ANSWERS: 1
  • I had a heart-to-heart with a few builders in recent days. I told them that they would need to further reduce the prices on their inventory it they ever expected them to sell. The dumber ones complained that interest keeps building by the month. This increases their "cost". Unfortunately, "cost" bears no relationship with perceived value. Even if some idiot came along and expressed interest in their overpriced properties, the next step is having the buyer's lender order an appraisal. If the property does not appraise well, the lender will only underwirte the lesser of selling price or appraised value. If the borrower fails to come up with the diffence ... guess what? The inventory remains unsold and even more interest accumulates. Many builders and developers have little to no business accumen. They only know how to build houses, in hopes that they will sell. Thus wa have WAY too much inventory. The law of supply and demand teaches wicked lessons to those who attmept to defy the law. Thousands of builders and developers have gone bankrupt over the past few years and thousands more will follow. To answer your question, I'd say pursuing a career in the lucrative fast food industry may be in order. ;-)

Copyright 2023, Wired Ivy, LLC

Answerbag | Terms of Service | Privacy Policy