When K Hov steals equity, everyone loses
What happens when the home you spent good money to remodel has lost its value? Well I guess you deal with it? But what happens when the same house you purchased last year with the upgraded kitchen cabinet package goes on sell for $60,000 less than what you paid for it? Well then you have got a problem. K Hovnanian recently held a deal of the century promotion reducing sales in many markets including Southern California.
“The preliminary results from our ‘Deal of the Century‘ sales promotion exceeded our expectations,” Ara K. Hovnanian, president and chief executive officer of the company, said in a statement. “The high level of traffic we saw in our sales offices and models over the weekend and over the past several weeks convinces us that there are interested buyers in the market today.”
While the quick fix may go towards fixing quarterly results, the trust factor that the home builder will lose will ultimately drive the once revered home builder out of business. More on this story to come.
Written by larrylarr on September 19th, 2007 with
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