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Home Builder's Giving Away Homes, Literally

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When my best friend moved away to San Diego five years ago, I thought she was crazy. There's no subway system, the cost of living is ridiculous, and on top of that, she's deathly afraid of stepping into the ocean. When I finally went to visit her, I could understand why she never wanted to move back to the Midwest. Who wouldn't love 75 degree temperatures, 355 days of sunshine out of the year and miles of gorgeous beach front?

But even in paradise, things go awry. Home sales in San Diego County were down 18 percent in April from a year-earlier, while the number of homes going into foreclosure rose 130 percent in the first quarter from a year earlier, according to DataQuick Information Systems. California itself has taken quite a beating from the housing meltdown.

As a result, desperate times have called for some desperate measures. I recently stumbled across an article on Msnbc.com about one developer's more-than-generous marketing plan to attract home buyers.

                       Each Royal View luxury home sits on at least two acres,  offering spectacular valley and mountain views. Photo courtesy of Michael Crews DevelopmentEach Royal View luxury home sits on at least two acres, offering spectacular valley and mountain views. Photo courtesy of Michael Crews Development.

 Michael Crews Development, a San Diego developer desperate to clear inventory, is offering potential home buyers a buy-one-get-one-free scheme. The company will give away a row home valued at $400,000 with the purchase of a $1.6 million luxury estate home in the upscale city of Escondido in northern San Diego County.

"We are targeting a niche market of investors who are interested in the opportunity to buy a new home for themselves and get a free rental property or second home for family members," developer Michael Crews said in a statement released by his company.

The two-acre Royal View luxury homes with 4 bedrooms, 4 baths, up to six car garages and swimming pools would each be paired with a 2,000 square-foot upscale row house.

Originally the offer was to run for two weeks in May, but the developer extended the offer through June. So what if you don't want to keep the free home? You can just give it away, says Crews. I haven't read the fine print in this marketing deal, but on the surface it sounds too good to be true.

If you're a buyer looking for a new luxury home and want to surprise your newly wedded son with a new house, this would be a great deal. But your average buyer isn't going to want to get stuck paying the taxes on two properties and worrying about managing a second rental property. This marketing scheme seems more practical for investors or a real estate savvy buyer.


Got hot local housing tips or a story you want to share? Contact Amy Le at openingdoorsblog@homescape.com.

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Comments (2)

Michael Shankman
Award Realty - Las Vegas, NV
Selling Las Vegas 702-498-3383

good post..I saw that article about the give a way home...does the average buyer really want to get involved with a rental property??

Jun 19, 2008 02:25 AM
Anonymous
Amy Le

The average buyering doesn't want to get involved with a rental property. I think the developers were really trying to just get more publicity for their luxury homes. I think they knew most people wouldn't want to take up a second home. But looks like it worked, b/c the builders got some major press coverage.

Amy

Jun 19, 2008 02:31 AM
#2