Sometimes, when you visit a builder’s website, you’ll see an advertisement for their current promotion. While the details vary from builder to builder, these promotions tend to include things like free upgrades, free appliances, or raffle prizes. At first glance, these promotions sound fantastic. But are they all they’re cracked up to be?
Once you learn more about them, you’ll be able to separate the good offers from the bad and use your knowledge to make a choice that’s right for you. Keep in mind that not all builders offer promotions. Every company has their own strategy they follow. Some homes may not have a promotion, but be priced so competitively that it is actually the best deal even if there isn't anything "free".
They’re an Advertising Technique
Any business promotion is an advertising technique. It’s usually easy to remember that when we’re talking about BOGO offers at your favourite grocery store or “free gift with purchase” offers from the department stores, but people sometimes forget that builder promotions are also advertising. By offering a good promotion, the builder is hoping to get you excited about their company. Knowing that you could get $10,000 worth of upgrades can bring you into the show home for a tour. Once there, they have an opportunity to sell you on their company.
Even when you’ve already chosen a particular company, the promotions can make you feel better about the choice you’ve made. They make you feel like the company cares about you and that they’re giving you a good deal.
Stay Focused on What You Need
Sometimes, the builder is offering you something that you don’t really need, like a patio. Sure, getting that patio for free might sound nice, but if you weren’t already going to spend that money on a patio, you’re not getting any savings. On the other hand, if you were planning on adding upgrades to the master suite and a builder is offering free upgrades to the master bathroom, then you might be getting a good deal.
You Might Not Qualify
Read the fine print on the promotional offer. Builders often use promotions to get a new community off the ground, so the promotion may only be available to those choosing to build in a particular community. If you want to build elsewhere, the promotion may not be available. Additionally, some promotions are only available to a limited number of people or specific homes. If you take your time in making your purchase, you can miss the cut-off. Talk to the New Home Sales Consultant about any restrictions or time-constraints before you get too far into the process.
Beware of Values That Are Higher Than Average
The builders want you to feel like you’re getting something that’s worth a lot of money, so they might overvalue what they’re offering. For instance, the builder might offer you a deck that’s valued at $30,000. That makes it sound like you’re saving $30,000. However, if you were to look into the prices from outside contractors, you might find that it usually only costs $24,000 to build a deck. Suddenly, the offer loses some of its shine. Make sure you do your homework to ensure you're getting a good deal.
There May Be a Catch
It’s not uncommon for there to be a catch associated with the promotion. For instance, the promotion might only be available to those who use the builder’s preferred lender. That choice might work out for you, but if you have a higher interest rate through the preferred lender, you could end up paying more money overall.
Another “catch” that’s common is having limited options when it comes to taking advantage of the promotion. You might get free quartz countertops through the deal, but you’ll only be able to choose from three or four styles. If you ordered the quartz countertops on your own, you’d have a wider selection. Again, this might not be something that matters to you, but if you have specific tastes, you’ll want to be wary.
You Can Get a Great Deal with a Builder Promotion
We may be painting a somewhat negative picture of builder promotions, but this isn’t our intention. While we do want you to be aware of what to watch out for when it comes to choosing a company for its promotions, we also want you to know that promotions can be a great way to get the best deal on your home. The key is to look for promotions that match your current needs. A good promotion will save you some money rather than give you a bonus that you didn’t really want in the first place.
There are excellent promotional offers at all times of the year, so come check out what we have to offer. We think that you’re going to like what you see.