Multiple builders in same subdivision, does reputation of each builder matter (Murphy: sales, refinance)

[NYfaninCowboyLand]

Another thing I find different in DFW(compared to NE) is multiple builders building houses in the same subdivision. It gives buyers lot of choice in terms of builder, plan, lot etc. However, in some subdivisions I find some highly reputed and one or two not-so-reputed builders building in the same community. For e.g. I came across a neighbourhood that has Highland and First Texas homes. While Highland seems to have a great reputation and resale-ability, First Texas doesn't seem to have the same reputation. If I like Highland home in such a community, can I go ahead buy it? Does the presence First Texas homes bring down the value of Highland homes in the long run?

[WorldKlas]

Gee I thought First Texas had a good rep

[escanlan]

Originally Posted by NYfaninCowboyLand

Another thing I find different in DFW(compared to NE) is multiple builders building houses in the same subdivision. It gives buyers lot of choice in terms of builder, plan, lot etc. However, in some subdivisions I find some highly reputed and one or two not-so-reputed builders building in the same community. For e.g. I came across a neighbourhood that has Highland and First Texas homes. While Highland seems to have a great reputation and resale-ability, First Texas doesn't seem to have the same reputation. If I like Highland home in such a community, can I go ahead buy it? Does the presence First Texas homes bring down the value of Highland homes in the long run?

You can take the most reputable builder and least reputable builder and place them in the same development with the real difference between the two being the Construction Supervisor running the build! Seen that plenty of times and even two different supervisors from the same builder being vastly different in quality.

As for the resale value of the home with a builder with a supposed not so good reputation only time and the other owners actions will tell. Even a well constructed home needs to be properly maintained and if they are not they can just as easily bring down property values and resale potentials. Of course the resale values can also be hit by any number of factors inside and outside of that development.

[Bp25]

Originally Posted by NYfaninCowboyLand

Another thing I find different in DFW(compared to NE) is multiple builders building houses in the same subdivision. It gives buyers lot of choice in terms of builder, plan, lot etc. However, in some subdivisions I find some highly reputed and one or two not-so-reputed builders building in the same community. For e.g. I came across a neighbourhood that has Highland and First Texas homes. While Highland seems to have a great reputation and resale-ability, First Texas doesn't seem to have the same reputation. If I like Highland home in such a community, can I go ahead buy it? Does the presence First Texas homes bring down the value of Highland homes in the long run?

For resale, you will not have a problem finding buyers for reputable builder's homes. However, comps usually suffer for the better homes and less reputable builder's homes get the benefit. This is because the appraisers just pick recent sales from the neighborhood to come up with average price and does not care about who built it.

[MurphyPl1]

We have a variety in our neighborhood including Grand.

This year when I protested my taxes I learned that the quality of builder will forever affect your appraised value. At least in Collin County. I have a Sotherby and it is listed with different level code than Grand or Goodman (now K Hov). And we are assessed more because the quality of initial materials was higher than what the other two used. And they base that on the initial permits.

Other things we've noticed is the people who purchase cheaper houses seem to not maintain them as well. Not all by any means but the percentage is definitely higher than with the Sotherby, Shaddock, Park Avenue, M Christopher etc homes in our neighborhood.

Caveat our M Christopher are all from when Cleve Adamson was with the company and not the recent stuff.

[MurphyPl1]

Originally Posted by Bp25

For resale, you will not have a problem finding buyers for reputable builder's homes. However, comps usually suffer for the better homes and less reputable builder's homes get the benefit. This is because the appraisers just pick recent sales from the neighborhood to come up with average price and does not care about who built it.

We had a realtor in our neighborhood for years and she was very good about pulling comps from the same builder. I know who built every home in my neighborhood and I'll be requesting that as well when we eventually sell. Plus our realtor lives nearby and also knows the neighborhood well enough to understand the request.

[NYfaninCowboyLand]

Thank you for your replies. My observation is also that comps will suffer and it has to be carefully managed when it is time to sell. This adds another complexity to the decision making process.

[Rakin]

Originally Posted by WorldKlas

Gee I thought First Texas had a good rep

They do. They usually offer a little more value for the money. I'd highly recommend First Texas.

[Bp25]

Originally Posted by MurphyPl1

We had a realtor in our neighborhood for years and she was very good about pulling comps from the same builder. I know who built every home in my neighborhood and I'll be requesting that as well when we eventually sell. Plus our realtor lives nearby and also knows the neighborhood well enough to understand the request.

I didn't mean realtor comps, I was talking about appraiser comps that the lenders use - either for resale or refinance. If the lender's appraisal comes in lower than contracted price, the buyer comes back to seller and asks for lowered price.

[BongoBungo]

Originally Posted by escanlan

You can take the most reputable builder and least reputable builder and place them in the same development with the real difference between the two being the Construction Supervisor running the build! Seen that plenty of times and even two different supervisors from the same builder being vastly different in quality.

As for the resale value of the home with a builder with a supposed not so good reputation only time and the other owners actions will tell. Even a well constructed home needs to be properly maintained and if they are not they can just as easily bring down property values and resale potentials. Of course the resale values can also be hit by any number of factors inside and outside of that development.

This is so true and is why you can't generalize the quality of any particular builder.

DR Horton for example gets a reputation as a lower quality production builder, but some of their construction supervisors have also done stellar work on multi million dollar homes, and they also do great work on the little $250k homes.