Stop Announcing Incentives. Start Prescribing Them.

Every new home salesperson has done this.

Buyer walks in the door. You greet them, start the conversation, and somewhere in the first five minutes you say:

"And right now we're offering $25,000 in incentives—$15,000 toward closing costs and $10,000 toward options!"

You think you're hooking them. You think you're creating excitement.

What you're actually doing is wasting one of the most powerful tools you have.

Let's talk about how to use incentives the right way.

The Problem With Leading With Incentives

Here's what happens when you announce incentives too early:

1. You create noise instead of clarity.

The buyer just walked in. They don't know your floorplans. They don't know your homesites. They don't know if they even like the community. And now you're throwing numbers at them—$15,000 here, $10,000 there, preferred lender this, rate buydown that.

Their brain can't process it. It becomes background noise.

Research on cognitive load—pioneered by psychologist John Sweller—shows that when people receive too much information before they have a framework to organize it, retention and comprehension plummet. Your incentive package becomes a blur of numbers that they won't remember by the time they get to the car.

2. You commoditize your product.

When the first thing out of your mouth is "Here's what we're giving away," you've told the buyer exactly what to focus on: discounts.

Now they're not thinking about the community, the quality, the lifestyle, or why your homes are worth the price. They're thinking about how your deal compares to the builder down the street.

You've entered a race to the bottom. And there's always someone willing to go lower.

3. The incentive has no anchor.

Here's the real problem: An incentive without context has no emotional weight.

"$15,000 toward closing costs" is just a number. It doesn't mean anything until the buyer understands how it helps them specifically.

But "$15,000 toward closing costs means you don't have to drain your savings for the down payment—you can keep that emergency fund intact and still move forward" is a solution to a problem they actually have.

Same incentive. Completely different impact.

The Psychology of Value Perception

There's a principle in behavioral economics called framing. The way information is presented dramatically affects how it's perceived.

Classic example: People respond differently to "90% fat-free" versus "10% fat." Same product. Different frame. Different perception.

Incentives work the same way.

When you announce "$10,000 toward design options," the buyer hears a number with no frame. It floats in space, meaningless.

When you say "You mentioned you need a dedicated home office since you work remotely. That $10,000 in options credit covers the flex room conversion and built-in desk setup—you get your office without paying a dime extra," now the incentive has a frame. It solves their specific problem. It has weight.

This is why discovery comes before prescription. You can't frame the incentive effectively until you know what frame matters to this buyer.

Discover First. Prescribe Second.

The best salespeople treat incentives like a doctor treats medication.

A good doctor doesn't walk into the exam room and start listing every drug they can prescribe. They ask questions. They diagnose. They understand the problem. Then they prescribe—and when they do, they explain exactly why this medication addresses this specific issue.

You should do the same thing.

Before you ever mention an incentive, you need to understand:

• What's driving their move? Why now? What's the urgency?

• What's their financial picture? Are they cash-constrained? Rate-sensitive? Worried about monthly payment?

• What do they need in the home? More space? Specific features? Flex rooms?

• What's holding them back? Fear of the market? A home to sell? Uncertainty about qualifying?

  
  

Once you know these things, you can prescribe the incentive that directly addresses their situation.

And that prescription will land with ten times the impact of a generic announcement.

How to Present Incentives With Power

Let's walk through some examples of how this works in practice.

Scenario 1: The Cash-Strapped Buyer

What you learned in discovery: They're first-time buyers. They've been saving for two years and have just enough for the minimum down payment, but they're nervous about wiping out their savings. They're also worried about closing costs eating into their reserves.

The wrong way: "Great news—we're offering $15,000 toward closing costs with our preferred lender!"

The right way:

"You mentioned you've worked hard to save that down payment, and the last thing you want is to close on this house with an empty bank account. I get that. Here's something that might help—when you work with our preferred lender, we cover $15,000 of your closing costs. That means you keep that cushion in savings. You move in with money still in the bank. How would that change things for you?"

Now the incentive isn't a number. It's peace of mind.

Scenario 2: The Payment-Focused Buyer

What you learned in discovery: They can qualify, but they're laser-focused on monthly payment. They keep asking "What would the payment be on this one?" They're coming from a low-rate mortgage and having sticker shock on current rates.

The wrong way: "We have a 2-1 buydown available right now!"

The right way:

"You've mentioned a few times that the monthly payment is the number you're watching most closely—and I totally understand. Rates are higher than they were a few years ago, and it's a real adjustment. Here's what we can do: we have a rate buydown program that drops your rate by two points in year one, one point in year two, and then levels out in year three. On this home, that takes your payment from around $3,200 to roughly $2,650 in that first year. That gives you breathing room while you settle in—and if rates come down, you refinance and it's a non-issue. Does that kind of structure help?"

Now you're not selling a buydown. You're solving their payment problem.

Scenario 3: The Customization-Focused Buyer

What you learned in discovery: They're drawn to new construction because they want things their way. They keep talking about the kitchen upgrades and the flooring and the outdoor living space. They're excited about making it their own.

The wrong way: "You get $10,000 in design studio credit with this home!"

The right way:

"I can tell you're excited about making this home yours—the kitchen finishes, the flooring, all of it. That's one of the best parts of building new. Here's something that'll help: this home comes with $10,000 to spend at our design studio however you want. That's enough to get you those quartz countertops you mentioned and upgrade the flooring throughout the main living area. You get the finishes you want from day one instead of moving in and making a list of projects. Want me to show you what that credit can cover in the studio?"

Now the incentive is about their vision for the home—not a line item on a spec sheet.

The Danger of Attracting the Wrong Buyer

Here's something most salespeople don't consider: Leading with incentives attracts incentive-focused buyers.

These are the buyers who are shopping deals, not homes. They'll pit you against every builder in the market. They'll nickel and dime you on every upgrade. And if someone offers a bigger discount next week, they're gone.

When you lead with value—the community, the quality, the lifestyle—you attract buyers who care about those things. The incentive becomes the cherry on top, not the main course.

This isn't just philosophy. It's supported by research on buyer behavior.

Studies in consumer psychology show that customers who buy primarily based on discounts have lower satisfaction and lower loyalty than customers who buy based on perceived value. They're more likely to experience buyer's remorse. More likely to complain. More likely to feel like they could have gotten a better deal.

You don't want those customers.

You want buyers who love the home and see the incentive as a bonus that makes a great decision even easier.

Timing Matters: When to Reveal

So if you're not leading with incentives, when do you bring them up?

After discovery. Once you understand their situation, their motivations, and their concerns—now you can prescribe.

After they've connected with the home. Once they've walked the model, fallen in love with the kitchen, and pictured their kids in the backyard—now the incentive removes barriers instead of distracting from value.

When addressing a specific objection. If they say "I'm not sure we can make the numbers work," that's your opening. Now the incentive is a solution to a stated problem.

During the buying conversation. When you're at the table talking specifics, that's when you lay out exactly how the incentive package helps them. Not in the first five minutes. At the moment of decision.

Know Your Incentives Cold

None of this works if you don't deeply understand what your incentives actually do.

You need to know:

• Closing cost credits: How much? What does it cover? How does it affect their cash-to-close?

• Rate buydowns: What's the structure? What does it do to their payment in year one, year two, year three? What's the break-even if they refinance?

• Design studio credits: What can it realistically buy? What upgrades matter most to most buyers?

• Price reductions or lot premiums waived: How does this affect their loan amount and payment?

• Preferred lender incentives: What do they get for going with your lender? What are the trade-offs?

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If you can't explain exactly how each incentive translates into real-world benefit for the buyer, you're not ready to prescribe it.

Do your homework. Run the numbers. Know the math cold.

Make It Tangible

One more thing: specific numbers beat vague promises every time.

Don't say: "This will significantly reduce your monthly payment."

Say: "This drops your payment by $387 a month in year one—that's over $4,600 back in your pocket."

Don't say: "You'll save a lot on closing costs."

Say: "Your closing costs were going to run about $18,000. With this credit, you're down to $3,000 out of pocket."

Specificity builds trust. It shows you've done the work. And it makes the benefit real and concrete in their mind.

The Bottom Line

Incentives are powerful—when used correctly.

Stop announcing them like a commercial. Stop leading with them like a crutch. Stop overwhelming buyers with a laundry list of numbers before they even know what they're looking at.

Instead:

1. Discover first. Understand their situation, their concerns, their goals.

2. Prescribe second. Connect the right incentive to their specific need.

3. Make it tangible. Translate the incentive into real-world impact they can feel.

4. Time it right. Bring it up when it solves a problem, not as an opening pitch.

Do this and you'll watch your incentives become more persuasive than ever—not because they're bigger, but because they finally mean something to the buyer sitting in front of you.

That's selling. Everything else is just noise.

Now go sell something.