Wednesday, April 8, 2009

Pulte Buys Centex

The Tennessean published an article about Pulte Homes buying Centex Homes in today's paper. This agent thinks this is a very smart move. Pulte has an exceptional reputation for their product. Centex is a large builder as well, but their homes don't seem to have the bells and whistles that Pulte provides in theirs. My hope is that Pulte will change the standard of the Centex product.

There was no mention if the Centex brand will fade away under Pulte's brand. Having dealt with both builders in selling new construction homes, I have found their processes to be fairly similar, however, I have seen both products and prefer the customer service and quality of home that Pulte sells.

The article in The Tennesseandeals mostly with stock and prices, etc., but if you want to check it out anyway, CLICK HERE.

UPDATED INFORMATION on this purchase is available in today's Tennessean (April 9, 2009). Pulte, as most senior adult buyers know, is the exclusive builder of the Del Webb community in Mount Juliet.

Today's ARTICLE outlines the losses that Pulte and Centex have encountered over the last few years. It's interesting to note that new home builders are experiencing more of a decline in home sales than owners of existing homes. Why is this? I believe it's for several reasons:

1 - Buyers are submitting offers with "sale of home" contingencies on new homes. Builders require a sizeable down payment, and many times those deposits are non-refundable; a higher risk for the buyer.

2 - Buyers feel safer purchasing an existing home because of the stigma that builders are currently under. Many wonder if their home (or the subdivision) will ever be completed.

3 - While builders are offering more incentives to buyers right now, buyers are concerned that the lower prices are indicative of a new constuction downward slide, even in the future. They don't want to be upside down in their mortgages if this happens. This HAS happened in a five-year-old subdivision in Virginia. I saw it myself.

4 - Until just recently, new home builders were unwilling to "deal" on their prices. The reputation of builders is that they are inflexible so buyers look at existing construction.

Interestingly, new home sales have taken a bigger hit than existing home sales have. Your best bet right now? Ask you real estate agent about the builders around town to find out what's going on with them, or do the intensive research yourself.

If you need help with a new home purchase, or help with getting your home sold, please feel free to give me a call or send me an email. I'd love to help you.

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