Builder: Guaranteed Lowest Price* WITHOUT THE ASTERISK

tag:blogger.com,1999:blog-4797432599663441966.post-77624668646614214792007-06-17T13:05:00.000-04:002007-08-21T16:59:08.628-04:002007-08-21T16:59:08.628-04:00Builder: Guaranteed Lowest Price* WITHOUT THE ASTERISK<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://i68.photobucket.com/albums/i18/franklyfrank1/51f1ca6d.jpg"><img style="FLOAT: left; MARGIN: 0pt 10px 10px 0pt; WIDTH: 200px; CURSOR: pointer" alt="" src="http://i68.photobucket.com/albums/i18/franklyfrank1/51f1ca6d.jpg" border="0" /></a>The first builder I noticed offering "Pricing Guarantees" was The Park At Courthouse. I thought the idea was brilliant. A promotional plan that would give buyer's some security in their preconstruction purchase, in case prices dropped. So in theory, if you bought a place for $400,000 and a few months later, that exact or similar unit dropped to $390,000, you would get notice that your unit is now $10,000 cheaper for you. This was even featured in the Washington Post (thanks to me) on Dec 2006 <a style="BORDER-BOTTOM-STYLE: groove" href="http://www.washingtonpost.com/wp-dyn/content/article/2006/12/01/AR2006120100017_pf.html">Read Article</a>. Supposedly they have already made 3 price corrections for past buyers. <a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://s68.photobucket.com/albums/i18/franklyfrank1/th_fd9b3719.gif"><img style="FLOAT: right; MARGIN: 0pt 0pt 10px 10px; WIDTH: 109px; CURSOR: pointer; HEIGHT: 109px" alt="" src="http://s68.photobucket.com/albums/i18/franklyfrank1/th_fd9b3719.gif" border="0" /></a> Now comes the MISSING ASTERISK. 1) They won't say the amount of the price corrections (we asked). This leads me to think that they were probably just token $5k or $10k adjustments and more used for marketing future units. The ability to say "we have dropped 3 times" sounds good. But if you don't disclose the amount, it is just marketing in my book. 2) Seller subsidies don't count! Let me repeat that. SELLER SUBSIDIES DON'T COUNT in the guarantee. Example: <ul><li>Joe buys for $400,000</li><li>Builder drops prices to $395,000</li><li>Joe gets a $5,000 reduction</li><li>Builder keeps prices at $395,000 and offers $20,000 in closing costs for newer sales </li><li style="FONT-WEIGHT: bold; COLOR: rgb(255,0,0)">Joe gets NO REDUCTION or Extra closing costs. The "guarantee" doesn't apply!</li></ul>Joe effectively is paying $20,000 MORE than the other unit, even though there is a "guarantee." 3) Free upgrades don't count! Example: <ul><li>Joe buys for $400,000</li><li>Builder drops prices to $395,000</li><li>Joe gets a $5,000 reduction</li><li>Builder keeps prices at $395,000 and offers $20,000 of upgraded kitchen and bath</li><li style="FONT-WEIGHT: bold; COLOR: rgb(255,0,0)">Joe gets NO REDUCTION or upgrades. The "guarantee" doesn't apply!<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://i68.photobucket.com/albums/i18/franklyfrank1/3dce963a.jpg"><img style="FLOAT: right; MARGIN: 0pt 0pt 10px 10px; WIDTH: 90px; CURSOR: pointer; HEIGHT: 136px" alt="" src="http://i68.photobucket.com/albums/i18/franklyfrank1/3dce963a.jpg" border="0" /></a></li></ul>So what is my point? 1) If you bought here or anyplace similar, talk to a lawyer before you close on your unit. It might cost you $500 or $1000 but save you over $20,000 2) Use a Realtor when you buy units like this. We might not know everything, but knowing something like this can save you $20,000. The builder either pays your Realtor to represent you, or they give a bonus to the sales staff. The cost to you is the same. 3) Make sure your Realtor writes into the contract that the guarantee should be based on NET and include all subsidies and upgrades as provided by an audit (write in the ability to check their books). Ray, an agent with FranklyRealty.com wrote more about this <a style="BORDER-BOTTOM-STYLE: groove" href="http://franklylocal.blogspot.com/2007/03/buy-guaranteed-lower-price-condos.html" target="_blank" mce_href="http://franklylocal.blogspot.com/2007/03/buy-guaranteed-lower-price-condos.html">Park At Courthouse, Arlington Condo </a> Don't miss the comments! And make sure to sign up for future blogs on the right side of the page. - Written by Frank Borges LL0SA- Broker/Owner <a style="FONT-WEIGHT: bold" href="http://franklyrealty.com/" target="new">FranklyRealty.com</a> 703-827-4OO6 Please report all typos, I don't like looking stupid. If you like this post, sign up for new blogs daily, use the form on the right of the page. <div class="blogger-post-footer">.::. Don't forget to come back to the site to post comments. A blog without reader interaction is a boring blog. Also go and see the comments and debates. .::.</div>FRANK LL0SA Va Broker- BLOG.FranklyRealty.comhttp://www.blogger.com/profile/12647085935682292923noreply@blogger.com17