December 29, 2007

$50,000 in "free" furniture when you buy a Hovnanian home? Here's a better idea: LOWER THE DAMN PRICE!!!



Love all the cute ways builders tried to protect their comps, and manipulate the new home sales report's median price.

Love all the sheeple who fell for it (ooh, look ma! we get a free TV if we buy this home today! ooh!!! who cares what the price is!! free TV! free TV!! now we can watch Dancing with the Stars and America's Top Model!!! oohhh!!!!)

One thing about Hovnanian, they have been able to lower their stock price pretty good - down 90% now from the peak.

Oh, remember this attempt by their CEO at illegal price fixing? Where he told his competitors to go out and RAISE the prices, right before he went out and slashed his.

Frog marches. We want frog marches. Or at least some tar and feathers. And for crying out loud, no more "free" stuff to con people into buying your overpriced debt-traps.

"Raise prices," he said. "Buyers aren't buying because they think you're going to lower prices again. There's interest but there's fear. Raise prices 3-4 percent. And quit giving discounts.''

- Ara Hovnanian, July 2007

46 comments:

Ed said...

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OMG. Those homes are hideous. So close together, I wasn't sure if they were townhomes or detached. I wouldn't pay more than $100K for anything there.

$50K of furniture which Hovnanian gets for $20K at wholesale price and this idiot 1st time buyer thinks it's a great deal.

Amazing. And yet the government wants to bail out people like this.

Anonymous said...

Why not take advantage?

If the builder is stupid enough to 'give' them anything why not take it?

They (buyer) will be in foreclosure soon enough anyway, and this allows the buyers to save more limit that they can 'spend' with their high interst credit cards.Hey, they can buy a couple of new cars too... Why not?

The buyers do not intend to pay for ANY of it anyway as they are broke, and will be out of jobs soon...

F*ck Americanos. All of us. We are doomed to be a nation of minimum wage used-house salespeople...

Edgar said...

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Let me be the first to say Ara Hovnanian is the scum that scum scrapes off their shoes.

Edgar said...

Congrats to the PTB for raising a generation of utterly stupid people. Pay property taxes and a thirty year mortgage for furniture? The funny thing is it doesn't even matter, any old straw buyer will suffice because they have no intention of paying back the loan anyway.

Anonymous said...

LOWER THE DAMN PRICE!!!"

I dont know Keith?

I kind of like the idea of all those freebies.

Furniture, a leased Hummer,

Maybe throw in a ready made Ho (any out of work Realt whore will do)provided she keeps her mouth shut most of the time.

B said...

Don't worry - they'll eventually get it.

In some ways it is more fun to drag them along kicking and screaming. It maximizes the schadenfreude.

For me, anyway.

Anonymous said...

it really doesn't matter I think. the so-called big lie called the American dream (buying your own house) is about over, imho. Look at all of these homes on the market. Who is going to buy them and with what? The big game of building over priced homes and selling them and charging interest for 30 years is over now. This great depression that is almost on our doorsteps now, will cause major disruptions in the way we think, the way we live and the way we think about money. The American dream is over because soon Americans will finally awaken to what has happened to them.

Veronica Lodge said...

RE: $50,000 in "free" furniture when you buy a Hovnanian home?

Give me a break!

Two furniture giants have recently gone out of business. With the demise of Levitz Furniture and Breuners Home Furnishings, there are furniture bargains everywhere.

With a nation-wide glut of furniture being liquidated for pennies on the dollar, $50,000 in "free" furniture might go for under $10,000.

Whoopee! This is the deal breaker we have all been waiting for!

Those overpriced houses are starting to look like real bargains.

V.L.

james said...

50k in furniture or 15 k in lower price? so if you take the furniture, you already know that the house is down 15k from what you paid for it?

clownpile said...

Who panics first panics best!

Desperation. Gotta love it.

HOV will be toast in a few months.

I would ask for the cash discount.

$50 K in furnishings? That is so overpriced. You can furnish a home nicely for a fraction of that cost. I would demand an itemized list of what makes up $50K. I know you could spend much more but this sounds like a total scam. All the margin in many busineses is in the add on and options.

devestment said...

WAKE UP! I deal furniture, antiques, and decorative objects.

That new furniture is CRAP and only worth a few cents on the dollar. They aren’t giving you anything, ask them for $50,000. off in cash.

If you want a houseful of new furniture; take a thousand dollars down to your local furniture auction and buy it outright! With all the foreclosures there is a glut of that junk on the market.

Additionally, the new furniture market is incredibly dead. I am sure the furniture they are giving you is dead or bankrupt stock being sold to them at a deep discount.

As for the pool; who wants a POS drop in fiberglass maintenance headache in their back yard that adds no value and millions in liability, barely gets used, and is a pain in the ass to maintain?

Sure as heck not me.

Anonymous said...

Camel jockey bastards.
What kind of hashish is homo-porkian smoking?
Ask them for a free dromedary so you can save on gas.

lewtheliquidator said...

$50K of furniture which Hovnanian gets for $20K at wholesale price

They pay less than $5000

Anonymous said...

With the value of the Euro being soo high.
It totally makes sense to buy in America.
For what I would pay to fill up my 2 liter scooter with petro in Europe
I can buy a house in the US plus get free furniture.

michael said...

finance furniture over 30 years????

sign me up baby!!!!!!

randy said...

Folks I’m sold

Keep the furniture.

Just give me a few more of those 'silk' trees.

I'm jumping of the fence now.

How can anyone resist

Anonymous said...

Anonymous Anonymous said...

Why not take advantage?

If the builder is stupid enough to 'give' them anything why not take it?

They (buyer) will be in foreclosure soon enough anyway, and this allows the buyers to save more limit that they can 'spend' with their high interst credit cards.Hey, they can buy a couple of new cars too... Why not?

The buyers do not intend to pay for ANY of it anyway as they are broke, and will be out of jobs soon...

F*ck Americanos. All of us. We are doomed to be a nation of minimum wage used-house salespeople...

December 29, 2007 3:48 PM

Are you kidding me? America has the world's most diversified economy in the world. If you really feel that way, then why don't you leave the country just like Keith did. And good riddance too!

Anonymous said...

You HP'ers think that just because you don't have money to afford a house, other people don't either. That is foolish thinking. In my area (Chicago's Northwest Side) homes are not selling as fast as they once were, but they are still selling though. People are asking for 600K to 900K and they are selling and thus there really is no "crash" here.

Anonymous said...

Woo Hoo
I hope It’s all from IKEA

BTW, why do Europeans call cardboard, wood?

Anonymous said...

That's a good deal dude. For the last couple years you had to rip out copper piping to get something back when the stucco box is foreclosed on. Now you can take the furniture and the copper piping when you're kicked out.

BuyerWillEPB said...

Hey Keith,

Wanna create a stir? We should be creative on our side with solutions as well. Our obvious solution of dropping home prices (while still the most effective) is getting worn and tired.

So... Let's demand another solution be tried.

ELIMINATE ALL PROPERTY TAXES

Yeah! Sounds so obvious now that I said it,huh? Why don't we ever hear anything like this? Wow, get rid of property assessment taxes, and mello roos, HOAs etc., and you're looking at housing now being about 30% more affordable.

Imagine that, make homes affordable again AND re-establish property rights at the same time. The Founders would be smiling on us from above.

Anonymous said...

$50K in "free" furniture or $15K off the price.

So the furniture is really worth $15K.

Tyrone said...

The average person would NEVER furnish their home for $50,000. In fact, even the above average person has crap taste and purchases cheap garbage. Most people are incapable of investing in quality products that can last a life-time. Instead, they will furnish their homes through IKEA and Walmart. (wouldn't be caught dead in either place)

I was at a home in a gated community in Rancho Sante Fe, and I swear to god, it could have been a 'Target' showcase home. This is what happens when PWT makes it. (Poor White Trash)

unomyname said...

It's called the American Dream because you have to be asleep to believe it.

Since most Americans are in some kind of semi trance in which visions of wide screen TVs along with sugarplums dance in their heads, the American Dream continues. The 2x4 is accelerating towards their empty heads though - the question is do they become fully unconscious once it hits or does it wake them up?

HD_man said...

Funny the TV won't work after the new HD signals start - PAWNED again! SUCKER...

happy homeowner in the stix said...

50k? Hell, you could go nuts at Ethan Allen or Restoration Hardware for a lot less than that. And I doubt that furniture is of that quality, anyway. Probably some leftover stuff they picked up cheap at Levitz.

Make 'em toss in a pool and spa, too. And professional landscaping design.

After getting them to agree to all that....then make an offer at least 10% below asking price, maybe 20%.

But be careful! They might take it, and then you're stuck with the fugly thing....

Anonymous said...

Who spends $50,000 to furnish their home? That seems like alot of money. You can get a top quality kitchen appliance set for $6000. You can get TepurPedic beds in four rooms for another $12000. A leather living room set for about $5000. Oak dining room set for $2000. Two large flatscreen 1080i TV's for $6000. That's roughly $30000 retail and most of your home has been furnished with the best plus you get to choose what you want.

Anonymous said...

Anonymous said...
‘Woo Hoo
I hope It’s all from IKEA
BTW, why do Europeans call cardboard, wood?’

Man you are so right
I owned a Mercedes benz and a BMW in the past 10 years, and now own a Toyota.
Like so many, I fell for the ‘German engineering’ story.
Both Mercedes and BMW where very expensive to maintain, spent a lot time in the shop and really are not comfortable cars.

I now stay away from European products; they are overpriced and low in quality.

OC Slacker from 05 Housing Loot said...

Susan McFail????
an appropriate name for the sheeple indeed

....a LEASE ON A NEW HUMMER??? did I hear that correct as a incentive?

Anonymous said...

As for the pool; who wants a POS drop in fiberglass maintenance headache in their back yard that adds no value and millions in liability, barely gets used, and is a pain in the ass to maintain?

Sure as heck not me.

December 29, 2007 5:15 PM

---------

Dude you are wrong on this one. I have had a pool in every home I've lived in. I rent a home with a pool now. I love having a pool and use it 2-3 days a week. Pool season in my neck of the woods is early April to late October.

Anonymous said...

Man you are so right
I owned a Mercedes benz and a BMW in the past 10 years, and now own a Toyota.
Like so many, I fell for the ‘German engineering’ story.
Both Mercedes and BMW where very expensive to maintain, spent a lot time in the shop and really are not comfortable cars.


-------

Could not agree more. German OVER engineering is more like it. If the Japanese can do it with 2 parts, the Germans will do it with 4 and each part will cost 25% more than the Jap part.

Buying a German car is for people who have to impress.

The one exeption is Audi if you need AWD. The QUATTRO is still the best out there.

Anonymous said...

Lets see, the deadbeat liars "buying" these houses can cart away the furniture as well as take out the plumbing, stove, water heater and air conditioner during their 1st month. By the time the mortgage has been sold off these deadbeats, who most likely executed the closing documents with stolen SS# & IDs, will be in another state with plenty of "free" new furniture and appliances and the house will go into foreclosure.

First timers. you bet!

Are Builders Really That Dumb? said...

50k worth of free furniture?

Did Hovnanian clear out Levitz on their going out of business sale?

I'll bet they picked up that furniture for pennies on the dollar...just like their stock of homes will be sold for in the near future.

Anonymous said...

Hey, I got a great sales gimmick. Buy a new LAZY-BOY recliner for $350,000 and get a 3bd/2ba house free. Buy matching coffee table lamps and we will throw in a backyard pool.

Anonymous said...

Anonymous said...
'The one exeption is Audi if you need AWD. The QUATTRO is still the best out there.'

I would recommend staying away from products made in Europe all together,
They are mostly over rated and in reality under perform.

Anonymous said...

Levitz is out of bizness? Damn, I liked that place.

Anonymous said...

You have got to be kidding. the furniture isn't worth $15,000 USD!!! Boy that must be some top notch Kool-Ade. it's too bad & sad that there are still innocent buyers taking the bait. Boy this is going to fall hard soon!! Depression is forth coming. Get ready shepple.

Anonymous said...

Only an idiot will go for a deal like that. Effectively Hovnanian is setting you up for negative equity if you opt for the furniture deal. This is because if you pay the full asking price for the home you will go upside down sooner rather than later in the current freefalling housing market. Another reason why the deal is so lopsided from a buyers point of view is that not going for a $50K price cut means you will end up paying interest on an additional $50k for 30 years. With a 6.1% 30 year fixed mortgage you end up paying around $92,000 in extra interest payments alone over the 30 years not to talk of the principal. Now compare that to a $50,000 saving on furniture and tell me you've got a great deal. Do you feel lucky, punk?

bob said...

Hey Keefer, why are you throwing up 3- 4 month old news at us? This "deal of the century" stuff is so last August!

I think another reason, aside form comps, is that the builders prolly have these on their books as assets until they sell them, so it's to fool their own accountants, not just the buyers.

Anonymous said...

I always wanted a $3,000.00 wicker chair and now it's free. Oh joy!

In the old days the house was mostly empty the first couple of years or had used hand me down furniture. Nowadays everybody has to live large right now, no wonder this is such a mess.

OC Slacker from 05 Housing Loot said...

The home buyer in the video name is "Susan McPhail"
I propose replacing John Q Public with Suzanne McFail to describe the masses of fools from this point on. Kinda sounds fitting like McMansion and Failed McFlipper....

GenX said...

The problem with all these new houses is there all just plain Gross. They are so close together your neighbor snezzes and you say godbless you..All of these crapboxes look alike..Its very easy to just park in the garage go up the stairs and get in bed with another mans wife..All the houses look the same..What happened to smart building..Building beauitful neighborhoods that had style and class..Where every single house was not identical.. At least with all this track housing they could at least plant trees for future growth ..My grandfather was a builder and he always included 4-6 oak trees with every new home..decades later his neighborhoods look mature and beauitful/...All these new neighborhoods at least in florida look like a bad hollywood set.Fake! I would only buy a home in an old established neighborhood.

Just exactly who is going to buy this inventory of unsold new Homes? It does not matter if your in Florida,Arizona, Calif..the Ugly shitboxes all look alike.

And who is going to buy all these condos under construction????The Chinese?

GenX

Anonymous said...

sometimes getting in bed with another man's wife ain't such a bad thing

Anonymous said...

A condo developer here in Chicago is offering a new car with the purchase of a loft condo on Chicago's Northwest Side. Mind you, they have tried selling these units for about four years. No one wants them. I could only guess how much money the developer is losing. I guess they don't want to lower the price and play gimmicks. I feel sorry for any idiot who falls for such sales tricks.

LOL said...

I hope they get flood insurance to protect their free…. Cheep….Highly marked up…gimmick furniture, as Natomas is built on a large flood plain between the Sacramento and American rivers.

The levies protecting the Urban sprawl are only a few hundred feet away from homes.
They were built by farmers many years ago and are in such bad shape that Gov Arnold
declared them to be in a state of emergency, and commissioned $500 mil of state funds to repair them starting in 2008.

It will be interesting to see how it all works out with the $3.3 billion dollar state budget shortfall.

Anonymous said...

Mr. Homebuilder,

I want you to grovel in the mud, shove your face in the mud, grovel, beg, take off another 200,000. I still won't buy but I'd like to see that.

I was property manager for large rental complexes. Lowering the rent was the LAST thing they ever wanted to do, similar to not wanting to lower the sales price on a house. They would pull everything out of their ass they could think of before they would lower the price. 99% of shoppers were not fooled.