That's interesting to hear, and honestly, it lines up with what I've seen too. When my brother built his house, he was pretty set on using the builder's lender because it seemed straightforward—less hassle, fewer hoops to jump through. But then he casually mentioned it at a family barbecue (you know how those go... everyone suddenly becomes an expert 😂), and our uncle convinced him to at least check out a couple other options.
Long story short, he ended up finding a smaller local bank that offered him a noticeably better rate and lower closing costs. He said the difference was enough to upgrade his kitchen appliances without stretching his budget. I guess the builder's lender counts on people valuing convenience over savings, which is fair enough—but if you're willing to put in just a bit more effort, it can really pay off.
Makes me wonder though... do builders ever adjust their offers when they realize buyers are shopping around? Or do they mostly stick to their guns?
"Makes me wonder though... do builders ever adjust their offers when they realize buyers are shopping around?"
From what I've seen, builders usually stick pretty close to their original offers. But you're totally right—shopping around can really pay off, especially with local banks or credit unions. Glad your brother scored those kitchen upgrades!
Builders usually have tight margins, so they're not too flexible on price—but sometimes they'll sweeten the deal with upgrades or closing cost credits if they sense competition. Did your brother negotiate directly, or did he have an agent handle it?
My brother had an agent handle most of it, but he was pretty involved himself too. Honestly, builders can be stubborn on price, but they're usually open to other incentives if you push a bit. When I bought my place, the builder wouldn't budge on the sticker price at all, but after some back-and-forth they threw in upgraded appliances and covered part of my closing costs. Definitely worth having someone experienced negotiate for you—agents know exactly where builders might bend a little.
When I bought my place, I initially considered the builder's preferred lender because of the convenience and incentives they mentioned. But after shopping around a bit, I found a local credit union offering significantly better rates. The builder wasn't thrilled about it, but eventually agreed to match some incentives anyway... So it pays off to check your options. Did you end up comparing rates elsewhere, or are you leaning toward sticking with the builder's lender for simplicity?
