“My buyer is looking at a $435k new build. The builder is offering $15k toward closing costs but only if they use the builder's lender at 6.875%. My buyer has a credit union pre-approval at 6.25%. The builder says the incentive disappears if they use an outside lender. What should I do?”
Judgment
Take the $15K incentive and push the builder lender to match or buy down to 6.25% or close to it; don't walk away from $15,000 because of a 0.625% rate gap without asking the builder to bridge it. One phone call now can convert that $15K into a rate buydown or a net price-equivalent that preserves buyer affordability.
Reality
Builders prefer to keep control of financing because it preserves pace and commission structures; the builder's $15K is contingent on using their lender and their stated rate is the public wholesale offer (6.875%). You're ignoring the fact that the incentive can be reallocated (price credit vs buydown vs lender credit) if the builder's rep and their sales manager agree — they have flexibility to buy down the rate or give an equivalent price concession while protecting community comps.
Cost
If you reject the $15K and stick with the 6.25% credit union loan, your buyer loses $15,000 in closing liquidity or rate-buydown power — that's an immediate cost. Converting $15K into a 2-1 buydown on a $435K purchase roughly saves ~$450–$550/month in year 1 (order of magnitude; exact depends on down payment/loan amount); alternatively $15K as a straight price credit equals direct dollar-for-dollar closing relief. You lose negotiating leverage every day you wait.
My move
Call the on-site rep and ask that the $15,000 be used to buy down the builder-lender rate to 6.25% (or provide an equivalent $15K price/closing credit if they won't adjust the rate), and tell them you'll register the buyer with their lender immediately once they confirm in writing.
Real output — not a mockup
That's one deal. What about the next ten?
The free tool
Try any scenario from the list above — no account needed. Sign up free and get 10 analyses per month plus your full sales profile.
Your profile + mentor
Shows you why the same deals keep slipping. Tracks 10 selling traits. Coaches you based on how you actually work — not a script.