Replies

1. 
   davidmeiland | Nov 30, 2008 07:44pm | #1

   What does that mean? He'll build his plan on your lot for a standard price?

1. 
   Oak River Mike | Dec 01, 2008 02:26am | #2

   I am not sure...I am guessing they will build one of their standard models on your lot but not sure how they are pricing?  Up until now DW has always been a tract builder and I guess the slowdown has caused them to retool.

2. 
   Hiker | Dec 01, 2008 05:36am | #3

   They started here in Austin a few years ago.  They build your choice of tract home on your lot.  Same quality, materials and labor found at the tract projects.

   It is always nice seeing a subdivision plan next to a 1930 bungalow on both sides.  Great effort in fitting in with the hood.

   Bruce

3. 
   KFC | Dec 01, 2008 05:51am | #4

   um.  who or what is david weekly?

   k

1. 
   runnerguy | Dec 01, 2008 06:40pm | #6

   Didn't know either so I simply googled the name.

   http://www.davidweekleyhomes.com/Site/Default.aspx

   I guess one has to live in the south.

    

   Runnerguy

2. 
   Gene_Davis | Dec 01, 2008 06:45pm | #7

   David Weekly, Lennar Homes, Centex, Pulte, etc.

   Tract builders all.  Buy a 30 acre parcel of raw land, develop into 10,000 sf or even smaller lots, run in all the streets, infrastructure, build a couple of 1650 sf models, offer maybe 7 different styles, and start selling.

   Tract building involves capital and planning, but when the boom was happening it is how they all operated.  Now, with credit tight, and nobody buying houses, they are offering this low-risk-no-capital-required way of selling you a house.

   That's low risk no capital required for them. 

   View Image

   "A stripe is just as real as a dadgummed flower."

   Gene Davis        1920-1985

1. 
   KFC | Dec 01, 2008 08:23pm | #10

   heard of centex, pulte, lennar and kb, but not weekley.  but what do i know?

   or maybe they're not in n. cali

   k

4. 
   Mooney | Dec 01, 2008 05:52pm | #5

   Im not sure how it will effect anyone but I see what the deal is I think.

   They cant sell their own homes in their tracts like nearly everywhere else .

   Building a home on your lot lets them make a living low risk if it works till somthing breaks .

   Christy could probably give a solid defintition of whats what.

   Tim

    

5. 
   Oak River Mike | Dec 01, 2008 07:21pm | #8

   Sorry guys I just figured everyone knew the name as they are building in most major markets in the US.  Or should I say "were building"?

   I found an article that said they will build one of their models and the prices start in the $300k range for their 2900 sq ft plan.

   I guess it might work but most folks I think if they are spending $300k and up just for the home and already own the lot would want something more custom?  Maybe I am wrong?

1. 
   davidmeiland | Dec 01, 2008 07:35pm | #9

   An outfit like that would probably be a fairly cheap way to get a house on your lot. They already have the plans, etc. My suspicion is that hiring a small volume custom builder would be more expensive. In your example the build cost is about $100/foot which seems very low to me, but I'm sure my view is skewed.

1. 
   Oak River Mike | Dec 01, 2008 10:58pm | #12

   david,

   Oh, I think you are right as I can't build someone a custom home in our area for $100 per sq ft.  It usually works out to around $150 or more.

   So they could save some folks some money just not have any real choices in the design or customization.

   Mike

2. 
   MikeRyan | Dec 01, 2008 08:51pm | #11

   Having worked with a tract builder who did both subdivisions and scatter lots, an owner needs to be aware of a big fact when a tract builder works on your property.

   Because of the way that thier system is set up, most (through communications with other production managers) require the HO to deed the lot over to the builder.  This is done for insurance needs, but it is also done to squeeze the HO.

   If you generate a punch list at the end that the builder doesn't seem is fair or equitable, you lost your leverage to refuse to close due to the fact that you deeded your property over.  The builder suddenly has a huge advantage to force the issue.

   That being said, the volume of a tract builder does give the landowner the potential for a large floor plan for a discounted price over a custom builder.  Although your house will certainly not be unique and custom, some landowners just want their 4 walls and not much else. 

1. 
   Oak River Mike | Dec 01, 2008 11:00pm | #13

   Mike,

   Wow, didn't know that!  Seems like that would be scary for a homeowner to do. 

   Interesting.

   Mike

1. 
   MikeRyan | Dec 02, 2008 03:30am | #14

   It is something they disclose to you when you deed over, but they obviously don't explain the full consequences. 

   Don't get me wrong, there is a solid reason to do this:  Protection from unknown leins, Builder's risk, supplier's insurance...blah, blah blah, but one night you will wake up and realize that you just sold your land to the builder for $1.00 (albeit temporary)and hope everything will go smooth

2. 
   Gene_Davis | Dec 02, 2008 04:13am | #15

   While it may be scary for the property owner, it sure seems like the right way to operate, for the builder. 

   View Image

   "A stripe is just as real as a dadgummed flower."

   Gene Davis        1920-1985