The Incentives Are Real but They Are Not the Whole Story

Lower rates. Closing cost assistance. Upgrade packages. New construction incentives can be genuinely compelling and in the current market builders are offering them more aggressively than they have in years. Mark Clark wants buyers who are drawn to those incentives to look at the complete picture of what they are buying before the contract is signed.

What the Industry Data Is Showing

D.R. Horton reported approximately 1.1 billion dollars in reserves for construction defect claims in 2025. That number reflects the scale of warranty and defect issues that large production builders are managing across their portfolio. Most builder contracts stipulate that repairs are made at the builder’s discretion which means the buyer’s ability to demand specific remedies is significantly more limited than it would be in a standard home purchase with a negotiated inspection contingency.

A separate lawsuit has alleged that buyers were not shown the full property tax burden on finished homes before closing. One buyer reportedly saw their monthly mortgage payment jump by nearly a thousand dollars after the escrow account was adjusted to reflect the actual tax obligation on the completed property rather than the estimates presented during the sales process. That is not a minor adjustment and it is the kind of surprise that a buyer working exclusively with the builder’s preferred lender and the builder’s in-house information may not see coming.

Two Things to Do Before the Incentives Sell You on the House

Hire an independent inspector rather than relying solely on the builder’s quality control process. A third party with no relationship to the builder and no incentive to minimize findings will give you an honest assessment of what you are buying before you are legally committed to buying it.

Use an independent lender like Mark Clark rather than the builder’s preferred lender. Builder-affiliated lenders have a natural alignment with completing the transaction and their incentives may not always point toward giving the buyer the most accurate and complete payment picture. An independent lender will make sure the numbers you are looking at including the full property tax obligation reflect what you will actually be paying after closing rather than what makes the deal look most attractive during the sales process.

The Bottom Line

Lower rates and incentives are only good if the home is worth living in and the payment you agreed to is the payment you actually make. Looking at the whole deal before signing means understanding both sides of the transaction not just the incentives the builder is promoting.

Reach out to Mark Clark with any questions before you sign a new construction contract.

Sources

ConsumerFinancialProtectionBureau.gov
MortgageNewsDaily.com
NAR.realtor
FannieMae.com
Investopedia.com