Comments on: Successful Fee Based Builders Can Save Distressed Subdivisions for Developers http://exitrealestate540.com/2009/01/23/successful-fee-based-builders-can-save-distressed-subdivisions-for-developers/ Providing you the information EDGE on Northwest Arkansas Real Estate Wed, 24 Feb 2010 00:33:31 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: benroberts http://exitrealestate540.com/2009/01/23/successful-fee-based-builders-can-save-distressed-subdivisions-for-developers/comment-page-1/#comment-191 benroberts Mon, 26 Jan 2009 02:07:40 +0000 http://exitrealestate540.com/?p=581#comment-191 Thanks for the complement Joe. Everything you said is dead on. The premise will only work in certain markets (one of them happens to be mine) but that doesn't preclude a builder, bank, or developer from exploring the option, looking at the numbers, and deciding if it could be a fit for their area. My point was that you must have a builder that is successful, has a proven product, and can build large numbers of homes (not just a few) because that allows them to take a smaller cut for each home, dropping the price. The builder I am currently using and the reason for my post is building out homes and selling them at foreclosure/REO prices. If prices are even remotely comparable, a buyer would be foolish not to buy a semi-custom new home over a foreclosure. Thanks for the comment and I'd be glad to hear any other thoughts you might have. Thanks for the complement Joe. Everything you said is dead on. The premise will only work in certain markets (one of them happens to be mine) but that doesn’t preclude a builder, bank, or developer from exploring the option, looking at the numbers, and deciding if it could be a fit for their area. My point was that you must have a builder that is successful, has a proven product, and can build large numbers of homes (not just a few) because that allows them to take a smaller cut for each home, dropping the price. The builder I am currently using and the reason for my post is building out homes and selling them at foreclosure/REO prices. If prices are even remotely comparable, a buyer would be foolish not to buy a semi-custom new home over a foreclosure. Thanks for the comment and I’d be glad to hear any other thoughts you might have.

]]> By: Joe Manausa - Tallahassee Real Estate http://exitrealestate540.com/2009/01/23/successful-fee-based-builders-can-save-distressed-subdivisions-for-developers/comment-page-1/#comment-189 Joe Manausa - Tallahassee Real Estate Sun, 25 Jan 2009 21:42:59 +0000 http://exitrealestate540.com/?p=581#comment-189 Your point makes great sense if the home sells. The problem that builders and developers around the country are facing falling prices (meaning who's to say your home price of $192,500 will be obtained) and reduced transactions. I have to respectfully disagree with your premise on a national basis, but I suspect there are a few markets where home values and transactions are steady. In my market area, we have too much inventory and a builder trying this approach would most likely be throwing away money. Our prices have dropped below "new cost" and it will take time to get back to a balanced supply and demand real estate market. By the way, I just stumbled across your blog (through a link back to mine...) and really enjoy what you are doing. --Joe Your point makes great sense if the home sells. The problem that builders and developers around the country are facing falling prices (meaning who’s to say your home price of $192,500 will be obtained) and reduced transactions.

I have to respectfully disagree with your premise on a national basis, but I suspect there are a few markets where home values and transactions are steady.

In my market area, we have too much inventory and a builder trying this approach would most likely be throwing away money. Our prices have dropped below “new cost” and it will take time to get back to a balanced supply and demand real estate market.

By the way, I just stumbled across your blog (through a link back to mine…) and really enjoy what you are doing.

–Joe

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