friction.

At Aspyre Realty Group, we act as your advocate. We can help you run the math: Is the 2-1 buydown actually a deal, or should we push for a price reduction instead? We translate the builder's complex financial offers into clear monthly numbers so you can make a decision that fits your life, not just their sales quota.

Before you walk into a model home this weekend, let’s connect. We’ll arm you with the right questions to ask to ensure you get the incentives you deserve.