Brown Family Communities, one of the largest Phoenix-based homebuilders shut it doors yesterday. Brahm Resnik with Channel 12 News interviewed founder, Dave Brown. (See interview below) I think this to be a very sad story, of a builder who has built over 18,000 homes in the Valley over the last 33 years. Although I do not know Dave Brown personally, I can imagine how devastating this is for him and his family, to see the business they built shut down after so long. Brown Family Communities has enjoyed a strong reputation for building quality homes. My husband & I owned Brown Family home in Ashland Ranch in Gilbert, and it was a terrific home with a fantastic floorplan and features.
Builders have been slashing prices on new homes to decrease inventory with the slowdown of the market. In the interview, Mr. Brown also explains the difficulty obtaining financing in this market, and how it attributed to the closing of his company.
My big question, which was answered in the interview was: “Will buyers lose their earnest deposits for homes that haven’t been completed?” I am impressed with Mr. Brown’s answer, in that he is mailing out over $600,000 back to the customers, which something he is probably not required to do.
This brings up a good point for buyers looking to purchase new homes. With the failure of many homebuilders and with more to come, we always recommend that our clients purchase new and spec homes with large, reputable builders. The Arizona Department of Real Estate now posts builders in trouble on their website, so the public has access to that information. View Here
I saw Mrs. Brown at HomeGoods (my favorite store) early this year, and found it charming that after all of the time they have been in business, she was still choosing all of the furniture for the model homes. The name “Brown FAMILY communities” seems to fit their business practices. I am sad to see them go.
CLICK HERE TO READ THE STORY & VIEW THE INTERVIEW ON AZCENTRAL.COM
For more information about new homebuilders, contact us at 480-892-1171.
