I guess I am doing a bit of venting before the Labor Day Weekend. I was just doing my weekly follow-up to our Sellers, telling them about any activity on their home, any feedback from the showing agents, and general market conditions overall. The Builders in our area are offering unbelievable incentives to drive purchasers to new home construction. They are paying buyer closing costs, up to $6,000, they are discounting their prices in some cases up to $50,000, they are paying selling broker commissions of 4-6%, and they are throwing in all kind of extras, from a year of homeowner association dues paid up front, to lots of included upgrades.
How is a resale to compete with this? I know the immediate response is to cut the price - but most of our homes are now at or near the break even for the owners, and yes, that price is on the bottom end of the pricing for sold comparables.
Builder site reps that never visited us when the market was booming, are now inundating agents with free lunches, agent opens, and literally begging for customers. And based on our sold stats, they are getting the majority of the buyers.
I'm not bitter, I'm just frustrated. ;^( I care about our clients, and want to sell their homes at the best possible price and terms. Most of these folks have a legitimate need to sell, and don't have the financial ability to bring money to closing. They are patiently trying to wait out the market and hope for that one buyer who loves their home and finds it more attractive than new construction, and doesn't want to steal it from them.
What's everyone else doing to generate sales in the resale market?
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