Builders offer creative incentives as a bonus to prudent buyers

In today's real estate market, new homebuilders are getting creative.

They know it takes more than a model with granite countertops and a stone fireplace for buyers to sign on the dotted line. So many homebuilders are offering incentives as a way to attract buyers to their new home communities.

Some builders offer reduced prices on spec homes while other tempt buyers with free options and other gifts. They may throw in a free swimming pool for a high-priced custom home. In a soft market, many new homebuyers find it hard to resist the lure of these builder incentives.

With affordable home prices, low interest rates and builder incentives, home affordability today is ideal, said Chris Naatz, vice president of sales and marketing for the Illinois division of Pulte Homes. "It's an incredible time to buy a new home."

Let's take a look at what incentives area builders are offering homebuyers.

Lower prices

Lowering prices on spec homes is the cream of the crop of builder incentives. Many homebuilders will put up several homes in a community as spec homes built on speculation that people will purchase the homes and move in quickly.

To reduce inventory once these homes are finished, builders will offer spec homes with upgrades at a lower asking price than if customers built the home and added those same upgrades.

For a limited time, Lexington Homes offers a selection of homes for immediate move-in at reduced prices at all three of its townhouse communities - Lexington Park in Des Plaines, Willow Place in Wheeling and Lexington Square in Bridgeport. The homes include between $8,000 and $25,000 in free upgrades and options.

"We had built a selection of homes to meet demand for the homebuyer tax credit that expired in April, but not everyone was able to meet that deadline," said Jeff Benach, co-principal of Lexington Homes. "So to offset the expired tax credit, we've dropped prices on a handful of upgraded, immediate-delivery homes below our listed base pricing at all our communities."

At Lexington Park, one of the homes for immediate delivery is the 1,758-square-foot Warrington, priced at $256,000, which includes upgrades of birch cabinetry, stainless steel appliances, hardwood floors in the kitchen, ceramic tile in all baths and entries, and oak rails with iron balusters. The home features signature touches like arched entryways, a kitchen pass-through with breakfast bar and first-floor den.

Likewise, J. Lawrence Homes offers family-friendly inventory homes ready for move-in at Midlane Club in North suburban Wadsworth and Embry Estates in Southeast suburban Lynwood. "These homes provide a great opportunity for families to upgrade to a larger home and move in quickly," said John Wozniak, president of J. Lawrence Homes.

The Hazeltine is one early-delivery home at Midlane Club. The 2,019-square-foot ranch is priced at $291,175 and features two bedrooms, two baths, great room, family room, den, partial basement and attached two-car garage.

Upgrade highlights include a three-sided fireplace with granite surround and hardwood flooring in the kitchen, eating area and foyer. The kitchen also is upgraded with 42-inch cabinetry and black GE appliances. The master bedroom has a walk-in and double-door closet, bath with dual-bowl vanity, ceramic tile flooring and separate tub and shower.

"This home is a terrific value as it offers maintenance-free living and high end finishes for less than $300,000," Wozniak said

Lot reductions

For a limited time only, Airhart Construction offers discounts on selected lots in its Fisher Farm subdivision in Winfield. The offer features lots from some of the most desired locations in the development. Two of the lots have golf course views; two feature views of the pond; two offer a lookout basement; and one site has a view of the woods. Home sites include full sod, deluxe landscaping package and site improvements.

"Even though sales have picked up since we offered the discounts, we will continue to offer them for a while longer," said Bill Whelan, marketing manager. "With the community in its early stages, the sale-priced lots are strategically located to help people envision how the community will look when completed."

With the new discounts, a buyer can build a custom home in Fisher Farm for less than $300,000. Lot availability is subject to change without notice.

Reduced-price options

With the average new homebuyer spending about 10 percent of the purchase price on upgrades, reduced option prices are a popular incentive.

For September, Pulte Homes offers 50 percent off options up to $20,000 for all three brands - Pulte, Centex and Del Webb. "This adds value for our customers to be able to personalize their new homes with the options they select," Naatz said.

William Ryan Homes is extending its August sizzling hot summer savings, which means buyers can get free central air, stainless steel refrigerator and ceiling fans through September.

Each of these options are worth a certain amount of money, and if buyers don't want those options, then they can trade for what they do want, said Debbie Beaver, vice president for William Ryan Homes. "We don't tell people what they want in their homes; we like people to select what they want."

Standard features plus

For a limited time only, West Point Builders offers full basements at no extra cost during pre-construction sales of its new Park Series single-family homes at West Point Gardens in Elgin.

Part of the award-winning Traditional Neighborhood Design community, the series features four floor plans from $159,900 to $189,900. Renters should note that monthly principal and interest payments start as low as $823.49, lower than many area rents.

The community sits on 173 acres in the Randall Road corridor on the west side of Elgin, where some of the new series homes will overlook the 14-acre Meier Park, while others will have scenic views of a landscaped area.

"We urge buyers who want outstanding value in a friendly, well-established community to act now and receive a full basement included in home prices," said Pat Curran, president of West Point Builders.

Plote Homes will waive the initiation fee for a golf membership at Boulder Ridge Country Club for new homebuyers at Lakes of Boulder Ridge in Lake in the Hills. The community features 242 luxury duplexes on 143 acres with lakes, rolling vistas and beautiful golf course views.

"This is a wonderful opportunity for golfers who purchase homes in this community," said Chris Podraza, director of sales.

Set in a prime location near the Randall Road corridor, homes for sale sit alongside the Boulder Ridge Country Club, a private members-only club featuring a 27-hole championship golf course, swimming pool, and tennis courts.

Five different floor plans available for sale feature 1,630 to 2,243 square feet with prices starting at $249,900.

Hometown heroes

In appreciation of public servants, builders offer a variety of incentives for military veterans and others when purchasing new homes.

For example, Pulte Homes' Hometown Heroes program offers military, police, firefighters, paramedics, doctors, nurses, school principals and teachers 1 percent of the base price of a new home toward options in a Pulte community.