This afternoon, I went to the shareholders’ meeting for a publicly-traded, new-homes company. The chairman’s opening remarks were that the board and the officers of the company were focused on maintaining and managing the company’s liquidity.

When the chairman opened up the floor for comments and questions, I raised my hand and expressed concern that one of the company’s major priorities should also be closing homes! I questioned their internet “specials” of $100 in “Green” incentives for every $10,000 spent in upgrades and their version of low interest rates (market interest rates are lower than this company’s “special” rates). Another stockholder questioned why the Board approved executive bonuses when the stock has plummeted. In response to that question, the chairman said the bonuses were justified.

My initial shock at seeing these out-of-touch incentives and responses has grown into disbelief. How can this company be so unrealistic and uncomprehending of today’s market conditions?

In today’s real estate market, homebuilders must be pro-active and realize that it is a “buyers’ market”. This particular company’s stand is that they will negoitate, once a buyer becomes interested. But, if the buyer eliminates a homebuilder by visiting the builder’s website, how can a home builder expect in-person visitors? Or closings?

Does this homebuilder just not get it?

This entry was posted on Thursday, February 5th, 2009 at 9:49 pm and is filed under Atlanta Homes for Sale. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.