How Desperate are the Homebuilders?

NEW -> Contingent Buyer Assistance Program
Just received an e-mail from Lennar, looks as though they may be doing something (though what that something is, is a bit vague from their website)





<a href="http://www.lennar.com/promotions/saw.aspx?pid=4443&CityID=ORA&SourceID=MKT">www.lennar.com/promotions/saw.aspx</a>
 
<p>I just got this e-mail from John Liang. .. it is a little long but really good so bear with me.</p>

<p>As a current or past John Laing Homes family member, you already know the value and quality of our exquisite homes. We're pleased to announce, we've just added more value and more neighborhoods. Check out what Celadon in Irvine and Avenue E in Santa Ana have to offer!





<strong>Now, when you purchase your second, third or fourth John Laing Home at one of our participating neighborhoods, we'll give you a special family member price. If you're not quite ready to buy another home, refer someone you know and if they purchase a home in one of our participating neighborhoods, we'll reward you with $1,500 in gift certificates from </strong><strong>1 800 Gift Certificate</strong><strong> and the person you refer will receive a $1500.00 credit to our design studio.</strong>





Here's how the program works: </p>

<ol>

Purchase your second John Laing Home and we'll give you 1% off the base price of the home.*

Purchase your third John Laing Home and you'll earn 2% off.*

Purchase your fourth John Laing Home and you'll earn 3% off.*

Refer a friend or family member and you'll receive $1,500 in gift certificates from www.1800giftcertificate.com. Plus, the person you refer will receive a $1500.00 credit to our design studio. **

</ol>

<p>I do not know about you guys but I am excited about that 3 percent off on my fourth home.</p>
 
I guess my last post is pretty obvious.....the builders were selling houses to the buying public for 3 years at twice the worth of the house....I guess you expect the builders to think that their customers are fools.
 
It's unclear from the promotion whether you have to buy all of these homes at once (which is incredibly stupid) or whether you simply have to be a repeat customer. Since they say as a current "or past" family member, I'm assuming it's the latter. I suppose it's an incentive if, for example, you bought a Laing condo 15 years ago and are now in the market looking at a Laing home. An extra 10 grand couldn't hurt. But what do the asterisks mean?
 
<p>Marty, I think that the ad refers to being a repeat buyer. Even still, a 3 percent deduction is laughable. </p>

<p>There is a bunch of disclaimers that I did not attach to the post.</p>

<p> </p>
 
I wanted to find out more from Lennar concerning their 'Timing is Everything' promotion. Here is the conversation I had with the sales person (names have been changed for privacy):





<strong><img width="5" height="10" alt="Chat Information" src="http://server.iad.liveperson.net/hcp/chatinfo/chatinfo.gif" /></strong>A Lennar Chat Associate will respond shortly.


<strong><img width="5" height="10" alt="Chat Information" src="http://server.iad.liveperson.net/hcp/chatinfo/chatinfo.gif" /></strong>Hi! You are now chatting with 'Jo'. May I have your first name?


<strong>you: </strong>Its Mike again


<strong>Jo: </strong>Hi there!


<strong>you: </strong>I have question regarding Gables. Plan 3. How does Timing is Everything affect this price (the price was similar to Villa Rosa plan 2)


<strong>Jo: </strong>The gables Plan 3 pricing is very similar to that of the Plan 2 at Villa Rosa. This home, however, closes in November.


<strong>Jo: </strong>And therefore would be eligible for a Timing is Everything opportunity.


<strong>you: </strong>How does 'Timing is Everything' change the price?


<strong>Jo: </strong>It provides an opportunity to take advantage of the incentives being offered.


<strong>you: </strong>what are the incentives?


<strong>Jo: </strong>Can I put you in touch with a New Home Consultant?


<strong>Jo: </strong>They would be able to answer those questions.


<strong>Jo: </strong>Have you visited The gables?


<strong>you: </strong>not at the moment, just trying to determine if it worth re-visiting the show rooms to see if anything has changed


<strong>Jo: </strong>I would definitely recommend visiting Joel and Clayton to discuss your options if you are interested in a home at The Gables!


<strong>you: </strong>not unless something has changed. If it is still the same price then I dont need to and I would just be wasting theirs and my time


<strong>Jo: </strong>I understand. Again, if you would like to discuss anything further I'd be happy to update you if the price changes.


<strong>you: </strong>So 'Timing is everything' has no affect on the price and is just a sales ploy to get more interest?


<strong>Jo: </strong>I'm sorry for the delay. I'll be right with you.


<strong>Jo: </strong>Hi! I'll be right with you.


<strong>you: </strong>ok


<strong>Jo: </strong>Thank you for waiting. I'll be with you in just a moment.


<strong>Jo: </strong>Thank you for waiting. I'll be with you in just a moment.


<strong>Jo: </strong>I'm sorry for the delay. I'll be right with you.


<strong>Jo: </strong>I apologize Mike, did you have any other questions?


<strong>you: </strong>Just that last one


<strong>Jo: </strong>It applies to our standing inventory homes, which does include The Gables.


<strong>you: </strong>How does 'Timing is everything' affect the price/incentives/etc?


<strong>Jo: </strong>It is meant to spark interest in our homes ready to move in now. The price has changed slightly, and the may be more incentives involved. That is waht is meant by Timing is Everything.


<strong>Jo: </strong>This will be effective tomorrow, September 29th, if you'd like to visit the Welcome Home Center to discuss in more detail, they are there to answer any questions you may have!


<strong>you: </strong>thx

 
<p>Signed up for builder spam, go t an interesting piece of mail today. They're wining and dining potential buyers now.</p>

<p>"Richmond American Invites you to Savor The Season to benefit Olive Crest"</p>

<p>Basiclaly, a cooking demo with tastings in exchange for learning more about their Home Gallergy homebuying program.</p>

<p>They make a donation to a children's charity for your attendence. And there's a raffle to win a William-Sonoma gift card.</p>

<p>HomeGalleryEvent.com/ca</p>

<p> </p>

<p> </p>

<p> </p>
 
<p>The homebuyers aren't despirate enough. I did talk to a IT guy (while I was getting some tires....) and he mentioned that they are in rough shape. Still not lowering their prices... as i suspect they can't or won't jepordize their bonuses.... </p>

<p>I think they will have a big talk at the end of the year and let alot of people go. anyways good luck</p>

<p>-bix</p>
 
<p>I talked to a guy who worked in the residential moving business and he said that the movers are in really bad shape (esp. in Florida). No one is moving and companies like Penske are going get stuck holding a lot of trucks that they bought during the boom. </p>

<p>On the prices, there was a very interesting CNBC article in which Diane Olick talked to a housing guy who stated that it is very hard for builders to lower prices because of 1) the low value of the dollar have dramatically increased building costs and 2) people have come to expect luxuries like granite countertops and stainless steel appliances as standard features in homes. </p>

<p> <a href="http://www.cnbc.com/id/21348129">www.cnbc.com/id/21348129</a></p>
 
<p>But, I-Commuter, the problem has been contained.</p>

<p>Ten years ago, when we bought our space coast house, a realtor told us that if you buy an already existing house, you get more bang for the buck, because of, among other things, materials costs. How about that, a realtor was right about something?</p>

<p>We were looking to have something built, since that had been a pleasant experience in Miami, but discovered there were NO subdivisions which didn't have an onerous set of rules. The hub is a ham radio operator, and wanted his tower. The de minimus assn for our Miami house had no objections (indeed, it had no rules), so he built one to code with permits up against the house. The Peruvian down the street thought he was a spy. The Puerto Rican/Cuban family across the street (one of whom worked for me as a secy) assured the Peruvian that my hub was indeed a spy.</p>

<p>Giggles all around.</p>

<p>Lennar, in its space coast ads, is indicating that some of the houses it has been advertising have been sold. At prices 10-20% less then previously offered. This I do believe because some of the offerings are in the low $100s, and NOTHING was advertised in that range before. Now, we shall see if the houses actually close.</p>

<p> </p>
 
<a href="http://cagle.com/caglecards/main.asp?image=/news/HousingMarket07/images/payne3.jpg"><img height="442" width="600" align="bottom" border="0" naturalsizeflag="3" alt="" src="http://cagle.com/news/HousingMarket07/images/payne3.jpg" /></a>
 
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