The definition of a 'home builder' is changing Main Idaho Real Estate Insights
Is your builder a company or a hobby builder? The difference is subtle. They both do it for profit but one intends to build a business while the other will turn and run at the first sign of trouble.

To put things into perspective, here is a little history of builders in Ada County Idaho. 

In 2005 there were about 770 home builders  pulling permits and in 2008, just three years later, only about 220 were left. Only 90 pulled more than one permit in 2008! The question is how many homes does a builder need to build a year to be considered a sound company. It is different for every company depending on the value of the homes the builder constructs and their overhead but a builder needs to do a minimum to be considered a healthy company and have full time employees to service their clients.

In 2009, BuildIdaho predicted there would be 50 left. I realize that more than 50 builders will pull permits but how many companies will pull enough permits this year to be considered a sound company? Pulling one permit is not a good indicator that that company is sound.

So will I be right? Almost It is probably going to be less than prediction. That is right! I just checked permits year to date by builder and less than 50 builders are pulling enough permits to be considered a vialble company based on my definition.

Many builders have closed shop, some are waiting for the market to return and others have the financial strength to keep the lights on but only a few are thriving.

Do your homework. Make sure you builder is not only qualified but also viable to get the job done. Will they be available full time on the job or are they only available during certain hours? 

 What is a home builder? The definition is as simple as anyone who builds a home. On the other hand, how many builders are opportunists vs a company? How many companies are sound. 

Trey Langford

Posted by tlangford at 8/28/2009 12:01:00 PM
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