How to Save Up to 20% on New Construction Homes

In real estate, timing is everything. Right now, builders across the country are sitting on excess inventory, offering some of the most attractive discounts we’ve seen in years—up to 20% off properties, plus additional incentives like rate buydowns, price reductions, and managerial credits worth tens of thousands of dollars.

If you’ve been waiting for the right moment to invest, this could be your golden opportunity. The issue is that not every buyer can negotiate these types of deals, and they need a partner like Rent To Retirement to help find the best deals in today’s ever-changing market.

Why Are Builders Offering These Discounts?

At first glance, a surplus of new construction homes might sound like a red flag. But savvy investors see the hidden opportunity. Here’s why builders are making these deals—and how you can benefit:

Affordability challenges have slowed retail demand

Rising interest rates and inflation have priced many individual homebuyers out of the market. With demand cooling, builders are eager to move properties off their books. Instead of waiting for the perfect retail buyer, they’re willing to negotiate with investors—offering deep discounts and attractive financing options.

Builders need to keep construction moving

Homebuilders work on large-scale projects, and financing is tied to progress. If homes sit unsold, it disrupts their cash flow. Builders offer discounts to investors who can buy in bulk, like Rent To Retirement, or close quickly to maintain momentum, creating a win-win scenario.

Institutional buyers have slowed down

In recent years, significant funds and institutional investors dominated the build-to-rent space. However, many have temporarily pulled back, leaving builders with additional supply. Instead of waiting for Wall Street to return, they’re shifting focus to individual investors willing to capitalize on negotiated wholesale pricing.

The Investor Advantage: What Makes This a Unique Time?

The best deals are going to buyers like Rent To Retirement, who are buying in bulk in grade-A markets and have the experience in stacking opportunities to bring in the highest returns for investors.

As Warren Buffett said, “Be greedy when others are fearful.” While many sit on the sidelines, those who act now can lock in properties below market value and create instant equity.

Here’s how:

Buy below market value and force equity

Builders are selling at discounts, allowing you to buy at 15%-20% below market value. For example, if a home typically sells for $300,000 but you negotiate a 20% discount, you’re purchasing at $240,000—instantly securing a 15%-20% equity position.

Creative financing: Interest rate buydowns and credits

Builders offer rate buydowns in the mid-to-high 3% range, dramatically improving cash flow. Some deals include managerial credits up to $40,000, reducing out-of-pocket costs.

Tax incentives and bonus depreciation

New construction offers significant tax advantages, including bonus depreciation, allowing investors to write off significant portions of their investment upfront. Talk with your CPA to see what type of benefits you can get.

Low-maintenance, high-quality tenants

New builds come with warranties, minimal capital expenditures (capex), and modern features that attract high-quality tenants—resulting in fewer repairs, less turnover, and better rental income stability.

The Build-to-Rent Advantage

The Build-to-Rent (BTR) model offers an alternative path for those looking for a hands-off approach. Builders are partnering with national and regional lease management companies, allowing investors to purchase new homes integrated into a professionally managed rental system. This provides:

Turnkey investment properties with tenants and management in place
Steady cash flow with less operational hassle
Built-in appreciation and equity growth over time

Financing & HELOC Opportunities

One of the most overlooked benefits of buying below market value is leveraging local credit unions or banks that can provide HELOC (home equity line of credit) options. Since many of these properties already have a 15%+ equity cushion, you can refinance or access a HELOC to reinvest in additional properties quicker than if you buy at the top of the market.

Don’t Miss This Window

Most builders currently offer negotiated wholesale pricing, but this opportunity won’t last forever. Once market conditions shift, prices will normalize, and today’s discounts will disappear. The best investors recognize moments like these as rare opportunities to secure high-quality, cash-flowing assets at below-market prices.

Turnkey investing is ideal for busy professionals or those who prefer a hands-off approach, allowing them to own real estate without actively managing their portfolio. It provides an easy entry point into multiple markets, offering guidance from an experienced team to help investors achieve long-term success. If you’re ready to take advantage of unprecedented builder discounts, creative financing, and tax incentives, now is the time to act.

Reach out to Rent To Retirement today if you think this hard-to-beat strategy could be the right fit for you. Time is money, and they have numerous heavily vetted turnkey investment properties.