Chandler Homeowners Block Builder from Building Cheaper Homes

February 20, 2009 at 12:06 pm Leave a comment

A Feb. 18, 2009, story from The Chandler Republic tells about homeowners in Fulton Ranch, an affluent community in South Chandler, at least temporarily stopping the builder from building and selling homes that would be significantly lower in price than their homes.

The current homeowners argue that Fulton Homes did not fully notify them of such changes about their plans and that the low-priced homes will devalue the half-million- to million-dollar priced homes they were sold earlier. These homeowners successfully convinced Chandler’s City Council to stop the construction of more affordable homes to finish off the development until further hearings.

Truthfully, the situation that these Fulton Ranch homeowners are facing is no different than those in any other new developments in Metro Phoenix. The only thing that separates them from the others is that they are rich and therefore, have more power. They may have gotten a preliminary nod from the City Council, but that does not mean that their argument of declining home values will stand — something the mayor hinted at, according to the paper’s coverage. I don’t think that Fulton Homes guaranteed a minimum sale price for homes in the community to previous buyers, regardless of the market at the time.

Also, these homeowners don’t have to dwell on home values NOW if they are not selling NOW. They would only be in danger of potentially losing money when and if they sold their homes in a down market.

The homeowners would actually be better off completing the development rather than the builder walking away, leaving the current residents there to take care of the HOA dues and the condition of the community themselves. If Fulton Homes left, it would mean raising the HOA dues of current homeowners to make up for unoccupied homes and unbuilt lots. Therefore, their request to stop the builder from selling low-priced homes in the community may hurt them more than help them.

For the full text of the above-mentioned article, visit http://www.azcentral.com/news/articles/2009/02/13/20090213cr-fulton0218.htm.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Phoenix Real Estate. Tags: , , , , , , .

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