Ryland Home Owners Livid: Remaining Homes Selling For $60K Less (Cincinnati: luxury, apartment complex)

[YoMikey617]

Check out this story which was on the evening news...

Neighbors Upset at Discounts Offered by Ryland Homes - :: Cincinnati news story :: LOCAL 12 WKRC-TV in Cincinnati

I guess I would be ticked off too... But then we are in a major downturn. There's always a risk when you build a new home at the end of a housing bubble. This is happening all over the country by the way.

Major Lesson: Never trust a builder who makes verbal promises in regard to...
1. conditions as to how they plan to complete the development. many homeowners go through the gauntlet of architectural restrictions and what they can and can't build on their lots... then the builder files Chapter 11 (which can nullify many promises) and the remaining lots are sold at deep discounts to outside builders (sometimes modular builders).
2. what may or may not be built in adjoining parcels. that lovely wooded lot behind you might just turn into a shopping center or 500 unit apartment complex.

Further...
3. that lovely thin farm road may very well be expanded into a 4 lane thoroughfare.
4. that small luxury condo development might turn into a 200 unit development.

[franke01]

For the last year or so Ryland and most of the other builders have been offering "incentives" because they did not want to reduce the price of the same model in a subdivision for a new buyer.

So while the price would remain the same as previous sale prices, the builders offered finished lower levels, lots of upgrades, financing assistance, etc.

Apparently it got to the point where this tactic no longer resulted in sales so I guess the builders were forced to take the next step and actually reduce list prices. I know of a Bradford II model in NKY (which sold for up to 239,900 a year or so ago) which was offered to a buyer recently for significantly under 200K.

All new construction builders that I am aware of are having big problems.