First Encounter with H R Horton

[Overimprovement]

So what do they cost? Their competition is about $120-40/SF. There are several new subdivisions under construction. Mind you this is a town of about 3,500. With only 13 lots, it seems a mite small for a national firm to develop. Perhaps they are going to develop the other streets to the west. Even so maybe 40 in total? I'd think Horton would buy 80 + acres and develop en masse.

They position themselves just above entry level here, 150-175/SF. They sell the new, which hides quality issues from the uninformed. I don't appraise any of their new stuff, but there are sufficient 2-5 year old sales, more than there should be, to also support low quality claims. Even in this increasing market, it seems some of those folks break even at best. The existing sales are noticeably lower per square foot than new listed prices.

 

[Zoe]

She got friendly.

 

[Zoe]

Have to remember on Horton they have a 1 year builder's warranty most likely. Market value is your main concern.

 

[Mark K]

DR Horton is a fair to avg. national builder. In this area they will buy lots in bulk in platted subdivisions or they will have someone else buy the land and develop it and then buy all of the lots. Overall, the prices and quality are lower than Pulte, et.al., but they are building a boatload of homes in this area. Probably selling 400 or more per year in this county.

Can't speak to appraising any of them; haven't done a mtg appraisal in a while.

 

[RSW]

D R Horton is really active in East TN. You can go on their website & type in a zip code & it will bring up the developments in the area. I probably do 2 or 3 VA appraisals per month for them. Most of them are entry level homes. I've never seen a development where they did not own the land.

 

[Tim The Enchanter]

Maybe this project is a bone for that dim bulb BIL.

 

[Lee Lansford]

View attachment 56027How does Horton operate? This is the first Horton project I've ever encountered. The land was platted 30 years ago as Pioneer woods in .4 acre tracts for the most part. The same owner just replatted a portion into .25 acre lots which have been dozed in preparation for new construction on 13 lots. No deed has been filed so it remains in the name of the original owner and he was the one who replatted it from original 10 lots. The owner has sold lots to the west on 2 streets but had 2 streets that were never developed. Don't know why as he tended to sell by whimsy and had other businesses to attend to. Not a developer type. So HR Horton is going to build the homes. My question is do they not take title to the property they develop? Do they cooperate with land owners to develop a tract? And what kind of homes are built? The houses across the street are small tract homes built about 2008, 1500-1800 SF except 3 on the north end which were brick and a little better quality and a few hundred SF larger. Curious if Horton's money is only in the houses or how this deal is structured as there is no deed to Horton filed at this point (the deeds are up to date to last Friday) and this has been going on for several weeks as this was a fully wooded lot(s) 13 lots seems small potatoes to a national builder.View attachment 56028View attachment 56030View attachment 56029

Unusual, I think, for Horton to have such a small number for a development.

 

[Zoe]

Unusual, I think, for Horton to have such a small number for a development.

His project manager on my last one says he has a plan and it works. May be some paying cash in there somewhere to builders. I don't know. May not have a green card. May be the only way to pay them.

 

[Zoe]

They trip me out. Their subdivisions are nice though. Mostly 1 story brick veneer, small lots. They are easy appraisals. I come in under contract many times. No worries.

They have not hit the Memphis corporate city limits market as far as I know. They like rural markets. They buy the land cheap in areas with low property tax rates here. Hire many mexicans. Their hiring is across the board. They don't discriminate on race as far as I know.

 

[Terrel L. Shields]

They buy the land cheap in areas with low property tax rates here. Hire many mexicans. Their hiring is across the board. They don't discriminate on race as far as I know.

That is a complete self-conflicted statement.