Sunday, September 13, 2015
Recently, Commissioner Brian Montgomery had this piece of advice about Younger 1st Time Home Buyers incentives when a developer dangles glittery incentives in front of you trying to entice a home purchase, you can always say no. Commissioner Montgomery comments, "Often these (first time home buyer incentives cause) consumers feel compelled to use a builder's hand-picked mortgage company because they feel they've been offered an incentive they can't refuse." Too often, builders will threaten to revoke the incentives offers if the potential buyer seeks out other financing. The Commissioner's office intervened and the buyer got the deposit reinstated, the home and an additional $3,800 contribution from the developer.
In a Tennessee case, the builder offered cash and a loan package as an incentive for a first time home buyer that was accepted. The buyer becomes a captive of the builder and his marketing staff, not stopping to think that recent home sales prices put the buyer in the driver's seat.