The incentives now are second to none
That’s Dick Greenwood’s take on what builders have been offering buyers in the suburban real estate market. Incentives, he says, have included an eye-opening $85,000 worth of upgrades on a $300,000 home, luxury cars, even 20 years of free golf.
Greenwood, Vice President of Builder Marketing for Coldwell Banker Residential Brokerage, is a 37-year veteran of the home-building industry who works with builders from Michigan to Wisconsin.
The straight-talking Greenwood predicted that the over-the-top incentives will come to the city market this fall, but that builders are highly negotiable even now. The flat-screen TV of a few months ago may be just the opening ante in today’s high-stakes poker game.
Watch the first part of our candid conversation and stay tuned for more.
Duration : 0:7:14
Tags: Chicago, construction, deals, estate, Greenwood, homes, Illinois, incentives, new, real, YoChicag
August 27th, 2008 at 7:50 pm
I have seen signs of this here in NC, too. Where builders offer big upgrades, and I am planning a marketing strategy to offer my services as an upgrade to builders, but if I were the consumer, I think it would attract me to have the house purchased at a discount in lieu of the upgrades (especially if they are upgrades I could do myself later). Why not offer the homes at $20k or more (as Mr. Greenwood said up to $85k in upgrades) to the potential buyer as incentives. That way, the buyer is getting a house under market value and feels more comfortable investing in the purchase in this market.
Of course, I am well aware (being in construction for 18 years) that these upgrades don’t actually cost as much to the builder as they claim they are giving the consumer, but as I stated, take the money off the price of the home. This would possibly boost sales potentially enough to show a trend change in the housing market.
Just my opinion,
Keith