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'credits' On Pre-builds

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Train66

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Freshman Member
Joined
Sep 24, 2018
Professional Status
Appraiser Trainee
State
Canada
I work in an fast growing urban area with lots of highrise development. Among other things, the form we send to the builder requests the following:

Date of sale:
Sale Price:
Tax included (Y/N):
Credits:
Total Sale Price (after credits):

What would be an example of a credit? On my form, this line has always been returned blank.
 

Terrel L. Shields

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May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Like first home buyers credits probably. Builders may be figuring them into the price. The guy to check in Canada is Ross Kay. http://www.rosskay.com/
 

SJA

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Jul 15, 2017
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Canada
Ross Kay is a dingbat.
 

CJ1234

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Jan 24, 2008
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Certified Residential Appraiser
State
Minnesota
In our market there are some national builders that have "Credits" on their purchase contracts.
Magical discounts given to buyers for tens-of-thousands of dollars.
I believe they are completely fabricated to make the buyer feel they are getting a discount.
Sometimes I've seen a "Parade of Homes" or "remodelers showcase" discount---where the builder gives a discount to allow them to continue to show the property in these special events.
upload_2018-9-28_10-41-11.png
 
D

Deleted member 130081

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I suspect builders are making a killing today. Sure, some costs have gone up, but not as much as the end-prices of new construction. Heck, land value is down around here and contractor wages have been pretty stable. Around here the builders are trending away from the McMansions and building more modest sized homes, that still include the modern amenities like larger kitchens, mud rooms and master suites. The materials in these homes are usually low-end cost but look nice. Want a home with better materials? Then the cost skyrockets, again disproportionately vs the difference in material cost. It does not generally cost more to install $4 tile as opposed to $10 tile or install a more expensive door knob. They sell these down-sized homes for the same amount the McMansions used to go for, even though home prices over-all have only returned, not exceeded, what we saw before the crash. I would not purchase a new home in my market today.
 

TRESinc

Elite Member
Joined
Dec 1, 2011
Professional Status
Licensed Appraiser
State
Ohio
In our market there are some national builders that have "Credits" on their purchase contracts.
Magical discounts given to buyers for tens-of-thousands of dollars.
I believe they are completely fabricated to make the buyer feel they are getting a discount.
Sometimes I've seen a "Parade of Homes" or "remodelers showcase" discount---where the builder gives a discount to allow them to continue to show the property in these special events.
View attachment 37058
yep, builders can get pretty creative. i've seen the parade of homes discounts, spring/summer/fall/winter discounts, specific model discounts, financing discounts (i.e. use our company to finance ad get $5,000 off) and the list goes on and on. haven't seen them lately but in the past i had had contracts where the builder gives the buyer a pretty hefty discount in exchange for letting them use the house as a model for X months.
 
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