As the summer continues, builders in parts of the country are having to use expensive incentives to move homes. To keep the homes moving and revenue coming in, builders are having to offer deals that would have been unthinkable a year ago.

Builders who overestimated this summer’s new home demand face contract cancellations and slowing sales as a backlog of nearly finished houses piles up.
The builders’ problem could mean big breaks for buyers.
Just glance through newspaper classified advertising sections to see how serious builders are to make a deal. Some incentives:
•Price cuts of as much as $75,000 off the bottom line.
•Deal sweeteners such as upgraded counter tops or having property taxes or closing costs paid for you.
•Drawings for a free, two-year lease on a new car.
“We want to get to the price point that buyers are demanding,” said Ralph Sevelius, president of Inland Homes Suncoast. “Obviously we want to stay in business, but we have to sell homes to stay in business.”
Inland is offering allowances of up to $56,000 on some homes. The money can be used to lower sale prices or pay closing costs. Some home prices have been reduced as much as $60,000. Realtors who sell inventory by certain dates get bonuses of up to $3,000.
This thinking is in stark contrast to last year’s building boom, when buyers camped out to get dibs on home sites and builders kept waiting lists and held lotteries for home purchases. Last summer, builders released three to four homes a month for sale so they could raise prices later. via TBO.com

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