Builders Cutting Prices to Cut Deals ; Home Buyers Can Win Big in Waiting Game

Summary

---

How much would a buyer pay for a new house in Ramsey, with three bedrooms, 3 bathrooms, a stone facade and high-end finishes such as crown molding and stainless steel appliances?

Mike Karvellas of Grace Michael Builders in Allendale, who built the house, used to think the answer was $759,000. But after the house sat on the market for months, Karvellas cut the price again and again. He finally sold it for $659,000 a price that wiped out his profit. But at least he will no longer be burdened by the property's carrying costs, such as taxes and loan interest, of more than $5,800 a month.

See the full content of this document

Extract

---

Builders Cutting Prices to Cut Deals ; Home Buyers Can Win Big in Waiting Game

"I'd rather get rid of it and get out from underneath my investment," Karvellas said.

As Karvellas's experience shows, the market for new homes has changed radically since the boom times of 2004 and 2005. While North Jersey builders have not suffered as much as their colleagues in distressed markets such as Florida, many are being forced to cut prices and delay new projects.

According to the National Associa...

See the full content of this document

---