Monday, April 17, 2006

McMansion Discounts

I was looking through one of those house listing catalogs yesterday and saw an ad for the Tradewind’s McMansions built by Kara Homes in Sea Bright. The ad said that you can get a $200,000 credit for upgrades. I’m not sure how long this credit offer has existed, but it’s the first time I have seen it.

When a builder offers a credit on upgrades, or says they will cover closing costs or will throw in a free car, that is the equivalent of a price reduction. Builders don’t like to just lower the price because the people who bought earlier will get angry that the builder is selling houses for less than what they paid for their house.

6 Comments:

Anonymous Anonymous said...

Builders don’t like to just lower the price because the people who bought earlier will get angry that the builder is selling houses for less than what they paid for their house.

There will come a point where the builder could care less about those who bought earlier.

Tuesday, April 18, 2006 6:12:00 PM  
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