Boise Builders Are Struggling
One of my good friends is a competent, skilled front office manager for builders.
If you’re a builder, she’s the gal you need to handle accounts receivable, accounts payable, payroll, order materials, schedule subcontractors, and take a load off your mind.
She has been laid off by two different builders in the past 12 months.
One builder closed his office and is now working from home after seeing his business shrink to a fraction of its former level.
The other builder is still working from his office, but had to cut overhead and hasn’t taken any salary in months.
These are indeed challenging times if you are a builder in the Boise real estate market.
Carrying costs for an unsold spec home can easily run $1,500 - $2,000/month (or more!) and life gets pretty exciting if you have a bunch of them sitting unsold at the same time.
Many of today’s buyers think all builders are desperate, so they often less than a breakeven price when making an offer.
Nice try, but few builders are able or willing to write a check to get rid of a spec home.
That said, many builders are eager to get a spec home off the books for a small profit or a breakeven deal in order to pay off their construction loan and avoid the possibility of a loss.
If you’re a buyer, this is a terrific time to take one of those spec homes off an eager builder’s hands.
P.S. I had to drive through FIVE major subdivisions to find a home (shown above) in the framing stage! We have very little new construction activity in our area at this time.
February 4th, 2008 Posted in Uncategorized
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