Builder Deals vs. Resale Negotiations: How to Build a Better Deal Yourself

If you’ve spent five minutes shopping for homes around San Marcos or Central Texas, you’ve probably seen a builder deal that sounds too good to pass up. “Rate Buy-Down!” “We’ll Pay Your Closing Costs!” And sometimes those are worth it. But what most buyers don’t realize is you can often build the exact same kind of deal on a resale home (and sometimes get a better property while you’re at it).

I see it all the time, especially with first time home buyers: new construction deals and lender advertisements are flashy up top but can sneak fees and restrictions in along the way. Meanwhile, in this market, resale sellers are motivated too- and if you know how to structure a deal right, you can negotiate for repairs, closing costs, seller concessions, rate buy downs, and even appliances or furniture. Let me break it down.

What Builders Are Offering Right Now

In San Marcos and surrounding areas, builders are closing homes an average of 11% off original list price. That’s a big gap. In addition to price reductions, they are throwing in incentives, usually in the form of:

  • Seller paid concessions: Can be used for rate buy-downs, closing costs, or other lender fees (but not your down payment)

  • Title policy and survey costs covered

  • Commission for your agent (yep, I still get paid even when negotiating hard for you)

Buuuuut…to use their incentives, you often have to go through their in-house lender and title company. And while the title insurance rate is set by the state of Texas, the fees (recording, doc prep, notary, etc.) are not. Those can add up. Plus, their in-house lenders sometimes inflate origination and underwriting fees, which quietly eat away at those incentives they just offered.

Pro tip: Don’t skip comparing loan estimates from competing lenders and title companies line-by-line.

What Resale Sellers Are Offering

In the resale world, homes are closing about 4% off list price. But again, that’s just the start.
For example, I recently helped clients buy a resale home by getting under contract for 4% under list price, and then negotiated an additional 2% in repairs on top of that.
Another resale I handled saw sellers toss in appliances and closing costs, plus the buyers got a far more established yard and neighborhood than they would have with new construction.

On a resale, we can negotiate everything without being locked into a specific lender or title company.

My #1 Piece of Advice

Don’t fall for the marketing headline- run the numbers.
When a builder offers $5K off, but you pay $7K more in origination fees, extra closing costs, and title charges, not to mention higher rates, it’s NOT a deal. On the flip side, a resale home with no concessions or repairs but a great price can be a win. When you’re free to pick your own lender and title company without extra fees or fine print, the bottom line can work out better.

I tell my buyers:
Shop for what you can (title, lender, insurance).
Negotiate what you should (price, closing costs, repairs).
Pay for what you must (taxes, survey, recording).

And remember- whether it’s new construction or resale, hire an inspector. Never skip this step, builder warranty or not.

Final Thought

The mistake most buyers make is only looking at existing homes or only looking at new construction. You don’t know what’s possible if you haven’t compared both.

Thinking about a purchase?
Before you sign anything at the model home, let’s run the numbers side by side. No pressure, no jargon, just a clear picture of what you’re getting. There might be a better deal hiding in plain sight.

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What Is a PID, an Option Period, and How Do You Even Get Under Contract? A Plain-Talk Guide for Central Texas Buyers