So if the property taxes will be higher, why do these fools agree to a rebate, instead of just paying the lower price?
Same reason auto purchasers take the cash rebate instead of the 0% financing? I suspect though that the seller is not offering the choice of lower purchase price.
Because the builder won't let them. That's because if the builder sells for the lower price, and has more homes to sell in the subdivision, any additional mortgage applications prospective buyers submit will be based for approval on 'comps,' or what comparable homes sold for. It also makes the builders books look better at quarter end, because they can play games with the rebates to show revenues in a variety of ways.
I obviously haven't heard all his quotes then. Every time I see a quote from him, its usually, "we don't see a bottom yet". Of course, I usually only hear about the guy when reading housingbubbleblog.com, and they rarely print the rosy quotes. Thanks, for bringing this to my attention. I will filter what Robert Toll has to say from now on.
Hiya everybody I'm new here. My name's Alt-A. Read and reread about me: "A mortgage risk categorization that falls between prime and sub-prime, but is closer to prime. Also referred to as "A minus"." Be seeing you real soon.
In my area of florida, taxes are based on fair market value. Closing price is one factor. When it comes to time to argue taxable value you may use resales to establish your estimate of fair market value. Then if you smart you also argue that the taxable value should only be 6-70 percent of that number and you provide stats to back your point up. So it does not matter what the builders are getting in fla if resales are lower. And right now resales are lower.
More of the same from the folks who know: Hovnanian Doesn't Expect Quick Recovery Friday March 9, 4:08 pm ET By Janet Frankston Lorin, Associated Press Writer Hovnanian Doesn't Expect Quick Recovery in Housing Slump NEWARK, N.J. (AP) -- A day after homebuilder Hovnanian Enterprises Inc. reported a second consecutive quarterly loss, its chief executive officer said he doesn't expect a quick recovery to the housing slump. President and Chief Executive Ara K. Hovnanian also said the company has not yet seen the bottom of the housing market slowdown. "It's not getting worse, and it is slow but steady," he said Friday in a conference call with analysts. http://biz.yahoo.com/ap/070309/hovnanian_housing_market.html?.v=1&printer=1
ALL BUSINESS: Homebuilder Talks Straight Friday March 9, 12:23 pm ET By Rachel Beck, AP Business Writer ALL BUSINESS: D.H. Horton's CEO Breaks Out of Housing Bust Spin Game With Negative View NEW YORK (AP) -- D.H. Horton Inc.'s CEO Donald J. Tomnitz said what most others in the housing business wouldn't when he proclaimed on Wednesday that 2007 "is going to suck, all 12 months of the calendar year." His blunt assessment contrasted with much of the spin that has been coming from lenders, realtors, trade groups, home builders and others in recent months. There haven't been many straight shooters discussing the housing and mortgage market collapse... http://biz.yahoo.com/ap/070309/all_business.html?.v=1&printer=1