You are telling exactly what builders are doing currently in Austin market. One week they offer incentives, couple of week later they take off the incentives and instead lower the base price. People were no longer falling for these stupid tactics of builders.
We have a house in FL that is under contract. The incentives we offered were 1. new roof (it was installed a few days ago)2 5K for new appliances and 3 pay their closing costs. We were given a full offer at our terms. The home is paid for and it is an inherited house. So even with all those incentives we will come out pretty good. The main reason for the incentives was to make it stand out from the other homes in the same price range. Plus in FL you basically have to get a new roof every 15 years. This roof was 19 years old.
It depends in which part of CAL . I just bought a 20yr old good looking house in north cal for 340k. 1600 ft . 1/3 acre lot. With best view of the forest and mountain peak. I think i had a good deal.
I believe the reason why builders are very reluctant to drop prices is for the same reason commercial real estate is reluctant to lower rents, and that reason is that their loans are based on the projected value of the development. If a builder lowers the sale price on a new home, it affects the potential prices of all the other homes (the narc). The bank now sees their loan to the developer is being riskier than it was when the home prices were higher. They may now force the builder to do a 'margin call', meaning to come up with more money to lower the banks risk exposure to its previous level. So builders will offer free upgrades that don't affect the sales price, or rebates. While the buyer will still pay property taxes based on an inflated sale price, they might be able to get the county to re=assess the value of their property if all other properties around them decline in value as well.
Daniel Snyder tried to sell his Potomac for forty nine million. Then he dropped it to thirty five million. State of Maryland had it appraised for under eighteen million. He finally donated the place to American Cancer Society, getting a huge tax break I’m sure.
Looking at an Elmwood and that are not dropping prices but they did offer $10k from them and another $5k if we go with their lender. You definitely spoke on what I wanted to hear in this video. Thanks.
The biggest culprit: appraisers that appraise at a high level and the banks that finance these overpriced houses. Thats where prices start going up and sure mr banks, our salaries are going up as fast as the real estate market! Push everyone slumps and overpriced apartment rentals. Push for mortgages being paid by 4 working people!
As a lender we go by the appraised value. Personally I do not pick out the appraisers etc…. I would like housing prices to go down as that would be better for my business as a lender as more Americans could afford houses and people would be happier. As a lender housing prices increasing dramatically is a nightmare. It just makes our jobs harder.
I purchased my new construction home a year ago and the Va appraised it 7800 more than the price and I got 10,000 in incentives from the builders so I was blessed. Now the value is sbout 14000 more .
I love all your videos! I agree what you say with the new build community however, in this market, when it comes to resell, the incentives helps buyers right now in this market with hopes that the interest rate will be better. It doesn’t necessarily mean the home is overpriced. Unless you’re talking about overpriced to what buyers can afford right now. Not the actual appraised value.
The first adjustment (deduction) an appraiser makes in the market sales comparison approach grid (page top) is for buyer incentives included in the sales transactions.
The only time I heard a 2/1 buy down was from a lender.. is that a red flag? Looking to buy in fall, so I'm early for an actual pre qualification, but I was referred to a realtor that I already fired, but I liked their lender, whom I first heard what a 2/1 buy down was..
If a lender is leading with it they generally have high rates and are trying to distract from that. If they are saying you should pay for a temp buydown they are either uninformed or con artists or both
lol I think there is a thumbs down 👎 although you could always do a comment which is hate button is here and then people could just like it if they agree that’s a fun way as well:)
😅😅😅 tell the truth about these particle board houses y'all throwing up in 2 weeks and charging the most why don't you tell them the truth if you don't have a house over 50 years old you just brought a Lego land house why you think they say no smoking wooosh Why don't you tell the truth your not a home owner your a particle board felt paper aluminum siding Lego land owner😅😅😅😅
If only they would make smaller more affordable homes, many of the Gen Z and Gen X just want to stay single, but we shouldn't have to live in a 3 bed 2 bath home with a roomate or get a studio to be able to afford a home. A simple 2 bed 1 bath home community would be the best to invest in, somewhere away from the expensive comprimables.
I watched this video last night, and this morning I got an email from a builder offering 31k in closing and 2/1 Thanks for sharing. I would have never know if I hadn’t watched your video.❤
They're all overpriced. They have to be. The equity is in the dirt. Don't just think about the square footage of the house think about the square footage of the land and its location. Do you know what a square yard of land costs in downtown Tokyo?
Oh now you tell me 😮 as I go to close tomorrow 🙄 😅 jk, thank you so much for yalls help yall are a life changing crew thank you!! I will be recommending you to my bothers for sure!! Thank you
I wonder what would happen if you walked into a new construction builder community and when they say they are offering a 4.99% conventional 30 year fixed and you ask what is your discount for cash buyers?
@@lovenys407I was wondering on those completed spec homes what they would say:) ( not like I can pay all cash but was curious as their selling point is below market rates)
