Beazer to Leave Colorado

By Larry Hotz, All Denver Real Estate

In a May 28 memo addressed to all "Trade Partners", Beazer homes, Beazer Home in Denvera national home builder with developments here in Denver, has announced it will close its Colorado division. The effective date is October 31, 2008.     

We received a copy of the memo which states that most land development activities will cease now and by September all models and sales operations will be closed. However, Beazer will complete all houses and town homes that have been started.  It will not start to build any new units.

 

The memo notes that Beazer intends to pay all of its bills and honor all warranty obligations even beyond the October closing date.  It notes that there will be reductions in workforces as the division winds down.  They note that they intend to maintain all current production schedules to complete the work underway.

Beazer had purchased its division here from local builder, Sanford Homes, some eight years ago.  Sanford had developed such popular communities as Homestead, Homestead Farm, Governor’s Ranch and The Farm in Arapahoe County.  Since the acquisition, Beazer continued to develop some of these communities and others in the Denver metropolitan area as well as in Colorado Springs.

Sanford had enjoyed the reputation of building "Leave-It-To-Beaver homes". They were traditional floor plans without contemporary frills.  When Beazer took over, the floor plans slowly evolved into more contemporary plans.  I had several buyers who specifically did not buy new homes just because of the floor plans.

Beazer also acquired land on the outskirts of the Denver metropolitan area.  Some of these communities failed to sell as well as some of the older, closer-in communities.  As a result, the Sanford communities which had also appreciated well were followed by new Beazer communities which enjoyed little if any home appreciation.

Personally, I don’t think that this event necessarily foreshadows any other new home builders closing down in the Denver metropolitan area.  Certainly home sales for new homes have slowed along with resales. 

Of course, in this real estate market anything is possible.  But in the long run it may be good to have a little less competition in the new home market.  Obviously, that was Beazer’s conclusion. The only question remaining is how low will they go in discounting their current inventory. Most buyers would benefit from having a savvy Buyer’s Broker negotiate the best possible deal for them.

May 30, 2008 | Filed Under Denver Real Estate News, North Suburbs, South Suburbs 

Comments

5 Responses to “Beazer to Leave Colorado”

  1. Boulder Colorado Real Estate on June 1st, 2008 2:07 pm

    This makes me wonder what the other home builders in the area will do to be competitive in the market? It will be interesting to see in the coming months.

  2. Charles in Vegas on June 3rd, 2008 10:59 am

    Beazer hasn’t been doing to well here in Las Vegas the last several months. I wonder if they’ll pull out from here as well.

  3. D Martin on June 3rd, 2008 11:29 am

    Good information,believe it is better to buy resale than new in this market. In northern colo, builder closed doors and left customers holding unfinished homes.

  4. Peter on June 11th, 2008 9:23 am

    Very good information! but for me it’s better to buy new than resale in the market. Sorry martin!

  5. larry on June 22nd, 2008 9:38 am

    Several folks have asked if I was sure Beazer is leaving Colorado. I have always had to answer that I am not sure. I just found the memo that says they are leaving. But, now Beazer has confirmed the story.

    http://www.builderonline.com//business/beazer-leaving-colorado.aspx?cid=BLDR080604002

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Copyright 2007-2008 by Loren S. Hotz. All Denver Real Estate.