Over in the mighty USA, there is so much concern about property values dropping that some new home builders and developers are actually providing a guarantee that the value of the home will not drop. In some situations this guarantee against falling prices can last for a year, two years, or more. Bizarre, but true.
What they’re actually saying is that other homes in the development with the same floor plan will not be sold for less than what you paid for your new home. It’s been a problem over there where Mr and Mrs Smith might purchase a home, say, “The Sierra”, and then 12 months later someone else just down the road also buys “The Sierra” for a whole let less, thereby driving down the value of Mr and Mrs Smith’s property.
Here’s the sales blurb from builder Pacific West at their big promotional site, “What the heck are you waiting for?”
“Hear that?
It’s a fat lady. And she’s starting to sing.
She’s about to let everyone know that IT is over. And by IT we mean this sluggish real estate market. Today, it sucks (and has for some time). But it won’t suck forever. Which means prices are going to start climbing again. Fortunately, The Fat Lady isn’t done yet. There’s still time to get in on what could be the best investment opportunity of a lifetime. And now, you can do it with zero risk! If our prices ever drop on your model type in your community, you’ll get the lower price. If our prices ever go up, you’ll get the lower price. Zero risk. Now that really is something to sing about.”
Source: Inman Blog