Nightmare for Builder's Dream Home
This year's entry has run into some issues, according to today's Wall Street Journal. The builder, Domanico Custom Homes, has halted construction on the project before completion after a private investor pulled out. Most of the flooring, landscaping and pool are unfinished. The builder has been unable to secure any other financing to finish construction.
The home was "priced" at $3.39 million in August, but is now being offered at $1.8 million, and the builder may go out of business if it can't get a reasonable price. They owe various contractors $400,000 and had already put $800,000 of their own capital into the project.
The lack of access to capital is forcing private builders out of business at a "phenomenal" rate, said Ara Hovnanian, chief executive of the public Hovnanian Enterprises Inc., at an industry conference this week. "It's scary, the number of home builders that are closing their doors," he said.
The International Builders' Show is scheduled for January 19-22 in Las Vegas, hopefully a buyer will be found before then so that the home can be finished. See more pictures of the home at the IBS Showcase.