The article did not specifically mention the sales price might be reduced as an incentive to accept this 1% fee. But to me, this makes sense as a marketing ploy.
If I were a greedy developer seeking to prey on unsuspecting dummies, I’d emphasize how I’m lowering the sales price!
(Only to make a 1% profit years later when they sell the home.)
***The article did not specifically mention the sales price might be reduced as an incentive to accept this 1% fee. But to me, this makes sense as a marketing ploy.
If I were a greedy developer seeking to prey on unsuspecting dummies, I’d emphasize how I’m lowering the sales price!
(Only to make a 1% profit years later when they sell the home.)***
That seems to make some sense, however, the developer would rather have the money NOW than to wait years to collect it. The home might not sell for 25 to 50 years, and at a lower price per dollar value than when it was first sold. Only if the developer believes that our dollar will increase in value (not likely) would he be willing to wait years for the 1% to be paid back.
It would be kind of funny if a developer did this for a big neighborhood, everybody moved in, and nobody sold a house for 99 years, just passing them to the kids.