Letters to the Editor

Re: 'Builder's price-dropping bad for home values' (Dec. 17)

Dear Editor:

Steve's question regarding a new-home builder lowering prices $200,000 from January 2007 prices and questioning whether to seek legal advice has a simple answer: Save your time and money!

New-home builders across the nation are competing with foreclosed homes that are priced well below market value. They have to lower their prices, offer selling agents a commission, and offer other incentives to get their books closed. Standing inventory for a builder is a recipe that calls for drastic reductions. Just over a year and-a-half ago, builders (in Southern California) would laugh if I brought in a buyer and wanted a commission.

Standing inventory is bad for the builder and the people who bought at the peak. It is, however, a great opportunity for a buyer to move up or a first-time buyer to jump in! Plus, the builders need real estate agents again to represent buyers!

Most people would not buy at $700,000 if they can get the same home in the same area for $500,000. Would you?

Very few areas in the country have experienced price increases from January 2007 to the present.

Hopefully Steve is planning to stay in his property for a while. If not, he is up the proverbial "creek without a paddle"!

Michael Espiritu
Copeland Wealth Management
Redlands, Calif.

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