Wouldn't you be PISSED if you bought a home from Centex last week, or heck even today, and then found out that for 12 hours on Saturday they're giving $60,000 off (as in, you overpaid $60k, or your home's value just dropped $60k)
These builder price cuts are a slippery, slippery slope, and like Vegas saw last year, open the builders up to charges of fraud and deception.
One more thing for folks to consider who are buying next to where builders are building. They can crush you at any time. The profit margins on new houses have soared to such atmospheric heights that they can hack away at price and still make a fortune. However, if you bought one of their houses for say $500k, your cost basis is $500k if not more.
Hat tip to HP reader AJ for the lead
January 12, 2006
Wow. Centex "$60,000 Off 12-Hour Sale" this Saturday in Atlanta
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12 comments:
Certainly the first of many sales we will see.
They are sounding like GM and sales like this will turn houses into depreciating assets for the near future.
Won't price cuts like this though show up as declines to home price numbers? Or will this be an "off balance sheet" number, where say a $500,000 house sells for a reported $500,000, even though it really sold for $440,000? And the $60,000 is reported by Centex as a promotional or marketing cost.
I think it's the latter. So anyone looking at median home price numbers will be deceived
Can anyone confirm this (or correct)
thanks
Come on, you all know how these things work. There is probably one house that has the discount and its probably been sold already.
""They call you and say 'you are so lucky .. this just came across.. it's going to be worth 100k before it closes.."
"In her sales agreement, Harmell agreed to sue an in-house lender..."
hee hee, surprising to find two Freudian slips in the article
RE: I think it's the latter. So anyone looking at median home price numbers will be deceived
I am going to guess yes. A lot of houses, mine included, are having the listing price stay the same but closing costs and what nots being picked up by the seller.
It a nice accting way to keep the numbers high and everyone happy with their comps.
Sean
Bah... Meant to say I live in DC.
Sean
Well greedy Miss Las Vegas! Amazing how her perception of her greed has changed with her fortunes! Who in their right mind would buy 19 homes? Guess the same person who goes to a Vegas Casino and uses their credit card to gamble and then cries when they loose!
And as far as business is concerned what ever happend to "Buyer beware"? People can only sell at a price PEOPLE are WILLING to pay. If all those greedy investors didn't expect to make a big profit they wouldn't have paid such outrageous price mark ups to begin with. Remember, value, location, value, and don't buy what you CAN'T afford.
My friends have always bugged me on why I don't own multiple properties. I've always chosen the safe route, one at a time. I buy, I enjoy, I sell. I make a reasonable profit but I don't buy expecting to make a profit.
I have no sympathy for multiple home buyers, I do feel for those who bought a "home" to live in without expecting to "flip" it for a profit. Do you think Miss Vegas cry-baby would be crying if she flipped her 19 homes and made a million or more? Hell, if she maid $500,000? NOT. You play, you loose, you deserve what you get.
There's a saying in Vegas and it certainly applies to her:
"There's a patsy in every game, and if you don't know who it is, it's you"
What were the prices like a week after the "sale"? Had they gone back up, or was the "sale" a lasting price reduction?
I'm not ready to make a commitment yet, but I'm willing to soon.Chiao, Paris blue book value
Centex adds are nothing more than a well worded bate and switch tactic to draw people into thier sub divisions.
Pulte is a McHome builder. Its thier way or the highway.
Lot perimums are nothing but gouging the home buyers. When all the same home builders have homes in the same price per square foot is nothing less than colluding on all the builders parts. Especially when they all refuse to negioate price.
better check out centex , before buying from them. because they are very bad home builders and do not fixed their mistakes. they ripp of people. they have done it to me. My house was supposed to be made for a disabled person and it was not ! the house is falling a part. they also gave me used appliances. read all the complaints about centex, and do not buy in a housing project untilo it is all done. because the housing addtions by centex are horrible.
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