Another episode of Ask the Colorado Dream House Team with broker/owner Dan Polimino. New construction is in disarray. Dan covers the current issues with home delivery in Colorado’s real estate market.
“There is no new construction builder in the state of Colorado that does it well.”
- The shortcomings of new construction in Colorado
- We need an industry restructure
- Have you had a good experience with new construction? We want to hear about it
Hi everyone and welcome to this 4th of July edition of Ask The Colorado Dream House Team. Yes, just one day until the big four day weekend. Well, at least for somebody who will have a four day weekend, right?
I’m Dan Polimino, we’re live from Denver, Colorado as we are every Tuesday and Thursday afternoon, answering your real estate questions and giving you market information and news you can use in the sale, buy or invest when it comes to real estate. And again, you don’t have to be in Denver. All of the information we give you pretty much works anywhere you are in the country.
Two things we like to do, market information, answer your questions. Again, we always want to hear from you. You can email us, you can call us, or you can leave a comment right here on Facebook. We’d love to hear from you.
All right. Let’s get to the market news. And I’m sad to say that today’s information is about the state of new construction. It’s in absolute disarray. I’ve been selling homes a long time here in Colorado and I’m so, I would say discouraged, dejected. I represent one client after another purchasing a new home and inevitably their experience is poor, is bad, is upsetting. I think I have yet to have a client come out of a new construction experience and say it was good. Really, I’m that dejected.
I’m almost to the point where I believe that there is no new construction builder in the State of Colorado that really does it well, or delivers satisfaction. I’m almost to that point … I mean, I’ve had problems with just about … or I should say my clients. My clients have had problems with just about every builder in the last five or six years. I mean, you name it. Shea Homes, Richmond, Cardel, Taylor Morrison, Oakwood. I could go on. It doesn’t matter really who it is. We’ve had issues with just about every builder. Century Communities, another one. Everything from the house is painted the wrong color, or the paint job was horrible and the craftsmanship was terrible and they didn’t deliver the house anywhere remotely close to the range and the time, or one problem after another. Not completing the punch list items, that’s a common one. It’s almost like every builder is incapable of delivering punch list items before you take possession of the house.
Now, I would love to be wrong about this. I really would. And in fact, if you had a great experience with your builder, here in Colorado, would you leave that information here, on Facebook? Because I’d love to be able to tell our clients who’s really doing it well. But I’m so dejected at this point, that I’m almost to the point where I don’t think anyone does it well. And when clients say to me, “Hey, I’m thinking about a new construction,” I go, “Ugh.”
I think the new construction and the builder industry … and I’m talking about large builders, production builders, I’m not talking about semi-custom and custom, because there’s a whole level of personal attention that goes on there, but I’m talking about production builders. I don’t know of anyone that’s doing it well. I really don’t. And I think there has to be a major, major overhaul in the industry, to change the way things are done.
Sorry if I sound harsh, but it’s just the experience that we’re having with our clients over and over again.
Dear Colorado Dream House Team, what do you do if the home you’re looking for doesn’t seem to exist?
Well, that’s common, because inventory’s very, very low. So you’ve really got three choices, or four choices maybe. You could change your criteria, you could change the area or location that you’re looking in, you could raise your price, or do I dare say this? Lower your expectations. Those are about the only four things you can do if you’re trying to buy a home and you can’t find the home you’re looking for, or it doesn’t exist.
Dear Colorado Dream House Team, I’ve heard the old saying that sellers are six months behind the curve and buyers are six months ahead of the curve. What do you mean by that?
Credit to buyers, they probably have their finger on the pulse of the market better than anybody, better than sellers and probably better than the real estate agents. And the reason for this, is that the buyers are out there every day, looking at 10, 20 homes, whether in person, or online.
Most buyers are so well educated and so savvy, they know exactly what they can buy and what they can get at what price. They are very, very attuned to what’s happening in the market. So many times, they’re ahead of the curve, they know what’s trendy. Sellers? Sellers are kind of behind the curve. They’re thinking six months in the past, “Well, my neighbor sold this house six months for …” And that’s where that old saying comes in.
Dear Colorado Dream House Team, how do you know when the market is changing?
Easy. Listen to your professionals. Don’t listen to your neighbor, don’t listen to your accountant, don’t listen to the dentist that was cleaning your teeth. Listen to the people, like us, that are selling five, 10 homes a month in a variety of areas around the city. We know what’s going on with the market, we can feel the trend.
In fact, I was telling my father a couple of weeks ago, I said, “I’m to the point in the business …” You know how the old timers used to say, “I can feel the weather changing in my bones?” Same thing with the market. I can feel when the market is moving, in my bones.
That’s it for today. Hope you enjoyed today’s Ask The Colorado Dream House Team. Again, leave us a comment here on Facebook, text us, give us a phone call, let us know how we can help you buy, sell, or invest in real estate.
Everybody have a great 4th of July weekend and we’ll see you back here next Tuesday.