It’s started. In last weekend’s Contra Costa Times, Sunday Real Estate Section, one of my colleagues is offering a free Mercedes Benz with the purchase of a $1mm plus home in Walnut Creek. I don’t see the logic or motivation behind this marketing strategy.
I would certainly coach my buyer to negotiate the price down $60,000+ dollars, the cost of the Benz and ask the seller to also pick up the buyers closing costs. Why? Lowering the cost 60 Grand; lowers you tax basis for as long as you own the house! Go buy your own Benz. I would bet you that Fred Sherer at Walnut Creek Mercedes is pretty motivated to sell you a car at a very attractive price.
$60 Grand off the price of your home is approximately $750 per year in property tax savings. Now that’s not a huge chunk of money but I would rather find of ways to save it or spend it; instead of paying it to the Contra Costa County Tax Assessors office. Pardon me, Gus Kramer.
Plowing though the current real estate market you will find all kinds of tremendous opportunities, find the one that suits you. It’s all good!