Buy a Florida House and get a Cash Rebate
Feb 5th, 2008 by admin
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When the real estate market goes south, like in Florida, the deals come out.
Incentives from sellers across Florida - everything from upgraded kitchens, to the first year of mortgage payments paid, to free leases on new Mercedes-Benz sedans - are now being included with the price of your new home.
Then there is always an incentive everybody loves; Cold, hard cash. In other words, Rebates.
Nathan Benderson is hoping to jump-start sales at his Port Charlotte retirement community by upping the ante. He is offering massive rebates that could top $100,000.
“What we’re doing, nobody else can beat,” Benderson says. “Things being the way they are, we wanted to do something that would get people’s attention.” His Kings Gate subdivision in Port Charlotte is offering big rebates to attract buyers rather than cutting prices.
As an example, for a home priced at $250,000, the rebate would mean an income stream of $10,000 a year for 10 years for a total of $100,000! Unbelievable!
Benderson has about 600 of an eventual 1,000 homes built at Kings Gate, a 55-plus community west of Interstate 75. The development has an 18-hole golf course, the largest pool in Charlotte County and a multimillion-dollar clubhouse to be completed in February, 2008.
Retirees and investors could not snap up the properties fast enough during the boom, some at prices topping $400,000. But when the bottom fell out, the flood of potential buyers dried to a trickle.
Now, Henderson is offering more than 50 completed or nearly completed homes with a 10-year rebate equivalent to tens of thousands of dollars. The rebate amounts to 4 percent of the purchase price each year for a period of 10 years. The money is paid out quarterly, operating almost like an annuity, with checks being cut every three months to potential buyers.
For example, for a home priced at $250,000, that would mean an income stream of $10,000 a year for 10 years (a total of $100,000). The homes in question are mostly selling in the $200,000 to $300,000 range. To get the deal, buyers have to put 20 percent down. He hopes this offer could help clear out inventory that might otherwise sit dormant for months.
In the current market, it can be hard just to get prospective buyers to come out and see properties. Getting them to buy can be even harder, which is why the rebate is aimed at those on the fence, who need that extra incentive.
“One group we are trying to target is those who haven’t retired yet but who will be in the next few years,” the developer said. “We’re hoping that this deal really makes them take notice.”
But while incentives have been flowing like water, there is one thing large home builders are traditionally wary of offering lower prices. Builders and developers in a down market always try sales gimmicks first, because once you lower prices it’s hard to raise them again.
For those readers who just might have been thinking of retiring or relocating to the Southwest coastal area of
For other readers, it should serve as a stimulus to aggressively seek meaningful inducements from your builder/developer or individual homeowner to close a deal. The days of throwing in granite countertops as an inducement to buy now are long gone.
Inducements that can be measured in cold hard cash are the order of the day, particularly since the bottom of the Florida retirement real estate market is not yet in view.
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