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Residents miffed at builder’s plans
Residents of a new suburban community are fuming over their builder’s decision to add smaller, lower-priced homes to their neighborhood now that the economy has taken a turn for the worse. Homeowners in KB Home’s Sundance Trails and Sundance Ridge communities, located off Potranco Road outside Loop 1604, say the cheaper homes will bring down their property values and ruin the aesthetics of the neighborhood. See Photos
Residents miffed at builder’s plans
By Jennifer Hiller - Express-News
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Residents of a new suburban community are fuming over their builder’s decision to add smaller, lower-priced homes to their neighborhood now that the economy has taken a turn for the worse.
Homeowners in KB Home’s Sundance Trails and Sundance Ridge communities, located off Potranco Road outside Loop 1604, say the cheaper homes will bring down their property values and ruin the aesthetics of the neighborhood.
William Luther/Express-News
Residents gather at a neighborhood park for Sundance Trails
and Sundance Ridge before attending a meeting to discuss
changes the neighborhoods' developer is making to houses
being built in the subdivisions.
In down markets, builders in incomplete neighborhoods often face the choice of stopping construction, selling off vacant lots or offering lower-priced products.
While San Antonio remains one of the healthiest markets in the county, the longer the national housing malaise continues, the less insulated the city becomes.
This weekend, Sundance residents plan to picket near the entrance of Sundance Trails. They also have created a Web site — www.sundancefamily.com.
The owners purchased brick-fronted homes with two- to three-car garages, priced starting around $125,000 and going up into the $200,000s.
But a new collection of smaller homes will have a starting price of $93,995, sizes beginning at 1,265 square feet and will have an option for a siding front instead of brick.
Builder KB Home said the decision was based on economic conditions and a drop in buyer demand for larger homes in the area.
“We look at the marketplace,” said Carlos Contreras, local government affairs director for KB Home. “We have to adjust to it.”
KB Home has built about 140 homes in the Sundance neighborhoods, which have 400 lots combined. The adjacent neighborhoods share a community center, pool, fitness center, playground and other amenities such as walking trails.
Homeowners worry the lower-priced homes will erode property values and lead to a neighborhood filled with rentals. When they want to sell their homes, owners say potential buyers will bypass their neighborhood in favor of others.
“We are all in the same situation,” said resident Samuel Metz, who moved to Sundance Trail in June. “Nobody will want to buy the real high-end nice homes.”
KB Home likely isn’t the only builder in the San Antonio area swapping out product lines or buyer options in favor of something more affordable.
John Flournoy, managing broker of the Phyllis Browning Co., said the situation isn’t widespread now, but has happened in the past during slow markets.
“When builders are trying to clear out inventory, they will do whatever it takes,” Flournoy said.
Many builders have been offering incentives and price breaks. Some have stopped construction midway through a neighborhood.
Standard Pacific Homes announced earlier this year that it would exit the San Antonio market, leaving behind 2,500 vacant lots in 15 local subdivisions.
And for all builders, plans to break ground on new neighborhoods have skidded to a halt.
“They’ve going to have to adjust the product to the market as they see fit,” said Wendle Davis of the real estate consulting firm SA Research Corp. “I’m sure they would rather be selling $150,000 homes there. It’s probably a matter of survival.”
Contreras, who spoke to about 100 residents of the Sundance communities Wednesday night, said customer surveys have shown home buyers want an option for smaller homes with fewer garage spaces, Contreras said.
He said that KB wants to have a successful, completed neighborhood and that most of the new homes with one-car garages won’t be on the same streets as homes with two-car garages.
“We have similar goals,” Contreras said.
A KB Home spokeswoman said Thursday that the new homes will be built to EnergyStar standards.
But homeowners said the builder isn’t considering the impact on them.
“How would you feel if they built that ugly house in your neighborhood?” resident Nikki Nuñez asked Contreras.
Contreras responded that KB Home does not build ugly houses.
Residents grew more upset Wednesday after Contreras said the decision to build the smaller homes was made five or six months ago — before many of the newer residents bought their homes — but didn’t make the decision public until a few weeks ago.
In addition to the picketing and Web site, residents Wednesday also floated ideas such as a letter-writing campaign and having everyone put a “for sale by owner” sign in their front yard with a phone number that will lead callers to a recording about the conflict.
“It’s going to take the effort of everyone in the community,” resident Jennifer Czuhajewski said.
Real estate agents say the community has reason for concern.
Ronald “Alan” Chapman of Sterling Group Realty said buyers often avoid neighborhoods with one-car garages.
“It affects salability,” he said.
And the conflict in the Sundance neighborhoods is an example of the risk of purchasing in a new neighborhood.
“You never know what you’re going to get with a new house,” said Joe Wrzesinski with Keller Williams Realty.
But Davis of SA Research doesn’t think investors are looking to purchase new homes for rentals now. A previous influx of investors into the market in 2005 and 2006 means San Antonio already has plenty of rental homes, he said.
Resident Emonty Means said he doesn’t want to stick around to find out if Davis is right. He moved a year ago from a neighborhood where crime rose over a two-year period as investors converted smaller homes to rentals.
“I don’t care what they say,” Means said. “I’m moving.”
http://www.mysanantonio.com/news/local_news/Residents_miffed_at_builders_plans.html?c=n
I wanted to respond to some of the comments made about my background. I am an Executive Director of a non profit and I am able to afford a $200k home, I am actually saving to take a Around the World Trip during my Sabbatical with my husband. Oh and I am a female by the way. Thanks for your comments Flyer007, I chose not to bolt to the Northwest Side, I now live near Brooks AFB because of the unique craftsman style older homes and the numerous stores going up in the area. Alas, I'll end on a positive note, the economy is not so great right now so we need more positive stories from the Express News to keep our spirits up. I just wrote because it really striked a cord with me. Folks from Sundance Subdivision I really do hope you get your issue resolved but it will be a long process.
skeetersalooser.. that's not a fair estimate whatsoever. Some people just rather live simply and save their money. Maybe a 90k home is a step above from which he came and he's fine with that. Seems you are basing your comments soley on the fact that he's from the Westside. Not everybody that's from the Westside wants to bolt to the N/NW side. You may be uncomfortable living there and there is nothing wrong with that. If you were born and raised on the Westside and feel comfortable there, there is nothing with that either.
Skeeter: So you are from the Westside...figures. Degree or no degree you have just proven the social and economic differences between the areas of San Antonio. Your "excuse" of wanting to buy a cheeper priced home to save money sounds like a great cover for the fact that you just can't afford a home over 200k. Go back to the Westside and allow those of us who can afford these homes continue to live in peace.
KB's neighborhood in Herff Ranch is experiencing the same problem. They have cheapened the homes so they do not look as nice as the originals.
Our developer attempted to do that in our neighborhood with Main street homes. Guess what? Main street couldn't even sell one lot, now they are out and we are happy again.. for now. It's no secret that lower priced homes often become rentals, especially in newer subdivisions, and all too often many of these renters don't properly maintain their homes and yards. It's the truth. Then later the owners decides he/she wants to stop renting and just sell the property.. cheap. You end up with empty homes with crappy yards that look cheap. This is the worst problem with most new subdivisions.
welcome to san antonio holmes
where developers do whatever they eant, and stick taxpayers with bills. For instance- build a road a cheaply as possible and then 'give' it to the sity so the city can maintain it.
For extra credit - pull the permits for your house wiring etc- and see if an actaul on-site inspection was made...no one actually inspects all the new houses- they just sign off on the permits.
In response to Skeeters’ comments, thanks Michelle, but to add, I also am a resident of Sundance, and you have no right to make an assumption about the people that live here because you don’t know any of us. Maybe you should come visit with us to see the people that live here. We are a very diverse group of people from all walks of life, single people, families, young, old, military, retired, people that wear suits, and also, like myself, those that proudly wear a uniform to work everyday. I purchased a home here for a reason..to have something better for my family now and in the future. However, with what KB is doing to us, that future looks bleak. KB has been very dishonest and has lied to us, especially those that have recently moved here. I have invested a lot in my home since moving here in April to increase its value. Many of us will not retire here, and some day may have to move and try to sell our homes, and we will lose, unless something is done. Also, I wanted to say that the tv news story was a total misrepresentation of what are thoughts are... this and has nothing to do with “class”. We are concerned about the values of our homes. Yes, the schools in the area and living in a better neighborhood influenced many of our decisions in buying here, but that has ABSOLUTELY NOTHING to do with diversity and having a silver spoon in our mouth.
coach pop stop reading the comments then
Point blank, these people messed up by buying a KB Home. Enough said.
The next series of homes should be built with the same quality and "look" as the first, but with less square footage. That will bring the cost down for KB and offer buyers looking for smaller homes a wonderful neighborhood to buy in. SA attracts thousands of Military retirees that do not need a large home any longer, but DO want quality and location. The key to this situation is the homeowner covenants & restrictions for the neighborhood. Good, common sense restrictions that are strictly enforced will keep the "look" clean and appealing, while also giving residents a weapon when any owner lets their property become an eyesore. As with homeowners...renters can be good, or bad. Renters should be made fully aware by the homeowner/landlord of what's expected in the neighborhood they choose to live in. When a "bad" one shows their colors, hit the "owner" in the pocketbook and you can bet you'll see action from them. There's not much more you can do.
To the readers out there who think this is about diversity. Wrong it is about KB not disclosing to us there plans to build lower cost homes. They know in January they where going to build these home. Yet they kept it from us. Also KB is the ones not honoring our purchase or hoa agreement. They are the ones who changed all the rules. Bottom line is we only want our community to stay close to the value KB said it would be. I don't care where you come from. I only care about my home price going down thousands of dollars.
KB has had a bad reputation for a long time...this doesn't surprise me.
This issue has nothing to do with diversity or ability to afford a high-end home. It's about a faulty business practice known as deception. If KB knew of their plans 5-6 mo before some of these homeowners purchased their homes, buyers may have changed their decision. It has everything to do with home values, why would you purchase a home knowing that you are going to lose value because of the builders choices to build smaller homes? It makes perfect business sense but that isn't the issue. If a builder wants to build smaller homes that's fine, just don't do it in a neighborhood that you've already sold homes close to 200k. If someone did buy a $200k home and the next street over is 100k, realistically you just lost 25% of your home value, so your paying $200k on a home that is now worth $150k. Why would you even want to keep paying your mortgage? Renting is great, but it also drives down the values of homes in the neighborhood and not because of the landlord. Think about Bridgewood subdivision, KB built very high end homes surrounded by lower end homes, now people are trying to rent their homes and others have foreclosed and even worse selling homes for $36/sqft!!!! Now try to sell your home in that subdivision and see how close you get to market value for your house. Doesn't work out for homeowners and if you ever want to build equity it will take you years longer. You don't buy a high end home to put up with stuff like this. Look at the big picture and don't be blocked by income or social status, if you can't afford a big home, thats fine but in order to be able to eventually buy your dream home you have to start somewhere and build equity. Because the lower end buyers want to move up, think about the people in the higher end homes who want the same thing but now because of KB are losing that chance.
I am one of the homeowners living in Sundance Trails and I want to clarify and clear up some misconceptions that you all seem to have: 1. We are not against diversity. We have a large amount of diverse families living here. What we are against is the homes (the look, the value, the size). Renters are not bad, but we don't want a rental neighborhood; we want a homeowner neighborhood. 2. For those of you who say we didn't read our CC&R's, think again. Our CC&R's clearly state that these home will have a minimum of a 2-car garage. 3. We understand that times are tough right now for those in the housing industry. However, there are options other than knocking the prices down by over $30,000. How would you like a house built in your neighborhood that was going to lower the value of your house by 15-20%? 4. We are in no way the "silver spoon" type of people. We are all working people, with economy cars, many military families. We are not looking to keep our neighborhood full of entitled people. We just want a safe, nice looking place for our children to grow up. I would invite everyone to come out to look at the difference in our homes. Then look at the homes listed on the KB website and decide if that's what you would want in your neighborhood.
This economy makes businesses like KB make tough choices. These homeowners would be upset if KB left the market or went out of business too, and just left the lots empty... Tough times take tough measures. And just because someone can't afford a $200,000 home, doesn't mean that they will be bad neighbors... I wouldn't be crazy about this happening in my neighborhood either, but there are always two sides to a story.
People in this neighborhood are not worried about their property values, they are worried about dealing with diversity, instead wanting to live next to someone exactly like them, block after block. Lots of folks on the Sundance website commented about moving to the subdivision because of the schools, living in a "better" neighborhood. How about these parents showing these kids diversity, that the folks they will encounter as adults after college will be from all walks of life? I grew up in the West side and graduated from Memorial High School and I have a 4 year degree in Business. My parents taught me to be careful of the company you keep, surrounding me with positive classmates, friends and being ambitious about my future. I think if I grew up in a subdivision such as Sundance, I would have grown up with a silver spoon in mouth, thinking I could buy a house in Sundance straight out of college. The Sundance residents' children will become renters one day. The residents at Sundance are giving renters a bad name. Sometimes it is not the renters fault but the fault of the landlord for making sure that the tenant complies with HOA regulations and keeping the property maintained. If the landlord sees no curtains on the windows, then install mini blinds, make sure to have a lawn schedule for them, include it in the rent, be proactive and maintain the relationship and property with the tenant. I have a co worker who is currently renting a $170,000 home so there are renters in that home price bracket. A business like KB home can do whatever they want, they are owners of the remaining lots, so Sundance residents, deal with it! I can buy a home like yours but I choose not next year May 2009 because I would rather buy a $90k home and spend less on electricity, water, maintenance and save my money for retirement.
I definitely agree with the notion that buying in a new neighborhood is risky. When half the homes are not even built yet, you can only hope for it to end up a certain way. This is a life lesson that many of use learn eventually. The advantage is that the price of the house in new neighborhoods is usually cheaper but that comes with a risk factor. I am sure these will probably drive ajacent house prices down a littlw which sucks but KB is doing what they need to do in order to stay in business.
If you do not read the covanents and Deed restictions, then shame on you. They give you the rules in plan english and they follow those rules. You will be hard pressed to find one CCR in any city that does not protect itself for the down turn. You might want to read them and it is very possible they do not have to put a garage at all. Sounds like they are trying to accomadate as best they can and still survive. I know hindsight is 20/20 but if you had bought in exsisting built out subdivision this would have not been a problem.
It happens on both sides. For years developers have been tearing down old neighborhoods with small homes. It happens one house at a time. They then build monstrous, out of context houses with no yard that destroy the fabric of the community.
Why does it become "ghetto" once the house is priced below the 150's............if you want to live in a protected high class suburb move to The Dominion!!!!!!!
This happend in our community as well and it really sucks!!!
I guess these residents didn't know that the city planning office and city council (and the EN for that matter) are beholden to the big developers. The City doesn't "really" care about homeowners most of the time. That's why Koontz-Mccombs and the like can get away with building monstrosities wherever they want.
DR Horton also has done the same in a few of their additions on the NW side. There is nothing one can do to stop the plans of these large cookie cutter builders. Our neighborhood also had multiple meetings regarding the "Ghetto" end of homes built in a "Premier" area only to be told that we couldn't do anything about that. Sadly, it is buyer beware.
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