Wednesday, February 08, 2006

HomeBuilders' Incentives

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.

1 comment:

  1. 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).

    But, I think the Centex 100K off deal is a much better example of bubble-popping pricing.