Bugs, I've noticed the builders are more inclined to give upgrades and closing costs (only if you use their lender) rather than a price reduction. Are they trying to prop the value or is it because the upgrades don't really cost them that much because of the mark up and using their lender isn't always the best deal, tricksies or holding up the comps?
I think it's more like the don't want to piss off a bunch a previous buyers that purchased at a higher price. That way, officially, the purchase price of new buyers is effectively "similiar". Who keep tracks of the costs of the upgrades after the sale, outside of the buyer? Also, from property tax perspective, new buyers pay the same as old ones.
It also saves face, and creates an illusion that the home prices are holding value. This is important, especially if you want to attract more new buyers. Who wants to buy, when you see the comps in the community going, down, and down. So pad the upgrades, and you can claim prices have been holding steady or even rising slightly.
Why someone would choose upgrades versus a price reduction when it comes to property taxes, I don't know. But I guess builders aren't willing to budge on prices (yet).