Developers of active adult and over 50 communities are fighting back against the real estate slowdown. Their imaginations have been working overtime to come with new and exciting incentives to bring prospective buyers back into their communities. Obviously, lowering prices is a tactic used by most. Indeed the average price of new units sold at Toll Brothers and other builders is down significantly. But many developers are also focusing on the key problem facing buyers of active adult communities – they can’t buy a new home because they can’t sell their old one. Check out some of the ideas we have heard about in the last few weeks:
Buy 1, Get 1 Free
We’re not kidding, a California builder, Michael Crewes Development, is actually offering this deal. Buy one house, get a 2,000 sq.ft. cityscape row home worth $400,000 for free. So what about the house you have to buy?
Oh, Royal View Estate homes in San Pasqual Valley start at $1.4 million. One blogger likened this deal to something like; buy a candy bar, get a free raisin. Still….
Pay Us When You Get the Money
Yep, at The Enclave at the Fairways in Lakewood New Jersey, buyers can delay paying the substantial entry fees in this community. The Peace of Mind program locks in prices and refunds buyers’ deposits if they can’t sell their home in 6 months (it must be listed with a licensed broker).
Similar to the perennial tactic used by car dealers across the country, some developers of active adult communities will give you subsidized interest rate on your mortgage.
There are several permutations of assistance to help buyers move into their new homes. At Toll Brothers, real estate professionals can receive a $3000 credit for the relocation expenses of their clients.
A variety of builders are offering $20,000 or more worth of upgrades or options at no cost, rather than a discount. Ryan Homes offers that deal, if you use their mortgage subsidiary.