The best deal ever? Buy in the San Diego area and get a free house!
Peter Viles, who writes a blog for the LA Times, has found a crazy deal that a homebuilder is currently offering. You can see from the ad that if you buy a home in one area (starting at $1.6 million by the way) you will receive a 2000 square foot row home in another area for free! The smaller homes are valued around $400,000 right now.
The company said they are just responding to market conditions and are trying to move inventory, and that interest has increased since they started this promotion, although no one has gone under agreement yet. They said there are many interested parties who are ‘in talks’ with them currently.
Is this a good idea or not? On one hand, it is similar to high end sellers offering a sports car, home theater system, and other goodies along with their home to tempt potential buyers. Additional items left as gifts do increase traffic and may sway potential buyers. On the other hand, the new owner will have to sell or rent out their free home if they don’t want to give it to a family member or friend, and there are many carrying costs associated with the gift as opposed to other common items like cars and HDTVs that have low to no costs like upkeep and real estate taxes.
Will this be a sign of a changing market in the new construction segment? Time will tell, and if this promotion works out other builders will be sure to consider it as a great way to attract publicity and potential buyers.