Drive through Ankeny, Waukee, Grimes or Altoona and you'll see "Move-in ready!" and "Special financing!" signs everywhere. Builders have a lot of homes to sell, and they're competing for buyers. Here's how to figure out which offers are actually worth something.

The numbers behind the signs

The National Association of Home Builders' September 2026 survey found builder confidence at its lowest point of the year. Two-thirds of builders (66%) were offering incentives, and 38% had cut prices, by an average of 6%. Nationally, new homes had about 8.5 months of supply in August.

Central Iowa looks similar. Local data this fall showed new construction with roughly 8 months of supply and new homes taking much longer to sell than existing ones. That's leverage for buyers.

The four common incentives

1. Rate buydowns

The builder pays to lower your interest rate. A temporary buydown (like a 2-1 buydown) lowers your rate for the first year or two, then it goes to the full rate. A permanent buydown lowers it for the life of the loan. Temporary buydowns help early on, but make sure you can afford the full payment later.

2. Closing cost credits

The builder covers some of your closing costs. This is great if your biggest hurdle is cash at closing.

3. Upgrades

Finished basements, appliances, upgraded flooring. Nice to have, but they don't lower your payment. Value them at what they'd cost you, not the builder's retail price.

4. Price reductions

A lower price means a smaller loan, a smaller payment and often lower property taxes for years. It also protects your equity if prices in a new subdivision flatten.

Questions to ask before you sign

  • Is the incentive tied to the builder's lender? If so, get a full Loan Estimate from them and from an outside lender. Compare the rate, points, fees and total cash to close.
  • What's the incentive worth in dollars? Ask for the dollar amount, then decide how to use it.
  • Can it be combined with down payment assistance? Sometimes yes, sometimes no. See Iowa's assistance programs.
  • What's the timeline? Incentives often require closing by a certain date. Make sure your loan can close in time.
  • What are the property taxes going to be? New homes are often taxed on the lot at first and then reassessed once complete. Budget for the full amount.

I'm happy to review any builder offer side by side with what I can do, even if you end up using the builder's lender. My job is to make sure you understand exactly what you're getting.