Comments on: Spec Builder Spectacularly Miscalculated Market http://seattlebubble.com/blog/2009/06/26/spec-builder-spectacularly-miscalculated-market/ News & discussion about real estate & the housing bubble in the Seattle area. Sat, 21 Nov 2009 14:52:31 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: ElPolloLoco http://seattlebubble.com/blog/2009/06/26/spec-builder-spectacularly-miscalculated-market/#comment-76799 ElPolloLoco Sat, 27 Jun 2009 10:03:19 +0000 http://seattlebubble.com/blog/?p=6068#comment-76799 By <a href='#comment-76742' rel="nofollow">Ray Pepper @ 6</a>:<blockquote>look across the street at the lovely home with 6 or 7 cars </blockquote> Funniest thing I've seen all day. What a moran. Never mind Cletus across the street -- you'd have to buy all three houses and live in the middle one to have any privacy. He basically built a row of expensive townhomes.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('76799','ElPolloLoco',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('76799','ElPolloLoco','By <a href=\'#comment-76742\' rel=\"nofollow\">Ray Pepper @ 6<\/a>:<blockquote>look across the street at the lovely home with 6 or 7 cars <\/blockquote>\n\nFunniest thing I\'ve seen all day. What a moran.\n\nNever mind Cletus across the street -- you\'d have to buy all three houses and live in the middle one to have any privacy. He basically built a row of expensive townhomes.',''); return false;">Quote</a></div> By Ray Pepper @ 6:
look across the street at the lovely home with 6 or 7 cars

Funniest thing I’ve seen all day. What a moran.

Never mind Cletus across the street — you’d have to buy all three houses and live in the middle one to have any privacy. He basically built a row of expensive townhomes.

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]]> By: EconE http://seattlebubble.com/blog/2009/06/26/spec-builder-spectacularly-miscalculated-market/#comment-76798 EconE Sat, 27 Jun 2009 09:06:25 +0000 http://seattlebubble.com/blog/?p=6068#comment-76798 <b>RE:</b> <a href='#comment-76796' rel="nofollow">shawn @ 13</a> - By the time he bought the lots in 2007, the warning bells had already been rung. LOUDLY. It is what it is.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('76798','EconE',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('76798','EconE','<b>RE:<\/b> <a href=\'#comment-76796\' rel=\"nofollow\">shawn @ 13<\/a> - \r\n\r\nBy the time he bought the lots in 2007, the warning bells had already been rung. LOUDLY.\r\n\r\nIt is what it is.',''); return false;">Quote</a></div> RE: shawn @ 13 –

By the time he bought the lots in 2007, the warning bells had already been rung. LOUDLY.

It is what it is.

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]]> By: shawn http://seattlebubble.com/blog/2009/06/26/spec-builder-spectacularly-miscalculated-market/#comment-76796 shawn Sat, 27 Jun 2009 07:45:42 +0000 http://seattlebubble.com/blog/?p=6068#comment-76796 I feel sorry for this guy because nearly every single person in the world, especially the press, was telling him it was the right thing to do with zero chance for failure. Really, there were just a few of us nuts that were saying this thing was going to blow up. This guy was in the stampede running off the cliff and all he could see is everyone else moving along, seemed to make sense, just follow that one in front of you. Opps, off the cliff.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('76796','shawn',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('76796','shawn','I feel sorry for this guy because nearly every single person in the world, especially the press, was telling him it was the right thing to do with zero chance for failure. Really, there were just a few of us nuts that were saying this thing was going to blow up. This guy was in the stampede running off the cliff and all he could see is everyone else moving along, seemed to make sense, just follow that one in front of you. Opps, off the cliff.',''); return false;">Quote</a></div> I feel sorry for this guy because nearly every single person in the world, especially the press, was telling him it was the right thing to do with zero chance for failure. Really, there were just a few of us nuts that were saying this thing was going to blow up. This guy was in the stampede running off the cliff and all he could see is everyone else moving along, seemed to make sense, just follow that one in front of you. Opps, off the cliff.
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]]> By: Scotsman http://seattlebubble.com/blog/2009/06/26/spec-builder-spectacularly-miscalculated-market/#comment-76786 Scotsman Sat, 27 Jun 2009 01:21:54 +0000 http://seattlebubble.com/blog/?p=6068#comment-76786 Sorry, but for that much money I'm not walking up steps to the front door, and having the garage doors greet people who drive up. That's what second floor apartments are for.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('76786','Scotsman',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('76786','Scotsman','Sorry, but for that much money I\'m not walking up steps to the front door, and having the garage doors greet people who drive up. That\'s what second floor apartments are for.',''); return false;">Quote</a></div> Sorry, but for that much money I’m not walking up steps to the front door, and having the garage doors greet people who drive up. That’s what second floor apartments are for.
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]]> By: gameboy http://seattlebubble.com/blog/2009/06/26/spec-builder-spectacularly-miscalculated-market/#comment-76757 gameboy Fri, 26 Jun 2009 20:23:01 +0000 http://seattlebubble.com/blog/?p=6068#comment-76757 I have brother-in-law who is a general contractor and he built pretty expensive homes for $120 to $180 sqft. Looking at these homes and based on his descriptions, I am guessing he probably spent about $140/sqft. That would mean that about 3500 sqft each, you are looking at $490k for construction. Perhaps, he was able to squeeze some extra savings due to building three at once, which means that he is probably selling them pretty much at cost. Which probably explains why the house has been sitting empty so long and he is not willing to negotiate further.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('76757','gameboy',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('76757','gameboy','I have brother-in-law who is a general contractor and he built pretty expensive homes for $120 to $180 sqft.\r\n\r\nLooking at these homes and based on his descriptions, I am guessing he probably spent about $140\/sqft. That would mean that about 3500 sqft each, you are looking at $490k for construction. \r\n\r\nPerhaps, he was able to squeeze some extra savings due to building three at once, which means that he is probably selling them pretty much at cost. Which probably explains why the house has been sitting empty so long and he is not willing to negotiate further.',''); return false;">Quote</a></div> I have brother-in-law who is a general contractor and he built pretty expensive homes for $120 to $180 sqft.

Looking at these homes and based on his descriptions, I am guessing he probably spent about $140/sqft. That would mean that about 3500 sqft each, you are looking at $490k for construction.

Perhaps, he was able to squeeze some extra savings due to building three at once, which means that he is probably selling them pretty much at cost. Which probably explains why the house has been sitting empty so long and he is not willing to negotiate further.

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]]> By: Ray Pepper http://seattlebubble.com/blog/2009/06/26/spec-builder-spectacularly-miscalculated-market/#comment-76751 Ray Pepper Fri, 26 Jun 2009 19:18:41 +0000 http://seattlebubble.com/blog/?p=6068#comment-76751 zoom in closer at the house with the 7 cars. look at the one in front . no doors, no tail gate. Who gives me 5-1 they have more then 1 dog at that house? I hate barking dogs. Who bets Tracy Flannigan lives there? http://www.youtube.com/watch?v=6Asc9Ip2ph4&feature=related (I love taking a few days off)<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('76751','Ray Pepper',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('76751','Ray Pepper','zoom in closer at the house with the 7 cars. look at the one in front . no doors, no tail gate. Who gives me 5-1 they have more then 1 dog at that house?\r\n\r\nI hate barking dogs. Who bets Tracy Flannigan lives there?\r\n\r\n http:\/\/www.youtube.com\/watch?v=6Asc9Ip2ph4&feature=related\r\n\r\n\r\n(I love taking a few days off)',''); return false;">Quote</a></div> zoom in closer at the house with the 7 cars. look at the one in front . no doors, no tail gate. Who gives me 5-1 they have more then 1 dog at that house?

I hate barking dogs. Who bets Tracy Flannigan lives there?

http://www.youtube.com/watch?v=6Asc9Ip2ph4&feature=related

(I love taking a few days off)

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]]> By: seattlerenter http://seattlebubble.com/blog/2009/06/26/spec-builder-spectacularly-miscalculated-market/#comment-76748 seattlerenter Fri, 26 Jun 2009 18:56:13 +0000 http://seattlebubble.com/blog/?p=6068#comment-76748 Funny I just drove by those today on the way to spectacularly overpriced garage sale in a newer division right by there. The people had to be hurting for cash based on what they were asking for garage sale junk. The overpriced mindset is still alive and well. Oh and the homes in question are placed in a very strange location and the feel of it is extremely cramped with these out of place homes.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('76748','seattlerenter',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('76748','seattlerenter','Funny I just drove by those today on the way to spectacularly overpriced garage sale in a newer division right by there. The people had to be hurting for cash based on what they were asking for garage sale junk. The overpriced mindset is still alive and well. Oh and the homes in question are placed in a very strange location and the feel of it is extremely cramped with these out of place homes.',''); return false;">Quote</a></div> Funny I just drove by those today on the way to spectacularly overpriced garage sale in a newer division right by there. The people had to be hurting for cash based on what they were asking for garage sale junk. The overpriced mindset is still alive and well. Oh and the homes in question are placed in a very strange location and the feel of it is extremely cramped with these out of place homes.
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]]> By: geon http://seattlebubble.com/blog/2009/06/26/spec-builder-spectacularly-miscalculated-market/#comment-76747 geon Fri, 26 Jun 2009 18:48:40 +0000 http://seattlebubble.com/blog/?p=6068#comment-76747 Right. Pay $700K , or more, for a house surrounded by 250-400K houses. I see it all the time. LOL. No central air? :(<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('76747','geon',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('76747','geon','Right. Pay $700K , or more, for a house surrounded by 250-400K houses. I see it all the time. LOL. No central air? :(',''); return false;">Quote</a></div> Right. Pay $700K , or more, for a house surrounded by 250-400K houses. I see it all the time. LOL. No central air? :(
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]]> By: softwarengineer http://seattlebubble.com/blog/2009/06/26/spec-builder-spectacularly-miscalculated-market/#comment-76744 softwarengineer Fri, 26 Jun 2009 18:30:40 +0000 http://seattlebubble.com/blog/?p=6068#comment-76744 IMAGINE THE WINTER UTILITY BILLS [SUMMER A/C TOO?] ALONE ON THOSE THREE The property tax is estimated at about $700/mo each too.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('76744','softwarengineer',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('76744','softwarengineer','IMAGINE THE WINTER UTILITY BILLS [SUMMER A\/C TOO?] ALONE ON THOSE THREE\r\n\r\nThe property tax is estimated at about $700\/mo each too.',''); return false;">Quote</a></div> IMAGINE THE WINTER UTILITY BILLS [SUMMER A/C TOO?] ALONE ON THOSE THREE

The property tax is estimated at about $700/mo each too.

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]]> By: Ray Pepper http://seattlebubble.com/blog/2009/06/26/spec-builder-spectacularly-miscalculated-market/#comment-76742 Ray Pepper Fri, 26 Jun 2009 18:23:16 +0000 http://seattlebubble.com/blog/?p=6068#comment-76742 look across the street at the lovely home with 6 or 7 cars not to mention homes worth 250k. Good God. The buzzards are circling!<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('76742','Ray Pepper',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('76742','Ray Pepper','look across the street at the lovely home with 6 or 7 cars not to mention homes worth 250k. \r\n\r\nGood God. \r\n\r\nThe buzzards are circling!',''); return false;">Quote</a></div> look across the street at the lovely home with 6 or 7 cars not to mention homes worth 250k.

Good God.

The buzzards are circling!

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]]> By: The Tim http://seattlebubble.com/blog/2009/06/26/spec-builder-spectacularly-miscalculated-market/#comment-76741 The Tim Fri, 26 Jun 2009 18:18:37 +0000 http://seattlebubble.com/blog/?p=6068#comment-76741 By the way, on Google Street View you can see how closely packed together these three "million dollar houses" are: <iframe width="530" height="300" frameborder="0" scrolling="no" marginheight="0" marginwidth="0" src="http://maps.google.com/maps/sv?cbp=12,59.67,,0,-3.01&cbll=47.73739,-122.243529&v=1&panoid=&gl=&hl="></iframe><br /><small><a id="cbembedlink" href="http://maps.google.com/maps?cbp=12,59.67,,0,-3.01&cbll=47.73739,-122.243529&ll=47.73739,-122.243529&layer=c" style="color:#0000FF;text-align:left" rel="nofollow">View Larger Map</a></small><div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('76741','The Tim',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('76741','The Tim','By the way, on Google Street View you can see how closely packed together these three \"million dollar houses\" are:\n\n<iframe width=\"530\" height=\"300\" frameborder=\"0\" scrolling=\"no\" marginheight=\"0\" marginwidth=\"0\" src=\"http:\/\/maps.google.com\/maps\/sv?cbp=12,59.67,,0,-3.01&cbll=47.73739,-122.243529&v=1&panoid=&gl=&hl=\"><\/iframe><br \/><small><a id=\"cbembedlink\" href=\"http:\/\/maps.google.com\/maps?cbp=12,59.67,,0,-3.01&cbll=47.73739,-122.243529&ll=47.73739,-122.243529&layer=c\" style=\"color:#0000FF;text-align:left\" rel=\"nofollow\">View Larger Map<\/a><\/small>',''); return false;">Quote</a></div> By the way, on Google Street View you can see how closely packed together these three “million dollar houses” are:


View Larger Map

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]]> By: Kary L. Krismer http://seattlebubble.com/blog/2009/06/26/spec-builder-spectacularly-miscalculated-market/#comment-76736 Kary L. Krismer Fri, 26 Jun 2009 18:09:14 +0000 http://seattlebubble.com/blog/?p=6068#comment-76736 A few months ago I saw a builder on the news complaining that he'd been a good customer, but that his bank wasn't giving him financing to build more houses. My thought was they were doing him a huge favor.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('76736','Kary L. Krismer',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('76736','Kary L. Krismer','A few months ago I saw a builder on the news complaining that he\'d been a good customer, but that his bank wasn\'t giving him financing to build more houses. My thought was they were doing him a huge favor.',''); return false;">Quote</a></div> A few months ago I saw a builder on the news complaining that he’d been a good customer, but that his bank wasn’t giving him financing to build more houses. My thought was they were doing him a huge favor.
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]]> By: patient http://seattlebubble.com/blog/2009/06/26/spec-builder-spectacularly-miscalculated-market/#comment-76732 patient Fri, 26 Jun 2009 17:59:20 +0000 http://seattlebubble.com/blog/?p=6068#comment-76732 There's still about $400k between the lot prices and the current asking prices. Taken into account the kind of homes you can get for $400k in areas where lots are almost for free ( most of Texas for example ) I'm not sure these would sell for a loss if he gets current asking. Is the pure construction cost for a home like the one pictured in the post really above $400k?<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('76732','patient',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('76732','patient','There\'s still about $400k between the lot prices and the current asking prices. Taken into account the kind of homes you can get for $400k in areas where lots are almost for free ( most of Texas for example ) I\'m not sure these would sell for a loss if he gets current asking. Is the pure construction cost for a home like the one pictured in the post really above $400k?',''); return false;">Quote</a></div> There’s still about $400k between the lot prices and the current asking prices. Taken into account the kind of homes you can get for $400k in areas where lots are almost for free ( most of Texas for example ) I’m not sure these would sell for a loss if he gets current asking. Is the pure construction cost for a home like the one pictured in the post really above $400k?
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]]> By: Ray Pepper http://seattlebubble.com/blog/2009/06/26/spec-builder-spectacularly-miscalculated-market/#comment-76729 Ray Pepper Fri, 26 Jun 2009 17:29:14 +0000 http://seattlebubble.com/blog/?p=6068#comment-76729 At least he hasn’t gone into foreclosure *************yet,********

Your key phrase. Check back in October. He will not bring funds to close these.

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]]> By: biliruben http://seattlebubble.com/blog/2009/06/26/spec-builder-spectacularly-miscalculated-market/#comment-76727 biliruben Fri, 26 Jun 2009 17:23:26 +0000 http://seattlebubble.com/blog/?p=6068#comment-76727 Youch! I think I'll be calling all such misadventures "Youches" from now on.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('76727','biliruben',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('76727','biliruben','Youch!\r\n\r\nI think I\'ll be calling all such misadventures \"Youches\" from now on.',''); return false;">Quote</a></div> Youch!

I think I’ll be calling all such misadventures “Youches” from now on.

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