New construction may cost less than you think.
With high interest rates, builder incentives and rate buydowns can make a brand-new Clarksville home the smarter buy. Here’s what the National Association of REALTORS® is reporting, and how to use it.
High interest rates have a lot of buyers sitting on the sidelines. Here is what many of them miss: a brand-new home may now cost about the same as a used one, and builders are paying to help you close.
The price gap has nearly closed
New homes have traditionally sold for 20% to 40% more than existing homes. In April 2025, NAR reported the median new-home price at $407,200, while the median existing home sold for $414,000. One builder analyst called it an “unprecedented change.”
Builders are paying to beat high interest rates
To keep buyers moving, builders are offering closing-cost help, upgrades and mortgage rate buydowns. NAR reports buydowns can bring a rate from the high 6% range down to the 5% range. New-build buyers locked in rates about half a point lower than resale buyers on average, about $105 a month on a $400,000 home. In August 2025, 37% of builders also cut prices, by 5% on average.
“Normalized incentives should be around 5% to 6%.” — Stuart Miller, Lennar, quoted by NAR, after the builder’s incentives averaged 13.3% of the sales price.
Why you need your own agent with a builder
The builder’s salesperson represents the builder. As NAR puts it, they work for the builder’s best interests. Your own agent compares the price to local sales, tells you which finishes are standard and which are upgrades, gets estimates in writing, and attends your walk-throughs. Builders usually pay that salesperson from their marketing budget, so skipping your own agent rarely lowers the price.
Six questions to ask any builder
- What incentives are available right now, and do they require your preferred lender?
- Can the incentive go toward a rate buydown instead of upgrades?
- Which features in the model home are standard, and which are upgrades?
- Can I get every option priced in writing before I sign?
- What is the timeline, and how will you keep me updated?
- What warranty comes with the home, and what does it cover?
Right here in Clarksville: Griffey Estates
Griffey Estates’ new phase, off Peachers Mill Rd, is offering a $20,000 builder’s incentive. Lot 346 is a no-step ranch listed at $315,900, with finishes you can choose within the builder’s allowance. Ask Sandra how the incentive could lower your rate or cash to close.
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