As the original author of the piece, I feel I need to make some clarifications.
In regard to the Westeria example, I did obtain the pricing from zillow.com. Only later did I realize it is a model home that sold. So yes, the mark up on that home may have been far higher than the usual.
Now, one of the comments made in regard to the website was regarding “anticipated pricing” of low $800,000’s. Now I will tell you as of Aug 2005, the smallest plan (1) at roughly 2,100 sqft was still at $745,000. Is it really that much of a stretch to believe that plan 1 may have been in the high $700,000’s just 6 months earlier in Feb ’05? Resulting in sale price north of $800,000 after upgrades. And certainly if that was the case for plan 1, you would expect even more for the 2,300 sqft plan 2.
Now as of March 2006, that same plan 1 is starting from the mid $600,000’s per the price sheet given by the sales office. That is a 13% drop in 7 months. But here’s more. The sales office made a verbal offer on that same plan 1 to me for $612,000. Suddenly that’s a 18% drop in 6 months. And if you add in the $20,000 lender incentive, suddenly you’re looking at prices in the $500,000’s. (given it was a verbal offer, I felt it should not have been published on my blog).
Now someone mentioned Westeria is nothing more than glorified detached townhomes. I wholeheartedly agree. These are truly homes where you can reach out the window and touch your neighbor. Heather Court, however, is much bigger and have the looks and feels of a real home, and comparing plan 2 to plan 2, about 700 sqft bigger.
Now check this: In August ’05 these detached townhomes could be had for starting from $745,000. In March ’06 these real homes over 3,000 sqft could be had for starting from $776,000. Which one would you pick? (actually none as it still is overpriced with air traffic noise and pricey HOA/Mello Roos, but that’s another topic for another day.)
Thanks for the original posting and also for the follow-up here on this board.
I was the guy who brought your link over to this board. I hope you don’t mind. Thanks for the great work you do over there as well.
I never thought the gal from Wisteria called me back and confirmed what I had read. I sure am glad she did, though. Crazy to think what kind of deal an aggressive buyer could make in there. (Of course, even at $495K it’d still be over-valued)
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