The Builder’s Incentive Is the Real Competition 

By T.W. Shortt, CRS®, CRB®, Broker, REALTY WORLD Knox Realty Group, LLC 

When homeowners prepare to sell, they usually look at other existing homes in their neighborhood and ask, “What are those houses listed for?” 

That remains important—but it may no longer identify their strongest competition. 

In portions of Hardin County where new construction is available, the resale seller may be competing against a builder with something the ordinary homeowner usually cannot match: access to financing incentives, rate buydowns, closing-cost assistance, warranties, and included upgrades. 

The U.S. Census Bureau and Department of Housing and Urban Development reported on August 25 that new single-family home sales during July were running at a seasonally adjusted annual rate of 607,000. That was 10.5% below the revised June rate. The nation had approximately 488,000 new homes available for sale, representing 9.6 months of supply at the current sales pace. 

Those are national figures—not Hardin County statistics. They should not be presented as proof that our local market has 9.6 months of new home inventory. Nevertheless, they help explain why builders facing slower sales and larger inventories may use incentives to move completed homes. U.S. Census Bureau and HUD 

We can already see evidence of this type of competition locally. A recently advertised new construction property on Secluded Circle in Radcliff offered a one-year builder warranty and a rate buydown with an acceptable offer. Other Hardin County news home listings have shown recent price reductions. These are examples, not universal programs. Every incentive must be verified directly with the builder, listing brokerage, and lender because availability, expiration dates and qualification requirements can change. 

Why does this matter to a resale seller? 

Consider a builder and a homeowner each offering a house for $325,000. The seller may think the two properties are competing on equal terms. But suppose the builder offers several thousand dollars toward closing costs or pays to reduce the buyer’s mortgage rate. The builder’s home could produce a lower initial cash requirement or monthly payment, even though both properties carry the same advertised price. 

The buyer is not merely comparing two list prices. The buyer is comparing two complete financial packages. 

A resale seller may still have important advantages. The existing home may have mature landscaping, fencing, window coverings, appliances, a finished basement, or other improvements not included in the builder’s base price. It may also be in an established neighborhood closer to Fort Knox, schools, employment, or shopping. 

However, sellers must identify, value, and market those advantages. Buyers can’t be expected to discover them. 

Resale sellers have several ways to compete. They can price the property realistically, complete needed repairs, improve presentation, offer closing-cost assistance, or consider a lender-approved rate buydown. Sometimes a $7,500 concession that improves the buyer’s payment or reduces cash needed at closing may attract more attention than a $7,500 price reduction. 

Any financing illustration should come from a qualified lender. Loan programs have different limits, and the property must still support the negotiated price through appraisal. 

The lesson for Hardin County sellers is straightforward: competition isn’t determined by age alone. A newly built home several miles away may be competing directly for the same buyer. 

Today, the house next door may not be your greatest competition. The builder’s incentive package may be.

Disclaimer: This article was first published in The News-Enterprise on September 5, 2026, by T.W. Shortt.

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