Home Sales Offer New Incentives

Author:	Lucas Jones
Source:	Homes Discovered
Date:	November 28, 2006

If you are a potential home buyer in Riverside, you may still be put-off by the dramatic inflation that many properties saw last year.  You may still be leery of entering the real estate domain because of the uncertainty it has generated.  Well these days the uncertainty should be felt by sellers, not buyers.  Buyers are being catered to in an innumerable amount of ways.  From free upgrades to free landscaping, sellers are willing to do almost anything to sell their homes these days, except flat out lower the base price.  Most developers will do about anything to give you an incentive without lowering the base price because once they lower the base, that sets a new benchmark for the rest of their properties. Still, this doesn't mean you can't get a reduced price for your home in Corona.  You just have to work with the developer.  They will likely be more than happy to give you $5 to $10,000 off the price of a new home, just not straight off the base.  The newest trend in offering incentives is the "buydown."  The way this works is the seller makes large payments up front to the loan's first two years of interest that reduces the monthly payment for the buyer for a few years.  This is very enticing for potential buyers because they can use the extra $300 or so per month that they save on furniture and other things that new homeowners like to buy, for the first year.  This would be for a home that sold at $225,000.  In the second year they still save a good $150 per month on the loan and overall they saved $5,000. These types of incentives are also good for the first time home buyer who might not make enough money to pay the mortgage on a home they like.  If they figure that they will be making significantly more money in a year or two, they would still be able to afford the home they want, now.  This incentive could be great for a wide range of home buyers from recent college graduates to people that relocate often for work.  If you are a potential buyer I would suggest asking about this incentive when you are shopping around.  It can only benefit you in the end.

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