Price Drops!

So where does this leave new homes?  Well naturally new home prices have been falling as well, and it’s interesting to note that last week prices on new construction built by Ryan Homes in Waldorf, MD fell $20,000!  Prices have been dropping consistently over the last year, but a one time drop of roughly 6% is significant.

Ryan Homes is selling in single family homes in several subdivisions in Waldorf, including Brentwood, Autumn Hills, and Eagles Ridge.  Two weeks ago the starting price in Brentwood was $330k, now that number is starting at $310k.  For Autumn Hills, that number has dropped from $350k to $330k.

Low Prices Motivate Buyers

What strikes me about these communities is their popularity.  Right now I’m exclusively representing two different buyers who have contracts with Ryan Homes.  In both cases we looked at all the builders in the area, compared what each had to offer, and decided that Ryan Homes had the best “bang for the buck”, so to speak.

If you’re interested in comparing new homes in Charles County and want to make sure that you are getting the best deal possible, give me a call at 301-653-8116 and I’ll be more than happy to share with you the line by line comparisons for local new construction that fits your price range.  We’re experts at negotiating with builders and developers to get our clients the best deal possible!

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St.
La Plata, MD 20646
301-653-8116
301-609-9000

http://www.teambenya.com

    Supposedly they are doing this to re-structure rather than close-up shop.  If it’s a way for them to bring down their prices, great.  Take a look at their current prices, and you’ll notice that they’re flat out too high.  Filing bankruptcy sheds light on an interesting phenomenon:  Builders profits have been cut to the core.  Bankruptcy means that Caruso cannot slash their prices any further at this point without drastic measures.

    Will this allow Caruso Homes to drop their prices further?  Definitely!  At the same time, I’m sure it’s going to upset the folks they owe money to. ($500,000 from 84 Lumber alone!).  As soon as Caruso announces their price reductions, I’ll let you guys know.  Stay tuned for more on that!

Related Links:

KB Homes Pulls Out of Charles County

Adventures in New Home Buying

Are New Construction Price Negotiable?

New Homes in Waldorf, MD: Autumn Hills Subdivision

"Finding it All" When Buying a Home

~Jonathan Benya

Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-653-8116
Waldorf and Southern Maryland Real Estate
www.teambenya.com

     There are two different builders in that community:  Ryan Homes, who has subdivisions and developments all over the Southern Maryland region, and Craftmark Homes.

     The Ryan Homes there are starting at $340k, and the Craftmark Homes are starting at $550k.  What’s nice about this community (aside from the proximity to the mall and shopping) is that all of the homes here are brick or stone front. 

     Some of the lots are a little tight, but the homes are gorgeous!  I currently have had a home listed in this subdivision, and the property was stunning!  Between the hardwood floors, Granite counters, Sun-room, Finished Basement and Finished Attic, there’s almost 7,000 square feet of living space!  It’s an excellent example of just how big the high-end Craftmark homes are.

      Craftmark is building bigger than Ryan is (hence the higher price tags), but either builder is providing great looking homes in a great location!

     If you’re interested in possibly buying here, or in any other subdivision, our new construction experts can help you to negotiate a great deal AND protect your interests when purchasing a new home!  Give us a call or email to get the low-down on New Construction in Charles County, P.G. County, or St. Mary’s County!

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Waldorf and Southern Maryland Real Estate
www.teambenya.com

    I’m a firm believer that builders do this intentionally.  They’re struggling for profits, and in the housing pinch they’re forced to drop the prices to get you as a buyer in their door.  Once you’re at their model, you’re on their turf, and their job is to do everything they can to jack the final price of the home up.

    It’s then taken a step further when each model representative makes it a point to brag about how energy efficient they are, or how stainless and granite is standard, blah blah blah…..

    I made a suggestion to this buyer that there may be another option to explore that might make a bit more sense if flexibility is an option.  New construction typically takes 4-6 months to complete, and in communities that have been builder for more than a year, it’s highly possible that you may be able to find a short sale in the community that could be purchased for considerably less that you could have the home built for

    It allows you to negotiate the price of the house completely, not be beaten up by the builder over the cost of each individual upgrade.  It also places you in a great bargaining position with both the homeowner and the bank that’s holding the note:  You’re able to purchase the property for less that it was bought new, and the bank gets to avoid another foreclosure dragging on their profit margins.

    It may not be a perfect solution for everyone, but for true bargain hunters looking for a sensible, affordable alternative, this is a great option.

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116 
Southern Maryland Real Estate Blog

    I’ve been aware of their pull-out for about a month now, and the more I think about it, the more it irks me.  The new construction home my client wanted is now sitting, slab poured, waiting for walls, but KB isn’t going to finish building it.  I understand they’re losing money because they aren’t selling enough homes.  Wouldn’t it make sense to go through with the contracts that you already have though?  Money has already been spent on the work thus far, why not follow through with it?

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Waldorf and Southern Maryland Real Estate
www.teambenya.com

    Incredible- it’s taken years for developers to see that the concept of "build it bigger!" simply doesn’t cut it.  Here in Charles County there is a minimum home size for new construction- 1,650 square feet.  That number has been inconsequential during the past real estate boom because people were eagerly buying homes that were 3,000+ sf, and it seems that now people’s tightening budgets are forcing them to look at more modest homes.

Link: Smaller is better for homes, say builders

    When I look at who’s buying homes right now, the vast majority seem to be first time Maryland home buyers, looking to purchase what they can afford, and with the lending crunch, that makes it difficult, if not impossible, to buy these sprawling homes on postage stamp lots.

    It’s a simple idea, really.  Build homes that people can AFFORD.  If that means reducing the minimum home size to 1,400 square feet, builders should be able to offer new homes for less than $300,000, and in return buyers will be able to afford to purchase their first home.

    I’ve noticed that people looking to buy real estate in Waldorf are confronted with this problem:  The cheapest single family rambler, built new, is just under 360k, without any improvements/upgrades.  For that price they could buy re-sale for under 290k, with more square footage (less than 2,000 sf.).  Simply put, this needs to change, and new construction needs to be built smaller in order to be more affordable.

    I think that the local commissioners need to take a good hard look at what’s happening in our local region, because home ownership costs are a SERIOUS concern.  It’s hard to entice people and businesses to move to a region that does not have affordable housing.  It’s not that the region is completely devoid of modest single family homes, but NEW developments simply don’t match the description, and that NEEDS to change.

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Waldorf and Southern Maryland Real Estate
www.teambenya.com

digg_url = ‘http://www.teambenya.com/charles_county_real_estat/2008/04/heres-a-shocker.html’;

Under the tax incremental financing, agreement, the county will issue $26 million in public bonds to fund the project’s infrastructure. The debt service for those bonds would be repaid using a portion of the new taxes generated by the increased property value that would result from the project’s improvements on the land.

Link- County approves special financing for Swan Point

I’m excited to see what the final plan will actually look like!  This project looks to be a great opportunity for the county, and has the potential to make swan point a first class resort destination!  I will update more information as the development grows, so check back from time to time for new information!  If you have any questions or comments, I’d love to hear more views on the new development and growth plans!

Related Posts:

12/11/2007- Swan Point TIF Proposal Meeting
12/07/2007- Swan Point Site Plan
10/30/2007- Swan Point Development *Finally* Moving Forward

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Waldorf and Southern Maryland Real Estate
www.teambenya.com

     What does this mean for people with KB contracts?  They said they are finishing construction of lots that are being built, but they are not accepting new contracts, or fulfilling contingent contracts.  It underscores the risk involved in purchasing new construction.  You need to be sure that your builder is solvent in the current market!

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Waldorf and Southern Maryland Real Estate
www.teambenya.com

Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Waldorf and Southern Maryland Real Estate
www.teambenya.com

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000  office
301-653-8116  cell