Every city suffers from suburban sprawl with new subdivisions popping up left right and center. I am a big believer in finding the silver lining in every crisis and the big bust in new construction is no exception.
The big builders got into an endless habit of sticking a board next to field and began to build. On that read "Single family homes from $189,950". Customers who decide to buy are faced with a property covered with vinyl and cheap carpeting which is not acceptable for today's standards. So the buyer would choose from endless list of upgrades and on average spend another 10% making the property acceptable. As an appraiser I see this all the time. The cost of these upgrades was always at exorbitant prices, $150 for a faucet that normally cost $30. This is where the builders made a lot of money.
Frankly I am glad to see the builders of new subdivisions coming to a screeching halt. If they ever get going again they seriously have to rethink the way they do business. Firstly build a home someone can live in from the start. Secondly stop persuading those with low acumen to use their rip off mortgage companies which was a big problem in the boom time. Yeah they say you get a free appliance if you use our mortgage company, this should be flat illegal.
Lastly and most importantly stop building in that field. The congestion on major highways is pathetic. The real estates taxes these folks face after a few years is practically unbearable. All I can say is knock down some old stuff down and build there; build up with mixed use developments. Lastly build much smaller subdivisions.
The big builders got into an endless habit of sticking a board next to field and began to build. On that read "Single family homes from $189,950". Customers who decide to buy are faced with a property covered with vinyl and cheap carpeting which is not acceptable for today's standards. So the buyer would choose from endless list of upgrades and on average spend another 10% making the property acceptable. As an appraiser I see this all the time. The cost of these upgrades was always at exorbitant prices, $150 for a faucet that normally cost $30. This is where the builders made a lot of money.
Frankly I am glad to see the builders of new subdivisions coming to a screeching halt. If they ever get going again they seriously have to rethink the way they do business. Firstly build a home someone can live in from the start. Secondly stop persuading those with low acumen to use their rip off mortgage companies which was a big problem in the boom time. Yeah they say you get a free appliance if you use our mortgage company, this should be flat illegal.
Lastly and most importantly stop building in that field. The congestion on major highways is pathetic. The real estates taxes these folks face after a few years is practically unbearable. All I can say is knock down some old stuff down and build there; build up with mixed use developments. Lastly build much smaller subdivisions.
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