ANSWER:

Not all incentives are created equal. The best ones align with buyer psychology and perceived value:

• Rate Buydowns: effective when buyers focus on monthly payment, especially in a rising rates market.
  
• Design Credits / Upgrades: feel like personalization gifts—they hit emotional triggers without visibly dropping price.
  
• Price Drops / Discounts: blunt, easy to communicate, but painful for margin and potentially damaging to brand.

The decision depends on your buyer’s motivators. If they’re highly payment-sensitive, a buydown could win. If they’re emotionally invested in customization, design credits feel like a win. Always test combinations: e.g., “$5,000 credit + short-term rate buydown” vs “$7,500 discount.” Track which performs better.

Use segmented offers: Show different incentives to buyers based on qualification (higher budget gets design credit; lower gets buydown).

WHY IT MATTERS:

Picking the wrong incentive can erode margin or confuse your buyer. Jason’s challenge will help you build incentive matrices that preserve value and get decisions faster.