Builder incentives in the Charlottesville real estate market

The Wall Street Journal had a story yesterday featuring builder incentives in the national real estate market. Highlighting the value of the Long Tail, there is a link on their website to a February story in which I was quoted about builder incentives (alas, no link to my blog). As a follow-up and to put a local perspective on the story, I searched my emails for some of the new construction builder incentives.

Every builder in the Charlottesville area is offering varying degrees of incentives to buyers and Realtors. Regarding the Realtor incentives: these are but one of the reasons that I negotiate my commission with my buyer clients up front, lest they think that I am motivated by something other than their best interests. It just feels more honest and transparent.

The selection of incentives from the builders are below the fold, as the list is so long. Needless to say, with all of the negotiating going on right now, it really and truly is a very good time to buy – so long as you buy smart.

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From K Hovnavian, who are building a “55 or better” development north of Charlottesville, sent this email out this week:

You’re Invited!
Khov4Realtors Open House Day
Almost 30 Realtors have already earned $3,000 and are on their way to more trips and prizes!
Join them today!

August 14, 2007 • 11:30 am – 2:30pm
You’re invited to an exclusive Realtor Open House Day at any of the over 80 K. Hovnanian Homes communities in the Greater Metropolitan area.

•Learn all about our Realtor Rewards Program
•Find out how you can earn 2 trips, $13,000 and be entered to win a one-year lease on a Mercedes Benz!
•Make your job easier and more profitable
•Enjoy light fare and refreshments
•Visit 3 of our communities and earn 300 points towards rewards!*

Barry Meade is offering rate buy-downs (in my opinion, perhaps one of the best offerings out there):

4.75% First Year
5.75% Second Year
6.75% Third-Thirtieth Years

Barry Meade Homes and Union Mortgage have extended their exceptional finance package through the month of August!  Your buyers qualify at a LOW introductory rate of 4.75% the first year, 5.75% the 2nd year, and 6.75% for the 3rd-30th years.  These rates allow your client to qualify for more house up front!

This promotion applies to contracts received by August 31, with closing to take place on or before September 30, 2007.

Ryan Homes are offering (from June);

Save Up To $100,000 – One Day Only!*

Saturday, June 9 11am-5pm

Incentives & Promotions Will Be Announced At 11am On The 9th!
Quantities Are VERY Limited!
Immediate Deliveries Are Available!
Brokers Warmly Welcomed!>Ryan Homes is Offering These Once-In-A-Lifetime Incentives at the
Following Greater Charlottesville Area Communities: …

Hauser is offering:

Enjoy $5,000 Broker Bonus PLUS your 3% Co-op on Fontana’s Last Available Homesite. Now Through August 31, 2007!

Gaffney Homes:

Gaffney Homes is offering a Grand Opening Special of 10% off our Glenwood Station condominiums for contracts written by August 15, 2007 and closed by September 30, 2007.

Current list prices range from $322k to $473k, which means a savings of up to $47,000!!!. The units are 2 & 3 bedrooms with 2 full baths. Glenwood Station provides stylish & elegant one-level living along with a full range of amenities:

And another local builder is offering a $5,000 Realtor Bonus if we sell their home.

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  1. Charles Woodall August 11, 2007 at 09:37

    We had a builder/developer in our area team up with a car dealership to offer a new car with the purchase of a new home. List price on the homes were in the mid 200’s, so even from my limited building experience, I know that promotion is going to cut deep into any profit. Desperate times call for desperate measures? It is certainly looking that way in our area.

  2. Jim Duncan August 14, 2007 at 07:14

    Charles –

    Thanks for stopping by. There are signs in our market that at least one builder might be going under in the near future; all the incentives in the world won’t help if nobody’s buying.

  3. Gary Shifflett September 19, 2007 at 20:32

    Two things: Your blog is professional as well as very informative,especially on the local market here. Also I would like to make you aware of my company, Blue Ridge Termite & Pest Management Group, which offers Real Estate inspections(wood-destroying organism infestation reports), water testing,& septic inspections as one of our many service’s. I’ll be sure to pass your name on to colleague’s,friends,& family.