New Construction Concessions: Where the Real Negotiation Happens

If you've ever fallen in love with a shiny new build, perfect floor plan, untouched appliances, that new house smell, you've probably also noticed one thing: builders don't love cutting their prices.

And honestly, that’s not stubbornness. It’s strategy.

With new construction, the list price is often carefully calibrated to protect future appraisals and maintain value across the entire community. If one home sells for less, it can ripple through the neighborhood faster than you’d think.

But here’s the good news (and where working with an experienced agent really matters):
a firm price doesn't mean there’s no room to negotiate. It just means the negotiation looks different.

Let’s talk concessions and how to use them wisely.

• 1. Closing Cost Contributions

  This is one of the most common (and impactful) concessions.

  Builders may offer to cover:

  • Loan origination fees

  • Title costs

  • Prepaids like taxes and insurance

  This can significantly reduce the amount of cash you need to bring to the closing table, especially helpful if you’d rather keep funds available for furniture, landscaping, or that first round of window treatments.

• 2. Design Center Upgrades

  If the home isn’t finished yet, this is where negotiations can really shine.

  Think:

  • Upgraded countertops or cabinetry

  • Hardwood flooring instead of standard options

  • Enhanced lighting or plumbing fixtures

  These upgrades often cost builders less than their retail value, but they can make the home feel far more custom and save you from remodeling later.

• 3. Appliances, Blinds, and “Move-In Ready” Extras

  Sometimes it’s the practical details that make the biggest difference.

  Negotiable items may include:

  • Refrigerator, washer, and dryer

  • Window blinds or shades

  • Fencing or basic landscaping

  Individually, these may not seem like deal-makers. Collectively, they can add up to real savings and a smoother move-in experience.

• 4. Interest Rate Buydowns or Preferred Lender Incentives

  Many builders work closely with preferred lenders and can offer incentives such as:

  • Temporary or permanent interest rate buydowns

  • Lender credits toward closing costs

  In the right scenario, this can lower your monthly payment more effectively than a small price reduction would.

• 5. Timing Is Leverage

  Builders are businesses with timelines.

  You may have more negotiating power if:

  • The home is move-in ready and sitting completed

  • The builder is nearing the end of a quarter or year

  • There’s limited remaining inventory in the development

  This is where strategy and local market insight matters most.

The Bottom Line

With new construction, price is often the headline, but concessions are the story.

The right combination of closing costs, upgrades, and incentives can dramatically improve the overall value of your purchase without touching the list price. The key is knowing what to ask for, when to ask, and how to structure the offer so it works for both sides.

That’s where a seasoned local agent makes all the difference, especially in a market like Nashville, where new construction continues to evolve neighborhood by neighborhood.

If you’re considering a new build and want help navigating the negotiation (without leaving value on the table), we’re always happy to guide the conversation.