Moving into the Quarry at Iron Mountain (Liberty, Center: mortgage, credit)

[JZ31171]

Read the previous posts...

banker wrote:

"To your other point that the KB houses in the Quarry neighborhoods are nicer than the Pulte offerings...after five months of house hunting I found that to be true across the board. Pulte is riding on a reputation of superior product - but the reality is that they have really come down market at all levels. They build just as many boxes as KB does in the lower end and do not offer some of the premium features that KB does at the mid and high end like KB does - like luxury and gourmet kitchens, real four sides brick not the half up stuff that Pulte does and passes off as four sides brick, leave trees in their developments - believe it or not KB leaves more trees now than Pulte does and offers better community features (the Pulte Quarry neighborhood does not have a play area or pool but the KB community does)."

I am not bitter at all, actually thankful. Something I shared in a email exchange with banker. However, when you post opinionated responses like this on a message forum that many people read, I will defend my builder as you defend your builder.

You comments are opinionated. I think the KB houses are nice, but I chose Pulte over theirs. I have stone and bricks on all sides. I have more oak trees in my yard than half as many as the KB homes. You make subtle jabs at Pulte in your post.

And I am honestly surprised, as a banker, you don't see a problem with how KB changed their offering. Think about the people who bought before the summer of 2007 who were told by KB that the price range of this neighborhood would be in the 350's and above. You don't think their resale prices will be negatively affected by lowering the range in midstream, like KB did?

The ironic thing is I totally agree with what you are doing on the purchasing side. You are making off like a bandit by buying low in an higher range neighborhood.

You mentioned that I was "bitter". Huh? As I explained in my earlier email to you, I noted that there was less children in the KB portion of the neighborhood (less houses overall and older demographic it appeared to me).

Don't be shocked if people are going to rebutt your assertions on a public forum. It's not raining on a parade...it is bringing both sides of the discussion to the table.

Good luck on the house, neighbor.

[banker]

Great feedback...I understand where you are coming from and you are right...I am getting the best of the current situation being able to buy in a community for just under $300K when there are individuals that paid over $500K just 18 months ago... You are right - I am sure they aren't too happy about it.

I will do the best I can to be a good neighbor...and enjoy the circumstances I am in.

[banker]

We have our "pre-construction" meeting this afternoon. Today we should find out the final build schedule now that they have broken ground. I can't wait!!!

[banker]

KB has updated their website for The Woods of Alon which will have The Empire collection of homes that will also be built in The Quarry - no prices yet - but at least you can see the size and names...they all have three car garages.

Moderator cut: website removed

[jams33]

Originally Posted by banker

Great feedback...I understand where you are coming from and you are right...I am getting the best of the current situation being able to buy in a community for just under $300K when there are individuals that paid over $500K just 18 months ago... You are right - I am sure they aren't too happy about it.

I will do the best I can to be a good neighbor...and enjoy the circumstances I am in.

Are you serious? They really did pay over $500K for the same floorplan just 18 months ago?

[banker]

Originally Posted by jams33

Are you serious? They really did pay over $500K for the same floorplan just 18 months ago?

No...I am paying just under $300K when just 18 months ago some people were paying $500K or more to buy into the neighborhood - but not my floor plan. My floorplan was not available 18 months ago.

[firstclassflyer]

I don't get it. You paying 300K for one floor plan and someone else paying 500K for what probably is a bigger, better floor plan is like comparing apples to oranges.
The million dollar question is: is their floor plan (assuming it's bigger, nicer) worth the additional 200K? Is that what you're trying to say?

There are many neighborhoods where prices can vary hundreds of thousands of dollars.

[banker]

Originally Posted by firstclassflyer

I don't get it. You paying 300K for one floor plan and someone else paying 500K for what probably is a bigger, better floor plan is like comparing apples to oranges.
The million dollar question is: is their floor plan (assuming it's bigger, nicer) worth the additional 200K? Is that what you're trying to say?

There are many neighborhoods where prices can vary hundreds of thousands of dollars.

No someone ealier said that prices have dropped and when someone previously paid $500K + for a home might not like it that I paid $300K...but the point is that since the Quarry was first introduced over two years ago - the base price has come down significantly for the same house...about $60-75K when the change in options pricing is taken into account. This is due to the ever weakening housing market. The neighborhood was introduced as a $400-550K community and has evolved into a $280-450K community. Still nice by anyone's standards...but much cheaper than intended. Especially if you paid $550K for a house that today you could build (the same home) for $450K.

Needless to say - I am one of the fortunate people that benefit from the price drop (due to the housing market - not an evil plan by KB) and am able to build in a community that two years ago was out of reach!

[firstclassflyer]

I see. The market market might dictate even further reductions..no one knows. That would make them even more upset. Would probably upset you as well. I personally think that we have a loong way to go until bottom.
We paid cash for our home, and live well below our means. I guess it would bother me as well, if I saw folks buying homes in my area for much less than what I paid.

[banker]

Originally Posted by firstclassflyer

I see. The market market might dictate even further reductions..no one knows. That would make them even more upset. Would probably upset you as well. I personally think that we have a loong way to go until bottom.
We paid cash for our home, and live well below our means. I guess it would bother me as well, if I saw folks buying homes in my area for much less than what I paid.

You are in the minority - as most people have a mortgage. I am going to be financing about 72% of my purchase price. I trye very diligently to live below my means and plan on having my home paid for prior to my daughter (who is a toddler) going to college. I am not buying this home as an investment but as a place to live and raise a family - so if prices drop further it will not bother me that much. I am in it for the long haul and know that real estate goes in cycles and always (at least historically) has regained lost ground and cost more in the long term. So my value is safe from a long term perspective.