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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: ChanceIs who wrote (81631)	7/21/2007 1:48:44 AM
From: CalculatedRisk	Read Replies (2) \| Respond to of 306849

WSJ: Morgan vs. Lennar From the Web to Court, a Real-Estate Broker Battles Lennar online.wsj.com I remember Mish used to have excerpts from Florida real estate broker Mike Morgan. What I found interesting were the price reductions mentioned in the article: About 30 of his clients had signed up to purchase Lennar homes in 2005 when the housing market was strong and prices were surging. Mr. Morgan himself bought a Lennar home there. But in the spring of 2006, the market was cooling and buyers started looking for ways to break their contracts, Lennar says. ... Mr. Sustana, the lawyer for Lennar, says the company felt its contracts were entirely fair. Nevertheless, Lennar made an unusual gesture: In June 2006, it offered to return deposits to all 130 buyers, with interest, and rescind their contracts. In total, 114 buyers accepted the offer, canceling about $41 million in sales. ... At the time, the average selling price of those homes was $365,000. Since then, Lennar has closed a total of 68 homes in the development with an average selling price of $255,000.