Sign of the Times: Buy One Home Get One Free
Author: Joshua Dorkin • URL: http://www.biggerpockets.com/June 3rd, 2008 •
Deal of the Century?
I guess home builders have decided enough is enough. In a sign of the times, the Los Angeles Times is reporting that Michael Crews Development out of San Diego is offering a buy-one-get-one free deal on homes that they have developed in Escondido.
The company came up with this idea as a way to help move inventory:
“Michael Crews Development is offering new, 2000-square foot cityscape row-homes worth $400,000 in Escondido for free — if you buy one Royal View Estate home in San Pasqual Valley starting at $1.6 million. ‘You know it’s a straight-up legit deal; no prices have been increased, there are no hidden costs. Michael is just giving away a free home for people that buy at Royal View,’ said Berry.”
First came the free big screen TVs. Now, buyers can get a free house of lesser value with the purchase of a home.
What’s next?
Any theories?
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Tags: Economy, housing, michael crews development, real estate developer, real estate news
Joshua Dorkin
Charles Feldman
Ted Karsch.
Troy Schuricht
Anwell Tsai
Richard Warren
Jim Watkins
Now if you could get the $1.6 million home free for buying the $400k home, you mught have a deal!
lol
that would be nice for sure!
One developer’s trash or (excess inventory) is another investor’s treasure! That company must really feel the pinch!
Yeah I am sure they didn’t up the price but is that house really worth $1.6mil.
Prices don’t change in $1.6 house a thousand dollars at a time. It is not uncommon for house to drop $100,000-$300,000 at a time to move it.
This is crazy…I think the main point of “get one free” is so they can dump their inventory (and payments).
I suppose that “the bank” will take the property away and they are going to loose anyways, so why not score points with the purchaser? Now where did I leave that $1.6m laying around…
Getting an appraisal for the $1.6 million will be tricky!
It’s not a bad deal, many commercial developers build in some type of incentive to sell the real estate faster and still make a profit. They just have to make sure they can payoff the debt on the development and make sure it does’t put the client in a debt crisis, and this deal can work. If I got that deal, I would lease or rent the extra property and use that money to pay off the financing on the first original purchased property.
PS,
Joe
All I have to say is WOW!