Over the last few months, more and more builders are running into trouble paying their construction loans and contractors. Recently, a few builders have called it quits. Others are giving undeveloped subdivision lots or inventory homes that they can’t sell back to the banks.
Some of the builders having problems are:
-
Bower & Bailey (closed their doors suddenly resulting in many home buyers losing their construction deposit)
- Lawless Homes (actually went out of business a while ago, but the principals are back now under the name Paramount Homes)
-
Saaman Corp (this Clayton developer is now out of business)
-
Miceli Homes (rumor has it that they are preparing to close down)
-
Tradition Builders (liens are being reported in the papers, the first sign of problems to come)
-
Rolwes Homes (they’ve got liens against them too)
-
TR Hughes (they are trying to survive this market, but there are no guarantees)
-
Taylor Morley (out of business)
Building from scratch is even riskier.
There is no guarantee that the builder that takes your 10% construction deposit today will be around in 4 months when they are promising your home will be finished. Even if they do last long enough to finish your home and hand over the keys, you could end up with a home that has construction liens against the title or a worthless builder warranty.
Think about it…if a builder is slashing employees and trying to keep from closing their doors, do you really think that they are going to agree to come back and install a sump pump or fix a foundation crack in your basement 6 months later? I wouldn’t count on it.
If you are thinking of buying a new construction home in today’s market, I would be happy to talk with you about the issues that you need to be aware of before making an offer.
10936 Manchester Road St. Louis, MO, 63122 USA
admin@archcityhomes.com • 314-677-6538
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