Housing market trash

benXJ said:
142,000 per lot
build for 150,000
sell for 450,000+ cause people are getting nuttier by the day
=
profit (plus all the millions of dollars in write offs and breaks and who knows what else)
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According to a former KHOV exec I worked with - they’d target lower GP% than one would assume. Often in the 7-9% for market homes or base no package. Which seems crazy low for a successful business until you consider the transaction size. So 350 cost sell for 380. $30k profit per home * 113 lots that’s an easy $3.4MM net.

And that’s before you get some to in house finance or buy your in house warranty packages etx.
 
Ron said:
According to a former KHOV exec I worked with - they’d target lower GP% than one would assume. Often in the 7-9% for market homes or base no package. Which seems crazy low for a successful business until you consider the transaction size. So 350 cost sell for 380. $30k profit per home * 113 lots that’s an easy $3.4MM net.

And that’s before you get some to in house finance or buy your in house warranty packages etx.
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Shorter version:
You don't need high % margins if the volume is high.
 
Noel said:
Volume and the fact that they can slap them up in days… offer a year warranty knowing it will last that long meanwhile folks are on the hook for 30 years. And laugh all the way to the bank and tax break dept
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Nevermind that the related traffic and infrastructure problems aren't their problem to deal with either.
 
Ron said:
According to a former KHOV exec I worked with - they’d target lower GP% than one would assume. Often in the 7-9% for market homes or base no package. Which seems crazy low for a successful business until you consider the transaction size. So 350 cost sell for 380. $30k profit per home * 113 lots that’s an easy $3.4MM net.

And that’s before you get some to in house finance or buy your in house warranty packages etx.
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Yeah…I find myself doing a lot with DR Horton lately, and my former Controller is now the Controller at Nest Homes…and they corroborate your statement. It’s the Walmart model…quality is what it is, but high volume, low margin makes bank.
 
That’s been happening around here for a while. Lot next to me sold for 120ish 4 years ago.

Hell look ar mcgregor or north ridge. People buying a lot with a house for 600+ doing a full tear down and rebuild.
awheelterd said:
Just saw a triangle business journal headline saying that Dr Horton just paid $16 million for 113 lots in a subdivision out by apex. I just don't see how they make money when they pay $142,000/lot?
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Ron said:
According to a former KHOV exec I worked with - they’d target lower GP% than one would assume. Often in the 7-9% for market homes or base no package. Which seems crazy low for a successful business until you consider the transaction size. So 350 cost sell for 380. $30k profit per home * 113 lots that’s an easy $3.4MM net.

And that’s before you get some to in house finance or buy your in house warranty packages etx.
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And they have in-house realtors on staff getting paid a salary, so it limits how much they pay for realtors. And they usually only offer a very low % to a buyer’s agent, so they up their margins there as well.

Kind of like the Wal Mart of buying houses. Use your volume to leverage lower prices for materials and labor and keep homes reasonably affordable (I say that lightly) and still have a reasonable margin.
 
RatLabGuy said:
Nevermind that the related traffic and infrastructure problems aren't their problem to deal with either.
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You’d be surprised how far from the truth this actually is.

Traffic, sewer, etc feasibility studies are required for large developments and if upgrades are required, then the developer has to install them as part of the property development. Sewer mains, pump station upgrades, traffic turn lanes and lights, etc.

Now, tbat doesn’t mean the upgrades are always correct, but more often than not they are sufficient even though you don’t like the added traffic. Many towns even require school fees to be paid for each developed lot, which can amount to over $15k per lot for school upgrades, etc. paid by the developer.
 
benXJ said:
tell that to Kane.

north hills is a disaster for cars and pedestrians. he makes things worse everywhere he goes.
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Yea, but their good for the steel business!
 
jeepinmatt said:
www.charlottestories.com

Stunning 1,108 SqFt Mini-Mansion in Optimist Park Just Hit The Market For $530,000

Get your checkbooks ready, Charlotteans, because one the Queen City’s latest listings is sure to get multiple offers before the end of the day. At just over half a million, the 1,108 square foot home built in 1905 at 1301 N. Caldwell St was just listed for sale. In Optimist Park, this little...
www.charlottestories.com www.charlottestories.com
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The best part about this aticle is that TIL its ok to call you Charlatans. Which fits.

And just think, this monstrosity is right around the corner!
www.zillow.com

1312 N Davidson St, Charlotte, NC 28206 | MLS #4077399 | Zillow

This 2249 square feet Townhouse home has 3 bedrooms and 4 bathrooms. It is located at 1312 N Davidson St, Charlotte, NC.
www.zillow.com www.zillow.com
 
jeepinmatt said:
www.charlottestories.com

Stunning 1,108 SqFt Mini-Mansion in Optimist Park Just Hit The Market For $530,000

Get your checkbooks ready, Charlotteans, because one the Queen City’s latest listings is sure to get multiple offers before the end of the day. At just over half a million, the 1,108 square foot home built in 1905 at 1301 N. Caldwell St was just listed for sale. In Optimist Park, this little...
www.charlottestories.com www.charlottestories.com
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Real Property for Sale

raleighnc.gov raleighnc.gov

Price went up $25k in the last round.
 
So the county says my home is worth 50% more overnight, got my new re-assessment in the mail the other day so they will want 50% more tax money. Mind you they already levied more taxes because I did a small addition so they raised the value in the last couple years. I still think this entire taxation system is flawed; it doesn't matter if it is worth more on the open market because I cannot sell it since I need somewhere to live. Just because it is "worth more" doesn't mean I have more money to pay for it, it is a liability, not an asset. Let the next person that buys it (creating the actual value increase, not the fictitious one through appraisals) pay more for it.

Unbelievable.
 
OnlyOneDR said:
So the county says my home is worth 50% more overnight, got my new re-assessment in the mail the other day so they will want 50% more tax money. Mind you they already levied more taxes because I did a small addition so they raised the value in the last couple years. I still think this entire taxation system is flawed; it doesn't matter if it is worth more on the open market because I cannot sell it since I need somewhere to live. Just because it is "worth more" doesn't mean I have more money to pay for it, it is a liability, not an asset. Let the next person that buys it (creating the actual value increase, not the fictitious one through appraisals) pay more for it.

Unbelievable.
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Assuming you are in Wake County since the new property assessments just came out. Mine is up about 50% but I can't really complain, since its still about 120k under what it's really worth.

Just because the evaluation went up, doesn't mean the taxes will go up per year though. Unless they change the tax rate you will wind up paying about the same you did last year. By default they leave stuff at "revenue neutral" for the county. We will have to wait and see what the tax rate that is passed for the year turns out to be. If they didn't change the valuation they would just jack up the tax rate instead, so pick your poison.
 
DSM Turbos said:
Assuming you are in Wake County since the new property assessments just came out. Mine is up about 50% but I can't really complain, since its still about 120k under what it's really worth.

Just because the evaluation went up, doesn't mean the taxes will go up per year though. Unless they change the tax rate you will wind up paying about the same you did last year. By default they leave stuff at "revenue neutral" for the county. We will have to wait and see what the tax rate that is passed for the year turns out to be. If they didn't change the valuation they would just jack up the tax rate instead, so pick your poison.
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They can also remain "revenue neutral" by increasing the budget proposal, which then justifies keeping the rate constant so they can make use of those new found doll hairs
 
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