Take Advantage of Builders (Incentives)

July 31, 2008

Phoenix area home builders are struggling to sell homes. There has been a 56% drop in New home sales from June 2007 to June 2008 according to R.L. Brown’s housing report on the Phoenix area real estate market.

ask for incentives when buying a home from phoenix area builders

The days of waiting in line to pay a premium for a home from a Phoenix new home builder are a fleeting memory.

Today, large builders like Toll Brothers, Pulte, KB Homes, Hovnanian, and most smaller local builders like Camelot Homes are offering truly great products at unbelievable prices.

However, the competition for fewer and fewer buyers is so fierce that Builder incentives are ever increasing and are tempting many Arizona home buyers.

Builder Incentives include everything from cars, pools, plasma TV’s, vacations, upgraded interior fixtures like granite and stainless steel appliances, Green cost saving efforts like solar paneling and financial incentives like no money out of pocket closing costs.

Shea Homes offered BMW convertibles. Many builders offer free pools which can cost as much as a BMW or Lexus

Let me suggest that you look for these Builder incentives when you make offers and negotiate the purchase of a home from a builder.

  • Inventory ’spec’ s (Completed homes, ) are opportunities as these completed homes sit, accruing interest or tying up cash,  in builder inventory. The lower pricing on many of these are incentives alone.
  • Closing Costs and (some HOA fees)  paid through use of Builder’s preferred lender - maximums are controlled by RESPA (not the builder)
  • Upgrades at reduced cost on appliances, flooring, counters and cabinets, even pools and patios from Standard features
  • Lot Premium Reductions  - get a premium lot for less
  • Many builders are offering bonus to Realtors.  Many Realtors will split this commission with the buyer as additional cost savings to the client.

Contact a real estate agent who specializes in new home builders and communities. New Home specialists can help you negotiate price and incentives.

Bottom Line, It is a buyer’s market.  More and more it is ‘Ask and you shall receive.’

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Copyright © 2008 By James Wexler, All Rights Reserved. *Take Advantage of Builders (Incentives)*

Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs

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Written by James Wexler · Filed Under Articles, Builders, Buyers 

Comments

2 Responses to “Take Advantage of Builders (Incentives)”

  1. Kristin Manvel on July 31st, 2008 7:30 am

    I recently bought a spec home from KB Homes. I had a great experience through and though. Zero lot premium as well as 70K off the Price! My Real Estate Agent also helped negotiate 5% towards my closing costs even if i chose my own lender. Very happy customer all the way around.

  2. Bob Schenkenberger on July 31st, 2008 9:59 am

    Do the appraisers know there is Car thown in as an incentive? Just another example of artificially propping up the market.

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