“It’s job by job. It’s not even market by market. If sales are slower than you are willing to accept, you introduce incentives. But if sales are lower than they were but are good enough to hit your market of profitability, then you don’t.”
—Bob Toll, CEO, Toll Brothers
“Some people might believe if you offer in an ad a big incentive that somehow that’s going to drive traffic and sell more homes. When you get out to the community and you start looking at it, you find out that most of it is on selective lots. It’s similar to car advertising when they advertise a number and when you go out to actually buy, it’s a different number. Personally, I do not think that drives traffic or sales.”
—Bruce Karatz, CEO, KB Home
“We’re using incentives pretty heavily in Phoenix and to a lesser degree in Florida. … Rather than lowering prices, we think we can offer better value by providing financing [incentives], a 3-2-1 buy down is an example.”
—Thomas C. Krobot, CEO, Ashton Woods Homes
