Anyone heard of any builder incentives/concessions now that the homes are selling a bit slower?
What do you guys think the Model for Plan 1 was listed and sold for such a low price. They recently sold a Plan 1 in Phase 4 for $1,413,000.
The Model was listed/sold for $1,420,000. Only $7,000 more for all
the upgrades (flooring, countertops, mouldings, built-ins, landscaping, surround sound)???
Any of you guys who've submitted bids for your countertops or flooring know that this is a total bargain! So, what's going on?
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9 comments:
That's too bad for people like me who bought in earlier phases but if it helps them move inventory I'm all for it. I'm just glad to know I'll be moved in before the end of this year instead of waiting another 8 months or so while a hundred people or more trample through my home every week!
I haven't been in touch with any of the people at Laing since I signed the sales contract. So I have no idea what types of incentives, if any, they are offering to buyers now that the early phase sell-outs are over.
Do you have an idea of what type of landscaping you will be doing, and at what cost? I'm a first time SFR buyer (owned condos before this), so I am really clueless when it comes to things like having a sprinkler system and a backyard. I've been told to expect to spend 10-15% of the home price on landscaping, but that seems a little ridiculous given that all I want is some grass, some small trees, a built-in bbq, and a hardscaped walkway from the back doors to the bbq.
Not sure what type of landscaping I'll be doing. I would like to have some sort of built-in BBQ, also. However, we'll see what prices are like. My friend just did his landscaping. His lot is about 6500 sqft and the house is about 2950 sqft. Just for basic sprinklers, cement walkways, sod, and limited hardscape (a flower bed retention wall in front of the house) - his bill was close to $25,000.
As far as the Models, it's kinda interesting that Laing decided to sell them at the point. Usually builders wait until the build-out phase to release the Models. Plan 2 and 3 were priced fairly, however Plan 1 was a total steal.
The builder isn't going to advertise any incentives since that would ultimately work against them. I was just curious to know if any of us have been able to get them to make concessions - more of on the level of options/upgrades, where prices could easily be lowered and they would still make a huge profit.
Well, here is what I was told by the design center consultant:
"There are no builder incentives given to anyone"
"If the builder were to give an incentive to one buyer they would give it to every buyer"
"These places are so hot and selling that there is no need to give any incentives"
She was very nice, but I find the above statements hard to believe. Funny thing is, I would have considered buying up to $30,000 or so in upgrades directly from the builder, had they given me a slight discount (20% seems fair, given that (a) their profit margin must be in the neighborhood of 75%, judging from what their upgrades cost through other sources, and (b) they have been willing to pay broker co-ops, which is essentially a 2 or 3% discount on a $1.2 million home -- i.e., $30-35k or so).
But now I'm going to save the $30k for private contractors (and get twice as much for the money).
I think that they're saying they're not giving incentives. But now with about 5 homes left over and anyone being able to just walk into the office and purchase them without having to wait on some sort of list, Belle Cliff just became like any other community. I bet they would rather offer someone an incentive than leave the home unsold.
I think it also depends on the price of the house. For example, there's a "view lot" (I think it's lot 15) that has been sitting unsold since Phase 3 (so 2 months or so now). They threw in a free deck for that home. I bet you someone could walk in and negotiate other options for free if they were to just take it off the hands of the builder.
It's harder and harder for them to find people who can afford and qualify for the "view lots" so I think they'll make more concessions for the people buying those lots.
All I know is that I'd be pissed off if I was the guy buying the previously sold Plan 1 for $1,413,000, then saw that the Model 1 was listed and sold for only $7,000 more!
Do you know how much the other two models sold for? Could it be that the non-model plan 1 had a larger backyard (of the three models, the plan 1 backyard was about 20 feet less deep than the plan 2 and 3)? Or perhaps the plan 1 model was not as highly upgraded (the flooring was nice, but all the appliances were the standard Kitchenaid appliances)?
The Plan 2 and Plan 3 Models have not sold yet as far as I know. But the Plan 2 is listed for $1,620,000 (roughly) and the Plan 3 is listed for $1,820,000 (roughly). Those prices are fair considering what they have the empty homes currently listing at.
The Model Plan 1 says that it's lot size is something like 7200 square feet. I'm not sure what lot size that Plan 1 which sold for $1,413,000 was, however if you look at the "view lots," they're mostly mid-7000 square feet.
Again, the Model was listed at just $7,000 more. Yet, the Model comes with the flooring, landscaping (built-in BBQ, firepit), upgraded countertops/bathrooms, surround sound, entertainment built-ins, crown mouldings. I'm not sure what upgrades you've selected, but I think all of that would easily add up to $150,000 with the builder's option prices. I mean the flooring alone is probably like $40,000 (according to their overpriced prices). Landscaping is like another $40,000.
Just seemed very low to me.
By the time they get to Phase 9, I think the empty Plan 1's will sell for higher than the Model. Well, I don't think... I know.
I mean the Model was only $7,000 higher than the house sold in Phase 4!
"By the time they get to Phase 9, I think the empty Plan 1's will sell for higher than the Model. Well, I don't think... I know."
Care to put some oney on that?
anonymous 5:37 - Do you know anything about the neighborhood? Do you have any info you'd like to share? Or are you basing your opinion on the broader state of the market?
Yeah, the model may only be $7000 more than the previously-sold Plan 1 and have upgrade galore but those upgrades have been trampled by prospective buyers, their kid's dirty hands, and will be basically worn in by the time that home closes. Think about it! Plus, it looks like the model home views will be blocked by Khov models. I don't think the other guy got a bad deal even compared to the model price. Even in this market, it's tough to find a new home in the low millions in coastal communities.
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