Increasingly, homebuilders are either offering discounts and or incentives to sell their new homes.
• In Virginia, buyers can get a free flat-screen TV at one of Bozzuto Group's condo projects, or a media room in a Stanley Martin home.
• In Michigan, Winnick Homes offers a $5,000 upgrade allowance.
• In Kansas, Rodrock Development tempted buyers with $2,000 worth of backyard trees.
These incentives are pathetic. One is spending upwards of 300K - 800K on their new homes and they are offering incentives worth like .5% to 2% of the purchase price. Centex's 100K off one day sale puts these incentives to shame.
Subscribe to:
Post Comments (Atom)
Posts
I don't think some of these incentive programs are necessarily bubble related. When I bought a new townhome 2.5 years ago in the DC area, the builder was offering almost $20K in incentives (if you went with their lender, etc).
ReplyDeleteBut, I think the Centex 100K off deal is a much better example of bubble-popping pricing.