Rhodes Homes and Customer Incentives
At an early stage in bankruptcy proceedings, Rhodes Homes, a leading builder in Nevada, had requested to continue customer care and incentive programs. With lenders mainly agreeing to this strategy which will facilitate continued sales, Rhodes Homes obtained court approval on April 17, 2009.
What are these customer care and incentive programs? One of the most important ones is the warranty programs. Rhodes Homes traditionally provide all home buyers with a 1-year limited warranty.
Another important one is the sales incentives program - discounts on price of home and/or design options, financing incentives, and promotional incentives. Examples include:
- Discounts on base prices of individual home or all homes in a community
- Free options and/or upgrades
- Lot premium waivers
- Buydowns of interest rates
- Payment of closing costs
Rhodes Homes disclosed in court that it offered 6 buyers who have canceled home sales contracts with a coupon towards a purchase of a Rhodes Home within six months from the cancellation date. The coupons are worth a total of $60,000.
One other important court-approved activity is that Rhodes Homes will continue to pay HOA fees. Rhodes Homes generally pays HOA fees in two situations:
- Partially-completed developments with homes left unsold
- HOA fee subsidies for current development homeowners until the development is fully sold.
Apparently, Rhodes Homes currently pay around $28,000 in HOA fees.
Finally, for those of you who use their golf course at Tuscany Residential Village, Rhodes Homes has also obtained authority to honor its gift cards!
