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Pulte Leaves Kansas and Missouri Homeowners Quandry |
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Friday, 14 December 2007 |
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Pulte Homes pulling out of Kansas City
Pulte Homes, the metro's largest developer, confirmed they are withdrawing from Kansas City. Company spokesman John Conley says sluggish home sales are to blame. "Ultimately we were unable to achieve a consistent sales volume that would allow us to operate as profitably and efficiently as we would like to. So we are going to start redeploying capital to other markets," he explained. The phased withdrawal will being in about three weeks. It is expected to be complete in September of 2010.
Pulte Homes pulling out of Kansas City
Reported by: Marissa Cleaver
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12/03/07
KANSAS CITY, Mo. – Pulte Homes, the metro's largest developer, confirmed they are withdrawing from Kansas City. Company spokesman John Conley says sluggish home sales are to blame.
"Ultimately we were unable to achieve a consistent sales volume that would allow us to operate as profitably and efficiently as we would like to. So we are going to start redeploying capital to other markets," he explained.
The phased withdrawal will being in about three weeks. It is expected to be complete in September of 2010.
This comes as worrisome news for people living in more than 2,000 Pulte homes across the metro.
"It does concern me," said Aimee Kelso who lives in one of Pulte's Lenexa, Kan. communities.
She says overall her family is happy with their experience with Pulte. But she added that one of the reasons her family chose Pulte is because of their long-term warranties.
"That was one of their biggest selling points - their outstanding warranty,” said Kelso.
But Conley says homeowners have no reason to worry.
"We will remain here in Kansas City... until 2010. At which time if they do have warrantable concerns beyond that Pulte will still service the warranty. It will likely be with individuals in other markets," he said.
That doesn't ease all of Kelso's concerns.
"I guess I worry about the customer service I'm going to be getting. When you are talking to someone on the phone long distance, I don't know how that is going to be," she said.
Pulte plans to find homeowners for all of their existing homes. They will sell their lots to another developer.
"We don't have any other plans than to market our homes at whatever the market will bear," said Conley.
But if those prices are significantly lower than what neighbors paid for their homes that's another issue.
"There's a possibility we will be moving again and if our resale value is lowered because of that, that doesn't make me very happy," said Kelso.
All of Pulte's local employees are being offered a severance package.
The company plans to begin cutting employment in phases, the first of which will occur in less than three weeks. The next round of job cuts will be in March.
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