At The Grandon Group, Arizona’s #1 Brother and Sister Real Estate Team, we’ve been selling homes for over 20 years. We’ve seen every kind of market—hot, cold, and everything in between. And if there’s one thing we’ve learned, it’s that real estate is never as simple as signing a contract and getting paid. (If only!)
But lately, we’ve noticed something interesting—and, honestly, a little unfair—when it comes to buying a home. Let’s talk about interest rates and why they’re not the same for every homebuyer.
Why Do New Builds Get Lower Interest Rates?
Picture this:
• You want to buy a resale home—a charming place in a great neighborhood, maybe with a pool, mature landscaping, and a little history. You go to get a loan, and BOOM—your interest rate is hovering around 6.5% or higher, even with a solid down payment.
• Now, let’s say you decide to buy a brand-new home from a builder. Same financial profile, but now you’re looking at an interest rate in the mid-4% range.
Wait…what? How is that fair?
Somewhere along the way, banks and homebuilders struck a deal. Many builders now partner with mortgage lenders to offer lower rates—sometimes even covering part of the cost to buy down the rate. It’s a great strategy to attract buyers, and honestly, it does help people get into homes. But it creates a major gap between new builds and resales.
The Pros & Cons of New Builds vs. Resales
Don’t get us wrong—we love selling new builds! Arizona has some amazing new communities, and they come with big perks:
✅ Lower interest rates
✅ Builder warranties
✅ Energy-efficient designs
✅ Brand-new everything
But not everyone wants a new build. Some people find their dream home in an established area—closer to work, in a great school district, or near family. And right now, those buyers are stuck paying significantly higher interest rates than their new-build-buying neighbors.
So, is this fair? We’ll let you decide.
What’s the Takeaway?
If you’re house hunting and feeling discouraged by interest rates on resale homes, let’s explore your options. At The Grandon Group, we know the new-build market inside and out. Even if a new build wasn’t on your radar, you might be surprised at the deals available.
Of course, if you’ve got your heart set on a resale home, we’ve got you covered there too. We’ll help you navigate financing options and find creative ways to make it work.
The bottom line? This market is still fantastic for buyers. But it’s more important than ever to work with a real estate team that knows the ins and outs of every deal.
So, whether you’re looking for a resale, a new build, or just the best advice in Arizona real estate, call The Grandon Group, Arizona’s #1 Brother and Sister Real Estate Team, powered by My Home Group. We’ll make sure you get the best home—and the best deal—possible.
Jason Grandon can be reached at www.THEGRANDONGROUP.com or 480-276-2954
