CNBC has an interesting video on the custom home builders, and the difficulties that they go through. It is very interesting how 80 percent of custom homebuilders go out of business every 3 to 5 years. The difficulty for individual proprietors remind me of the restaurant business. There are a good deal of skilled people out there who can build a home, but few possess all of the business skills that are needed to run a successful business.
30 second commercial before the video but worth waiting through.
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Hi:
I just launched a new blog called housebuying-guide where I try to help
first time homebuyers and where I also give tips to avoid common mistakes
on buying houses.
I added a link to your blog on my sidebar, you can check it here:
http://www.housebuying-guide.com/
I just put the plain url address of your site but you can tell me what
text you want me to use for your site.
In exchange if it is not asking too much I would love that you also link
to my blog with the text "How to buy a house" for example.
If we exchange links we will both increase our popularity on the web.
Thanks for your time
Regards, Monika
I am not looking for the housing market to suddenly turn back up on a dime. Too much inventory to work through. Some of that inventory will drop off as sellers cancel their listings (or they expire) as they were unable to sell at prices that are no longer available. These are the ones who didn't have to sell, didn't have to move, didn't have a bad mortgage to refinance, but were willing to sell at inflated prices and didn't pull it off.
Larry,
I think you are absolutely right. It costs a homeowner nothing to list their home at an inflated price with a real estate agent. The agent takes all of the risk. If I lived in an area that had a huge run up I would be tempted to take a swag at selling for an inflated price.
The agents and the homeowners though will both tire from having the homes on the market with no traction and pull them off. Hopefully, the agents did not get too far out of pocket on it.
Excellent comment.
T
As an architect, I can tell you that this has been going on for a long, long time. Unfortuantely, during the GO-GO 1990s, the upswing in Real Estat attracted a slew of incompetent contractors (across all trades. I have the project management and horror stories to prove it.)
It is only NOW reaching a large enough epidemic, that others (outside the design/construction and RE industries) are noticing. Plus, construction litigation has skyrocketed the last 10 years. That trend too has been an obvious indicator that the trend (among Home Builders) was on the upswing. Feel free to read more at http://www.shantyworld.com.
I can definitely believe that. It such a tough area to get established in, but if you're good then you'll be quite successful.
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