Free Car with Home Purchase in Louisville Kentucky!

Posted by Jonathan Karlen on Wednesday, August 31st, 2011 at 10:44pm.

louisville ky real estateI’m sure you’ve seen the ads:

“FREE car with home purchase!”

With the negative perception that the media has been perpetuating regarding the real estate market nationally, this perceived sentiment is starting to move within the Louisville KY Real Estate market.  People are trying innovative ways to get their property sold.  From “free” upgrades, to more recently “free” cars.

Do you really think its “free”?  Of course not.  You are paying for it.  The question is, how much – and is it even a car/upgrade that you’d even want in the first place?

The only group of persons that I can see this type of promotion appealing to, are persons with marginal credit that want to be able to roll their car payment into the house mortgage.  And guess what – with the subprime lending market sucking wind, most of the persons that would be interested in this type of situation, can’t get credit anyway.  So, why waste time/effort offering incentives that persons that are actually able to purchase the prospective home, don’t really want anyway?

My recommendation is to bypass the gimmicks, get representation from a competent real estate agent, and get the cost of that car (plus a whole lot more) negotiated out of the purchase price.

A lot of real estate agents will just pull a CMA (Comparative Market Analysis) of the subject property.  A CMA only tells you what a property USED to be worth in a normal market, as it is based on information from the past.  A competent real estate agent should be able to give you at least a ballpark idea on what a property is CURRENTLY worth.

The CMA should be a starting point, not a final report, as to what value a property has currently.

Its just the tip of the iceberg.  Here’s why:

If the seller really feels the need to offer a car as a promotional tool, this indicates potential weakness on behalf of the seller.  Check their home inventory.  How many properties do they currently have?  Check their mortgages.  How much debt service do they have against this – and other, properties?  Do they have any judgments, liens, lawsuits, etc against them that would help provide additional motivation for getting out from under their current house payment and debt service?

The list goes on and on and on.  Make sure your Louisville real estate agent is doing their homework and you are getting the best deal you can when you are buying (or selling for that matter) real estate in Louisville Kentucky.

And then go out and buy the car that you really wanted in the first place!

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