How bad?
The ads scream from the pages of local newspapers.
"Original Price: $1,002,488. Sale Price: $803,358. You Save: $199,130."
"Deals of a Lifetime Weekend Event: Make Us an Offer!"
It's no secret that new-home builders are slashing prices on houses here in South Florida. The good news is that buyers are getting off the sidelines, and inventory — in at least some locations — is starting to move.
Just how low are prices going? And conversely, how great are the deals that buyers are picking up?
Ask accountant Karen Harris. In January, she closed on a four-bedroom, two-and-a-half-bath house at Sunset Falls in Miramar, a project by Sunrise-based G.L. Homes of Florida. Although the 3,412-square-foot home was originally priced at $545,470, Harris paid just $417,000, a savings of $128,470, or 23 percent. Plus, G.L. threw in extras: 16"x16" tile in the downstairs and a waiver of its 1 percent builder's fee. Harris says G.L. even offered her a credit for closing costs that would have amounted to $7,000, but her bank wouldn't allow it.
"I was there at the right time," she says. "I negotiated, and they worked with me."
The fire sale on new-home pricing in South Florida is being driven by a confluence of excess inventory, low buyer interest, record low levels of builder confidence, and pressure on builders to cover rapidly escalating carrying costs, which are eroding profits on existing inventory.
"It's very difficult for homebuilders right now," says Brad Hunter, director of the South Florida division of Metrostudy, a housing industry research and consulting firm. "There's still downward pressure on prices."
Hunter says that in addition to the apparent market factors, builders are starting to feel squeezed by competition from local banks, whose inventories of new homes are swelling due to builder foreclosures. "Up to now, banks have been very stubborn about pricing the homes in their inventory," he says. "I think later on this year we'll see more and more of them taking lower bids for the properties just to get rid of them."
Hunter says new-home builders have already slashed prices by 20 to 25 percent from their peak levels. The greatest discounts are available on the Treasure Coast, he says, where housing projects from Fort Pierce up to Indian River County are under the most stress.
Local builders are taking varying approaches to cope with the challenges of today's market.
"We negotiate on price, options, upgrades and closing dates," says Marcie DePlaza, division president of G.L. Homes. "We're even doing special incentives where we put in window treatments, accessories and light fixtures. Those are all incentives for a home purchase because the house is then in move-in condition."
Buyers can grab houses at prices 20 to 25 percent less than they were a couple of years ago, she says.
G.L. is also buying down interest rates, offering free homeowners' association dues and throwing in other perks to make deals — all depending on the demand for the project, for the particular house, its location, and how long it has been sitting on the market. Buyers who are already pre-qualified for a mortgage are considered "a hot prospect" and have the most leverage.
Coconut Creek-based Minto Communities is using a different approach to sell homes in a tough market. "We started working on new product in the spring of 2006 when we started to really see that the market was going to deteriorate," says Harry Posin, the firm's president. "We've introduced all new product in every one of our communities — exciting, market-priced, value-priced, new product."
By introducing fresh designs, at all price and size ranges, buyers are presented with something new from which to choose, Posin says. "Like anything else, you need new exciting models to capture the market," he adds. "They're not going to buy last year's car, and they're not buying last year's home models."
An example: At Olympia, a Wellington community that Minto has been selling since October 2001, new models are more efficient to build and more in tune architecturally with what buyers are seeking today. Even more, they're what Posin calls "market priced — not where the market was, but where we believe the market is today."
According to Posin, this means a buyer can pay 30 to 35 percent less for a lot with a newly designed model at Olympia, than for the product originally planned for that lot. He says that the deals for buyers are "extraordinary" and as long as people have good credit, they can pick up homes at 2003 prices — before the run-up started.
Condominium developers are discounting the prices of new units as well, says Peter Zalewski, founder of Condo Vultures, a market analysis firm in Bal Harbour. But despite the glut of available units, he says builders are reducing prices only by about 10 to 15 percent, choosing instead to wait and see if they can move unsold or defaulted units in bulk to the various funds searching for block purchases. "No developers or lenders that I am aware of are willing to discount units on an individual basis by more than the deposits kept from defaulting buyers," he says.
Zalewski believes that what will really drive pricing of condos is the foreign market. "Buyers with foreign currencies will set the tempo for the discounts that will be accepted by developers," he says. "If foreign buyers are willing to accept minor discounts of 15 percent off original pricing, the developers will be fine. If the foreign buyers want deeper discounts, the market could get bloody."

Comments
MINTOSUCKS
MINTO HAS SCREWED THE HOMEOWNERS BY NOT ALLOWING THEM TO HAVE FOR SALE SIGNS ON THEIR PROPERTY BECAUSE MINTO LOWERED THEIR QUAILITY ON THE NEW HOMES THEY ARE BUILDING. MINTO DOES NOT TELL ANYONE THAT THEY OWN THEIR OWN MORTAGE COMPANY AND ARE FORECLOSING ON 50% OF THE COMMUNITY. THEY HAVE RAISED THE MASTER AND VILLAGES MASTER FEES TO PAY FOR THE SHORT SALE AND FORECLOSER HOMES TO THE POINT THAT IT IS BECOMING IMPOSSIBLE FOR THOSE WHO PAY CAN AFFORD IT. MINTO NEVER TOOK CARE OF IT'S OWN GROUNDS THAT THEY CALL COMMON AREAS PERMITTING BRUSHES TO OVER GROW IN THE MEDIAN STRIPS AND FIRE ANTS. THEY HAVE NOT REGISTERED THE COMMUNITY MASTER ASSOCIATION AS A NON OR NOT FOR PROFIT CORPORATION YET THEY TELL THE RESIDENCE THEY ARE A NOT FOR PROFIT CORPORATION. THE OLYMPIA COMMUNITY IS GOING BANKRUPT AND SO IS MINTO AND THE EXECS SUCKING THE LIFE OUT OF THE RESIDENCE HERE.
Comment #1 Posted By: MINTOSUCKS 05/27/08
Anonymous
I bought a home in Olympia Minto's Million dollar to be property when Michael Greenberg was President of Minto. My home had so many problems for a 1/2 million dollar house. During the hurricane Wilma my roof tiles flew off. Why? because they were never nailed down just pasted and every other tile wasnt pasted. Minto fixed their mistakes after Jean and Frances on the old owners but after Wilma they wanted the homeowners to pay for tiles on the roof from their shoddy work. Minto's roofer wanted to charge me for my 150 tile $2100. I got a local roofer who did it for only $650 plus secured each tile Minto placed on the roof. Minto also put in french doors an upgrade that cost a fortune. They leak! I have mold and Mildrew. Minto "fixed" it and they still leak! My windows are crooked, one neighbor had a cracked whirlpool tub they wanted to patch. The crack was so deep she could put a paper in it and slide it throw. After almost a year of fighing with Minto she finally said ok I'm filing in court Within 1 day they had a new tub. They installed it but the bathroom cabinets are no longer lined up properly.
Minto policy's changed in 2007. Suddenly after many years of allowing for sale signs on lawns Minto held a secret meeting of only thoses who agree with the new rule would be able to vote. It was just a show of hands and most of the people there were Minto people because they still own 75 % of the property. NO Signage rule.No signage is no signage however Minto still has there signs guiding people to their models and signs of property that are for sale by Minto. Signage is also Merry Christmas and Happy New Year and other Holiday greetings. No signage is also Vote Here and a sign where the poles were were posted on the lawns of the club house. No signage is also not having a post at the enterance of the Community on a paper typed so small a greeting or a meeting. But the Minto builders bend the rules to fit themselves.
Also there is the problem of over spending which Minto increases the master dues every year. I had to compalin there are fire ants in the walkway of the common areas for 3 yrs. Nothing was done until a neighbor openned her mouth and yelled at Tom Long who handled the MINTO MANAGEMENT. We have noise from 411 and Minto wont put or apply for a buffer wall, Minto wont allow the gas company to put lines in so we have a choice of gas or electric for cooking. Minto wont do anything about renters and dogs. Minto didnt allow realtors to sell new properties until recently so they can dump their inventory as very low prices. Minto installed camera 1/2 the time they work 1.2 the time they dont. Minto has 4 enterences and they know if they only locked the enterence of 2 gates and allowed only guards in the front gate and 441 they could save the homeowners thousands. I could go on and on but I dont know how much space I have.
Comment #2 Posted By: Anonymous 05/27/08
Luz and Ricardo
I just found this web site and I feel the same way Anonymous and MintoSucks feels. Minto Developers lied to me when I first put a deposit down on my home they built. They wouldn't let me check my home while they were building claiming that people stole things out of the homes. They over charged me on my home on everything. I got cheap appliances after I paid for upgraded ones. They broke after 6 weeks I called Mr Appliance for my "5 year guarantee". They lost the paperwork.
I was called 2 days before the closing on a Friday. I couldn't make closing on time because they didn't tell the bank where I got the loan for the house. I didn't use Minto's people.So I was charged a late fee and it was their title company.
After I moved in I noticed things I didn't see with my rushed walk through with their man Gene. I found so many things wrong with the house including no shelves in my cabinets, no toilet paper holders, no handles on my doors, no appliances, and holes in the walls The electrical outlets didn't work. Pee stains in the shower pan. The house was dirty. Oh yes they left me with either mice or rats. I had an exterminator come in and rid the home of these creatures. I paid $650K for this home. My pool wasn't complete. They forgot to put in the heater. And I had purchased shades. They weren't even installed until 5 months after I put my claim in. They told me they forgot to order the window treatments.
Now they are selling a cheap version of my home to people who are buying as investors and holding them while putting in renters. The renters don't take care of the homes.
The children run like wild animals in this community and the parents don't care until someone hits them with a car. Today I almost hit 3 kids who dashed into the street to play chicken with on coming cars while the parents sat parked on a road that was not meant for a 2 car lane laughing and talking on the phones.
My neighbor today just got served with foreclosure papers. Her husband cant make the payments because their mortgage ballooned so high they cant afford it and they used Minto's Company. She came in crying saying she cant sell her home and she has no where to move. She tried to sell it for what she bought it for but like me they made a cheaper model and she couldn't sell it at cost.
She is going to move out and lose everything. But Minto wont because it's a heartless company. If I had my choice again I would have never bought here. Minto Builders are lower then whale poop.
I encourage everyone to voice there opinion about Minto. Stop being bullied by the HOA. They are only as powerful as you let them be. There are people who are going to protest the costs of the HOA and the wasteful spending of Minto Management on the club house and the common areas. They claim everything is going up as far as prices. But they don't need to keep guards at 2 gates over night. Pierson and Lyons roads can be closed after midnight and just have the Forest Hills and 441 road open this will save us thousands of dollars.
Comment #3 Posted By: Luz and Ricardo 05/28/08
Happy Here
I live in Olympia too. I have found none of the problems you have stated. The walkthrough although not thorough was fine. Any problem I found after the fact was handled by Minto quickly and to my complete satisfaction.
While I empathize with you and your neighbor's problem Luz and Ricardo, it is important to note that many people "overbought" and are now in financial trouble. The same way you wouldn't buy a car you couldn't afford, and then risk losing it to repossession, you have to make sure your finances are in line with current and future expenses.
Comment #4 Posted By: Happy Here 05/30/08
Anonymous
It is obvious that whoever posted "Happy Here" works for Minto. You can tell by the way the write "While I empathize with you and your neighbor's problem" that it is someone used to saying this to people with complaints. So, my theory is this is a Minto employee writing a dummy comment that couldn't take away from the factual comments above anyway. My friend just lost her job and has a $20K deposit with Minto on a house she can no longetr afford. After asking to be transfered to a lower price model, she was told "sure, but you will loose your 20K on the other house" UNETHICAL, bad business, they should pay people to live at thier properties, this bad business confirms that MINTO SUCKS!
Comment #5 Posted By: Anonymous 06/26/08
Anonymous
While I empathize with you and your neighbor's problem ... I really don't care
Comment #6 Posted By: Anonymous 06/27/08
Anonymous
Delinquent Tax is Due - TDA
A whole boatload of dead beats. Owing money to the county for property tax and to the village they live in.
Comment #7 Posted By: Anonymous 06/30/08
Anonymous
whatever happened to the Minto Sucks myspace page? I heard they had a fit when the lawsuits were posted.
Comment #8 Posted By: Anonymous 07/24/08
Minto Sucks
Happy Here sounds like a Minto Witch with a captial B. No wonder Minto SUCKS!
Comment #9 Posted By: Minto Sucks 07/24/08
Anonymous
According to Posin, this means a buyer can pay 30 to 35 percent less for a lot with a newly designed model at Olympia, than for the product originally planned for that lot. He says that the deals for buyers are "extraordinary" and as long as people have good credit, they can pick up homes at 2003 prices — before the run-up started.
DOES THIS MEAN A LOWER CLASS OF PEOPLE ARE MOVING INTO OLYMPIA. IT'S BAD ENOUGH WITH THE FORCLOSURES AND THE RENTALS. SOME OF MY NEIGHBORS ARE LOWCLASS RICHIE RICH PEOPLE. WE EVEN HAVE CHILD ABUSERS LIVING HERE RENTING HOMES. HOW LOW CAN OLYMPIA SINK?
Comment #10 Posted By: Anonymous 08/18/08
Anonymous
Anonymous
Delinquent Tax is Due - TDA
A whole boatload of dead beats. Owing money to the county for property tax and to the village they live in.
Comment #7 Posted By: Anonymous 06/30/08
QUESTION? IF YOU GOT SICK OR YOUR HUSBAND OR WIFE DIED OR YOU LOST YOUR JOB AND NO LONGER CAN AFFORD A HOME. WOULD YOU WANT PEOPLE TO JUDGE YOU AS A DEAD BEAT?
Comment #11 Posted By: Anonymous 08/18/08
Anonymous
They're all tragic circumstances, but I don't think the local gas station would offer much sympathy, nor the local supermarket.
Comment #12 Posted By: Anonymous 08/20/08
Anonymous
Think twice about buying a Minto house. Minto used to care.
Comment #13 Posted By: Anonymous 12/15/08
Anonymous
Some wacky homeowner and her son in Olympia suck.
Comment #14 Posted By: Anonymous 12/18/08
Worst Builder
I feel everyones pain.I live in another Minto "abortion" called Riviera Isles in Southwest Broward.Minto is known for uneducated management,with no quality assurance system or standard operating procedures in place,its no wonder my home is falling apart.Poor workmanship and materials with no quality checks have proved to be a disaster.Good luck to all.
Comment #15 Posted By: Worst Builder 01/07/09
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