By Larry Hotz, All Denver Real Estate
In a May 28 memo addressed to all “Trade Partners”, Beazer homes, 
a national home builder with developments here in Denver, has announced it will close its Colorado division. The effective date is October 31, 2008.
We received a copy of the memo which states that most land development activities will cease now and by September all models and sales operations will be closed. However, Beazer will complete all houses and town homes that have been started. It will not start to build any new units.
The memo notes that Beazer intends to pay all of its bills and honor all warranty obligations even beyond the October closing date. It notes that there will be reductions in workforces as the division winds down. They note that they intend to maintain all current production schedules to complete the work underway.
Beazer had purchased its division here from local builder, Sanford Homes, some eight years ago. Sanford had developed such popular communities as Homestead, Homestead Farm, Governor’s Ranch and The Farm in Arapahoe County. Since the acquisition, Beazer continued to develop some of these communities and others in the Denver metropolitan area as well as in Colorado Springs.
Sanford had enjoyed the reputation of building “Leave-It-To-Beaver homes”. They were traditional floor plans without contemporary frills. When Beazer took over, the floor plans slowly evolved into more contemporary plans. I had several buyers who specifically did not buy new homes just because of the floor plans.
Beazer also acquired land on the outskirts of the Denver metropolitan area. Some of these communities failed to sell as well as some of the older, closer-in communities. As a result, the Sanford communities which had also appreciated well were followed by new Beazer communities which enjoyed little if any home appreciation.
Personally, I don’t think that this event necessarily foreshadows any other new home builders closing down in the Denver metropolitan area. Certainly home sales for new homes have slowed along with resales.
Of course, in this real estate market anything is possible. But in the long run it may be good to have a little less competition in the new home market. Obviously, that was Beazer’s conclusion. The only question remaining is how low will they go in discounting their current inventory. Most buyers would benefit from having a savvy Buyer’s Broker negotiate the best possible deal for them.
11 Comments
This makes me wonder what the other home builders in the area will do to be competitive in the market? It will be interesting to see in the coming months.
Beazer hasn’t been doing to well here in Las Vegas the last several months. I wonder if they’ll pull out from here as well.
Good information,believe it is better to buy resale than new in this market. In northern colo, builder closed doors and left customers holding unfinished homes.
Very good information! but for me it’s better to buy new than resale in the market. Sorry martin!
Several folks have asked if I was sure Beazer is leaving Colorado. I have always had to answer that I am not sure. I just found the memo that says they are leaving. But, now Beazer has confirmed the story.
http://www.builderonline.com/business/beazer-leaving-colorado.aspx?cid=BLDR080604002
The last thing you need is more homes that are substandard in construction and quality. Consider yourselves lucky.
Although Sanford Homes had a very traditional design which didn’t appeal to the contemporary buyer, they also maintained traditional quality and high building standards. Their construction standards and quality were unmatched in the new home industry. Ask real estate agents that have been in the business longer than the past decade and they will agree. Driving through Sanford’s older neighborhoods shows you how well their homes were built and their neighborhoods were designed. You see the difference in their resale values as well.
Very nice information, I’ve heard that Beazer has suffered from financial crisis.
Is there a denver colorado contact? PLEASE send us the closest contact for us. ASAP. Thanks. Tom Koepke
Were you able to get a contact? If so, could you share it?
We cannot find a Beazer contact left in Colorado. I suggest you contact their national headquarters to ask. They pulled out very quickly after shutting down operations. It’s too bad because they bought such a trusted, legacy builder (Sanford Homes) in Denver shortly before closing shop.
Good Luck!