Real Estate Blog - A Car with a New Home???

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A Car with a New Home???

They are at it again...

Back in Nov of 2007 I posted: JUST LOWER the PRICE!!!

I just got an email offering a Car with the purchase of a new home locally in the Charlottesville area. The builder is offering a 2009 Hyundai Accent if you close in 2008.

Now they do mention:

"If your client prefers, seller is willing to provide credits, upgrades, or price reductions in the amount of $15,000 as an offset to the car."

Am I crazy or is this wrong?

1. Just reduce the price of the home to reflect the true value of the home (which is at least 15K lower).

2. Will a lender (in this market) allow a car to be part of a purchase contract? maybe they are using a certain lender, this is not mentioned... (((NOTE: it does say "Subject to lender approval")))

3. What if I want a motorcycle instead? LOL (just kidding)...

These tactics to entice buyers are not very effective in my opinion and they may even have a reverse effect on the neighborhood... we will see...

Charles McDonald

Associate BROKER at RE/MAX Assured Properties, Licensed to sell Real Estate in Virginia

(main) 434-515-1585 (cell) 434-981-1585 (fax) 866-527-9526

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Posted by Charlottesville Real Estate - Your Trusted Broker Charles McDonald on 10/23/2008 11:59 AM

Comments (21)

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Originally posted at: Charlottesville Real Estate: A Car with a New Home???

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21 Comments on A Car with a New Home???

OCT

2008

Charles,

I see this a lot as well. People have been offering their old "classic" Mercedes if they get full price offers, etc. The first thing that I think, and my clients say, is that they just want the correct price. I don't think it fools anyone, and I wonder how the seller comes to the decision that this practice is a good idea.

I agree... just reduce the price by $15,000, and hopefully that will bring other potential buyers to the table, and who knows... possibly find yourself in a multiple offer situation??

Very few lenders, these days, are happy to see credits (even those for legitimate repairs) on the HUD-1.

We recently had a builder selling high end waterfront homes park a new Corvette at the entrance to the subdivision with a sign buy this weekend and take this home. The Corvette was still there on Monday! Buy hey, can't blame them for trying.

I would rather see the price stay the same to help stablized the neighborhood and offer incentives if possible to sell the house. It is not always about price, ok maybe it is.

I'm gonna run a Buy One Get One Free ad!!!!!!!!!!

Builders in my area have done that type of thing for years to keep the values up in their subdivisions. It is more likely to see upgrades to the home or mortgage payment incentives but I've also seen BMW's thrown into the mix...

I dont get why an agent would do something like this? It seems like a really bad idea for all the reasons you mention. If you just lowered the price a huge percentage of more people would find it in their range. I can only guess how much tax you would pay dropping a car into this equation. Its just dumb sorry.

Matthew - I totally agree!

Alan - I could see the HUD-1 now ! LOL!!!!

Edna - It can not off set the value of the home or you are into a neg position on your loan...

Hmmmm.....

I'm trying to figure out a way to couple the free car with the $7,500 tax credit....

See the USA in your FHA Chevrolet!

Denise - this happens to be a new neighborhood and I think it messes with the base price to much...

Lewis - LOL!!!

Beth - Have you seen it since the recent melt-down?

Eau - Sounds like we agree....

Marty - LOL! That would be interestring :-)

Crazy idea...and I would think most people could see right through it- they would just want the price reduced. Does that agen think he'll just get extra notice of their property because of the car?? I wouldn't even look at the house unless I wanted a Hyundai!!

Loren - I really do not understand the logic. Maybe I am a little slow :-)

I agree. It's ridiculous. There's an agent in NJ doing it and it's not even legal in NJ. What does the apprraisal consist of? House - 15,000. That just killed the appraisal, I'm sure. What happens when the car has problems. Now they sue the Realtor, not the car dealership! I refuse to even negotiate furniture anymore, since that came back to kick me in the #$% last month. I let the seller and buyer handle those negotiations after contracts are signed, inspections are complete.

Janet - EXCELLENT POINTS!!!

I don't think there are many people out there that would take that econo box instead of a $15,000 credit. The appeal of getting a free car I'm sure attracted more people then advertising a $15,000 price adjustment.

I agree. Just get the price down and I'll buy my own car with the savings. Good blog.

I couldn't agree with you more. Besides who want to pay for a car for 30 years? Cruises are another good one. Sounds too seedy to me.

OCT

2008

Charles, I think anything that can be easily converted into cash is not a good promotion. I like something like : there is little monetary cost to the seller but means very valuable to the buyer.

OCT

2008

A Hundai? I don't know how much one of those little guys costs, but I'd rather have the house at the price it's worth. Of course, if they threw in one of those Lexus hybrids, that would get my attentioin!

In the late 1980's when the markets collapsed builders and homwowners did the same thing. It didn't work then, it won't work now. Common sense must prevail! Lower the price...it's too high!

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