Went back to Maybeck in 4S – Price increases?

[jeeman]

“I do know from inside sources that some builders put sold signs on houses in their developments to give the appearance that the product is moving.”

We went to a few developers yesterday and saw alot of sold signs. That surprised me, but then I thought, it could be a tactic. Show a bunch of sold signs and that would motivate me to act quickly!

The lady at the other development (started with a “C”, can’t remember the name right now) pointed out a couple lots “left”, but then also said that there were a couple people who might have financing problems and those lots may be available. Yeah, sure, if we show interest in those lots, they would be available real quick, I bet.

Also, at Maybeck, we have to be prequalified by *THEIR* lender, even though we don’t have to use them. I think they need to know whether or not if the cancellations are really due to financing problems or not.

Jeeman

[jeeman]

“I do know from inside sources that some builders put sold signs on houses in their developments to give the appearance that the product is moving.”

We went to a few developers yesterday and saw alot of sold signs. That surprised me, but then I thought, it could be a tactic. Show a bunch of sold signs and that would motivate me to act quickly!

The lady at the other development (started with a “C”, can’t remember the name right now) pointed out a couple lots “left”, but then also said that there were a couple people who might have financing problems and those lots may be available. Yeah, sure, if we show interest in those lots, they would be available real quick, I bet.

Also, at Maybeck, we have to be prequalified by *THEIR* lender, even though we don’t have to use them. I think they need to know whether or not if the cancellations are really due to financing problems or not.

Jeeman

[Anonymous]

Jeeman, what price do you have now for lot 619?

It was at 789K in June.

[Anonymous]

Jeeman, what price do you have now for lot 619?

It was at 789K in June.

[wantobuy]

I would be surprised by the price increase. The last time I checked the prices at Mayback (about 10 days), I saw a house/lot of Plan 4 dropped about $40K from May. Also although they sold a house that is ready to move in 45 days that fell out of escrow, there isa house falling out escrow and come back to the market. I don’t see any reason they would increase the price especially when they’re just starting to sell the early phases in their project unlike other builders in 4S.

[wantobuy]

I would be surprised by the price increase. The last time I checked the prices at Mayback (about 10 days), I saw a house/lot of Plan 4 dropped about $40K from May. Also although they sold a house that is ready to move in 45 days that fell out of escrow, there isa house falling out escrow and come back to the market. I don’t see any reason they would increase the price especially when they’re just starting to sell the early phases in their project unlike other builders in 4S.

[rube]

i work for a builder and can tell you that the little map in the sales office with “sold” pins all over the neighborhood is much more a marketing tool than anything else. pure BS.

[rube]

i work for a builder and can tell you that the little map in the sales office with “sold” pins all over the neighborhood is much more a marketing tool than anything else. pure BS.

[jeeman]

It was $799,400.

Jeeman

[jeeman]

It was $799,400.

Jeeman

[Alex_angel]

Jeeman,
Which development did you go to that told you about the people having potential financing issues? I heard the same thing in a development in 4S ranch. I just want to see if we went to the same place. The women I spoke to had a name that started with a C.

Thanks

Alex

[Alex_angel]

Jeeman,
Which development did you go to that told you about the people having potential financing issues? I heard the same thing in a development in 4S ranch. I just want to see if we went to the same place. The women I spoke to had a name that started with a C.

Thanks

Alex

[Bugs]

Rube,

Could you expand on that a bit (without burning your employer, of course)?

My impression of the “we have two lot vacant and two more that are shaky” theme is that it allows the builder to show off one unit from each floorplan. I also think another variation is when these builders claim to have sold 10 units in the last week. How much of this is real and how much is smoke?

[Bugs]

Rube,

Could you expand on that a bit (without burning your employer, of course)?

My impression of the “we have two lot vacant and two more that are shaky” theme is that it allows the builder to show off one unit from each floorplan. I also think another variation is when these builders claim to have sold 10 units in the last week. How much of this is real and how much is smoke?

[Anonymous]

One of the reason there might be a price increase is because the builder is selecting upgrades as the construction progresses. For instance they may have selected upgraded cabinetry or upgraded counter tops adding 10K to the cost. The underlying value for the house without upgrade may not have changed at all.

As for prospective buyers having trouble obtaining financing, I would have expected it given the subprime meltdown and considering that existing home sales are going down in price and volume (making it harder for home owners to move up).

[Author]

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