Most builders prefer incentives over price reductions for a few main reasons:1) more bang for buck in a high rate environment

A price reduction lowers the purchase price. 

That “forced savings” can be a hidden ROI component.Total Return Blend:For my investor clients, I like to blend cash flow ROI + principal reduction + tax savings (interest deduction) to see the true annualized return on the refi decision.So yes — your 20% “cash-on-cost” metric is a great start.

Fun fact, when you buy a home with gold, it's now cheaper than ever.Some markets in the South (TX, FL, AL, AZ...) are currently going down a little, but a 2% or 3% reduction does not fix affordability.

Through transparency - parties resolve via repairs, concession, price reduction and/or compromise. 4.

Having spent two decades in risk mitigation, reduction of liability and safety over all else (even profit, especially profit) is not only a smart way to operate.

Homes priced between $350,000 and $500,000 saw the steepest markdowns at 21.6%, while luxury properties over $1 million were less likely to see reductions, at just 13.3%, according to a Thursday report from Realtor.com."

More days on market and a price reduction never helps market a listing.

Increased pricing along with LTV reductions, and even reserve requirement increases are all stricter as scores get lower. 

They also hate negotiating even a slight reduction from the asking price.