Business Journal: Incentives Grow For Home Buyers
New home builders in the Sacramento are increasingly dangling incentives before potential buyers.
Tuesday, November 29, 2005
The incentives are an alternative to reducing home prices. They range from paying the closing costs to offers of free cars, vacations or swimming pools. The strategy allows builders to hold the line on prices, with hopes of a better market next year.
A U.S. Homes project offered $10,000 off if their preferred lender was used, an offer Centex has employed as well. At the Lincoln Crossing project, JTS Communities bumped its incentives as high as $50,000 on very upscale homes. In South Placer, the average incentive on a new home comes in at about $7,700, according to the Gregory Group, which tracks new home pricing.