Why Won't Builders Explain The 12% Number?

You’ve seen the ads. “12% toward your closing costs.” “Rates in the 4s.” “Move in this month.” Builders are throwing serious money at buyers right now.

So why are they offering this much? And what happens to the homes that don’t sell?

In this video, Bryan looks at how Lennar and other big builders are keeping their sales numbers up, and at a trend Tampa Bay buyers should be watching: new Lennar homes going to Millrose Properties and then showing up as rentals.

Watch FULL Video Here

Why Builders Are Leading With 12% Incentives

Builders don’t like cutting prices, because a price cut shows up in every future comp in the community and hurts the value of every home they haven’t sold yet.

Incentives work differently. A 12% incentive can go toward closing costs, rate buydowns, or upgrades. The buyer gets real help, the builder keeps its sales volume up, and the list price stays where it is.

Interest rates are still high and buyers are being careful, so the big national builders care most about two things: volume and margins. Incentives let them hold onto both.

That isn’t a scam. It’s strategy. But you should know whose strategy it is before you sign.

The Millrose Connection

This is the part of the video that got the most attention.

Millrose Properties was spun off from Lennar. Since a rule change on August 27, hundreds of Lennar homes have been sold to Millrose, and many of them are now listed for rent.

What that means in practice:

• Your neighbors may be renters. If you buy in a community where a big share of homes are owned by an institution and rented out, the community can feel different and your resale picture can change.
• The supply numbers can mislead. Homes that move from the builder to an affiliated company count as “sold,” but no owner-occupant actually bought them.
• Ask questions. Before you buy new construction, find out how many homes in that community are owned by investors or institutions.

New Construction vs. Resale: Know the Trade-Offs

New construction can be the right move. You get modern systems, a builder warranty, and incentives that make the monthly payment easier. But it has trade-offs too:

• New communities often come with CDD fees and higher HOA costs
• Lots tend to be smaller and the landscaping hasn’t grown in yet
• You’re farther from established amenities, schools, and walkable town centers
• Investor or rental concentration is still unknown in a new build-out

Compare that with a resale home in an established community like Westchase or West Park Village. You know what you’re getting: mature streets, an HOA with a track record, top-rated schools, and the walkable West Park Village town center with its restaurants, parks, and neighbors who have lived here for years.

Our Advice for Buyers

• Negotiate hard. Builder incentives aren’t fixed. If a builder is offering 12%, ask what else they’ll put on the table. Bring your own agent, because the builder’s sales rep works for the builder, not for you.
• Run the real numbers. Compare the total cost of ownership, not only the rate. Look at CDD fees, HOA dues, insurance, and how resale values in that community have held up.
• Look at resale too. Plenty of resale sellers are motivated right now and will negotiate on price, credits, and repairs.

Thinking About Buying or Selling in Westchase?

Whether you're relocating to Tampa Bay or selling in Westchase or West Park Village, we know this neighborhood from the inside. Ask us about the HELP Program: we invest up to $50,000 in pre-listing improvements, and you pay nothing until closing. Ask about MOFIR too. Your price. Our promise.

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The Bryan Coward Team · Keller Williams Realty · Tampa Bay, FL · Each KW office independently owned and operated. Bryan Coward PA, Florida Licensed Real Estate Broker Associate. Market data reflects general trends and should not be construed as a formal appraisal or guaranteed valuation.