Battle for the Buyers – Builder vs. Private Seller
I read an interesting article today on RealCentralVA.com about builders in the Charlottesville area. The article is primarily speaking about the financial crunch that local builders are facing.
What I found interesting was the mention that at least one builder in particular was switching their business model from one of building residential properties to renovating existing properties. Wow! That is a significant move for a builder.
I can’t say that I have seen anything like that in Fredericksburg, but I have seen some significant changes. Builders have dropped prices like crazy. That hasn’t worked real well. They have offered tremendous incentives. That also hasn’t worked real well. Several, if not most builders now are wanting a ratified contract with a significant down payment before they will even break ground on a new home.
There has developed a real battle for the buyer in our area. It is a mutual position. Builders have to be concerned about private sellers undercutting their price. Private sellers have to worry about builders offering more for the money.
What is the result? Between builders and private sellers…. it’s too close to call. But the clear winner right now is the buyer!
Share on Facebook
Category : Blog
Jim Duncan
Nov 23, 2007
In our market, builders clearly have the advantage over the private seller – builders have more room to undercut … but that will last only so long.
Jeff Edmisten
Nov 24, 2007
Jim, I understand your comment and agree that the builders do have more room to undercut. It seems that when they do undercut, it is a very short lived victory and the rest of the market slides down around them. Thanks for taking the time to visit and comment.