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Builder Incentives

I just wrote a blog about Builder Incentives and was wondering if any of this is happening in other areas. I've seen incentives before but these are some great incentives. The new homes just keep selling and the older ones are still sitting on the market. Will the market come back to life here in the Bay Area and how long will it take. I'm not a real estate agent myself I just try to follow the market :)

Posted by US Real Estate Directory Gary Schmitz on 12/23/2006 11:02 AM

Comments (5)

builder incentives, market

5 Comments on Builder Incentives

DEC

2006

I got a telephone call from a major builder in my area this week letting me know that the home I had inquired about about 2 months earlier was still available and that the

Price reduced from $1,150,000 to $995,000

$50,000 incentives for buyer including buy-down interest rate and closing credit.

3% plus $25,000 to buyer's agent.

Nice house, lovely lot, good location. I wish I had a buyer.

Hi Gary! Good Topic! We are seeing them in Las Vegas but they have been getting scaled down a bit as inventory dwindles. Even at the height the incentives were still tied, no budging, to builder's preferred lender. I have yet to see a builder's preferred lender give market rates to my clients to make these incentives worthwhile.

Good afternoon Gary,

I do have to admit, I love stating that I am one of the best in the business but I myself lose loans to builders in the East Coast. I recently lost a first time homebuyer to a local builder. Not only did he buy down her rate 2 points but told her if she used his lender that she would have no closing costs. So what does that mean?

Means that 2 points on the loan would be $6,000

No closing costs would be another $6,000

A saving of $12,000 to my client.

I definitely can't match that even if I wanted to do the loan for FREE.

My commission on the loan would be about $1,500-$1,750 before taxes.

So as you can see, this loan was impossible for me to match and it didn't even make sense to get my sales manager involved to match any deals or beat any deals, this is a deal that just can't be beaten.

To answer your question, yes builder incentives are ALIVE AND WELL here in Connecticut.

Your Mortgage Man,

Nima

Len, Renee & Nima - Thanks for the comments back,around here it's adding up to $125,000. Agents are buying new homes getting there closing costs paid for a $50,000 broker fee paid to them and $50,000 paid to make their old morgage payment. Now wonder everyone is buying a new home.

NOV

2007

I just wrote a blog on this subject kind of and about builders and how they treat agents like dirt until the market takes a turn then they want out help as agents.....check my blog out as I would love to hear more comments from other territories.....

BUILDERS DO YOU HATE THEM BLOG

Todd Hueffed

www.ThatHomeZone.com in partnership with Keller Williams North Seattle

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