Business: Home sellers cook up juicier carrots

Given the worst housing slump in nearly two decades, home builders and condo developers are now jumping to pay your property taxes, homeowners insurance and even college tuition as incentives to buy a new home or condo.

The developer of two condo projects in Tampa offers to pay a semester's worth of tuition at the University of South Florida for home buyers. Essentially, they're just cutting a check for $1, 340 that can be spent on tuition, books and even - surprise! - the down payment.

Across the state, Gordon Homes takes that one step further. It's pledging to pay the first two years of real estate property taxes and homeowners insurance for buyers at Azura, an "all-inclusive" housing community in Boca Raton.

Arco Construction, a Michigan-based developer, is touting the free-tuition offer, good for USF students who close on its SunRidge Condominiums on 50th Street near USF or Lake Azzure Waterside Condominiums at Himes and Waters avenues in Carrollwood.

"We've had a great relationship with grad students, medical students or parents buying condos for students in the past, " said Margie Martin, spokeswoman for SunRidge and Lake Azzure. "It's just a natural fit and a way to continue this success."

Martin said she's never heard of other developers offering tuition as a closing perk, but sales of condominiums near colleges or universities typically do well, even in a real estate slump, because of campus housing shortages. There are 15 units left to sell, she said.

Condominium sales in Hillsborough County are down 49 percent, reports the Greater Tampa Association of Realtor's May 2007 year-to-date statistics.

Recent new home sales statistics for the Tampa Bay area were not available, but existing home sales were down 42 percent in May compared to a year ago.

Share your thoughts on this story

Read our guidelines for comments

Comments on this article

by CJ	07/02/07 02:06 PM
Floyd, The practice sure sounds like fraud. With the invention of money, there is no need to bundle unrelated items together. Even if the price is only slightly overstated, why not just be honest?

by Floyd	06/29/07 05:19 PM
underpriced to begin with because of the current market conditions. As for the county recording true sell price without the concession the only way they would know is if they were provided a copy of the HUD after closing which is none of their busine

by Floyd	06/29/07 05:17 PM
On a 225k purchase with the minimum 5% down you are only talking about a $6750 increase to cover closing costs on most programs. Some will allow as high as 6%. In todays market it is common practice to help a seller move their home which is generally

by Floyd	06/29/07 05:15 PM
Increasing sales price to help cover a buyers closing costs is a normal practice in the Real Estate/ Mortgage world. It is not considered fraud!!! The contracts state the seller concession if one applies & lenders have guidelines for how much.

by David	06/29/07 03:22 PM
Responsible Appraisers? Thats called an oxymoron, and one of the reasons why were are in this mess. We knew the develpoers were creating their own reality. Now thay can live with it. Ins. companies, your next!

by Joshu Jones	06/29/07 02:45 PM
"developers are now jumping to pay your property taxes" - and the recent tax cuts were all about helping out the developers. We are selling our right to local government to benefit the realtors and developers. Thanks, GOP!

by tracy	06/29/07 02:15 PM
it seems to me that if the builders are offering incentives to by homes and condos is that the prices are way too high to begin with don't you know. they should donate that extra money to the cities and bring back the layed off workers.

by dave	06/29/07 12:46 PM
makes one wonder if the irs looks at these incentives as taxable income that needs to be reported.

by Joy	06/29/07 12:43 PM
Excuse me, but Himes and Waters Avenue IS NOT Carrollwood. That's like saying Gandy and Westshore is Beach Park.

by JB	06/29/07 11:50 AM
Sandra is clearly a Realtor. Appraisers use the MLS system, which lists sale price. Thus, Leslie is correct.

by Wendy	06/29/07 11:15 AM
I am a Realtor who has been complaining for years about this. Don't blame us. Talk to the county Appraiser's office. They need to show net sales price & not "seller's concessions" (part of sales price used for buyers benefit).

by Bill	06/29/07 09:42 AM
Why not? Because Realtors have an incentive to make the deal work, and the deal doesn't work without finance. And finance doesn't come without Bogus Selling Prices. It's Fraud, and it's Common.

by Bill	06/29/07 09:41 AM
Also, Mass Appraisal Systems which county appraiser's use to determine ad valorum taxes are based on recorded selling prices. Why can't Realtors be liable and be required to Clearly Disclose all concessions PUBLICALLY UP FRONT, under penalty of law?

by Bill	06/29/07 09:38 AM
Realtors and Builders do not always return appraisers' calls, and if they do often aren't forthcoming about concessions. Calling a Realtor is worth a shot, but Realtors are a biased source of information, and want to maintain the high-price illusion

by Sandra	06/29/07 08:44 AM
Appraisals are run off of market value, not selling price. Responsible appraisers typically call realtors/developers up and ask what the true sale price was and base appraisal off those numbers.

by bumblingBeeLeslie	06/29/07 08:22 AM
Bill,right on target on a subject that the condo owners want to keep secret.Also remember you pay property tax that take into consideration what you paid and the neighborhood "market." That $2500 "free" appliance package just drove up your tax base.

by Jerry	06/29/07 08:16 AM
For those of us who will never be able to afford a decent home because of the recent run up in prices due mostly to developers, speculators, and irresponsible lending practices, thanks for pointing this out Bill. You did it better than I could have.

by Bill	06/29/07 06:01 AM
And by not properly disclosing these incentives, realtors, title companies and builders continue to create market distortions by recording bogus, inflated selling prices.

Home sellers cook up juicier carrots

Some builders now offer to pay college tuition to lure buyers.