Monday, November 12, 2007

To Cut Prices or Not to Cut Prices…

From the Associated Press:

“It could be the kindest cut of all. Look at the prices of homes getting sold, and the property market's decline seems no worse than a rough day in the stock market. Look at the number of unsold homes, and you realize there's a world of financial pain out there…”

“…Despite all this, sellers are loath to cut their asking price, which is the reason prices have barely budged -- so far.”

From The Dallas Morning News:

“The National Association of Homebuilders says more than 70 percent of builders offer incentives.

‘The longer this environment of price concessions continues, the more buyer psychology shifts to expecting price concessions from all sellers,’ he said.”

From The Philadelphia Inquirer:

“Williams said one local builder was offering ‘loads of incentives’ but had reached an agreement with its most recent buyers that it would not drop prices.

‘This is one of the moral and ethical questions we, as builders, deal with,’ said Marshal Granor, a principal in Granor Price Homes in Horsham. ‘We've sat in sales offices over the years and decided to offer a cut-down version at a lower price.’”

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