On July 15th, Chris Palmeri from Business Week discussed how his Mother was told by a major builder that a price reduction (in all likelihood adjustment to existing market conditions) was an incentive.
This reminds me of a visit to a model center from a major builder where the on-site salesperson told my client that a new townhouse was selling for $245,000 and that a similar property across the street were closing at $350,000. The townhouse if purchased that day would be worth $350,000 in two year! My client and I looked at each, since I informed him that private economists and economists from the University of Florida were looking at the average price of residential real estate was forecasted to increase between 3 and 7 percent a year.
Somehow, my math does not work out to the $350,000 the on-site salesperson forecast.
Maybe major builders need to instruct their on-site salespersons to be more careful how they discuss incentives to prospective buyers in a more informed manner.