Some local builders are shutting their doors

By
Real Estate Agent with Keller Williams Realty

We have started to notice an interesting trend in our area.  Some Builders have closed their doors, leaving unfinished homes, unattended warranty issues and half built neighborhoods.  This first came to my attention when I tried to contact the builder of my own home about some warranty issues.  It was time for our 11-month walkthrough where they were to fix any problems we were having.  We called and emailed and mailed our list and were put off and put off and then they just stopped answering all together.  This builder has two half-finished homes in my neighborhood.  I've driven by them every day for the past three weeks and there are no contractors or trucks or activity of any kind.  This particular builder had been in business over 10 years with a good local reputation.  They had started 2 new neighborhoods in our area and those neighborhoods are also abandoned with big, ugly unfinished homes and empty lots with out of control grass.  I really feel for the people who bought beautiful new homes in those neighborhoods and now are left surrounded by all these unkept lots and partially finished buildings.  I guess the builder just could not handle the payments on his inventory homes that were taking so much longer to sell.  It is really a sad state for everyone.  We've seen a few other neighborhoods that builders have pulled out of.  They've listed their model homes and stopped building all together.  Suddenly the plans for additional phases have been cancelled.  If nothing else, this has taught me to really caution my buyer clients who are buying new construction homes from a builder who handles their own warranty issues instead of using a 3rd party warranty company. 

Comments (4)

Anne Hensel
South Beaches Real Estate Professionals - Saint Petersburg, FL
Realtor - Broker - St. Pete Beach, Treasure Island

We have the same situation in our area and it is a shame, what was once planned as a beautiful new community sit there half way finished.

Anne

 

Jul 19, 2008 02:06 AM
Nancy Larson
I am a licensed referral agent in NJ - Hutchinson Island, FL

There are answers to this. He could sell them to clients as is. The Clients would get construction to perm loans for a bank. Get his name and number for me, would love to chat with him.

Jul 19, 2008 02:06 AM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

The H Team

The builders are not much different then our short sales sellers. Short on cash and challenged in making there mortgage payments.  

Good luck and success

Lou Ludwig

Jul 19, 2008 02:32 AM
Kathi Frank
Kate Writes Right - Houston Heights, TX
The Woodlands TX

Although it is rare to find a builder in this kind of trouble in The Woodlands, Texas and surrounding areas, I think it is wise to make the error on the side of caution.  Whenever I have a client that is purchasing a home from an individual builder, I encourage them to also ask the builder to provide  a warranty from an outside source.  The cost of less than $600 (in our market) is well worth the peace of mind.

Jul 19, 2008 02:55 AM