I’m following up on a previous post about David Oringulph (Legend Homes) doing an interview in the Oregonian where he states: “There’s really nothing wrong with the housing market from the standpoint of economics….”.
I really took an exception to his line of thinking and was in complete disagreement of his “feel sorry for me” attitude. And as if helping prove my point…
Fast forward 45 days and now the “big-box” builder Roger Pollock (Buena Vista Homes – pictured right) is sending out letters to past clients who bought a home from his company about the MEGA house auction planned for December 15-16th, to the likes the Portland Metro area has never seen. Sure this type of action is the norm in Las Vegas or the burbs of Phoenix, but here in River City?
This may well be the largest riches-to-rags story on the planet. In the Fall of 2006 Buena Vista Homes was hailed (largely self-promotion) as the largest home builder in Oregon having “pulled down” 303 permits in the first 10months. In addition, “Builder Magazine” named Buena Vista the fastest growing builder in the United States with an amazing growth rate of 162.47 percent. Now we’re seeing the “signs” of over building and developers are panicked to sell anything maybe David Oringulph would like to retract his “the media is the problem” statement?
Then came “THE LETTER”… Imagine getting a letter from Roger Pollock telling you they have decided to auction the remaining homes in your cul-d-sac and the starting bid is going to be $189k less than what you just paid 6 months ago. WTF?!!
Is there no shame from these predatory builders? How do they ignore customer service, relationships with past clients, further driving prices down and exacerbate the home bubble mentality in an already bleeding market? This is going to be fascinating to watch.
UPDATE (DEC 17th): Auction sold 141 homes at a total of $65 million in sales over the 2-day period. Average per home is nearly $461K. None of the Bend homes were auctioned. So, is Pollock a Marketing Genius or were people drawn-to-the-light?
And does he really know how to party like a “Rock Star”?