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Some builders are delusional !!

By
Real Estate Agent with Asante Realty CA DRE# 01463395
I finally paid my visit to the model homes at Saville by Brookfield homes to pick up a price sheet. Lo behold !! The price sheet just amazes me how Brookfield homes is out of synch with the market. Someone at corporate needs a reality check.

I seriously get reminded of shopping in India where they have the biggest fake sales ever !! Vendors bump up prices 100% and then say" Big blow out sale- 50% off !!" And eventually you land up paying 50% more than you would have without a sale. And so is the case with this community and even Campton.A Plan 1 at Saville costs between $819,000 to $824,000.Plan 2 is between $842,800 to $857,000; Plan 3 between $871,000 to $876,900; Plan 4 at $891,000.There is one plan 4 which has a "deep discount" - even if they hypothetically sell it for $750,000 they are still pricey.

Their neighbor Centex sold dirt lots which will be ready for completion later this year starting at $838,000 and those homes were 3400 sq ft plus as compared to Saville at 2200 sq ft for the largest plan.So in one commuity you pay $247.00 per sq ft as opposed to $340/sq ft at Saville !!! That is almost a difference of $100/sq ft and a 2200 sq ft home is not going to appreciate to a Million dollars whereas a 3400 sq home will definitely appreciate to or even over a million dollars.

In my opinion if this builder gets real about prices and bring them down to 600-700K price range, they will be in the correct price range. Ideally, they should adopt the same marketing strategies of selling dirt lots at a much cheaper price, make it affordable for consumers and also finish out their inventory. People get carried away thinking that the 750K price range is affordable but not taking into consideration the other points that I just mentioned.We have to remember that we are not living in areas like Palo Alto or Redwood city or San Francisco or San mateo or Marin where you would be lucky to find a 1200 sq ft home under a million dollar mark.We are in the burbs and we will never have the same levels of appreciation.If the other builders in San Ramon also start reducing prices on dirt lots, we should be done with new home sales soon.

In the same note I discovered some affordable townhouse style condos in Dublin. Great location, close to Camino Tassajara with beautiful views of the rolling hills.The community is called The Villas and they have homes ranging from 1017 sq ft to 1807 sq ft and range in prices from $439,000 to $550,950. The prices are VERY negotiable as I just sold a property there, the builder will give upgrade option credits and give a lender incentive to the tune of $16,000 or even more. My buyers are very happy with the amazing service they are getting. Since they are first time home buyers I am always there to answer their questions and concerns and I can see the excitement on their faces.

Comments (2)

Anonymous
Soujanya

Hi Rama,

I just came across your website as I was looking for some new homes in the Windemere area. I see you have some interesting remarks. I was wondering if you would be able to comment on the pricing of paloma homes in Windemere by Lennar. Paloma res 1 is priced at $868,250 for a 4bedroom/3bath/3car garage which is 2566sqft/5661sqft. Do you think this is even reasonable and how much can one negotiate to  bring it to a fair price?

I would really appreciate your feedback via e-mail with a price range you think is reasonable. Here is their floor plan. http://lennar.com/CA/SanFrancisco/PalomaAtWindemere/Residence1.html


Thanks,
-Soujanya

I will be soon looking for homes actively. Right now I am just shopping around for good deals/agents/homes/location etc.

May 12, 2008 10:27 AM
#1
Anonymous
Rama

Soujanya, thanks for your comment.This price is expensive but considering the fact that Lennar homes are energy efficient, in my opinion around 790-800K would be the right price.Please do note that this is my estimate based on market sales.Please send me an email as I did not have your email address to respond back to.

May 12, 2008 10:53 AM
#2