If you are eyeing a new home in or around Riverton, incentives can make a real difference in your payment and cash to close. Builders use them to move inventory and hit sales goals. Your job is to shape those offers into total value, not just a flashy monthly payment. This guide shows you how.
Last checked: October 2025. Always confirm current offers and loan rules before you sign.
What builder incentives mean for new-home buyers
Builders offer financial perks to speed up sales, balance budgets, and keep prices stable in their communities. In a market where more homes sell below original list price and inventory is up from the tightest years, builders are often flexible on quick move-in homes and at quarter or fiscal deadlines according to regional coverage.
The key is simple: compare the whole package. Rate, points, credits, upgrades, and fees all roll up into what you pay up front and every month.
Types of builder incentives you can negotiate
Rate buydowns and closing-cost credits
- Interest-rate buydowns: A builder or lender pays points to reduce your rate. You might see a temporary 3-2-1 buydown that steps up each year or a permanent buydown that lowers your rate for the life of the loan. Ask the lender to show both options on a Loan Estimate so you can compare long-term cost and payment changes see consumer guidance.
- Closing-cost credits: Builders often offer a credit at closing, sometimes tied to using the preferred lender or title company. Get the condition in writing, and confirm how the credit will appear on the Closing Disclosure consumer disclosure rules explained here.
- Local examples to watch: National and local builders in Utah routinely advertise rate promotions and preferred-lender credits, including quick move-in packages and interest subsidies. Check current posts and fine print on builder pages such as Ivory Homes rate programs, Wright Homes offers, and EDGEhomes incentives.
Price reductions vs. design upgrades
- Price cuts lower your loan amount and can help with appraisal in some cases.
- Upgrade credits can add livability and resale appeal without changing comps the builder wants to protect. If a builder resists a base-price cut, redirect to high-impact upgrades or closing credits.
Lot premiums, elevation, and structural options
- Structural choices like a 3-car garage, main-level suite, or deeper basement usually add more long-term value than cosmetic features. If you need a premium lot, try to offset the premium with a bigger closing credit or a permanent buydown.
Design center credits and appliance packages
- Ask for a design credit you can use on flooring, counters, and tile. Prioritize items that cost more to change later, such as flooring on the main level and shower tile over light fixtures or cabinet pulls.
- Appliance bundles can be worth thousands. Nail down model numbers and delivery timing in writing.
HOA/club dues, warranties, and fees
- You can often negotiate prepaid HOA dues, landscape packages, or basic fencing.
- Ask for an extended builder warranty or a punch-list escrow at closing so small items get finished quickly. Get warranty terms in writing and review what is covered vs. considered “cosmetic” see general new-home inspection and warranty guidance.
Negotiation playbook for new construction buyers
Time your ask and anchor around inventory
- Spec or quick move-in homes give you the most leverage because carrying costs push builders to deal.
- Builders are usually more flexible near month, quarter, and fiscal year ends when they are closing out targets.
- Watch for advertised special rate windows and bundle your ask while the promotion is active.
Work with and without a preferred lender
- Using the builder’s lender often unlocks the largest credits, rate locks, or buydowns. Still, get a side-by-side quote from an outside lender the same day so you can compare rate, points, and fees.
- If the outside quote is better, ask the builder to match the cost or convert some lender-only credits into a general seller credit. Make sure every dollar shows on the Loan Estimate and, later, on the Closing Disclosure consumer guidance here.
Bundle asks for maximum value
Package your requests in order of impact:
- Permanent buydown or closing-cost credit big enough to cover title, escrow, and lender fees.
- Structural or lot concessions you cannot add later.
- Design center credit for high-ROI finishes.
- Prepaid HOA dues, landscaping, and appliance bundle.
If you need to give something back, drop lower-value perks first and protect the items that drive total cost and livability.
Put everything in writing and set deadlines
- Your offer should list the exact dollar amounts, conditions, and expiration dates for incentives.
- Ask the sales rep to issue a signed incentive addendum that references how credits will show on the Closing Disclosure.
Compare total package across builders
Use a simple worksheet to compare apples to apples:
- Base price minus price reductions
- Final rate and points after incentives
- Total credits to closing costs
- Dollar value of upgrades and included appliances
- Lot premium, HOA setup and dues, and any fees
Pick the offer with the lowest lifetime cost for the home you will actually live in.
Financing and contract safeguards to protect your deal
Builder contract terms and contingencies
New-build contracts are not standard state forms in many cases. Read for deposit rules, change orders, timelines, and remedies for delays. Ask for addenda that protect inspection rights, define completion standards, and clarify what happens if the builder misses the deadline. Utah buyers and agents often use new construction REPC language and addenda to structure these items see local forms guidance and a primer on Utah new construction contracts here.
Appraisal, price protections, and escalation
If your package includes large credits or upgrades, talk through appraisal strategy. You can:
- Request the builder contribute to a permanent buydown instead of a price cut if comps are thin.
- Add an appraisal contingency and discuss cures if value comes in short general contingency overview.
Inspection rights and warranty coverage
Schedule pre-drywall and final inspections. Even new homes have punch-list items. Ask for a punch-list holdback or clear completion timeline and confirm the process for warranty claims after closing inspection and punch-list tips.
Timelines, delays, and rate lock strategy
- Coordinate your build schedule with your rate lock. If the timeline is long, ask for a longer lock or a float-down feature. Document who pays any lock extension fee.
- Understand payment changes with temporary buydowns so you are not surprised when they step up later. Some buyers who relied on big buydowns faced payment shock when they expired recent reporting. Do not plan your budget around a refinance that may or may not arrive on your timeline broad market caution.
Budgeting for the full cost—not just the headline deal
Prioritize upgrades with strong ROI and daily impact
- Get the floor plan, structural options, and storage you need first.
- Choose durable, whole-house finishes in the areas that are hardest to redo later: main-floor flooring, stairs, shower tile, and kitchen counters.
- Save swappable items like faucets and lights for after closing if the budget is tight.
Account for soft costs and ongoing expenses
- Include taxes, insurance, utilities, windows coverings, landscaping, and backyard fencing in your budget.
- Review HOA setup fees, monthly dues, and any club fees. Ask if the builder will prepay a year of dues or include a basic landscape package.
Validate the value against resale alternatives
Before you sign, compare your net new-build cost to nearby resale homes. Make sure the incentives you are getting truly offset any premium for new construction and that the location and features fit your long-term plan.
Move forward with confidence on your new build
Builders around Riverton regularly offer rate programs, closing credits, and upgrade packages. If you time your ask, compare lenders, and get every concession in writing, you can turn those offers into real, lasting value. If you are a first-time buyer, also consider state programs for new construction that may stack with builder incentives. Utah has offered first-time buyer assistance targeted to new builds, with funds and caps that shift by year. Check current eligibility and limits before writing an offer Utah Senate program overview and Utah Housing Corporation product info. For broader state budget context on housing programs, see this resource.
When you are ready to compare builders side by side, I will help you line up total cost, incentives, and timelines so you do not leave money on the table. Let’s connect and build a plan that fits your budget and goals. Start with a quick consult at Nick Booth Real Estate.
FAQs
Are builder incentives in Riverton real, or just marketing?
- They are real, but value varies. Tie every offer to a dollar figure on your Loan Estimate or Closing Disclosure so you can compare total cost. Ask for permanent buydowns, credits to closing, or high-impact upgrades.
What is the best time to negotiate with a builder?
- When there is standing inventory, toward month or quarter end, or if your home is a quick move-in. Builders are often more flexible when carrying costs rise or deadlines approach.
Should I use the builder’s preferred lender?
- Use the quote to unlock credits, then get a same-day quote from an outside lender. If the outside offer is better, ask the builder to match or convert lender-only credits to a general seller credit. Compare with CFPB-tracked Loan Estimates and Closing Disclosures consumer guidance.
Are temporary buydowns risky?
- They can be if you rely on them to afford the payment. Payments step up when the buydown ends, and refinancing is not guaranteed. Review the full payment schedule and long-term costs more context.
Can I combine state assistance with builder incentives?
- Often yes, if program rules allow. Utah’s first-time buyer programs and UHC options have income and price caps. Confirm current rules and funding status before you write your offer state overview and UHC info.
What protections should I insist on in a new-build contract?
- Clear inspection rights, documented completion standards, refundable deposit terms where possible, appraisal and financing contingencies, and written timelines. Utah buyers commonly use new construction REPC forms and addenda forms info with extra contract education here.
What should I prioritize if my budget is tight?
- Structural must-haves, permanent finishes that are hard to change, and a permanent rate buydown or meaningful closing credit. You can add cosmetic upgrades later.
