Smart Savings: Builders Help Buyers Afford More Homes for a Custom Fit

Specials, discounts, and adjustments are just a few of the ways today’s builders help new homebuyers.

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In a time of rising interest rates, erratic supply chain problems, and rising prices, young parents Juan and Estefania Cevallos lucked out in the purchase of their new home in southeast Calgary.

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With a toddler, a baby on the way and remote work, the couple’s two-bedroom condo in the Mission district had become a shoebox. On the advice of a neighbor, they discovered the Rangeview community, a Section23 Developments garden-to-table community, and are building a track house with Jayman Built.

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“We decided to build because we wanted certain finishes and a design that we wanted. Having something new meant we didn’t have to worry,” says Juan, a consultant for a global technology company.

The builder and the buyers agreed on a price. Juan and Estefania, who received pre-approval for a mortgage before the home purchase began, began negotiations with a mortgage lender and began construction on their new home.

Then came an unexpected surprise, or rather, two unexpected surprises.

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“In the construction process, Jayman came back to us twice with refunds because his materials cost less than expected. So, they reduced the price of our house,” says Juan. “It’s not like we were asking for a discount or a credit. They just reached out and said, here’s an updated price point. It was definitely nice to hear, very unexpected.”

The Bank of Canada began raising interest rates this summer in an effort to curb inflation across the country. Relative to prices in Ontario and British Columbia, Alberta home prices are more affordable and builders are fighting to keep it that way.

Calgary and Edmonton homebuilder Jayman Built finds efficiencies in purchasing large quantities of materials and passes the savings on to customers.

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“We are open and direct with our prices from the beginning. From the time a purchase agreement is written through construction, if input costs are lower than expected, for example if the price of lumber declines based on market conditions, we pass the savings back to customers says Jayman VP Stephanie. Myers.

Some builders, like Jayman, prefer not to implement discounts, but many others give customers the opportunity to add features or upgrade something they might not otherwise be able to afford. Homes by Avi, another Calgary/Edmonton builder, runs several promotions each year. Doug Beach, senior vice president of housing, refers to this approach as a celebration of his clients’ unique needs and preferences.

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“We know that no two customers are the same. At Homes by Avi, we offer several options for our experienced sales teams to use to address each client’s unique homeownership challenges,” she says.

Homebuyers often look for special incentives in their quest to get more homes for less money. These may include free basement development, free detached garage packages, free refinished or refinished appliances, free home technology packages, or the services of a moving concierge at no additional charge.

Morrison Homes, the 2021 Builder of the Year, often offers upgrade packages worth $3,000 to $5,000 each at no extra charge. These include a gourmet kitchen or a spa package – customers choose what they want.

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Morrison buyers who have an existing property to sell can recover part of the listing fee through the builder’s real estate partner, Ally Realty. Former director of marketing Sam Hudson, who recently moved to work with Ally, says clients can save $9,000 when selling a $500,000 home.

“We call it the More Equity Promotion where we cover the listing commission of our clients’ houses and it is transferred as capital in their new home,” he says.

In the search for more affordable housing, Myers encourages buyers to take the time to understand their wants vs. needs and the associated costs.

“Do your research. Then do a careful apples-to-apples comparison of inclusions between the builders you’re considering. Make sure you’re fully aware of the value included as standard, don’t assume,” she says. “It’s also worth looking at the intangibles like track record of customer service and quality of products used in the home to truly define what it means to have ‘the most home for the least money.’”

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