Home Builder Offers Money-Back Guarantee

Houston company takes novel approach to get people buying.

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With declining home values keeping many prospective buyers on the sidelines, one Texas-based homebuilder is hoping the same tactic that got you to buy that Total Gym will convince you it's time to purchase a home: a money-back guarantee.

From the Houston Chronicle, via Realtor magazine:

Stonemark Builders said it will ensure the value of two of its recently completed homes in East Shore, an upscale subdivision in The Woodlands, by offering to buy them back for the same price if the owners decide to sell within two years.

"Guarantees are kind of a basic of marketing, but we don't often think of doing them on home sales," said Robert Sandman, president of Houston-based Stonemark.

The homes are priced at around $733,500 and span 3,345 square feet.

Marketed as the "Garden District" of The Woodlands Town Square, East Shore is on the eastern edge of Lake Woodlands, where expensive houses are designed around garden parks and green spaces.

"We anticipate the homes are going to be worth more because they're in East Shore, which is a little different than outlying areas," Sandman said. "The higher end of the market has remained strong."