6/21/09 UPDATE: Seasons Clubhouse had a grand opening on 6/20/09. To see it, here is a map.
This photo is of the back corner of Lot #201 at Levitt and Sons "Seasons" development at Prince Creek West in Murrells Inlet, SC. It was the only lot that my wife and I were interested in of all the lots that we walked on in late March, 2007. We were told that a Mrs. Volk had put a total deposit of approximately $40,000 down on that lot and future house back in early 2006, but now she had hired an attorney to get all of that deposit back, and the lot could be ours, as it was "just a formality" as to when it would be "officially" available for us to buy. We were later told that Mrs. Volk, and her attorney, had reached a compromise agreement as to how much of her deposit would be kept by Levitt and Sons for defaulting on her agreement to purchase. So, based on that knowledge my wife and I gave $5000 for a deposit receipt on Lot #201 (which had NO CONTINGENCY in Levitt's favor written on it), came back to Texas, and contracted to have our kitchen remodeled for about $15,000 in order to prepare our house for sale.
But, within 5 days of getting a "reassurance" e-mail from Mr. Bob Daurity (head of that sales region) saying: "The lot has still not been released back to Levitt, but that paperwork should be here next week.", we were called by his sales agent telling us that Mrs. Volk had changed her mind, and we could not buy Lot #201.
Levitt and Sons was marketing this development online with mentions in articles like this that said: "Levitt and Sons announces "March Mayhem," a grand opening event 11 a.m.-3 p.m. March 24, to introduce their new active adult community, Seasons, at Prince Creek West." They were offering the following incentives to buy: 1. $10,000 in free designer options, 2. $1,500 in reimbursed travel expenses, 3. $2,500 in closing costs (if you used their lender), and 4. $500 in reimbursed travel expenses in a "Your Exclusive Invitation" hand out that said: "And even if you decide not to purchase a home, we'll still reimburse $500 of your travel expenses if you discuss ownership opportunities with a qualified sales associate."
This post will not go into detail about our resulting complaint, suggestion for a concession on an alternative lot for my wife and I to buy, and how the entire real property negotiations were handled by Levitt and us. But, it will tell you how we feel about the entire incident now, and give you some background new home builder "marketing timing" regarding the current "buyer's market" for new homes. (Click on "Continue reading..." below, and also see my update post at "Can Levitt and Sons Builder's Word Be Trusted?"). Now see: Levitt's "Seasons at Prince Creek West" Still Has No Clubhouse.
We must admit that at first we were upset, angry, and wanted to complain, but we later understood that Mrs. Volk had the right to change her mind, and that our Levitt Realtor must have believed that the lot would eventually be "officially" released based on what he was told from his management. We have even recently told Mr. Seth Wise (President of Levitt Corp.) that we hold no grudges (especially towards him, since he, personally, approved a minor "custom alteration" to our Grand Cypress style home). We hold no grudges, but we do feel Levitt needs to learn something from this experience.
The photo above is of Lot #201 taken from front (south) to back (north) where the water view is. The retaining wall on the left (west) side is where a tree/shrub view is (see 2nd photo below, too). The front (south) view (shown immediately below) even has a permanent direct view of nothing but trees/shrubs as shown here:
Yes, Lot #201 was somewhat unique in that it had a "greenbelt" view on 3 of 4 sides, and we were going to put a "Grand Cypress" style home on it that has only one opaque window (master bath) on the right (east) side that faces our one "next door" neighbor. We were going to add options, and extend the front and back of the house as noted in this excel file on options that brought the $264,900 house with $30,000 lot premium to a grand tentative total of $347,650: Download seasons_at_prince_creek_west_options.xls
We, also, recently told Mr. Seth Wise, we are hoping that due to the poor sales climate for Florida new home builders (partially true on a national basis), as noted in this 4/13/07 "Builders Online", "Breaking News" article from the "South Florida Sun-Sentinel" entitled "No Housing Upturn in Sight: Subprime Loan Woes Worry Builders", this is not putting so much pressure on Levitt and Sons, as well as other builders, that "errors and omissions" in sales are taking place.
Proof of pressure to turn over home inventory on Levitt and Sons is evident in this 4/16/07 Default Servicing (DSNews.com) article entitled "Luxury Florida Townhomes on the Auction Block". It says: "Pompano Beach, Florida-based Fisher Auction Co., Inc. has 50 luxury townhomes up for grabs in what is essentially an unprecedented sale of brand-new properties using an auction platform traditionally associated with foreclosures." It goes on to say: "...the homes were originally under contract with buyers who agreed to purchase the residences after selling their own properties. Everything was working out okay until the market changed leaving the buyers with homes they could not sell -- in turn, Levitt & Sons, the builder, lost their pre-arranged buyers." Now, that's "marketing problems"!
"Errors and Omissions" in sales/marketing would not be good for new home builders in an age of online information where consumer "Word of Mouth" advertising is so "viral". Consumer/buyer reviews of new home builders are becoming more readily accessible to new home buyers of all ages. The 50 to 65 year young market segment is using the Internet more and more to research a home purchase, as I did. In fact, this 11/11/06 NAR Survey says: "Buyers used a wide array of resources in searching for a home: 85 percent used a real estate agent, 80 percent the Internet (up from 77 percent in 2005)....."
More to come.
4/17/07 UPDATE: I just saw this Homeowners Against Deficient Dwellings (HADD) 4/16/07 news link to this blog post entitled "Levitt and Sons complaint " which says: "Builder backs out but won't return buyer's deposit?" This is wrong! My wife and I not only got the $5,000 deposit check back, but we got it in writing that Levitt is going to reimburse us $500 in travel expenses (in approx. 30 days), just for talking (in person) to their sales agent about a property at Prince Creek West.
Also, I need to cut to the chase to avoid further misunderstanding (like what happened with HADD): I believe I never should have been shown Lot #201 to begin with, since it wasn't legally available to buy! The Levitt President of that region should never have allowed his agent to take a deposit of any amount without a contingency written on it. I, also,believe all salespeople (realtors or otherwise) need to "UNDER PROMISE AND OVER DELIVER", and my wife and I feel Levitt and Sons did exactly the opposite in this specific case! Buyers, too, have a moral obligation to be honest and questioning in their dealings with new home builders. But, they also need to "GET IT IN WRITING", as they have to "GIVE IT IN WRITING" when it comes to being financially prequalified. This helps avoid misunderstandings by both parties.
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