What should the builders do?

User Forum Topic
Submitted by Alex_angel on August 15, 2007 - 7:34am

Now that new home sales have hit a crawl, what is the best option for builders that still have huge parcels of land.

1. Sell off the land and bail
2. Build out the rest of the developement and auction off the homes
3. Put them on MLS and lower the price 10K a month until they sell
4. build as they sell and take a few years to sell
5. Fire sale them all with huge incentives and buydowns.
6. Wait and do nothing.
7. Build smaller homes for less money.

‹ Local realtor quote Sincerest Shadenfreude Wishes from LBC ›
How about 8. File
Submitted by waterboy on August 15, 2007 - 3:30pm.

How about
8. File Bankruptcy

Isn’t that what most builders/developers do 1 or 2 times throughout their careers?

A majority of them land right back on their feet a few years later and start another successful run.

Just hand the keys back to
Submitted by Hot Blonde on August 15, 2007 - 3:44pm.

Just hand the keys back to their creditors.

Hey, everybody's doing it!!!

Keep building like it's
Submitted by Andy on August 15, 2007 - 4:21pm.

Keep building like it's business as usual, ignoring the inventory that isn't selling, all the while dumping stock at any opportunity they get. Then, declare bankruptcy and enjoy all the $$ that they made off this mess.

All of the above. If you
Submitted by temeculaguy on August 15, 2007 - 4:36pm.

All of the above. If you check the various builders, many of them will take different routes. As far as raw land that they haven't graded or invested in any infrastructure, they will dump it and most don't own it outright, just have options for it.