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?
EasyStreet Realty, Inc.
April 6, 2011 at 2:39 pm
I think Beazer is making a solid decision based on the current real estate market, especially in Phoenix and Las Vegas where prices are near 50 year lows.
Marchele G
April 6, 2011 at 10:56 pm
This is great news for Beazer but what about the renter/want to be homeowners? Beazer will sale the homes when the market improves but to whom? Will the Renters have an opportunity to refinance into homeowners, first right of refusal or get the boot? Is Beazer promoting homeownership or themselves?
Scott Douglas
April 7, 2011 at 5:21 am
Exactly! Damn True! builders are becoming more creative than ever before. They are selling the tricky home schemes these days. Buyer needs to be careful about this offer. Consultation with the Real Estate Agent would be advisable.
MH for Movoto
April 7, 2011 at 2:36 pm
I have to say I’m leaning toward “evil”. After all, this is just what anyone who could afford it would be doing in this economy. I don’t see what’s good about letting a business in a marginally-related field make a profit off homes that could belong to individuals.