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JUST LOWER the PRICE!!!

This week I got an email from a major builder who has started several developments in the Charlottesville Area.

The email boasts:

"SAVE UP TO $75,000 - ONE DAY ONLY!"

Here is the disclosure:

All incentives/financing contributions are contingent upon the use of XXXXX Mortgage. Every community will offer different incentives. Offers good for November 10, 2007. Purchase Agreements only. Previous offers and Purchase Agreements excluded. Prices and offers subject to change. Incentives can not be combined with other offers.

Well, I read this a couple of times and the same questions come to mind.

Why would I want to use your lender, this concerns me a little. This opens a whole can of worns....

And the main thing is:

WHY NOT JUST LOWER THE PRICE?

The reason for an incentive just tells the public that you are Over-Priced to begin with.

Am I missing something here?

Posted by Charlottesville Real Estate - Your Trusted Broker Charles McDonald on 11/10/2007 10:45 AM

Comments (37)

charlottesville, homes, builder, lower price

Originally posted at: Charlottesville Real Estate: JUST LOWER the PRICE!!!

This post has been included in Virginia Information

37 Comments on JUST LOWER the PRICE!!!

NOV

2007

Not too mention they may be getting some sort of kickback from the mortgage company or they own a piece of it

Charles,

I think the builder's 'fishing' to find the 'low level' or market bottom for his product!!! Thanks, Fran

P.S. I agree with you conclusion long term!

One day they'll learn, Charles, that their property will see faster with a reduced price rater than a limited 'sale' price.

DAVE - they may own a piece of it....

Charles - Marketing gimmicks! They are everwhere we can't escape them. This is common place in big business. I guess if you had any thought of buying there and were on the fence you would most likely jump in and buy. Seems to good to be true though.

FRAN - good point, I did not look at it that way!

NANCY - I tend to agree, maybe one day they will learn!

Wow - it sounds like a used car dealership.

BILL - That is what I think "Marketing Gimmicks" when I see things like this.

NANCY - It does sould like a car dealer...

Charles, and all you others that want a price reduction, SALES WORK! They will probably sell more house today than the past thirty days combined.

Let us know the result.

Bill Roberts

BILL - I will watch it and see!

I always say a deck of cards is still the same deck no matter how you shuffle it. 52 cards, 4 suites etc.

You are right, just lower price and get it over with.

TREY - that is the way I look at it

You make a great point! I don't understand why they do that!

Charles, please let us know the results. Thanks.

Bill Roberts

Charles...the norm in LV is for builders to offer tons of buyer incentives and the buyer has to go with the builder's lender and title company if they want the incentives.

for some reason, builders think it is more attractive - most buyers are interested in the bottom line - games people play-

Gotta love those bait and switch ads ! Hope you are enjoying your weekend !

Charles, I'd be curious to see how many houses sold today. I suspect they sold as many today as they did last Saturday.

NOV

2007

I just shake my head when I see this kind of thing. A builder in our area dropped off flyers the other day - the incentives offered to selling agents were almost unbelievable. My thought was the same as yours..."Lower the price!" of the homes and my buyers may come in to look.

Alma and Vincent - I really do not know why they just do not market it at that price.

MARY - So then there are kick-backs of some kind?

BARBARA and BILL - That is the way I am, give me the bottom line

MELISSA - Those ADs drive me nuts

KEITH - I would be surprised if it actually sold any... we will see.

KRIS - Those incentives are crazy to me...

I have three buyers of homes by this builder including one who signed a purchase contract the day before the special offer day. I've questioned the builder rep about the incentives offered to my client versus what she could have gotten had she known and waited until the next day's special deal....How can I be sure my client is getting the best "deal?" This builder seems to be willing to try anything to push new construction forward.....even at the expense of new buyer loyalty....

NOV

2007

Yes, I know you do. It makes it really difficult to get the best deal for your people when they play these games. I did not want to mention the builder, they do not need me to advertise for them...

Charles, It is Monday morning. You think you can get the results for us now?

Bill Roberts

BILL - No sale! At least not recorded as contingent in our MLS.

I agree with previous comments: they are fishing and they probably own part of the mortgage company!

It always makes me wonder if their product is good, why do they need to offer these incentives?

TERRY - Yes I agree, with any product the incentives make me wonder....

We have been having a few "fire sales " here too. The most we have seen was 50k, 75k seems very odd.

KEITH - yes that is a good name for it.... fire sale

NOV

2007

I love the "one day only" as if the next day they will say "no" to your offer.

FRANK - exactly! lol

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