We have a client that would love to sell their home and move up or move on. BUT, the builder wants to move on too and they don’t care one iota about devaluing the value of their former customers’ existing homes.
Imagine trying to sell your home when the builder is dumping two similar models with more upgrades for $100K less than you paid. As a seller, you can’t compete with that. AND it doesn’t end when the builder finally sells the remaing two units and moves on.
Those two units will set the appraisal comps in that neighborhood and it will probably be two years before prices recover from the dumping sale.
This is going on in two communities we know of. One in San Ramon and the other in Dublin, CA.
Some builders are taking a kinder, gentler approach to the situation that doesn’t hammer the housing prices and upset the neighbors (their former customers). These builders are keeping the prices stable, but offering to make payments for a period.
If you are in a situation like this in San Ramon or Dublin, we’d love to hear from you.
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[...] We noted in this post how some East Bay builders are reducing prices so much that it is hurting existing homeowners that need to sell. Surely, this activity will result in short sales and foreclosures by some. [...]
[...] In addition to the rising foreclosures and REOs in Dublin, there is the downward pressures on home values being brought by some builders as we noted here. [...]
[...] If you look at our MLS Trends, you will see that Dublin, CA is probably the hottest market in the TriValley area as a result of this deep discounting to move standing inventory. We’ve written about the effects of this before on existing home owners in the Dublin area: New Home Builders Inventory Dumping Hurts Sellers in San Ramon and Dublin [...]