Home Buying in 33647>Question Details

Jason, Both Buyer and Seller in 33569

New Home Building Incentives?

Asked by Jason, 33569 Tue Feb 10, 2009

What are the typical incentives that new home builders are offering for new construction in the New Tampa area? Are the only incentives upgrades or are builders offering a percentage of the price?

Thanks
Jason

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Answers

9
Jeff, you're the kind of guy I would like to have as my agent. Thanks for the great detail and how you respect the customer's decision-making process. I will definitely point any co-workers to this answer and hope your kind of agent gets rewarded for the honesty and transparency.
0 votes Thank Flag Link Sun Mar 1, 2009
Jeff,
I respect you greatly for advising them to stay away. My two RE Agent friends who let me read some of the 'inside' stuff showed me the 'starts with a B has a z and ends in r' bonuses. However, I also saw at least two other builders down in Ruskin and Apollo Beach offering big paydays for convincing the buyer it's a good deal. You give me faith in the system. That being said, there are a couple of builders pulling up stakes in New Tampa and offering some direct to Agent incentives. Transparency is key to returning trust in this market.
0 votes Thank Flag Link Sat Feb 28, 2009
Jason,

Some of the builders are offering Realtors up to 10% and bonuses if they bring in a qualified buyer for a spec home. Of course, that goes to the Real Estate Agent. Things that make you go hmmmmm.
0 votes Thank Flag Link Sat Feb 28, 2009
These are just a few examples of incentives I've seen in the past but as others have said it depends on the builder:

No closing costs
No payments for three (or six, or more) months
Lower-than-market interest rates
Upgrade all appliances
Up to $10,000 toward a built-in swimming pool
Free Landscaping
Builder will pay property taxes for first year (or two years)
Free car, plasma TV, exotic vacation, personal chef, etc.
Free home renovation or home center gift card of $250 to $5,000
Price cuts up to 10 percent or more on some new homes
Deep discounts for a quick sale

I recently was able to negotiate the price of a new home down for my clients by $25K. My client was extremely satisfied. Please feel free to call me when you are ready to start looking!

Liane Jamason, Realtor
Keller Williams Realty
813.486.4997 cell
Liane@kw.com
0 votes Thank Flag Link Sat Feb 28, 2009
It varies by builder, & timing is everything as always. Depending on subdivision, they may be offering one or both. They are also offering closing monies assistance.

Pasco County was just approved for $19 million for The neighborhood stabilization program (see below article). If I can answer anymore questions about the program, or help you locate a home in the area, please call or email. Thank you.



By KEVIN WIATROWSKI | The Tampa Tribune
Published: October 21, 2008
NEW PORT RICHEY - Starting early next year, Pasco County will offer $20 million in down payment help to prospective home buyers – part of a push to put people back into the foreclosed and abandoned homes that riddle the county.
County commissioners today effectively rewrote a proposal by the county's Community Development office for spending $19.5 million in federal housing money aimed at addressing the national housing crisis. The county will add $6 million of its own housing money to increase the federal funding's reach.
The proposal original presented to commissioners would have spent $16.3 million on buying and rehabbing run-down homes to make them sellable. Another $4 million was put into helping low- and moderate-income people get mortgages.
Commissioner Michael Cox led the charge to restructure the spending plan with an emphasis on down payment help.
"That would leverage our money beyond belief," Cox said.
Cox, a certified financial planner, estimated the $16 million originally planned for buying homes could be turned into $436 million in home sales if shifted toward down payments.
"The problem with buying the homes is it makes us landowners," Cox said.
Commissioners gave the down payment help plan 10 months to work. After that, the plan can be changed to put more money into buying homes, Cox said.
Commissioners made no changes to the rest of the spending proposal, which allocates money for remodeling 15 homes for special-needs residents and demolishing more problem properties.
Pasco real estate agents, who packed the commission's meeting room, applauded the revised plan.
"We want to put as many new homeowners in these foreclosures as we can," said Greg Armstrong, president of the West Pasco Board of Realtors.
Pasco County qualified for the fifth-largest grant in Florida from the federal Neighborhood Stabilization Program. The funding was based on the number of foreclosures, vacancies and subprime loans in a given county.
Elsewhere in the Tampa Bay area, Hillsborough County qualified for $19.1 million and Tampa will get $13.6 million. Pinellas County and St. Petersburg got a combined $17.5 million.
Florida, which ranked second in the nation in the number of foreclosure filings in August, is expected to receive $541 million through the program, according to state officials.
The aid does have strings attached:
Aid recipients can make up to 120 percent of the local median income. In Pasco, that means a family of four making as much as $67,800 could qualify for help.
At least a quarter of the money must be spent helping people under 50 percent of the median household income — $28,250 for a family of four.
Houses must be bought at a 15 percent discount from their appraised value.
Pasco's portion of the program will be focused on some of the areas hardest-hit by foreclosures and subprime loans. That list includes the 34668 ZIP code in the Port Richey area. Other areas that could see federal funds are Wesley Chapel, Holiday and New Port Richey.
Three cities – Port Richey, Zephyrhills and Dade City – don't qualify for funding because they're not part of the county's Community Development Block Grant, the program that distributes large amounts of federal grant money.
Those three cities may be eligible for part of $92 million in housing funds going directly to the state government to be spread among counties and cities with low numbers of distressed properties, said George Romagnoli, director of the county's Community Development office.
Romagnoli agreed with Cox's desire to put most of the money into down payment help, but repeated his aim to buy and rehabilitate especially blighted properties.
"I have concerns there are houses out there that need our attention, that no one wants," Romagnoli said.
0 votes Thank Flag Link Sat Feb 21, 2009
Jason,
All great answers... Keep in mind however, that builders NEED to sell homes as much as the people who NEED to sell because of foreclosure. Put on your negotiating hat and put in an "offer" just like a residential resale. My only concern in the new home communities out there is how built out they are AND how many homes are currently on the market. If you're looking at a community like Basset Creek in New Tampa for example, this community started "post downfall" so prices were never out of whack. Not many foreclosures, and the people moving in should be in good shape financially. Other communities started during the boom were investor friendly and loaded with people in foreclosure situation. What does this mean? Unfortunately in new communities with heavy inventory will still see big dips in home prices. Do yourself a big favor and use a Full Time Buyers Agent!
0 votes Thank Flag Link Wed Feb 11, 2009
Hi Jason,
In the market today, the ball is in your court with most builders in the area. Builders are offering to buy down interest rates by a point or two in some cases, paying closing costs and offering upgrades too name a few of the incentives. This is a buyers market...so let's make a deal! I know the area well and have assisted many New Yorkers moving to Florida. If you would like, I can send you builder inventory properties in the area so you can get an idea of what is available. Please email me or visit my website for further information, http://www.pamkey.com. My services are free to buyers, so why not use the expertise of an experienced realtor to help you negotiate the best deal. Also, if you have not already listed your home in New York, I can refer you to a quality realtor in your area. Look forward to hearing back from you! By the way, the weather is great! 80 degrees yesterday!

Pam Key
Prudential Tropical Realty
813-917-2428
0 votes Thank Flag Link Wed Feb 11, 2009
I depends on the builder, when you are needing it, how big and if you are buying an inventory home. I can show you many different insentives, but in many cases the builder will work with you and your need. Give me a call or e-mail me and can let you know what the specific builder will do for you.

Lars C. Kier, P.A.
813-333-9930
Lars@KierHomes.com
Web Reference: http://www.KierHomes.com
0 votes Thank Flag Link Tue Feb 10, 2009
It really depends on the builder - we were able to get a small price reduction some 1/2 price upgrades and 6% toward closing costs recently. They already have realtor commission in the price so if you go - take an agent to negotiate for you. Builder inventory will give you better deals than build to suit. They have listings on the mls so if you would like to see some of the different communities and properties available I can send them to you. I also have some of the community marketing that I recently downloaded that I can forward as well.

I am happy to answer any futher questions you might have.
0 votes Thank Flag Link Tue Feb 10, 2009
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