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Atlanta New Homes - What is Happening at Robert Harris Homes?

By
Real Estate Agent with Long & Foster 0225078705

To agents in the Atlanta area breaking news stories are taking place at an alarming rate.  Atlanta new homes subdivisions are just sitting growing weeds, under contract signs are more of a gimmick than an actuality.  Incentives and price reductions have not spurred many new home sales in subdivisions that are awash with inventory.  Robert Harris Homes a few months ago offered 10% commissions on all home standing in inventory as long as the contract price was not 10% below listing price. Extras and closing costs with an approved lender were also available.  It was for a limited time only, but as we rode through some communites it did not seem like a great idea to buy.  As you drove through neighborhoods, there were seas of for sales signs, open house, and foreclosure signs all over the place.  One of the business newspapers also reported recently that Robert Harris Homes in the earlier part of the year that builder in particular had very high levels of recorded mechanic's lien filings.

The latest news that was reported recently in the AJC edition was that late this week Robert Harris Homes told most of their sales staff to pack their things.     Since the company could not be reached for comment, it will be interesting what plays out this week.  Robert Harris homes was the 135 largest home builder in the nation, and in 2004 was acknowledged by Builders Magazine as one of the nations fastest growing builders.  Robert Harris Homes are based in Acworth GA and built homes in the Atlanta area, TX and Florida.  They are a big player in the Altanta real estate market.

Posted by

James Crawford Broker Associate

Long & Foster Fredericksburg Virginia

678-595-5286 Direct

 

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Stephen Graham
Inactive - Atlanta, GA

I have a RHH new home under contract right now; it's an inventory home. It should be interesting to see if we make it to closing; the buyer got a good deal on the price & terms. Owner's title insurance will be a must.

Sadly, it's rough for home builders right now.

Jun 28, 2008 10:47 AM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Wow Jim, you can tell when times are tough at Robert Harris if they offer 10% commissions (HUGE!!!) and they are still laying off their employees. Bad news is what it is, until things bottom out and get going good again. Thanks for your update from your area.

Jun 28, 2008 11:57 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

Stephen Graham (Associate Broker) Buyer's Agent (Realty Professionals, Inc. - Atlanta, GA Georgia)   Read the story Steve it contains some information about those that are under contract...you may want to contact them ASAP Monday!

Jun 28, 2008 12:47 PM
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Jim...

I am trying to stay positive, but this isn't a good thing. Let's hope that things turn around soon!

Jun 28, 2008 12:50 PM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

Gary Woltal - REALTOR® Dallas Ft. Worth (Keller Williams Realty)   Thanks Gary.  I have friends calling me and leaving messages.  One of my referral agents was going to write on one of their homes, and the s/d agent told them not to bother.  This has been in the works for several months...I would not want to ba a person that came in off the streets without representation...when companies go under, you can lose large deposits, and no warranties. NADA.  The article says they've also stopped work on homes in contract!

Jun 28, 2008 12:51 PM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

Richard Weisser, Associate Broker, E-Pro ERA United Realty, Auctioneer, CE Author (Coweta Fayette Real Estate, Inc. ERA United Realty)   It is a bad thing!  He is a big builder with lots of inventory.  I'd even take a pass on it.

Jun 28, 2008 12:53 PM
Marchel Peterson
Results Realty - Spring, TX
Spring TX Real Estate E-Pro

Jim, that is very sad.  I remember the fall out from the oil bust back in TX in the mid 80's; it sounds similar.  My uncle lost his shirt in a roofing business in Dallas back then; people couldn't pay him so he couldn't pay his people etc.  

Jun 28, 2008 02:38 PM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

Marchel Peterson Spring TX Real Estate E-Pro ABR (Results Realty) The other day I had to replace the tires on my SUV, and the technician told me he used to do concrete, the manager behind the desk tols me how his daughter just left the mortgage business.  Things have changed very quickly.

Jun 28, 2008 03:36 PM
Deryk Harper
Key Locations Property Management LLC - Alpharetta, GA

Hi Jim,

     We actually have a client under contract for a future home build in Cottages of Greystone, one of Robert Harris's projects up off 141 in Cumming. Her construction was supposed to start weeks ago ( the latest in a series of promised start dates)  and we stopped receiving responses to voicemails and emails to the builder in late April. We finally decided to give up and terminate. The good news is that the agent at that site forwarded a T & R to us yesterday and said that our Buyer will be able to cancel her contract and get a full refund of her money. Hopefully that will prove to be correct for our client's sake. She has been under contract for over a year without construction starting on her home.

Deryk Harper

Associate Broker

Keller Williams Realty North Atlanta

Jun 29, 2008 04:21 AM
Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
GRI, e-PRO, Executive Broker, Searcy AR

I hate hearing that this may be a big builder going under.  What on earth is going to happen to our economy? 

Jun 29, 2008 09:10 AM
Keith Perry
Coldwell Banker - Hiram, GA
REALTOR - West Metro Atlanta

Very scary indeed. We have seen loads of smaller builders go under but this is huge.

Jun 29, 2008 09:27 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

 Deryk Harper (Keller Williams Realty North Atlanta)  Let's hope she can get back her earnest money...this is a very scary scenario

Jun 29, 2008 10:42 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

Barbara S. Duncan ABR, CRS, GRI, e-PRO Searcy AR (RE/MAX Advantage)  This is not good, he has projects all over the place in the Atlanta area.

Jun 29, 2008 10:43 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

Keith Perry - REALTOR® -West Metro Atlanta (Coldwell Banker)   They are based out of Acworth, and yes this is hugh!

Jun 29, 2008 10:44 AM
Stephen Graham
Inactive - Atlanta, GA

Thanks for the article & advice, Jim. We will proceed with caution. We have negotiated a third party warranty to replace what has been lost. To RHH's credit, their office person had proposed this prior to this point.

Jun 30, 2008 02:00 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA