2021 BOISE IDAHO REAL ESTATE BLOG
Working with a credible home builder is critical but there's more to it Main Idaho Real Estate Insights
On a tour on Saurday, I found numerous new subdivisions that were looking run down. With a soft market not only do home builders start to go out of business, but developers can't complete a subdivision as they envisioned.

Satuday, we drove to Marsing for the Springt boat races, which were great but the way. On the trip though I noticed numerous "new" subdivisions looking overgrown with weeds and other indicators that would say this subdivision is in trouble. Remember two weeks ago when it was reported that Hunter's Point filed bankruptcy and earlier this spring Tamarack also was in hot water.

It is definitley a double negative. Develoers are whatching their pennies in slow times but they can't sell because no one wants to buy in a subdivision that looks distressed. I also drive by a subdivision with a great big sign at the front promoting a builder who's company is being dissolved. This is again where it is vital to work with credible builders. Builders that know the developers that are developers and not investors who will walk away at the first sign they may lose $.

Do your homework, ask questions and doubt everything. If it seems to god to be true there is only one way to find out if it is- and it is very expensive. Talk to lots of people- realtors, builders, meet the developer, banks, title companies and more. Is what you see is what you're hearing?

Trey Langford
BuildingCredibility.com

 
Posted by tlangford at 6/8/2008 6:59:00 PM
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Comments (2)
Re:Working with a credible home builder is critical but there's more to it
Great points. It is really important to look at the CCR's to see who has the authority to change the subdivision requirements. In the past, I have seen developers (who many time have priority weighted voting rights) ammend CCR's and requirements to be less restrictive to expedite sales. I guess it just happened again when one developer approved letting manufactured homes come in after the fact and the homeowners see it occur at 8PM when the trucks started showing up carrying the homes!

The other important thing to look at now is the strength of the Home Owner's Association. If homeowners are not paying their dues, it is up to the those that do keep your common areas mowed, watered, maintained, repair fences, maintain the pool, etc. If not, the association will have to start cutting services or implementing "special assessments" to cover the shortfall until they can collect from the deadbeats!
Posted by on 6/8/2008 1:55 PM
Re:Working with a credible home builder is critical but there's more to it
There have been some great subdivisions built in this area in the last few years, nice looking homes, themes that are carried throughout subdivisions. Once lots are in fire sale mode, Jim's comments about the degradation of CC&Rs and architectural guidelines become a serious issue. One can well buy a cheap lot, and end up in a subdivision where homes values are negatively impacted for good. Still, lot prices needed to come back to earth, but sorting out price and value in this environment is a minefield unless one is assured as to what the homes and rules in the area you are buying in haven't or won't change. Rule or guideline changes in a subdivision in this environment are done to help sell lots, not to make the subdivision nicer.
Good point on the manufactured homes Jim, can you imagine that going in beside a $300,000 home? It could happen.
Posted by on 6/8/2008 10:09 PM

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