New Home Builder Broker Co-op Thread

[meccos12]

Wow. Surely a sign of some slowdown here.

I would think the lowering prices strategy would be the last thing they would do. They will try doubling broker co-op, free upgrades, and free landscaping before lowering the prices. They will lower the price if the recession hits and the market tanks. But even if then, they would probably stop the constriction for couple years, then restart when the market seems to pick up again.

Well we have all seen broker co-ops double.  In fact I believe USCtrojan mentioned ALL builders have increased their co-ops.  We have seen tons of free upgrades, free front and back landscaping, free appliances and even low rates to entice buyers.  Now we are seeing price drops. 

Am I incorrect or is this house now listed for lower than initial list price in May? 
https://www.redfin.com/CA/Irvine/137-Dolci-92602/unit-45/home/145549402

 

[Cares]

Wow. Surely a sign of some slowdown here.

I would think the lowering prices strategy would be the last thing they would do. They will try doubling broker co-op, free upgrades, and free landscaping before lowering the prices. They will lower the price if the recession hits and the market tanks. But even if then, they would probably stop the constriction for couple years, then restart when the market seems to pick up again.

Well we have all seen broker co-ops double.  In fact I believe USCtrojan mentioned ALL builders have increased their co-ops.  We have seen tons of free upgrades, free front and back landscaping, free appliances and even low rates to entice buyers.  Now we are seeing price drops.

At the end of the year, Lennar was actively reaching out to me asking if I have any buyers that could close in December and they were offering huge rebates or upgrades.

Also on my own purchase with another builder, they were saying they would double my commission if I could push up my close in December as well.

 

[ThirtySomethingWEquity]

Wow. Surely a sign of some slowdown here.

I would think the lowering prices strategy would be the last thing they would do. They will try doubling broker co-op, free upgrades, and free landscaping before lowering the prices. They will lower the price if the recession hits and the market tanks. But even if then, they would probably stop the constriction for couple years, then restart when the market seems to pick up again.

Am I incorrect or is this house now listed for lower than initial list price in May? 
https://www.redfin.com/CA/Irvine/137-Dolci-92602/unit-45/home/145549402

Where have we seen those?  The new developments i've been tracking and interested in (in Irvine) have actually lowered prices a bit on some models and are certainly selling their 'quick move in' homes at a discount, but haven't offered up much in the way of upgrade credit or even paying the closing costs.  A few builders are offering low interest rates though.
Well we have all seen broker co-ops double.  In fact I believe USCtrojan mentioned ALL builders have increased their co-ops.  We have seen tons of free upgrades, free front and back landscaping, free appliances and even low rates to entice buyers.  Now we are seeing price drops. 

 

[Mety]

Wow. Surely a sign of some slowdown here.

I would think the lowering prices strategy would be the last thing they would do. They will try doubling broker co-op, free upgrades, and free landscaping before lowering the prices. They will lower the price if the recession hits and the market tanks. But even if then, they would probably stop the constriction for couple years, then restart when the market seems to pick up again.

Where have we seen those?  The new developments i've been tracking and interested in (in Irvine) have actually lowered prices a bit on some models and are certainly selling their 'quick move in' homes at a discount, but haven't offered up much in the way of upgrade credit or even paying the closing costs.  A few builders are offering low interest rates though.

Well we have all seen broker co-ops double.  In fact I believe USCtrojan mentioned ALL builders have increased their co-ops.  We have seen tons of free upgrades, free front and back landscaping, free appliances and even low rates to entice buyers.  Now we are seeing price drops. 

Am I incorrect or is this house now listed for lower than initial list price in May? 
https://www.redfin.com/CA/Irvine/137-Dolci-92602/unit-45/home/145549402

I think the upgrades have been offered by some GP and OH homes. But if you see the price cut already, then that's a good sign also if you are the buyer.

 

[usctrojancpa]

Wow. Surely a sign of some slowdown here.

I would think the lowering prices strategy would be the last thing they would do. They will try doubling broker co-op, free upgrades, and free landscaping before lowering the prices. They will lower the price if the recession hits and the market tanks. But even if then, they would probably stop the constriction for couple years, then restart when the market seems to pick up again.

Where have we seen those?  The new developments i've been tracking and interested in (in Irvine) have actually lowered prices a bit on some models and are certainly selling their 'quick move in' homes at a discount, but haven't offered up much in the way of upgrade credit or even paying the closing costs.  A few builders are offering low interest rates though.

Well we have all seen broker co-ops double.  In fact I believe USCtrojan mentioned ALL builders have increased their co-ops.  We have seen tons of free upgrades, free front and back landscaping, free appliances and even low rates to entice buyers.  Now we are seeing price drops. 

Am I incorrect or is this house now listed for lower than initial list price in May? 
https://www.redfin.com/CA/Irvine/137-Dolci-92602/unit-45/home/145549402

I think the upgrades have been offered by some GP and OH homes. But if you see the price cut already, then that's a good sign also if you are the buyer.

From what I've seen, the price cuts are mostly coming from the builder reducing the pricing of the upgrades that they had to select for their homes that weren't selling.  Besides negotiating on price, most all builders are open to negotiating on upgrade credits, closing costs credits, free appliances, and/or free solar (Lennar mostly).  Generally speaking, the longer the home has sat unsold the more the builders will be willing to negotiate.