Builder Incentives - - Which Option Should You Accept for Leland New Construction?

Is a $20K builder credit or a 2-1 buydown better than a price cut in Leland, NC? If you finance and plan to keep the home 5+ years, using the credit to buy down your rate usually beats the same money off the price. I show the real math on two homes I sold: a Logan Homes new build in Terrapin, Leland, and an oceanfront rental on Oak Island where a $75,000 seller credit bought the rate down to 6%. KEY NUMBERS Leland: 2222 Calm Waters Dr, Terrapin (Enclave at Calm Waters), Logan Homes, 4 bed / 3 bath, about 2,350 sq ft, sold $629,015 in September 2026. HOA $171/month. With 50% down at 6.5%, the full monthly payment (principal, interest, taxes, insurance and HOA) is about $2,680. Here are three ways to use a $20,000 builder credit: $20K price cut: about $2,606/month (saves $74/month) 2-1 buydown: about $2,285 in year 1 and $2,478 in year 2, with about $12,800 of the credit left for closing costs Permanent rate buydown: about $2,363/month for the life of the loan (saves $317/month) Oak Island: 4019 E Beach Dr, oceanfront, 7 bed / 5.5 bath, sold $2,049,900 in June 2026. Investor with 25% down: $75K seller credit, rate bought to 6.00%: $9,218/month principal and interest $75K price cut at 7.25%: $10,104/month That's $887/month (about $10,600/year) more cash flow with the buydown Break-even: the price cut is ahead about $29K at year 3, they're about even at year 5, and the buydown is ahead about $33K at year 7 and $79K at year 10 FREQUENTLY ASKED QUESTIONS Is a seller credit better than a price reduction? If you finance and hold 5+ years, usually yes. On this Oak Island home, a $75,000 credit used to buy the rate down to 6% produced $887 a month more cash flow than a $75,000 price cut. Is a 2-1 buydown worth it on a Leland new build? It fits buyers who expect to refinance within about two years or whose income is rising. On a $629,015 Terrapin home with 50% down, it cuts the payment by about $394 a month in year 1 and $202 in year 2. When is a price cut the better choice? When you pay cash, or expect to sell or refinance within about 3 to 5 years. How much can a seller credit be on an investment property? Conventional investment loans can cap seller credits at 2% of the price, though some lenders allow more. Line up your lender before you write the offer. What should Oak Island buyers budget for? Flood insurance, wind coverage and elevation. Flood insurance is often much cheaper on the second row and back than on the oceanfront. CHAPTERS 0:00 Credit or price cut? 0:32 The short answer 0:52 Assumptions 1:26 Leland: 2222 Calm Waters Dr, Terrapin 2:25 Three ways to use a $20K builder credit 4:18 Oak Island: 4019 E Beach Dr, $75K credit vs. price cut 6:08 Two cautions for investors 6:43 How I'd decide ASSUMPTIONS 30-year fixed. Leland: primary residence, 50% down, 6.5% market rate, property taxes at 0.612% of price (Brunswick County plus Town of Leland), insurance $200/month, HOA $171/month. Oak Island: investment purchase, 25% down, 7.25% market rate, principal and interest only. Rule of thumb: 1 point (1% of the loan) lowers the rate about 0.25%. These are estimates for illustration, not a loan quote. Talk to your lender and CPA. WANT THESE NUMBERS ON A SPECIFIC HOME? Schedule a consultation: https://wilmington-real-estate.com/co... Oak Island homes: https://www.wilmington-real-estate.co... Leland and Terrapin homes: https://www.wilmington-real-estate.co... Jay Seville, REALTOR® | Ocean Views Real Estate, Inc. | NC License 273057 Oceanfront, waterfront and new construction in Wilmington, Leland, Oak Island and the Brunswick County beaches. (910) 795-8336 | https://wilmington-real-estate.com/ Listing data comes in part from the IDX program of North Carolina Regional MLS LLC. Information deemed reliable but not guaranteed. #LelandNC #OakIslandNC #BuilderIncentives