Saturday, August 23, 2008
Delusional seller of the month award
This month our delusional seller award goes to KB Homes. Since sales have ground to a halt in The Retreat, KB Homes is now selling off the models. With all the REO sales to compete with it looks like they may be throwing in the towel for now.
The homes that are selling in The Retreat seem to be fetching in the $130 to $150 a sq/ft range currently. KB is trying to get about $170+ sq/ft for their last few new homes. That must be a hard sell with the REO's asking about 20% less than that.
So, on to the award. Me and the wife stopped in last week and asked for a price sheet. Ready for this? they are asking 1.2 million, 1.3 million and 1.4 million for the 3 models! I actually laughed out loud when I saw the prices and handed the price sheet back. Man did I get the stink eye!
The average home in the tract is selling for (let's be an optamist) about $150 sq/ft. Yet KB Homes thinks they can get over $300 sq/ft. Yes, they are very nice and fully upgraded. But to think they will sell those at that price is ludicrous. There's no way they will appraise anywhere near that. So that means KB must finance the loan or find a cash buyer stupid enough to plonk down 1.3 mill on a house that would probably only fetch $500k next year.
We salute you, KB Homes. Delusional seller of August 2008.