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Reducing new home inventory

Discussion in 'General Real Estate and Real Estate Finance' started by Lloyd Bonafide, Apr 29, 2009.

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  1. Lloyd Bonafide

    Lloyd Bonafide Senior Member

    0
    Jan 15, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    California
  2. Randolph Kinney

    Randolph Kinney Elite Member
    Gold Supporting Member

    57
    Apr 7, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I wonder ... is this an example where banks are razing partially constructed homes represents the highest and best use as vacant? :)
     
  3. Karl

    Karl Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Arizona
    A partially constructed structure IS a "Attractive Nusiance" (Insurance Speak) Who is Liable IF some children get hurt playing??
     
  4. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    248
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    I find it a laugh that cities so eagar to plat thousands of crapola lots to inflate their tax base are now making money by bleeding the banks who have inherited those properties. I know one town of 1800 that approved the construction of 850± lots in one year without once asking, "How are we going to create sewer service to them"? "How are we going to extend fire and police protection?" [2 of the largest were annexed from 2 miles away from the town center] and, never considered for a moment that 850 lots could not be absorbed into their growth within 10 years let alone in one. Ultimately the two largest (well over half) blew up and are no longer going to be developed. of the 100 or so that were built, the last lots sold for less than 50% of the asking price and most are undevloped or have vacant homes on them. Perhaps 30 of those are held by banks.
     
  5. Smokey Bear

    Smokey Bear Elite Member

    0
    Dec 8, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Another reason why many banks are leaving properties vacant and not foreclosing on them.
     
  6. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    3
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
    I expect to see many that will need to be torn down in these next few years, many in subdivisions built within these past 7 years.
     
  7. Lee in L.A.

    Lee in L.A. Elite Member

    69
    Jan 24, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    What a waste. :Eyecrazy:
    Happened last time around too though. :shrug:
     
  8. Lloyd Bonafide

    Lloyd Bonafide Senior Member

    0
    Jan 15, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I think what probably happened there is that they built the model homes that were 3000 s.f. plus, and they can't sell houses like that now.

    They have hundreds of vacant lots, and it's become obvious now that the market in the High Desert wouldn't be able to absorb hundreds of those large homes any time in the next 5-10 years. They know that they will have to build 1500 s.f. homes eventually on those vacant lots, so they might as well get rid of those models now, or else the white elephants will haunt that neighborhood forever.

    There are tracts all over California where builders have just shut down housing tracts that were partially built. If the builders are very well capitalized, they might be able to sit on them and wait out the housing depression, but most of the remaining lots / houses will probably end up in the hands of banks sooner or later.
     
  9. Riick

    Riick Elite Member

    32
    Aug 14, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
    Uummmmmm... which appraisers did the feasibility studies, and projected the absorption rate of these subdivisions?
    And here we've been talking as if Skippy :sad: was only a RESIDENTIAL appraiser.
    :fiddle:

    BTW... said months and months ago that THE way to get rid of overstock of homes was to burn 'em down.
    Now.. since global warming an issue, burnijng a less good idea, so, bulldoze 'em.
     
    Last edited: Apr 29, 2009
  10. Lloyd Bonafide

    Lloyd Bonafide Senior Member

    0
    Jan 15, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Updated video:

    http://www.youtube.com/watch?v=ZsgOaCZ2Lag

    They are reporting that they destroyed four finished model homes, plus another 12 almost finished homes.

    And the equipment operator reports that when they are finished, they are heading down to Temecula to demolish another 20 houses.

    A real growth industry!
     
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