Incentives Make a Comeback in AuctionsMarch 30th, 2008 by PA - Bloger
Developers have traditionally offered incentives in some way or another especially in the last couple of years as the market really began to take a nose dive. A free parking spot, the “premium” furniture package, we’ve even seen golf carts offered: all incentives to get buyers interested in the development. We all remember that when the market was hot, the developers took these away, no giveaways, no incentives, and product just continued to roll of the shelf.
Incentives are now becoming part of auctions, we’re seeing a lot of firms offer a “home warranty” as an incentive on the single family residential side. The Fisher Auction Company, being out of Florida, means tons of experience in the developer space. Next month, they are going to be focusing their efforts on a developer in Viriginia and offering great incentives to interested parties. *All Purchasers,”regardless of their purchase price”, will receive a Seller Incentive of $4,000.00 which may apply towards Mariners Landing Dollars or a Golf Membership! They even have a dedicated page to the incentives being offered for each unit.
PropertyAuction.com Tip: One thing about incentives that you need to watch out for during a comparative analysis of properties: Be sure that you are comparing apples to apples. If you’re looking at a property that came with a boat slip you must weigh the value of that in your analysis. The same goes for a property that is part of a “hotel program” where the developer has guaranteed some sort of income on the unit for a pre-defined period of time. Often this information is not made public and can’t be found on any records so make sure to do your research!
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