McLean Custom Home Builder Files for Bankruptcy

[Anonymous]

Anonymous wrote:

Anonymous wrote:You find it sad that a biulder overextended themselves financially? I don’t find that sad, I find it to be poor business decisions. So many builders are floating a ton of lots right now that they cannot sell. They got greedy assuming this areas building/sales market would never dip.

All the lots sold around us are being built, none is sitting, but there is also a glut of new homes over 4m and they aren’t selling. IDK what’s going to happen to all these builders who have completed their homes and have others in the pipeline, but people aren’t buying at these prices.

Does it also mean that people will soon start buying older homes that used to be tear downs and remodeling them instead?

Builders have plenty of cushion with their projects. They make not earn as much or at worst break even but they will sell. No people are not going to purchase tear downs and remodel them - much cheaper to build new.

[Anonymous]

Anonymous wrote:You find it sad that a biulder overextended themselves financially? I don’t find that sad, I find it to be poor business decisions. So many builders are floating a ton of lots right now that they cannot sell. They got greedy assuming this areas building/sales market would never dip.

This hopefully they saved some of the $800k profit they were making on houses they sold for over $3m.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You find it sad that a biulder overextended themselves financially? I don’t find that sad, I find it to be poor business decisions. So many builders are floating a ton of lots right now that they cannot sell. They got greedy assuming this areas building/sales market would never dip.

All the lots sold around us are being built, none is sitting, but there is also a glut of new homes over 4m and they aren’t selling. IDK what’s going to happen to all these builders who have completed their homes and have others in the pipeline, but people aren’t buying at these prices.

Does it also mean that people will soon start buying older homes that used to be tear downs and remodeling them instead?

I hope not all these older homes were meant to be temporary and are all teardown

[Anonymous]

Anonymous wrote:Lawsuit plus regional economic slowdown - they couldn't continue.

Sad for the homeowners who got screwed over.

[Anonymous]

I feel awful for custom builders in northern Virginia. Poor, poor, poor people. Barely hanging on. Is there a way to donate to them? I might shift my charity from st Jude’s to nova home builders.

[Anonymous]

This entire post is weird…the op looks related to whomever this failed builder is. No, not going to get any sympathy from me…their bank account are overflowing. This idiot likely made a poor decision and now reaching for the eject button.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You find it sad that a biulder overextended themselves financially? I don’t find that sad, I find it to be poor business decisions. So many builders are floating a ton of lots right now that they cannot sell. They got greedy assuming this areas building/sales market would never dip.

All the lots sold around us are being built, none is sitting, but there is also a glut of new homes over 4m and they aren’t selling. IDK what’s going to happen to all these builders who have completed their homes and have others in the pipeline, but people aren’t buying at these prices.

Does it also mean that people will soon start buying older homes that used to be tear downs and remodeling them instead?

I hope not all these older homes were meant to be temporary and are all teardown

Where do you get a bizarre idea that brick homes were built as "temporary" units? They were built to the standards that were prevalent decades ago when people lived in smaller homes and had 1 car. Every house is technically a tear down sometime in the future, including giant new Mcmansions. Older mcMansions are already getting torn down as people consider them dated. The only houses from the past that remain are those that people consider having historical value, but this won't be your contemporary McMansion

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You find it sad that a biulder overextended themselves financially? I don’t find that sad, I find it to be poor business decisions. So many builders are floating a ton of lots right now that they cannot sell. They got greedy assuming this areas building/sales market would never dip.

All the lots sold around us are being built, none is sitting, but there is also a glut of new homes over 4m and they aren’t selling. IDK what’s going to happen to all these builders who have completed their homes and have others in the pipeline, but people aren’t buying at these prices.

Does it also mean that people will soon start buying older homes that used to be tear downs and remodeling them instead?

Builders have plenty of cushion with their projects. They make not earn as much or at worst break even but they will sell. No people are not going to purchase tear downs and remodel them - much cheaper to build new.

There is no way it's cheaper to build new. It's way way cheaper to buy a remodeled older home at least by a factor of 2. Also RE taxes on smaller homes are way less. It's at least 1.5 mil now with today's costs to build a basic builder grade home. Not including the price for the lot, that's what you have to pay if you already own your old house/lot and paid it off. An old "tear down" home (many of which are actually remodeled/modernized) probably averages 1.5 mil in a premium neighborhood of an inner suburb. If you can remodel/add on to your tastes for 500K you are saving 1m.

[Anonymous]

RE taxes on smaller homes are way less-- until they are renovated and the taxing jurisdiction re-assesses them and the taxes increase.

You can remodel to your tastes but you can't get some of the features such as 9 foot ceilings on an older house unless you raised the roof at great expense. You can't always add on because of building restriction lines, lot coverage, and setbacks.

[Anonymous]

From what I heard in the construction field and people that work for them. They will not see a penny and all labor and materials are lost. Many small contractors are out of thousands of dollars and will not see a penny since they filed bankruptcy. They will walk away with tons of money it’s the way the rich stay rich. The blue collar workers are the ones who are gonna take the hit.

[Anonymous]

No sympathy for these builders who are building 20,000 monstrosities to sell to foreign governments and foreigners as their 5th home and hogging land and increasing housing costs for people who actually WORK here.

[Anonymous]

Anonymous wrote:No sympathy for these builders who are building 20,000 monstrosities to sell to foreign governments and foreigners as their 5th home and hogging land and increasing housing costs for people who actually WORK here.

Joy was building houses that got bought by law firm partners, doctors, and tech and trade association executives - all American. Like every other builder in the area, it seemed like the size of the houses was always getting bigger.

[Anonymous]

Anonymous wrote:The blue collar workers are the ones who are gonna take the hit.

+1

If you walk on any job site the majority of workers you see will be subcontractors. From concrete workers to framers, plumbers, electricians, then finish carpenters, stair + cabinet companies, tile + stone... few will work directly for the builder. I don't know anything about this company, but have known a number of subs who've gotten pinched hard in situations like this.

[Anonymous]

There is another well-known McLean builder who is likely to file for bankruptcy soon according to my sources.

Like the PPs said, the owners will be fine. They have made millions over the last decade.

[Anonymous]

Anonymous wrote:There is another well-known McLean builder who is likely to file for bankruptcy soon according to my sources.

Like the PPs said, the owners will be fine. They have made millions over the last decade.

There are only 2 other McLean centric builders.