Beazer Homes’ new vertical
It was recently announced that Beazer Homes is opening a new division dedicated to buying resale houses that it will in turn rent out. Their plan is to buy homes that are in short sale or foreclosed to receive a price break, starting in Phoenix with homes built after 2004.
Beazer expects to have more than 100 homes in its resale portfolio by the end the year.
There is no word of what the division will be called or if it is only their own product or homes in their own master planned subdivisions that they will purchase.
Could this be a trend? Is this evil or genius?
New home builders have been devastated by the recession disaster and are looking for alternative means of staying afloat with this one as one of the more creative that we’ve seen.
If you’ve worked with a new home builder, you know that some can be high pressure in the sales office and get buyers excited, especially first time buyers. Did Beazer (or any homebuilder that chooses this path) rally buyers with subprime loans, zero down specials only for those buyers to have flopped and now builders plan on profiting from those failed buyers?
That is certainly troublesome if it is the case for Beazer, or could the case be that they are attempting to shore up the values in their developments to help sales? Could this be a way of preparing the next generation of buyers for their product?
