the cost of those incentives was not reflected in the new home price data which suggested that builders were making even less money from each sale than the shrinking official prices would indicate.
2006-11-20 11:18:16 · 7 answers · asked by Anonymous in Education & Reference ➔ Quotations
I think you will receive more responses to your question if you post it in the Home & Garden cat., or Business and Finance. The questions in the Quotations section tend to predominately relate to quotations, ie - language rather than builder's quotes. Luck finding an answer.
You can delete and repost the question.
2006-11-20 11:40:00 · answer #1 · answered by renclrk 7 · 0⤊ 0⤋
As I see it, it could be paraphrased thus:
Some guys were building houses and selling them. After a while, the buyers were offering less money than the builders had hoped to sell for. The builders needed to sell the houses, so they accepted the lower offers. The market got even "softer" -- buyers were even less willing to pay full price -- so the builders gave discounts on different deals to get somebody -- anybody! -- to buy the doggone houses. (free dishwasher included, a free vacation, etc) The artcle about the builders' financial difficulties was not as accurate as it could have been, because although it did mention how the houses' prices were going down, it did not include the "incentives" the builders were including in the sale.
2006-11-20 11:39:49 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If prices were shrinking, builders were making less money. If they had to entice buyers by offering incentives (price cuts, or extra features that the buyers weren't being charged for but the builders had to pay to add) then the the builders were making even less money because of what it cost them to entice someone to buy a house.
2006-11-20 11:36:54 · answer #3 · answered by Anonymous · 1⤊ 0⤋
The cost of improvements or discounts to potential buyers for your home will not increase the value of the home in the marketplace . The home is worth only so much , and nothing added to it will increase the value evidently because of apprasial issues. Basically it is saying that once the home was complete there were still cost runovers that could not be added to the price of the home ..Thus , not reflected in the original cost .
2006-11-20 11:41:17 · answer #4 · answered by Anonymous · 0⤊ 0⤋
There was not enough added to the home price to offset the cost of the incentives.
2006-11-20 11:36:25 · answer #5 · answered by Anonymous · 1⤊ 0⤋
Think of it like this......
A contractor builds 2 homes side by side, same size lots, same floor plan...ALL things equal, except one has better windows, more expensive carpet, power garage door instead of manual, fenced yard, etc.etc.... The other house was a plain jane structure.
Both houses sold for $200,000, yet the plain house cost $100,000 to build and the fancy one cost $125,000 to build.
The Plain house netted the contractor $100,000 while the fancy one only netted $75,000....
Thats basically what they are saying!
2006-11-20 11:46:32 · answer #6 · answered by Zak Y 1 · 0⤊ 0⤋
What they all said.
2006-11-20 12:42:39 · answer #7 · answered by Anonymous · 0⤊ 0⤋