Another Richmond homebuilder has incorporated a guarantee for laid-off buyers into the marketing pitch.
Several weeks ago, BizSense reported LINK that the programs, which started earlier this year with the car manufacturer Hyundai, are spreading into the home-building industry.
“We understand there are layoffs out there,” said Kevin McNulty, the president of Lifestyle Builders. “We are putting a product out there that helps people take advantage of the value and not have concerns about being laid off.
The guarantee, which costs Lifestyle Builders $400 per house, will cover mortgage payments up to $1,500 a month for six months.
McNulty said his firm is not raising the price of the homes, instead lumping the expense into the overall marketing efforts.
Lifestyle Builders constructs homes in several price ranges. Marketing costs typically account for around 1 percent of a homes price, McNulty said.
Another Richmond homebuilder has incorporated a guarantee for laid-off buyers into the marketing pitch.
Several weeks ago, BizSense reported LINK that the programs, which started earlier this year with the car manufacturer Hyundai, are spreading into the home-building industry.
“We understand there are layoffs out there,” said Kevin McNulty, the president of Lifestyle Builders. “We are putting a product out there that helps people take advantage of the value and not have concerns about being laid off.
The guarantee, which costs Lifestyle Builders $400 per house, will cover mortgage payments up to $1,500 a month for six months.
McNulty said his firm is not raising the price of the homes, instead lumping the expense into the overall marketing efforts.
Lifestyle Builders constructs homes in several price ranges. Marketing costs typically account for around 1 percent of a homes price, McNulty said.
Does anyone know exactly how this works for the builder and how the $400 cost estimate is generated?
[…] Richmond BizSense placed an observative post today on Another homebuilder offers job guaranteeHere’s a quick excerptAnother Richmond homebuilder has incorporated a guarantee for laid-off buyers into the marketing pitch. Several weeks ago, BizSense reported LINK that the programs, which started earlier this year with the car manufacturer Hyundai, are spreading into the home-building industry. “We understand there are layoffs out there,” said Kevin McNulty, the president of Lifestyle Builders. “We are putting a product out there that helps people take advantage of the value and not have concerns about being […]
For the builder it helps them move inventory and open up the ability to build again, which creates jobs. The $400 cost I imagine is what their insurance company charges them to take the risk.