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Why do builders discount?

By
Industry Observer

There are many different reasons builders discount. One reason is the public expects it so we do. When I hear a builder is giving huge discounts on homes I know there is a red flag that goes up. Why because if you are discount a home that is listed $350,000 that is 20% that is a huge red flag. Something is wrong somewhere.

Another builder is giving discounts and a realtor friend of mine said she went to a homeowners meeting and told me all their buyers have not good things to say that particular builder, About the build, the treatment and the product. She said I wish people would not just buy on the bottom line.

 

So why is your builder deeply discounting?

If you want a good quality home do your research and I am sure David Weekley Homes will be at the top of the list!

Posted by

If you would like some information on Sitterle Homes in Aliana

call me at 281-804-9265 or email me at ycgilbert2013@gmail.com

 

Yolanda Cordova-Gilbert on bridge

Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Yolanda,

 

A poorly built home which has a large builder discount might save a buyer some money now but that saving will diappear quickly when the problems start. In fact the problem will cost the buyer a lot more to fix than the supposed discount amount. 

Jun 25, 2016 09:22 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Yolanda there are always what I call "greedy" as well as not so wise "bottom feeders" usually the quality or the there lack of will appear shortly after the builder closed up the LLC....Endre

Jun 25, 2016 10:30 AM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Hi, Yolanda...I'm sure David Weekley homes are very popular with buyers in your area. Great post. 

Jun 25, 2016 10:49 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Yolanda,

Your post makes complete sense to me.  And this is great info for people to know. A

Jun 25, 2016 11:53 AM
Rebecca Gaujot, Realtor®
Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Good advice to do research on builders. David Weekley homes are not in my area, but I do hear good things about them.

Jun 25, 2016 12:24 PM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Yolanda

I have worked with builders for many years . . . . We kept it simple good value . . . . no discounts.

Good luck and success.

Lou Ludwig

Jun 25, 2016 12:33 PM
Roy Kelley
Retired - Gaithersburg, MD

Thank you very much for sharing your experience.

Have a great day and an outstanding week.

Jun 25, 2016 08:46 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

It is important to work with good builders when buying a house. 

Jun 25, 2016 09:33 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I haven't seen very many builders discount around here, Yolanda.  They do make it up by offering incentives on upgrades and financing.

Jun 25, 2016 09:43 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Deep discounts by a builder would alarm me. We don't really see them in my market... incentives that change from month to month, yes. But not discounts from asking price.

Jun 25, 2016 10:12 PM
Yolanda Cordova-Gilbert
Richmond, TX

Thanks for all the comments it is interesting to note the different market areas and whether not discounts are around.

Jun 26, 2016 12:28 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I agree, huge discounts should definitely be red flags.  If the build is good and the home is priced fairly, discounts are not necessary.

Jun 26, 2016 12:39 AM
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Yolanda, 

As we know the home buyers heer expect some type of discount from list. Some builders offering these large diiscounts are red flags as to the whole home. The old saying you get what you pay for applies here. 

Jun 26, 2016 04:35 AM
Ricki Eichler McCallum
CastNet Realty - Corpus Christi, TX
Broker,GRI,ABR, e-Pro, TAHS

You get what you pay for, right?  True saying.  People need not fool themselves.

Jun 26, 2016 09:09 AM