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Valuable Prizes for Buying a New Home?
By Jonathan Haeber
CMR Columnist
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The average development block is beginning to seem a lot more like a carnival game walk. Prizes galore, sit on the sidelines, just waiting to be claimed. Sellers are enticing buyers into a new home loan with unprecedented "extras" upon closing.
Yes, the buyer's market has arrived. One seller is offering a guaranteed 6% new home loan mortgage. When compared to current mortgage rates, the reduction would save the average home buyer $230 each month on their new home.
Other sellers draw in buyers who have a need for speed. In the Mystic Pines development of New Jersey, each buyer gets a new Mazda Miata convertible with their home purchase.
Case Examples of New Home Buyers' Incentives
The Kaplan Companies of Highland Park has agreed to fully guarantee the value of their buyers' homes for the next three years; so if home values tank, they will buy back the house from you for the amount you paid. They've also agreed to cover the closing costs if the buyer chooses to refinance their home loan.
Some of these extras have never been seen before in the world of home loans and mortgages. In that sense, it's an unprecedented buyer's market. Publicly traded home giants, such as Lennar and KB Homes have buckling stocks due to plummeting profits. These sellers are more than motivated to sell in order to stay afloat, and you can benefit from their desperation!
Know What a Home is Worth
Of course, use caution before you choose to buy. These "extras" may blind you into buying an overpriced home. Research homes in your area, and check with current market prices to get an idea of what homes are worth. Then, decide what you're willing to pay, and which prizes you'd like to rake in. Current mortgage rates are still low -- and you can still take advantage before new home loan rates potentially go up!
Source
Offering Prizes to New-Home Buyers
About the Author
Jonathan Haeber is a marketing writer for Discovery Channel Stores. He recently purchased his first home, and took a self-taught crash course in home mortgages.
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