Investor Obstacles
A dozen of the nations home builders were polled recently about their efforts to curtail investor activity in their development
- 82 percent said they would sell only to owner-occupants.
- 64 percent do not allow buyers to resell the house before they've actually taken possession through closing.
- 55 percent bar resale of the house in the first year.
- 36 percent prohibit renting in the first year.
Speculators Beware
In a move to protect their profits and the market, home builders are waving a new sign: For sale -- but not to speculators.
By Jack Snyder - Orlando Sentinal Staff Writer
June 24, 2005
The company also requires that if the buyer sells in the first year, he must sell the house back to the builder at the original price. The company also includes an escalator clause in which up to 10% of the purchase price can be added before the closing to account for labor and material prices. Said Derrek Sutton COO of Nicholson Homes Inc.
However, the Central Florida housing market is expected to remain strong.
In a move to protect their profits and the market, home builders are waving a new sign: For sale -- but not to speculators.
By Jack Snyder - Orlando Sentinal Staff Writer
June 24, 2005
- Provisions that force the original buyer to close on the deal.
- Barring sales or rentals in the first year.
- Price escalation clauses in which some rising materials and labor costs can be added to the home price.
The company also requires that if the buyer sells in the first year, he must sell the house back to the builder at the original price. The company also includes an escalator clause in which up to 10% of the purchase price can be added before the closing to account for labor and material prices. Said Derrek Sutton COO of Nicholson Homes Inc.
However, the Central Florida housing market is expected to remain strong.
