Homebuilders hate to cut prices for fear of torching everyone's property values and setting off stories about weakness in housing. But they know real estate is cooling, so they are advertising goodies galore. And now there are signs that the taboo against price-cutting is lifting.
For the most part, builders limit inducements to paying closing costs or buying down the interest rate or paying points. Or they toss in upgrades or extra space at no cost. The box on the right shows some come-ons in builders' ads in Sacramento, Chicago and New Jersey.
But at the luxury end of the new-home market, you may actually see some movement on price. In New Jersey, Kara Homes has advertised discounts from $20,000 to $246,000 on already-built homes priced from $300,000 to $1.5 million. Centex Homes held 12-hour "marathon" sales, where it discounted homes by as much as $150,000. In Sacramento, local builders say that at least one of the big national outfits is done playing "the incentive game" and will shortly cut prices.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
On moderately priced homes, there are fewer reasons for builders to make concessions. But don't be afraid to ask.
-- Pat Mertz Esswein
-
What Is a Qualified Charitable Distribution (QCD)?Tax Breaks A QCD can lower your tax bill while meeting your charitable giving goals in retirement. Here’s how.
-
Embracing Generative AI for Financial SuccessGenerative AI has the potential to reshape how we approach learning about and managing our personal finances.
-
How to Find Foreclosed Homes: Best Foreclosure Listings SitesMaking Your Money Last Find foreclosed homes for sale on these foreclosure listing websites. Search for properties on these free, paid or government sites.
-
Luxury Home Prices Rise as the Rich Dodge High Mortgage RatesLuxury home prices rose 9% to the highest third-quarter level on record, Redfin reports, growing nearly three times faster than non-luxury prices.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to Shop for a Low Mortgage RateBecoming a Homeowner Mortgage rates are high this year, but you can still find an affordable loan with these tips.
-
Looking to Relocate? Plan for Climate Changebuying a home Extreme weather events are on the rise. If you’re moving, make sure your new home is protected from climate change disasters.
-
Retirees, A Healthy Condo Has a Flush Reserve FundSmart Buying Reserve funds for a third of homeowner and condo associations have insufficient cash, experts say. Here are some cautionary steps you should take.
-
Cash Home Buyers: New Services Offer Help Making All-Cash OffersBecoming a Homeowner Some firms help home buyers make all-cash offers on homes. Weigh the fees before you sign on.
-
Home Sale Prices in the 50 Largest Metro AreasBecoming a Homeowner What’s happening in the market where you live?
