I’ve driven by this banner twice in the past week while on appraisal inspections in the City of Lincoln. Isn’t it a sign of the times for builders to offer concessions like this to buyers? During the boom years before the market tanked there were no concessions as such because it was a seller’s market and builders did not have to create incentives like this to attract buyers. In fact, builders in those days tended to charge very high amounts for “premium” upgrades too, whereas now these same upgrades such as granite countertops and stainless steel appliances tend to show up in standard models. Since today’s market is more of a buyer’s market, sellers need to price their properties appropriately and in some cases offer incentives like this to attract homebuyers.
If you’re in real estate, how have you seen concessions in a purchase price impact the market? Do you see a difference in price level between conventional offers asking for no concessions and FHA offers asking for 3% back? Which tends to be higher? If there is a difference, what does that tell us? Lastly, do you think the HOA fees above are really free or is the price inflated to cover the cost of the fees?