DFW New Home Construction
Want to buy new home construction? Beware of Local Builders Going out of Business.
In the last few months, the Dallas Morning News has reported several stories about slower home sales in North Texas. The slower sales have impacted local home builders so severely that some have filed for bankruptcy or reorganization. Some of these builders were giants during the height of the market in 2003. Who are these companies and what does it mean for the consumer?
Builders in trouble: Goff Homes and Colonnade Homes, are no longer marketing houses, and their telephones have been disconnected.
During the summer, Steelman Homes LLC, a property management company, filed for Chapter 7 bankruptcy, which provides for liquidation.
Richardson-based homebuilder P.B. Building Inc. also filed for Chapter 7. Frisco-based Greystone Custom Homebuilders Ltd. filed to reorganize under Chapter 11 bankruptcy.
Carrollton-based Buescher Interests LP entered Chapter 7 bankruptcy in February, but it later switched to Chapter 11. According to the Dallas Morning News, Buescher left empty lots and unfinished homes in prestigious master-planned communities when it went out of business. What’s curious, you still see some of their homes being marketed.
The problem is that many homebuilders have been caught with tighter profit margins and the inability to sell ready-to-move-in properties. The average cost to keep inventory homes is around 1.5% of the sales price and with dwindling profit margins, the name of the game is to get rid of current inventory, cut overhead and weather the storm.3
Currently, the market is driven by the high number of foreclosures which are priced to sell and builders can’t compete. Buyer beware. Get yourself a good buying team who can keep you posted on what is happening in the market.
Summer Housing Market Update
Lots of Great Opportunities!
|
|
If you are thinking about buying a home, just do it now before this window of opportunity is gone! I've been in the real estate industry since 1999 and I have never seen
the likes of the deals that are out there today.
Now granted, some are better than others. Most buyers today are savvy enough to know that there are great buys, but I'm not sure they understand how to focus their search.
Most believe that they can find great deals on foreclosures and that they can low ball their offers. Here is what is happening right now in DFW. Many foreclosure listings are listed low with the intention of creating an "energy price". This create a bidding frenzy which drives the price up beyond the original price. Case study:
Recently our team listed a starter home in west Plano. Great schools, great location, just south of Spring Creek. The home needed some work new stove, new dishwasher, a
new kitchen island (go figure!). Floors were acceptable, new paint desirable. The home listed for $135,900. Within two weeks, there were 25 offers and when the dust
settled the sold price was $155,000.
The question you have to ask yourself is was that a good deal? I believe it was, but not as great as it could have been. By the time the needed repairs are done, the price of the home
is close to what it should have been if it sold as a regular sale.
Choose a Realtor who understands the market and who knows the foreclosure process. There are good deals to be had out there, but you've got to know how to maneuver through the
maze.
|
For Real Estate representation, or a second no obligation opinion call 972.697.3106 or email me at Susanne@AnsonTeam.com.
|
Interested In Buying New Home Construction?
Worried about what you don't know?
By Susanne Anson
Working with a builder can be a daunting task especially when you find a home and a community which you love. But how do you know that it's a sound investment? In today's complex market place there are a plethora of builders who have joined ranks of new home construction in DFW, many have challenges which they sometimes pass on to their customers.
-
New Home starts are down to 50% of what they were in 2006. Is the builder you are considering still in business, and will they be in 5 years from now?
-
Did you know that Dallas Ft. Worth has the largest number of home builders active in the nation?
-
30 of the largest national builders are active in both Dallas and Ft. Worth. Several builders are in the process of exiting the market, do you know which ones?
-
Many builders struggling in the metroplex, change sales people frequently. It's not unusual for a buyer to have 3-4 sales people during the building
process which leads to mistakes in the building their home.
I've spent 8 years working for national homebuilders in DFW and have great insights into the Who's Who of builders. It is my goal as a REALTOR to help you find and choose a reputable builder -- A builder that stands behind the work, one that delivers on the promises and one that employs good sales people. All builders are not created equal. I'd like to be your guide and work with you to ensure a smooth building process.
Susanne Anson
REALTOR, GRI, eAgent
|
|
| Contact for more information |
|
|
|