Why New Construction Makes Sense Right Now
For most of the last decade, new construction carried a premium — you paid more for the "new" smell. That flipped. With higher interest rates, national builders are sitting on standing inventory and they are motivated. Instead of dropping the sticker price (which hurts the comps for their whole community), they'd rather pour money into rate buydowns, closing-cost credits, and free upgrades. For a prepared buyer, that's a rare stacking opportunity: a new home can cost less out-of-pocket per month than a comparable resale.
The catch: those incentives are negotiated, not automatic — and the person sitting in the model home works for the builder. That's where I come in.
Rate Buydowns, Explained in Plain English
A rate buydown means someone pays money up front to lower your mortgage rate. On new construction, that "someone" is usually the builder. There are two kinds, and they are not the same:
Permanent (Forward) Buydown
The builder pays points to lock a lower rate for the entire life of the loan. Your payment is lower on day one and stays lower. Best when you plan to keep the home a while — the savings compound every month for 30 years.
Temporary 2-1 Buydown
Your rate is cut 2% in year one and 1% in year two, then settles at the full note rate in year three. Great for easing into payments — or for buyers who expect to refinance if rates drop. The key question I always ask: can you comfortably afford the payment after the buydown burns off? If yes, it's a gift. If no, it's a trap.
Which one is right depends on how long you'll stay, whether you expect to refinance, and how the builder's lender prices it versus an outside lender. I'll run both scenarios with you on paper before you sign anything.
The Incentives You Should Be Stacking
Rate buydowns are just one lever. On a well-negotiated new-construction deal in Central Florida, buyers are currently capturing some combination of:
- Builder-paid rate buydown (permanent or 2-1) through the builder's preferred lender
- Closing-cost credits — often several thousand dollars toward prepaids, title, and fees
- Design-center or upgrade allowances — flooring, cabinets, appliances
- Seller/builder concessions on standing "quick move-in" inventory the builder wants off the books
- Down-payment-assistance layered on top where the buyer qualifies (see my USDA and VA pages for $0-down options)
One rule that saves you thousands
Register me as your agent before you walk into the model home. Builders pay buyer-agent commission out of their own budget — it does not raise your price. But most builders will not let an agent represent you retroactively if you toured and gave your info first. Bring me in on visit one and you get a negotiator on your side for free. Walk in solo and you're negotiating against a professional, alone.
Where the New Construction Is
Central Florida's active new-home pipeline is heaviest in Sanford, Apopka, Ocoee, and the greater Orlando corridor, with additional inventory around East Oviedo and the outer Seminole/Orange county line. I regularly work with D.R. Horton, Pulte, Lennar, Mattamy, Ryan Homes, and Toll Brothers — price points that run roughly $300K to $500K for the communities most of my first-time and move-up buyers target.
Get Your New Construction Game Plan
Tell me your budget and timeline and I'll map which builders are offering the strongest rate buydowns and incentives right now — before you tour a single model home.
You're All Set!
I'll reach out with current builder incentives that fit your plan.
New Construction FAQ
What is a builder rate buydown?
It's when the builder pays money up front to lower your mortgage rate — either permanently for the life of the loan, or temporarily with a 2-1 buydown (2% off year one, 1% off year two, full note rate after). In a high-rate market builders often prefer paying for a buydown over cutting the price, because it protects the community's comps. I'll show you which structure actually saves you more given how long you plan to stay.
Is a 2-1 buydown a good idea?
It can be great — if you can comfortably afford the payment after the buydown expires in year three. If the only way the deal works is the discounted year-one payment, that's a warning sign. I stress-test the fully-adjusted payment with you before you commit, so the buydown is a bonus, not a crutch.
Do I really need my own agent for new construction?
Yes. The model-home sales rep works for the builder. Builder budgets already include buyer-agent commission, so my representation costs you nothing extra — but you generally have to register me before your first visit. Bring me in early and you have someone negotiating incentives, upgrades, and contract terms for you.
Can I combine a buydown with down-payment assistance?
Often, yes — depending on the program and lender. Veterans can pair builder incentives with a $0-down VA loan, and buyers in eligible rural pockets can look at a $0-down USDA loan. I'll help you figure out which stack you qualify for. (Program terms and figures change — we confirm current details with the lender before you rely on them.)