My buddy is looking to buy his first house. A couple weeks ago, he asked me to go look at a model townhouse with him. He was very excited because it was new construction and the sign said “Starting from the $300’s.” I cautioned him that “Starting from…” is just a teaser phrase and there is no way he was going to get into a property there for $300k or even $350k. He accused me of being “negative” and said I was raining on his parade. We go into the model home and he is ooooing and ahhhing at what he thinks will be his future community; there will be 40 unites in this development.
The builder’s realtor gives him the sales pitch, glossy brochures and shows him model floorplans on the big monitor they have set up. It all looks very nice. It will be a gated community with a clubhouse, pool, on the water, etc… The realtor is talking non stop… I finally cut her off and ask her what the prices are for the various units (end unit vs. middle unit; unit on the water; units near the entrance, near the clubhouse, etc.). There is a different price on almost every unit. The cheapest unit they had was $440k! When I finally got her to divulge that price I looked over at my friend. He tried to keep his poker face, but his skin turned pale white, and he looked like someone punched him in the stomach. $440k was out of his price range so he won’t be living there.
As we drove out of the community, he wistfully flipped through the brochure a final time. “I told you so,” I said.
I always laugh when I see signs that say "As low as..." or "Starting from..." I told my friend if you are looking at houses and ever see that phrase immediately add $150k to whatever price they are touting.
