Higher mortgage rates affect sellers as well as buyers. Even a small rate increase raises a buyer’s monthly payment, so buyers become pickier about price and incentives. To sell successfully, you need to understand what new-construction builders are offering and price your home for what buyers can afford.
If you’re planning to sell in St. Johns County, whether in St. Augustine, Nocatee, or Palencia, your home may be competing with new communities as well as other resale listings. Buyers here are watching their monthly payment closely, and many are comparing a lived-in home with a brand-new one that comes with a financing perk. You can still compete. It starts with knowing what those buyers are being offered.
How Builders Are Winning Buyers Over
Existing-home sales are still struggling under higher rates, while new-home sales are holding up better. HousingWire Chief Economist Logan Mohtashami says new-home sales have reached an 8-month high and are running near 2019 levels. Existing-home sales remain about 1 million sales short of 2019.
Incentives are a big reason why. According to Realtor.com, nearly 1 in 5 newly built homes (18.8%) advertises a buyer incentive up front. The most common one is a reduced rate, often through a mortgage rate buydown.
- What a buydown is: The builder pays upfront costs so the buyer gets a lower rate and a lower monthly payment.
- How common it is: Reduced rates are part of 13.8% of new-home listings.
- What it can mean for buyers: Some builders offer rates below 6%, which can save a buyer hundreds of dollars a month.
For a buyer feeling the pinch, that is a real difference. It’s why builders see a buydown as a win-win.
How Sellers Like You Can Compete
A rate buydown isn’t something only builders can offer. Depending on the loan and the transaction, sellers can contribute toward a buyer’s buydown too. That doesn’t mean you have to, and it isn’t the right move for every home.
A buydown is just one tool. Depending on your home, your neighborhood, and the buyer, these options may serve you better:
- Adjusting your price to match what buyers can pay
- Contributing toward the buyer’s closing costs
- Making repairs the buyer would otherwise ask for
- Showing what a new build can’t offer, such as an established neighborhood, mature trees, and a short drive to downtown St. Augustine or the beach
Realtor.com Senior Economist Joel Berner points out that resale sellers should lean on neighborhood amenities, since many new homes are built farther out in suburban or exurban communities. A good agent does this naturally by learning what makes your home different and putting that front and center in your listing. Being open to a few compromises or concessions can also matter more to buyers than you might expect.
Pricing for What Buyers Can Pay Right Now
Builders have been adjusting prices to match what buyers can afford and where demand is strongest, and that puts pressure on resale homes in some areas. NAHB Chief Economist Robert Dietz says existing homeowners now have to do the “price discovery” builders have been doing since 2022.
You don’t automatically need to slash your price or offer a big concession. But you should price and market your home based on what buyers can pay today, not what sellers could get a few years ago.
How much this matters varies by location. New construction is a much bigger share of the competition in some neighborhoods than others, and builder incentives aren’t equally common everywhere. An agent who knows the new communities near you can tell you how much of a factor builders really are for your home.
Frequently Asked Questions
Do higher mortgage rates really affect me if I’m selling, not buying?
Yes. Higher rates raise your buyer’s monthly payment, which changes what they can afford and what they’ll expect from you on price and concessions.
Should I offer a mortgage rate buydown to sell my house faster?
Not necessarily. A buydown is one option among several, and whether it makes sense depends on your loan type, your price point, and what competing homes nearby are offering.
How do I compete with new construction in St. Johns County?
Price your home realistically, highlight what a new build can’t offer, and ask your agent what incentives builders are using near you. Then decide whether a concession or a repair credit is worth it.
Bottom Line
Higher mortgage rates are making buyers more cost-conscious, and builders are responding with rate buydowns, closing-cost help, price reductions, and other incentives. If you’re thinking about selling, talk with an agent about what buyers are getting from other homes in your area, including new construction, so your home is positioned to compete.
If you are considering buying or selling in Northeast Florida, contact Danielle Fraser, P.A.
Call or text 904-907-4559 , email danielle@