Incentive-Heavy New Construction Puts Pressure on Resale Sellers to Price Competitively

Written by:

Steve Marcinuk

Date:

09 Dec 2025

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Jacksonville’s real estate landscape has become significantly more challenging for resale sellers, according to Terry Sadowski, a Realtor with RE/MAX Specialists and former new home sales professional. Sadowski warns that outdated pricing tactics are no longer effective as builders roll out aggressive incentives to attract buyers, intensifying competition and forcing resellers to adapt or risk prolonged market times.

“The resale market is tougher now. Sellers have to be priced competitively from the start. They can’t expect to get what they would have a year or a year and a half ago,” Sadowski says. His perspective is shaped by 15 years in new construction sales and his current work in general real estate.

Builders Respond With Aggressive Incentives

Sadowski notes that builders are countering slower sales and higher interest rates with a range of incentives that effectively lower the out-of-pocket cost for buyers. “Builders are definitely offering incentives right now. With buydown interest rates, some are doing 30-year buydowns, while others offer two-one buydowns,” he explains.

These financing incentives directly reduce buyers’ monthly payments. A two-one buydown, for instance, drops the interest rate by two percentage points in the first year and by one point in the second year, before reverting to the standard rate. A 30-year buydown secures a lower interest rate for the entire loan term. These tactics make new construction more financially appealing, especially for buyers concerned about affordability in a high-rate environment.

Beyond rate buydowns, builders are adding features and upgrades that were not standard in previous years. “They’re including upgrades and features that weren’t there a couple of years ago,” Sadowski says. These additions enhance the value of new homes without reducing base prices, presenting buyers with more attractive packages while allowing builders to maintain pricing power.

Resale Sellers Must Prioritize Pricing and Presentation

In this environment, Sadowski stresses that resale sellers must shift their approach. The days of listing high and waiting for offers are over; pricing must be competitive from the outset. “Getting the price right from the start is critical,” Sadowski emphasizes.

Presentation is equally important. Sadowski advises sellers to ensure their homes are “show ready,” which means fresh paint, updated landscaping, decluttering, and depersonalizing spaces. These steps, once considered optional, are now essential to stand out against builder competition. “Doing the spruce up of painting, nice landscaping, and decluttering puts the home at the forefront. Those homes are still selling within a couple of days,” he says.

Sadowski observes a clear divide in the market: well-priced, well-presented resale homes continue to attract quick offers, sometimes even multiple bids, while those priced above market expectations linger unsold. “The ones trying to get aggressive pricing are the ones that stick on the market for a while,” he explains, referring to sellers who fail to adjust their expectations.

Resale Sellers Imitate Builder Incentives

With builder incentives proving effective, some resale sellers are now adopting similar strategies to stay competitive. “I’ve had sellers do the same thing—offering a two-one buydown type incentive to compete with the builders,” Sadowski says.

This marks a notable shift in resale tactics. Instead of relying solely on price reductions or cosmetic improvements, sellers are now directly addressing buyers’ financing concerns by offering to pay for interest rate buydowns. This approach mirrors the most successful builder strategies and reflects the intense pressure resale sellers face in the current market.

The willingness of resale sellers to absorb the cost of buyer incentives highlights how significantly the landscape has changed. Such concessions were rare during the peak seller’s market but have become necessary as buyers weigh the advantages of new construction and higher mortgage rates.

Market Implications: Execution Is Now the Differentiator

Sadowski’s experience signals a broader trend: success in today’s market depends on strategic execution from the very beginning of the listing process. “Homes that show well are still selling and getting offers, sometimes multiple offers,” he notes. The difference is that only those listings that combine sharp pricing and strong presentation are meeting buyer expectations and moving quickly.

This shift has implications beyond Jacksonville. In any market where new construction is active and inventory is rising, the gap between well-prepared and poorly-prepared resale listings is widening. During the recent seller’s market, nearly all homes eventually sold, often with minimal effort. Now, in a more balanced market—or one tilting toward buyers—quality of execution is the main factor influencing results.

Looking ahead, it remains uncertain whether this competitive environment is temporary or will persist, as much depends on future interest rate movements and builder inventory levels. For now, Sadowski’s advice is clear: resale sellers who fail to price sharply and present their homes at their best risk extended market times and lower sale prices as builder incentives continue to reshape buyer expectations.