Lennar thinks the quality of their homes is too high!

[socalhousingbubble_IHB]

I'm joking, of course.

Even more reason to fear construction defects- pissed off, double-crossed tradesmen!

This is a trade article (picked up from Ben's blog) that goes into a bit more depth than a similar article that appeared in the Register a while back. It sure smells desperate.

http://www.contractormag.com/articles/newsarticle.cfm?newsid=1102

For those still visiting properties, I'd print a copy out and ask what the discount to the buyer is now that they are doing this.

And don't forget to ask about that extended warranty!

SCHB

 

[mino2126_IHB]

Are any of the employees represented by any Unions?

 

[socalhousingbubble_IHB]

Not sure. Back in the midwest, certainly.

But out here I think 'every hombre for himself' is more common.

SCHB

 

[mino2126_IHB]

hahahahaha. Yes I think you might be right. But back home many plumbers and electricians would have laughed, banded together, and then Lennar would have been in big trouble.

 

[graphrix_IHB]

Seems like Lennar has more than just contractor pricing issues but home pricing issues.

http://www.realtybid.com/lennar/lennar.cfm

 

[socalhousingbubble_IHB]

Wow.

Realtybid today...ebay tomorrow?

SCHB

 

[GrewUpInIrvine_IHB]

I'd be so mad if I was one of the people that had already bought, and now got to watch an auction at 60% of my purchase price.

 

[irvine_native_IHB]

I wonder if Lennar's problems will effect the development of the Great Park. They bought all of the residential land with plans on making 10000 homes.

Will they delay? ramp things up? run kicking and screaming?

 

[socalhousingbubble_IHB]

The build at the Great Park is still pretty far off. Although they might have purchased at the peak, the real-estate environment may be quite different in a few years, so I doubt this will effect any current planning.

SCHB

 

[nirvinerealtor_IHB]

Someone correct me if I am wrong.

Lennar paid $1M per arcre for the Great Park land. Great deal that Lennar got. I met with the school superintendent and was told the school district had to pay between $3.5M - $5M per acre for the new development in Irvine and Tustin. Land cost really drove up the Mello-Roos fees.

 

[socalhousingbubble_IHB]

NIR-

Not sure how the liability for contamination cleanup is handled (has the USMC washed their hands of this?).

If they are on the hook for it, or it could delay the revenue-producing portion of the project, there is a risk discount in that land price.

SCHB

 

[nirvinerealtor_IHB]

SCHB,

Well, that is why the Great Park with extensive golf courses are coming in on top of the burried contaminants. I am quite sure the contaminants are TOP SECRET.