FYI - incentives like these below, and also the $100,000 Centex give-away, will NOT affect median or mean home sale values. These off-balance-sheet entries are indeed depressing prices though - the price the home can sell for after the receiver of the give-away closes.
($500,000 house - VW Beetle) = $470,000 true price, but $500,000 sale price recorded in the mean and median numbers. Now, if they'd throw in Lindsay Lowhan, that'd be another thing...
Great gimmick by the real estate industrial complex to keep the suckers buying and buying
Everybody wants something for nothing, and as housing markets slows, homebuyers are starting to get just that. Sellers, reluctant to drop home prices, have been finding creative ways to move product.
The trend is especially evident among developers and homebuilders who have to act much more decisively than individual homeowners who have the option of sitting tight.
Some recent freebies include trips to Las Vegas, home-entertainment and security packages, furniture store gift certificates, golf club passes for a year -- even swimming pools
Steve Melman, a spokesman for the National Association of Home Builders (NAHB) reports that sales incentives have become the rule among its membership -- 56 percent feature non-price incentives.
One builder, Georgia-based Forrest Homes, is giving away a two-year lease on a Volkswagen Beetle with a home purchase. That's right, these houses come with their own Bugs.
Pulte Homes, a Michigan-based homebuilder, is paying the heating bills for six months to anyone who buys a home in one of its Maryland developments. Pulte also will throw in a free-gas fireplace, hardwood floors, upgraded cabinets, and a washer/dryer -- and a 42" plasma TV.
January 27, 2006
Posted by blogger at 1/27/2006