New construction incentives in San Marcos too good to be true?

[Omer Hassan]

Hi BP family,

I'm looking at a new construction home, single family, in San Marcos that is being offered as a "home of the week" deal by the builder. They're offering about 75k worth of incentives, and I'm allowed to use that in a variety of ways.

I'm lowering the price by 65k, and using the rest towards closing costs so I can have cash on hand for the next property. 

I'm wondering if this is typical? 75k seems overkill for an incentive and I'm wondering if something is wrong here? I was able to get the seller agent to give a 30 day grace period where I can get my 1k deposit back for any reason. What can I do during that 30 days to make sure I'm getting the best deal possible? 

Original price is 375k and I'm getting it for around 310k.

Would appreciate any help here as I am investing out of state, though will be house hacking and living in the home for a bit. Also a bit worried about finding renters since its a bit far from the University, but still within a 10 min driving distance.

Thank you!

[Jay Hurst]

Quote from @Omer Hassan:

Thank you both for the info. This particular builder's deal is:

- offering 7k in closing costs

- adding appliances for ~4k (too much I know).

- And the rest of the 61k they're using to bring the price down from 370k to that ~310k 

So all in all 75k in incentives. But I'm not sure how that relates to the true value of the home, is it really 370k or did they just list it at that price and now the market has been corrected. Imo the house could really be worth 340k or something in this current market, so their incentives could be misleading. 

 what do the sold comps say?  Anyone can market a house for 375k, but then knock off 75k for a  "just for you" price, but is it worth the 300k?  I have no idea but you should before you buy it. The 375k number is irrelevant.