How Some Home Prices Get Distorted

Great story in the Wall Street Journal today about how discounts and hidden incentives given to entice new home or townhome buyers aren’t usually reflected in the sales price, which means the price on record isn’t how much the home cost/is worth. At my townhome, I got a 5 percent discount through a friend at Centex that brought my purchase price down, and received some free appliances that of course weren’t reflected in the sales price, so the home’s “true value” may have been off a bit. That said, I also had a serious offer six months later for 20 percent more than I paid, so I don’t think I got bad deal. I thought the property was undervalued then, and I still do.