Frisco TX changing its community landscapes

by Mike Yeo on July 12, 2010

Some of the Frisco TX neighborhoods are changing its landscape these days. Many Frisco TX neighborhoods that are affected are New homes in Frisco TXthose with new home construction where home builders are still building or neighborhoods that are hit very hard by foreclosures and short sales.

When new home builders contract with the land developer, they typically know which lots will be theirs. Some new Frisco TX home communities have multiple builders. The land developer will subdivide lots to the different home builders. More often than not, these home sites are released in stages, so the land developer still owned lots that are not sold or released to the builders.

It is also beneficial for home builders to receive these lots at stages. They do not pay property taxes on them, hence they do not incur business expense on home sites that are not contracted.

With this business decision, and the slowing new home sales and starts in Frisco TX, some new home builders decided to pull out of some Frisco TX communities. Some new home builders went into bankruptcy.

When a new home development project is established and planned, the developer and the new home builders know how much the homes will typically sell for. The new home builders know what is the minimum features they would use to build those homes for those price points.

With the new home starts slowed in Frisco, foreclosure and short sale deals in Frisco – in 2008 and 2009, many new home builders halted construction in  some communities. It became a business decision for new home builders to completely pull out.

At the end of 2009, new home construction starts to pick back up. However, some builders have changed hands in the previous communities: the old ones in the higher price points are out and the lower ones are in. There are some communities where most homes should sell in the mid $350Ks range, as an example. As the new home construction continue in previous communities, a new set of builders, with new pricing and new set of finish-out for the homes. Now, this community start at $250Ks.

This can really hurt homeowners who purchased in these communities during their starter years. Purchasing homes thinking that the community will begin with no less than $350K but now, with the business decisions of developers, land owners and builders, homes start at $250K – this becomes a totally different Frisco TX neighborhood altogether.

The same experience is felt in other Frisco TX home communities hit hard with foreclosures and short sales. It is the lender’s business decision to sell in a short sale rather than to take these homes back in foreclosure. These have caused community prices to fall. Homes at one point sold in the $275K – $300K are now selling for $225K. The communities really attract a different set of buyers with a different set of discretionary income.

Yet again, the landscapes of the Frisco TX homes are changing. It does not happen in every neighborhood but it happens. It does not only happen in Frisco but in the surrounding cities also.

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Loreena Yeo - Frisco TX Realtor
Loreena Yeo
Frisco TX Realtor®
Realtor®/ Broker of 3:16 team REALTY
Selling homes in Frisco TX
(214) 783-2210
loreena@loreenayeo.com

Super-serving Frisco, Plano, Dallas, McKinney, Allen, Little Elm, Prosper, Celina, Richardson, North Dallas area communities and other surrounding areas.

Copyright © 2010 by Loreena Yeo (3:16 team REALTY)
Originally Posted on Frisco TX changing landscapes in home communities.

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