CNN reports big discounting from builders and developers.  We’ve seen this happen here locally particularly with Lennar.

Both national and local custom builders have the same problem.  It’s taking much longer to sell their homes and they are sitting on millions of dollars of inventory.  They need to keep their money moving and keep their operations working.  It’s much more difficult on the home builders, or any business for that matter, if they operate by starting and stopping all the time.  If they have to stop their men and machines, that costs them a lot of money.  Usually it’s better if they just discount the property and sell the home for a much smaller profit margin, or no margin, than what they had budgeted.

For the national home builders especially, it’s about closed transactions and marketshare.

With the Parade of Homes coming up February 10 – March 18, 2007, now is an excellent time to negotiate with builders.  They would love to show the buying public that a home or two has sold going in to the Parade.  If you can buy a model but allow the builder to use it for the Parade, that’s all the better.