Editor’s note: This is a post I have been sitting on for a few months now, but the HooK’s story last week about Ryan Homes’ market dominance spurred me to publish. It is written by a local Realtor who works for a local builder. I have made a few edits here and there to anonymize and generalize it as much as possible. If there are any factual inaccuracies, please let me know in the comments or offline.
From the HooK –
At a time when local stalwarts like R.D. Wade Builder and Church Hill Homes have fallen by the wayside, Ryan’s 24 percent market share of all new residential construction in Charlottesville and its surrounding counties is by far the largest of any builder in the area.
How does Ryan do it? Economies of scale.
â€œThey’re like Wal-Mart,â€ says Keith Davis, a local realtor and real estate commentator. â€œSince they are a big national company, building homes all over the east coast, they’re able to buy their materials in bulk.â€
This lets Ryan, to use the the pitchman vernacular, pass the savings on to you. Davis says this approach, unprecedented in the Charlottesville area, has allowed Ryan to be wildly successful selling mid-range homes to first-time home buyers.
Without further ado –
I just finished reading your article about the outrageous contracts now being used by some builders and I am amazed any buyer would sign them. I thought it was great you were pointing out these areas buyers should be aware of and advised not to do.
As you know I represent and work for a local builder and never think of requiring such language in our purchase agreements.
I am hoping you may choose to give a positive spin on the value to buyer agents and their clients to working with a local builder who contributes to a community.
We give firm absolute delivery dates on all contracts.
We invite, encourage and ask buyer agents to participate in our final walk through just prior to closing.
We invite and encourage buyer agents to be present at all meetings and are always kept informed to every step involved from initial meeting to closing.
We recognize buyer agents as the â€œmost valued clientsâ€ we have. We work hard to make sure buyer agents and their clients want to do business with us again.
We give a construction key to our purchasers at time of contract so they can access the home we are building them on a daily basis.
We allow purchasers to have multiple home inspections at the different stages of construction it they desire.
We obtain our construction financing locally, we buy all of our materials locally, we hire only local subcontractors, our buyers are encouraged to obtain the mortgage financing locally, we love working with the CAAR Realtors and value their business. We pay Realtor buyer agents commissions on the homes’ final sales price after all upgrades, selections and options are chosen and not pay on a â€œbogusâ€ base price that is much lower than the final sales price, we love contributing to the Charlottesville area and market by offering a great value and quality product and we offer outstanding warranty, customer service and prompt follow-up.
Some do not bank locally, they do not buy building materials locally, they do not us local subcontractors, they require buyers to obtain financing from their out of town lender, they do not like to work with Realtors and make every effort they possibly can to sell to the public directly, they pay Realtors on a â€œbogusâ€ base price that is always much lower than the final sales price, they have very strict walk through policies as you described in your blog and do not encourage or allow buyer agent participation in the final walk through and offer very very minimum warranty and customer service follow up after sales. They actually are a drain on a community like Charlottesville unlike a local builder who contribute to the community.
Jim, I truly enjoy reading what you write on Real Central Virginia. I hope someday you may give consideration to writing on the VALUE of working with quality reputable local builders who contribute to a community as opposed to being a drain on a community.
Done. In my opinion, if you do not have a buyers’ agent representing your best interests when building/buying a new home, you may be asking for trouble.
(Bear with me, I’m testing something …) To search for homes built since 2008 in Charlottesville and Albemarle: