This is a very interesting article with regards to housing data. They raise a very good point that there are incentives being offered to buyers that aren't being included in survey data. Locally, I'm aware of builders offering upgrade packages, cars, and more to entice buyers.
The article misses the increases in bonuses and sales commission to Realtors. Locally, we've seen a change from some builders refusing to pay co-broke commission at all to offers of 8% and even 10% co-broke. That in addition to enticements as strong as a brand new gold Rolex watch.
However, I don't agree that this shift is necessarily a sign that the housing market is worse than previously predicted. I just think that it is indicative of a market that needs promotion. The market has slowed and these incentives are simply another sign of that change.
What do you think?
Business - newsjournalonline.com
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland
Builders were giving 5-7% commissions around my neighborhood last year, but not this year.
They lowered the price of the homes instead, which is better.
Jul 05, 2007 09:59 AM
Adams, Cameron & Co. Realtors - Ormond Beach, FL
Lenn - Good point. I think we need to see prices lowered across the board from builders and other sellers. I'm still seeing national builders offering large incentives, though. You're right that it seems to be regional. Even the big guys have different plans in place in different but neighboring counties.
Jul 05, 2007 10:42 AM
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate
I'm working with 3 really good buyers right now. I don't care what they buy. I just want them to stop dragging their heels and buy something! =P
Jul 05, 2007 01:25 PM
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This blog is intended to update people who are interested in buying and selling homes, condos, or other real estate in the Volusia and Flagler market. While it is called Real Estate in Daytona Beach Area we will address statistics ranging from New Smyrna to Palm Coast and west to include Deland, Deltona, etc. I will also cover topics regarding investing in residential and commercial real estate. I encourage comments from everyone and am very interested in feedback and opinions.
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