Home builders mired in slump

[Jim]

I want global warming wrote:

I think Beazer runs a low class operation here in Indianapolis. I sell about 40 homes per year so I think I have some standing with that comment. My guess is you have the wrong impression. Building contracts usually have a provision that if your financing fails, you get your earnest money back. If you proceeded without a realtor representing you, then you are going to have a more difficult time. Realtors are almost always free to a buyer, so you made a huge error if you wrote the contract unrepresented. Honestly, if a buyer of mine wanted to purchase a Beazer home with me as their realtor, I would make them sign a "hold harmless" against me. They are that bad in Indianapolis.

From what I understand Beazer in other parts of the country are a first class operation. Unfortunately, they left the old Crossmann management team in place here in Indiana. The owners of Crossmann were good guys and when Dick Crosser and John Schumann ran it they were a pretty good outfit for entry level housing. However, some of their local management team left something to be desired, and instead of firing them, Beazer Atlanta kept promoting them.

None of them are still around though, Beazer has finally pulled the plug on them and restocked. Hopefully it will show the improvement to what Beazer has been known for Nationally.

[I want global warming]

You are incorrect. Beazer is getting worse. They eliminated the buyer's final walk through and replaced it with a self-serving 500 point check list the construction superintendent does alone. I had a customer purchase a home chock filled with problems. I asked if these mistakes were items 500-600 and not on their checklist? They have screwed realtors and often do not make deadlines. My same customer was promised delivery of their home by Christmas and took possession four months late. Anyone who reads this deserves their own fate if they purchase a Beazer home.

[I want global warming]

One other thing...they did not clean house and replace bad apples..they downsized.

[Chad R]

Test

[paisleyposey]

Two things; I have never understood the rationale behind buying into a beige-box neighborhood. Overpriced, over-regulated and generic.
Second thing, where have all the people come from to fill those neighborhoods?
Why aren't there even more abandoned houses in Indy?

[Jim]

I want global warming wrote:

One other thing...they did not clean house and replace bad apples..they downsized.

I believe that they did both, one then followed by the other. I don't know their current management team, so can't speak for better or worse, it is just hard to believe it could be worse than previous. I guess anything is possible.

[Getting the hey out]

We're getting out of our contract with Beazer. They're threatening all kinds of things if we walk away.
Do not buy a Beazer home. The price on our model dropped 16K and they took away "options" on new homes to get them to move...cheapening our neighboorhood's home values.
The construction is so shoddy and they can't seem to get anything correct. So many corners were cut in our house that I am not paying 160K for a house that isn't worth anything close to that number. You couldn't pay me to live in a Beazer home. Do yourself a favor. STAY AWAY FROM BEAZER HOMES.
Check out Bridgeport Commons on the Westside. It's an eyesore. So many foreclosed homes and the houses are literally falling apart in areas. Stay away from these corrupt people.

[pam]

has anyone had their homes built by beazer in the dayton community of ohio? If so, have you had any problems? Can anyone give me any insight on these builders? I have heard a lot of negative comments about them a and want to be sure I am picking the right builder.

[the Realist]

for most recent home industry news

www.hadd.com

www.hobb.org

[Lamesa]

Shelly wrote:

<quoted text>
It's going to be tough to frame ANY new construction when it's too wet for foundations to be dug and poured. I don't think the republican president or the democratic majority congress had anything to do with the abundance of rain we're having this year. I am upset that today's home builders aggressively target first time (young) homebuyers that have no business owning a new home that maxes out their income earning ability. Back in the day, young people bought "fixer-uppers" that were more appropriate for their earning ability and built equity to eventually get that new home after years of hard work. There were far fewer forclosures and fewer neighborhoods in decline.

Shelly I agree, a lot of times young homebuyers is so excited about buying a new home they except any thing that looks good and sound good they need to start doing a little more research and I garantee they would get better results.

[John DesMarais]

Well for the slowing market yes it is here so Now evryone must look to save a few $ on every new home Well Here is what you can do
Complete exterior PVC trim Packages why by board stock and throw 20-25% in the trash with your waste for all you builders out there Shoreline Millwork and distribution can save you between 15-30% on every new home do the math if you do 40 houses a year we offer complete PVC House packages not only fabricated and cut to lenght we also off TUF Board PVC trim boards at a considerable savings over the other brands and this is the nicest board we have seen in the shop our website is the same if you want to save$$ Dorp us a line and fax us your best price we will beat it with a petter quality product
Shoreline Millwor and Distribution

[Suzy]

I worked for Beazer Mortgage in several markets for several years. I have sat in front of young couples, old couples, single individuals and explained to death how the interest rate works that gets them into a home, and I can tell by looking at them they are not computing what I am presenting. They are only hearing that with this program they can get the house. Mortgage applications and the attached verifying information are checked and double checked and once again hours prior to closing. These Beazer customers who have unfortunately lost their homes are simply looking to blame someone else for their excitement overpowering their financial sense. These mortgage programs offered have specific guidelines of which there are no exceptions. The information provided by the applicants is verified by supporting documentation and reviewed by the keeper of the gold. I feel due to the current downward trend of the housing market, Beazer Homes will be made a scape goat for the bad decisions of our government which are of the same agencies that set the guidelines of which lending facilities adhere to. I'll admit some of the parameters of mortgage programs are nuts, but investors saw the angle and inflated the market and here we are.....

[the Realist]

Suzy wrote:

I worked for Beazer Mortgage in several markets for several years. I have sat in front of young couples, old couples, single individuals and explained to death how the interest rate works that gets them into a home, and I can tell by looking at them they are not computing what I am presenting. They are only hearing that with this program they can get the house. Mortgage applications and the attached verifying information are checked and double checked and once again hours prior to closing. These Beazer customers who have unfortunately lost their homes are simply looking to blame someone else for their excitement overpowering their financial sense. These mortgage programs offered have specific guidelines of which there are no exceptions. The information provided by the applicants is verified by supporting documentation and reviewed by the keeper of the gold. I feel due to the current downward trend of the housing market, Beazer Homes will be made a scape goat for the bad decisions of our government which are of the same agencies that set the guidelines of which lending facilities adhere to. I'll admit some of the parameters of mortgage programs are nuts, but investors saw the angle and inflated the market and here we are.....

Would you say that under oath or in front of a grand jury that no one ever fudged any data in getting an individual approved for a mortgage during your years of experience, or pressured to do so in order to close the deal. Did any home buyer ever have to close on a home that was not completely finished and meeting habitable human conditions, ie: flooring all down,etc, etc, etc, According to the Charlotte Observer the exact is opposite. I tend to believe the Charlotte Observer as they are not biased, they have by all means seem to have done a very thorough analysis of the situations at hand, the MORTGAGE BANKERS ASSOCIATION also seem to have done some investigative analysis on NYSE builder tactics in forcing homebuyers to use the builders mortgage company, which may just fall under a restraint of trade violation. It appears that you are naturally biased and rightfully so. I say let the Courts determine the "at fault party or parties".

Was not Beazer Homes involved in the Ft.Myers area a few years back where newspaper reports stated that some employees were involved with misappropriating company funds in excess of $2,000,000.00. Did Beazer ever resolve this matter judicially or sweep it under the rug. Based on this loose accounting standard I doubt that financially proper accounting procedures were exercised by the company in this matter and others that may extend to certain Beazer Market areas.

[Local Boy]

Shelly wrote:

<quoted text>
It's going to be tough to frame ANY new construction when it's too wet for foundations to be dug and poured. I don't think the republican president or the democratic majority congress had anything to do with the abundance of rain we're having this year. I am upset that today's home builders aggressively target first time (young) homebuyers that have no business owning a new home that maxes out their income earning ability. Back in the day, young people bought "fixer-uppers" that were more appropriate for their earning ability and built equity to eventually get that new home after years of hard work. There were far fewer forclosures and fewer neighborhoods in decline.

Honestly, Shelly, we are down on rain. We had a early year drought and are now 3.5" down for the year. The housing market (new homes) has slowed in our area.
Good points on the new home buyer buying new homes. I think this is an important point. Entry level home buyers are way beyond their means.
I also believe consumer credit is a large part of the problem. Buying a home on credit is a quality investment. Buying cars, electronics, groceries, utility bills, etc on credit is out right stupid. This is an overlooked cause of foreclosures.
And finally your point on fixer-uppers is well put. This has a wide range positive effect on the entire housing market. Increased value of existing neighbors. Builds equity to purchase an upgrade (new and larger). And the older home often comes with a more moderate payment to help offset the struggles young couples face.
On the other hand many fixxer-uppers require conventional finacing wich is much harder for the young couple to qualify for. So they are faced with renting(while attempting to save) while they earn right to conventional finace. Typically the local bank is much more considerate of the local housing market.

[the Realist]

LOYAL EMPLOYEE OF BEAZER wrote:

<quoted text>
WITH A COMMENT LIKE THAT, YOU PROBABLY WON'T BE WORKING THERE FOR LONG!!! NOT A VERY LOYAL STATEMENT IF YOU ARE A BEAZER EMPLOYEE...SHAME ON YOU!!!

Former Beazer Employee wrote:
The investigation is not all Beazer is going to face. The products built and sold to the consumer are substandard and will not hold up value wise. If an event like Katrina every strikes the northern Virginia area homes built by Beazer would be leveled due to substandard materials and workmanship.
go to www.hadd.com

or

www.hobb.org

or www.defective-homes.org

[Upset Limey]

Beazer put my family and I through one of the worst nightmares we have ever had to endure they, screwed up our mortgage, they built my home using illegal work force and unskilled labor. As one of the customer care employees told me, "we threw your house up" . The foreman overseeing the construction was promoted..he screwed up many homes in our neighborhood. The doors, the floors , the electrical, the plumbimg.... they regulary flooded the house..the brickwork I made them rip it off....the carpets were filthy..hard woods scratched, they did not put place enough insulation in the loft, five windows were damaged or modified...floors have all come loose, bath tub came loose, siding and wrap installed incorrectly, kitchen cabinets scratched, dry wall in the garage installed badly, garage floor scratched and dented, garage doors dented and dinged etc etc ect.....i have 100's of things that they did not give a s**t about.....it took me four years to get them to apologize with a crappy 3 line letter.. do not, I repeat do not do business with them....they are 'NASTY'

[Simpleman]

ALL the BIG NAME BUILDERS use the CHEAPEST bids to get their products built. what does the public expect. i would NEVER,NEVER buy a home built by any BIG BOX BUILDER. they will take their PROFITS over quality any day of the week.

[Sammy]

I have heard some very bad things about "Ron James Homes". Do your homework before doing business with these people. They also operate under many alias names. Be careful.