Curiousness - Posted by Berwyn


#1

Posted by JPiper on January 03, 1999 at 13:25:44:

You gotta love this one!!

Anytime the government involves itself in an activity of this type it turns out this way. Shoddy construction at prices 20% above market?? Why doesn’t this surprise me? This wouldn’t have happened in a “for-profit” situation.

The city council and the Board of Realtors are stumped?? There’s a laugh! The blind leading the blind.

Here’s what I would recommend. Have someone inspect the houses to see what it will cost to correct this “shoddy construction”. People won’t buy shoddy construction at virtually any price. Next, have a market analysis done. The properties need to be priced according to their market value…NOT their cost! One would hope the Realtors know this…but maybe not.

I would not expect the city council to approve a plan of this type…but one thing for sure, it will not be a “for-profit” activity. You might point out that the houses will ultimately deteriorate if left unsold and vacant long enough…and then they’ll be worth even less.

It’s not “location, location, location”. It’s “price, price, price”. “It’s the price, stupid”. Perhaps some flyers or bumper stickers would get the issue across to the city council…“It’s the price, stupid”.

Have fun.

JPiper


#2

Curiousness - Posted by Berwyn

Posted by Berwyn on January 03, 1999 at 12:38:52:

Perhaps some of the wise experienced folks here could shed some light on this phenomenon. The local Pros seem baffled.

You may recall that we had a flood in Grand Forks the spring of '97 which destroyed several hundred homes. The City took a bunch of Federal $$, formed a non-profit corp, and built a new development of 180 houses. They’ve only sold 5 of them.

The City Council and the Board of Realtors are stumped. There’s news stories every day about the problem. These are fairly nice 3-4 BR homes, built by local contractors. However there have been rampant but unfounded rumors of shoddy construction. (you throw up that many houses in 8 months, must have cut corners). They’ve been throwing in freebies like appliances and snowblowers, but adamantly refuse to lower prices. They claim they are selling the homes for what it cost to build them. Of course, with the shortage of workers, they paid a premium, about 20% over the usual sq ft cost.

In the meantime, sales of existing SFH are going on as if nothing had happened.

Next week the Council will be soliciting suggestions from the public about how to move these houses. Thought it might be an interesting exercise to see what kind of ideas y’all might have.

Berwyn


#3

Re: Curiousness - Posted by Judy

Posted by Judy on January 04, 1999 at 12:18:37:

First question, why does the city need to make back it’s money? Weren’t block grants used to pay for these homes? Where do the funds from the sale go? That will explain why they’re not willing to lower the price.

I would keep trying the L/O – eventually they’ll catch on that that’s the only way these will sell?


#4

Re: Curiousness - Posted by JohnBoy

Posted by JohnBoy on January 04, 1999 at 11:51:52:

If your not interested in trying to work something out yourself with the city on these homes, I’d be interested in taking the 175 homes left myself if the city would be willing to work with my terms. Their price with my terms and I’ll take all of them! What prices are they ranging between?


#5

Re: Curiousness - Posted by phil fernandez

Posted by phil fernandez on January 03, 1999 at 19:36:11:

I’m no rocket scientist, but if the houses aren’t selling, they are priced too high, plain and simple.

My guess is that the city paid too much to have them built and are afraid to admit their mistake.

Why not approach the city with a proposal to lease option the houses on your terms like Jim NC does.

Read JImNC success story on this site.


#6

Re: Curiousness - Posted by rudy-austin

Posted by rudy-austin on January 03, 1999 at 18:29:27:

why even bother to solve someone elses problem if ther is nothing in it for yoou. I WOULD make an offer to lease with an option to buy for $100 below market rent every week and see what happens…


#7

Are the houses listed with Realtors? - Posted by BankRobber

Posted by BankRobber on January 03, 1999 at 14:12:37:

Is the city selling these houses “For sale by Owner” or through Realtors? If they are selling “for sale by Owner” I would not be surprised if the rumors of “shoddy construction” originate from the local Realtors who have to compete with these non commissioned houses for sale.