More good news about housing...Builder Confidence is now at 2007 levels!
Expect to see the return of new construction options for your buyers. This will be especially great news for those of you in markets where there are more buyers than sellers.
The first builder that combines great product with financing will make a killing.
I will give you an interesting example of one such creative program.
Here in Vegas the MGM is offering in house financing on their (many) unsold Las Vegas strip condos. (Conventional financing is simply not available.) MGM is literally loaning their own money…good old fashioned seller financing.
Real life example:
New construction, never lived in before condo at City Center:
$500,000 (for example)
Downpayment:
30% ($150,000)
Taxes and condo fees (remember, this is just an example)
$1200 per month.
PITI
$2500. (Estimate…I am not a lender)
Total payment:
$3700.
Here is where it gets interesting. MGM will GIVE the buyers 15% of their purchase price back (monthly) over the next 36 months. If your purchase price was $500,000 MGM will give you (15%) $75000. Or $2,083.00 per month. Assuming your all in payment was $3700 your net payment with MGMs incentive would be $1700!
This is especially clever because MGM puts a floor under the prices and locks in buyers for 36 months.
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