Freebies like granite countertops and no-cost closings

When freebies like granite countertops and no-cost closings didn't woo enough buyers, many home builders began trying to outdo one another with price cuts.
Apparently, it doesn't work if 60% of them do it. That's the share of builders that cut prices last month. About half of them labeled the cuts at least "somewhat effective" in bolstering sales or limiting cancellations, down from nearly three-quarters in May, according to the National Association of Home Builders.
Yet with the market not expected to improve soon and builders desperate for cash and saddled with inventory, many have been unwilling to resist price-cutting. If they didn't cut their prices, they reason, buyers would either turn to competitors who offer better deals or buy used or foreclosed homes.
Still, there are limits. "The reason some companies say 'Enough is enough' on the price cuts is because price cuts often generate expectations of further reductions.
www.843Realtor.com