Have foreclosures and short-sales affected the quality of NEW homes?

By
Real Estate Agent with Better Homes and Gardens Real Estate Metro Brokers

Have foreclosures and short-sales affected the quality of NEW homes?The current real estate market has caused a paradigm shift in the way buyers think about real estate.

The old notion that “more is better” has given way to “less is best.” Buyers simply do not want to put a lot of money into a house during a declining market.

Builders in Coweta County Georgia has responded to consumers by purchasing  existing lots at fire sale prices, and by downgrading the product finishing to make the price as attractive as possible.

What was once a stone or tile shower is now a one piece fiberglass unit. Where there was once crown molding, now there is none. Carpet has crept over most of the space that at one tome would have been a hardwood floor.

It makes you wonder if perhaps we had come to the point where we expected too much in the first place.

Perhaps simpler is better. At least it is more affordable, that’s for sure!

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Rainmaker
1,074,348
Ginny Gorman
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Richard, this is so true!  The builder here who would only do the $800k homes has a small development going in the under $400k range...finally realizing after 3 years this is the way to go..

Feb 16, 2012 08:15 AM #1
Rainmaker
1,987,155
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"New Franklin MA Homes"

Richard....if our builders downgraded to that extent, the home wouldn't sell.... the same holds true with a rehab.... people here expect more... builders here need to make sure they offer everything that others are offering and then trump that.

Feb 16, 2012 08:16 AM #2
Rainmaker
1,368,750
Andrew Mooers
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Everyone is trying to get a deal... on houses, airline tickets, food, college, anything that requires open up the wallet wide and say "Ahhh". On line information is sometimes enough to make them mob like dangerous so being the local REALTOR that educates, guides is more critical than ever. Has to be at least one adult in the room not over dosed with sugar from all the short sale, repo, foreclosure talk that can make expectations across the housing board out of whack!

Feb 16, 2012 08:16 AM #3
Rainmaker
583,847
Janis Borgueta
Key Properties of the Hudson Valley ~ 845-527-7115 - Newburgh, NY
LIC R.E Salesperson - Homes for Sale Newburgh NY

Richard~~ You are lucky that the buyers are ready to settle for less of a home with new construction. In my territory they still want a new home, and put everything in it and a lower price. THe builders are certainly giving a completed home that has granite, hardwood, stainless and other options that were once upgrades. Profit margin here is low for the builders that are still going forward and the buyers are getting a sweet deal these days. They do ask for everything. THe difference in what they buy is that the homes are smaller. I'm hoping that the McMansions are a thing of the past!

Feb 16, 2012 08:21 AM #4
Ambassador
1,327,817
Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Richard,

Prices here haven't subsided much because the price of the land is still so high. The size of the houses are smaller to keep buyers within a reasonable budget though.

Rich

Feb 16, 2012 08:35 AM #5
Rainmaker
409,895
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease
Richard, We are seeing some amazing pricing on new homes in Buckhead and they are flying out the door. True, there are a lot of bells and whistles that have moved off the necessity list. All the best, Michelle
Feb 16, 2012 08:39 AM #6
Rainmaker
985,877
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Melbourne, FL
Personal Service, always.

I think you are on to something Richard. Simpler is better but we have to experience complex before we realize it!

Feb 16, 2012 09:30 AM #7
Ambassador
1,658,120
Richard Weisser
Better Homes and Gardens Real Estate Metro Brokers - Newnan, GA
Richard Weisser Coweta Newnan Homes for Sale

Ginny...

Here we are talking about homes under $200K ... some under $150K. So there's not a lot of ma gin to work with. Thanks my friend.

Barbara ...

But if they could get a brand new 2500 SF house for $150K they just might rethink that position! Thanks so much.

Andy...

"Out of whack!!!" That's for sure my good fellow. Thanks for jumping in to the fray!

 

Feb 16, 2012 09:31 AM #8
Rainmaker
1,360,194
Kristin Johnston, Waukesha Realtor 414-254-6647
RE/MAX Realty Center - Waukesha, WI
Waukesha County Realtor, RE/MAX Buyer Agent

Yeah, I think everyone has certainly been babied...you watch HGTV (sigh) and see first time home buyers expecting granite, hwfs, etc..

Feb 16, 2012 09:32 AM #9
Rainmaker
591,694
Laura Giannotta
Keller Williams Realty - Atlantic Shore - Little Egg Harbor, NJ
Your Realtor Down the Shore!

Builders in my area are building smaller homes, but the buyer still demands and gets the amenities...Tile baths, granite courter tops etc.  Buyers will forgo square footage.

Feb 16, 2012 10:03 AM #10
Rainmaker
1,764,147
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Not many spec homes being built.   The last one I saw was just that, cheap materials.  Trying to keep the price down so that it will appraise out.

Feb 16, 2012 11:28 AM #11
Ambassador
857,630
John McCormack
Albuquerque Homes Realty * www.AlbuquerqueHomes.com - Albuquerque, NM
AlbuquerqueHomes.com

Our area is not seeing a huge amount of construction but builders are covering the bases from standard to all the bells and whistles. 

 

Feb 16, 2012 12:28 PM #12
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Richard Weisser

Richard Weisser Coweta Newnan Homes for Sale
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