A lesson of sorts on moving homes in a tough market
Home builders aren’t the best loved guys on the block in many parts of the country.
The Boston area, for the most part, dodged the overbuilding bullet. Not so, of course, for once hot markets in Florida, California, Nevada, which are now struggling to dig out after being buried in an avalanche of empty new homes after a frenzy of overbuilding by the big, publicly traded home builders.
But you have got to hand it to these guys, some of the same builders who created the mess are coming up with some creative ways of cleaning it up.
Realtors take note here.
Lennar Corp’s stock soared Thursday after the big national home builder reported that it had managed more than cut in half the number of completed, but unsold homes on its books.
Back at the end of February Lennar was sitting on more than 1,300 unsold homes. Three months later, the home builder has whittled this number down to 626.
No cake walk, the sales have come amid fierce and low cost competition from the flood of foreclosed homes that have innuadated the market.
Creative marketing appears to have made a difference. Lennar has managed to attract buyers with a 3.6 percent mortgage, no money down deals, and a “sealed bid’’ auction process pitched as giving buyers a hand in setting the price.
Still, the incentives are costly, adding up to more than $52,000 per home sold, or 21 percent of the sale price.
And despite the reduction in inventory, Lennar is still losing money - $125 million in the second quarter.
Of course, there are some obvious concerns here too. In their hurry to get these lemons off their books, are some of these builders laying the groundwork for another wave of foreclosures?
Low rates are one thing, but no money down deals sound worrisome.
Definitely not perfect, but it’s a start.
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Our government thinks they can solve a problem of excess credit and massive debt levels with additional credit and additional debt. It follows that home builders would think that the solution to a problem created by low interest rates and lax lending standards should be solved by low interest rates and lax lending standards.
Is there any common sense left in this country?
Lennar is losing money on every sale. But they'll make it up in volume.
All real estate is local. Some towns are having it tough this go around. I can say that if you price it right and have a good product the house should sell. The one thing you cannot control is how many homes are on the market in any given community and how many buyers there are that are ready to buy. THE REAL ESTATE MARKET HAS NOT YET FOUND A BOTTOM. So many people are delying their purchase until there is clear direction in the econmy. Remember if you don't have to sell your home, you won't get hurt. If you are faced with having to sell... well the sharks may just have you for lunch.
Price is EVERYTHING. Cut the price and the house will move...
If you can't offer a 3.6% mortgage or drop the price 20%, try this:
1.) Price it right, the first 2 weeks are critical, then buyers are sparse
2.) Clean everything, de-clutter and fix the obvious before showing, inspect like you were buying it. Get rid of smells and touch up paint.
3.) Hire the best realtor in the town your selling the property
4.) Preview the listing and photos before it goes public for quality and typos
5.) Be honest on the disclosure sheet to avoid deal busters.
6.) Don't hang around the open house unless your the broker.
7.) Check out the competition's open houses and past sales
This blogger might want to review your comment before posting it.
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