Las Colinas - Portola Springs WTF?

NEW -> Contingent Buyer Assistance Program
E

EvaLSeraphim_IHB

New member
Doing my Friday Zip check and I see what appears to be a Las Colinas home being sold for $827K? These are all priced over $1M, but Taylor Woodrow listed this one themselves. I knew housing was in trouble, but *this* big a price drop? WTF? MLS # S477344.
 
Upon further thought, I wonder if they didn't change the floorplan. It appears that this home is 700 sq ft smaller with one less bathroom - at least per the specs of Plan One on the Portola Springs website. The lot is pretty small, too.
 
Interesting find! It seems really strange that they would reduce the square footage by 700 sq ft.





Here are the private remarks on that listing:


"We are offering a flat fee of $10,000. You must register your clients on the first visit to the community. No Exceptions. Office hours Mondays 2PM to 5PM, Tuesdays through Sundays 10AM to 5PM. Call listing office for more information (949) 857-09733. Models open, sales office address 64 Homeland, Irvine."





If it's really a Plan 1 with 2700 sq ft, that sure seems like a steal!
 
Are you sure you're not confusing Las Colinas with Los Arboles? Both are Taylor Woodrow homes in PS, and both has 10% price reduction in Jan along with the rest of PS communities. I doubt they will change floorplan or drop prices anytime soon. I think they'd much rather slow or even stop construction as much as possible while waiting for demand to pick up.
 
<p><a href="http://www.taylorwoodrowna.com/index.cfm?method=Homes_ModelDetail&CommunityID=207&ModelID=2188&divID=1&MetroAreaID=26">http://www.taylorwoodrowna.com/index.cfm?method=Homes_ModelDetail&CommunityID=207&ModelID=2188&divID=1&MetroAreaID=26</a></p>

<p>Red - If you think a publicly traded homebuilder would rather slow down or stop construction to wait for the market to come back you are crazy. They have shareholders that expect profit now not later and it costs more for the homebuilder to sit and wait then it does to hack the price. It is March and that is the quarter end for some builders and fiscal year end for others so watch for some nice incentives and discounts to sell standing inventory for whatever it takes. There is someone on Lansner's blog who offered $650k for one of Lennar's homes in Colombus Grove that were originally $825k and recently sold for $755k. I wouldn't be surprised that he gets it at that price. They are in the business to sell homes not sit and wait for the market. You've never seen a sales director screaming at the sales agents "I don't care what you have to do to sell the homes. If it takes dropping the price by 100 grand I don't care. Just sell the damn homes!" That was over a year ago when the slowdown first began and I can't imagine it is any better now.</p>

<p>Irvinerenter - Feel free to add and or confirm the above.</p>
 
Yes, I happened to check out Los Arboles last week and the $827k pricing sounds familiar. I never checked out Las Colinas though because it is out of our price range.





I believe the $827k is base pricing (i.e without upgrades), and they also offer $30 incentive. Seems like they're a bit strugling right now. I think sales picked up quickly in PS right after the new pricing and now it seems the pace is slowing again?
 
graphrix - You may be right. I only chimed in based on limited experience of our recent home shopping and I never work for a home builder. So I guess I should put disclaimer that all my opinion and posts maybe biased and not objective. Sigh.





In PS, I haven't seen builders lower price at will just to move a home. What I see instead is slower construction, and some builders won't even start building until certain amount of lots are sold.





But I think you're right builders @ VoC may have more flexibility on pricing especially closer to end of quarters.
 
Red - I apologize. I just re-read what I posted and did come off a little snappy. You may be right that they are slowing things down there but which builders are? I don't understand why they would as that usually means they are trying to renegotiate the price of the land. I don't believe TIC is willing to change the price. Each month they hold the land it costs money so why would they wait six months to sell the home when they can sell it now at a discount and the profit is the same? If they bought it with an option contract then they may just walk away without ever finishing. Do they have standing inventory at any these projects? Now you have raised my curiousity on Portola Springs and I will try to go by there tomorrow.
 
graphrix - Dont worry about it.





I also dont understand why the builders in PS dont just drop the price much lower in initial phase (i.e. last January) so the pain is less down the road and customer can be happy. They can certainly increase the price in later phases if demand picks up. I guess they must really believe that the last price reduction should be "good enough".





Personally I would rather have them lower the price again in March like you suggested so I can re-negotiate price before close of escrow.
 
<p>I think most land purchases from TIC are structured as option contracts so if TIC has demonstrated some flexibility in extending the options/waiving penalties, it would make it much easier for the builders to adopt a "hold" position with phases they haven't started/taken down yet. IMO, it would be TIC's benefit to do this since they have price/profit participation (incentive to not drive down prices with oversupply) and essentially zero carry cost on the land. </p>
 
sapporo - You are right that TIC would benefit from a contract structured that way. Especially since they like to have price control and discourage price reductions. Hopefully I will have the time to go by there tomorrow and get a better idea of the area.
 
I'd be really hesitant to buy anything in PS right now. The homes are selling so slowly that it's going to be a ghosttown for years to come. The proposed elementary schools? The retail center? Not until 2010 at the very earliest. Probably more likely to be 2012 or later. They won't build until they have sufficient population density. So in the meantime, you're hopping onto Sand Canyon alongside the dump trucks to take your kid to school or to go get milk.
 
Whoops! My bad. Sorry to get your interest piqued for nothing.





Guess that tells you what I though of Los Arboles: absolutely unmemorable.





{Note to self: drink coffee, then post.}
 
"If you think a publicly traded homebuilder would rather slow down or stop construction to wait for the market to come back you are crazy."





I work for a lender, and yes, the homebuilders are slowing construction to contract supply, and they are still talking about pent up demands in certain pocketed areas. Whether this is just BS or not, I don't know. IMO, though, I think this is a short term solution to appease the shareholders about maintaining profit margin. Long term...if this market slows down or is more protracted and is worst than predicted, they have to face the reality by drastic and aggressive price reductions. In fact, they are still hoping for a good home shopping spring season to push their inventories through, and if it doesn't happen, the housing bears will have a feast come the end of the year.
 
Phase 3





Prices effective March 7, 2007





Plan 1 $45,000 credits towards Design Center


Plan 2 $45,000 credits towards Design Center


Plan 3 $50,000 credits towards Design Center


Plan 4 $55,000 credits towards Design Center
 
<p> </p>

<p>Good thing for Taylor Woodrow that Pardee is not opening Prado....Pardee has just layed off their entire Orange County office and is trying to seel the project to the Toll Brothers, all the while selling their production lots near the tower to TW for Las Colinas production homes. I personally believe that Las Colinas is one of the best values in PS however, the architecture is very dissappointing coming from Taylor Woodrow.</p>
 
You must log in or register to reply here.
Back
Top