And so it begins...Irvine Pacific begins Broker Co-op for 2011 Home Collection

[ps99472]

1 - Usually the first thing that a stubborn builder will begin to offer is a broker co-op to spur slow sales

2 - ...the next thing will be an upgrade incentive of some amount if you use the builder's in-house lender (give it a month or two before they offer that up). 

3 -  Then they'll begin to offer upgrade incentives without going through the in-house lender.

4-  The absolute last thing they'll do is lower the price of the homes (this typically happens when they have standing inventory or completed but not sold homes).

did all or what percentage of the 2010 collection do you think get to the last stage? 

if not all of the 2010 collection got to the last stage what percentage do you think got to the 3rd or 2nd? 

did any projects sell out without giving anything up? 

(i'm not expecting anyone to know the exact numbers... but guesstimates would be appreciated) 

I think Sonoma sold out without giving any incentives away.  I remember the plan 1's were hard to sell in the end with people backing out (including myself).  Never remember any broker co-op.  Who needs it back then with free govt money around. 

 

[ps99472]

Las Colinas in PS is already at the co-op and incentive mark.  They have four homes that will be completed in June and two more in Oct.  With the upcoming lower conforming loan limit to $625 on Oct 1, this may spur builders to lower the price sooner (wishful thinking).

That's a good point, the $625K jumbo conforming limit reduction is supposedly in effect on Oct 1 (unless extended).  So for the homebuyers that need the 729K limit, they'd have to close on or before Oct 1st?  Otherwise anything after that would be private market jumbo rates, unless they reduced the loan to 625K.

That's going to be a tough sell for the entire 2011 collection.  Please have your 400K+ downpayment when you close on your San Marino home.. cough cough.  Then to pony up another 40-100K for upgrades and landscaping. 

Wow, this changes our game plan significantly.  Looks like we're not going to be able to buy this year.  The home we're looking at probably won't be ready till end of 2011 or early 2012, so this means my loan will be jumbo non-conforming.  Who's got John Campbell's email?  I'm going to send him a letter. 

UPDATE:  found it  http://campbell.house.gov/index.php?option=com_content&view=article&id=1023&Itemid=35

 

[irvinehomeowner]

So if iPac is having problems selling the $1m San Marino homes... doesn't that not bode well for Laguna Altura? Their Maricopa clone Cortona homes are in the same price range... and the San Marino clones are even higher.

And $700-$800k for detached condos? Those floorplans aren't all that hot... looks like 2011 isn't going to be better than 2010 like Dan Young thought.

 

[ak]

why has WB elem and Irine HS fallen out of flavor? 

 

[homer_simpson]

why has WB elem and Irine HS fallen out of flavor?

Not sure why about Irvine High, still ranked top 10 in the OC.  It's ranked higher than Woodbridge..  ;D

 

[usctrojancpa]

so any guesses as to when Maricopa @ SG will start offering broker co-op?  Also, if Los Colinas @ PS might offer front and rear landscaping would this be a credit at closing or how does this typically work? 

I think it's gonna take a little more time for Maricopa to start offering a broker co-op due to the lower price point, but by the summer time you can probably expect all of the developments in Stonegate to start offering broker co-ops.  Maybe TIC prices the homes with the broker co-op in mind and wanted to see how many they could see without offering it up, who knows.  As for landscaping at Los Colinas, it can't be a credit because lenders will limit the amount of credits a buyer can use only up to their total closing costs.  So it would have to be done before the closing of the home or with a side agreement if it's done after.  I'm sure Taylor Morrison would be very flexible if they want the homes sold.

 

[akim997]

Does anyone have updates as to the current co-ops in the various communities?

 

[usctrojancpa]

Does anyone have updates as to the current co-ops in the various communities?

They are still the same, not much has changed.  2% for Las Ventanas and Las Colinas, $20k for Maricopa, $25k for Tuscana, etc.  I think The New Home Company will offer up 2.5% for Lambert Ranch if they follow the same playbook as over in Woodbury.