Carmel Real Estate News, Indianapolis New Homes
Less than 24 hours after the announcement that Davis Homes is shutting down, CEO Brad Davis has revealed that he plans to begin building custom and semi-custom homes before the end of the year.
WOW! That is either really gutsy or really stupid…or both.
I am not sure but it seems that perhaps consumer confidence in the Davis name may still be shaky on the heels of running the previous company into the ground. Despite the 2-10 buyer’s warranty they, and every other builder, provide there will undoubtedly be some disgruntled homeowners telling all of their friends about how much Davis Homes sucks. If it were me, I think I might have opted for a less bold move; maybe a silent partner in a homebuilding company or something.
What do you think? Is this guy just totally reckless or could this be a stroke of genius to clear his debts and start over?
Related Links:
Date: Friday, July, 25th 2008 @ 09:37:38 AMViews: 469
This blog entry currently has 20 comments posted.
Mike Taylor
Jenna, as sad as it is I bet he will have no problem mustering up employees to work for him. The new home industry has been hit hard and there are many people out of work that would pounce at the opportunity.
As far as who would buy from him, I don't know. I certainly think people are going to be leery. There are just too many other option out there to take any sort of gamble.
Posted on 2008-07-25 10:18:34
insider
im sure the on your lot houses they have sold over the past several months will get him started.brad always wanted to build custom not tract homes.but he went under doing that before.
Posted on 2008-07-26 08:23:42
Joey Martini
Well I think that there is a chance he can clear all his debts and start over. It's never too late to find another chance in life. You need to take risks in order to succeed, and giving up is not the answer.
Posted on 2008-07-26 17:42:35
Ki
Maybe he is hoping people will remember the "Davis" brand name but will have not hear of recent bankruptcy news. Personally it would seem that picking a new name might be a safer bet. But yeah I would not buy a home from a company just coming out of bankruptcy.
Posted on 2008-07-28 00:16:40
RF
Wow Mike...did not know of that announcement. I've had several friends work at Davis over the years but never heard of those kind of plans. The first thing I thought of when I read your comment was "what trade partners will work for Davis?" From what I gather from my friends that worked there...trade partners were not being paid on time which was resulting in customers' homes not being constructed on time or at all. Seems like an odd time to begin a business because all builders are fighting for each and every buyer and margins on those homes are skinny at best.
Posted on 2008-08-05 18:22:58
Mike Taylor
Yeah, what trade partners will work for him, who will buy from him, etc. I am guessing any vendor that deals with him would be on COD basis for a while.
Posted on 2008-08-05 20:09:34
insider
the people that were working with davis when he shut down will go right back.and they were not trade partners.those guys left six or eight months ago when they decided to quit paying fairly and on time.
Posted on 2008-08-06 06:24:49
Rob Wagoner
It is not such a bad plan. He can capitalize on the family name and eliminate all of the unwanted overhead. In the current and foreseeable future cutting costs is the only way to survive. A builder with low or no overhead can build just a few homes a year an be profitable. We building industry insiders forget that most of the public is only interested in us while they are looking at a new home. Four months from now oil prices will have gone up and down, circumstances regarding the war will change, a new president will have been elected, the economy will have changed, interest rates will have risen or fell, and very few people looking at a new home at that time will remember anything about the Davis bankruptcy. They will only know that they have heard the name before. I wish Mr. Davis much luck and salute him for his bold move.
Posted on 2008-08-07 15:14:35
Jim Johnson CRS
I enjoy following your blog! The Bend Oregon real estate market continues to be slow. It looks like a good time to buy in your area.
Posted on 2008-08-07 23:02:30
Jerry
Sounds kinda strange to me....I would think people would be hesitant to buy a custom home from me when I couldn't sell the tract homes. Guess we'll see what happens.
Posted on 2008-08-16 19:55:31
insider
thats the part that makes no sense.they were selling more tract homes than most of the national guys why they decided to go with the custom homes made no sense at all.best homes were very well built and very affordable then someone decided to take all control out of the hands of the supers you needed a vpo to move a switch 2 inches they started making people come to the design center at the office which was way out of the way for most people on the most congested side of town.the people running it were not trained properly and run you through then run you out.my first best home was a very pleasant experience start to finish my second one was a constant pain.they took the fun out of building for there own people and the homeowners.i recieved a flyer in the mail today from westport homes in it they say you can meet at the model or your home as its being built.i think they are learning from other peoples mistakes. davis was keeping the homeowners locked out to avoid having to answer questions and cover up problems.i have heard that they intend start building tract homes again next year when the economy gets rolling again.hopefuly people will remember the good tract builders that didnt bail out on there homeowners and the hundreds of people that were impacted by there careless management and poor judgement.the funny thing is they didnt lose a dime and the way they shut down they can probably reopen as davis or best again and start where they left off. DEBT FREE
Posted on 2008-08-19 16:50:35
Melissa
I got a good chuckle out of this one. I sold new homes for Davis for 8 years and then a custom builder for 3 until I "retired" (just before the housing market went to heck...good timing) to stay at home with my son.
Personally, it is sad for me to see them out of business. I feel bad for a dream that was sometimes more important to their employees then I felt was to them. Many of us really believed in that company and their history. I called this in 2001 when I quit. (me and 20+ other Davis salespeople) They were changing back to make themselves 1) indistinguishable from other vinyl box builders 2) ending trusted sub relationships and 3) not realizing their biggest asset.....their people and morale. It was time to go.
However, everybody on here acts like this is UNIQUE. Spare me. The post above mine mentions praise to Westport Homes. DUDE, that is old Crossman money!!!! These guys build companies, run them into the ground, and cash out and start over ALL THE time. Paul Shoopman has Dura Builders, sells it to KB, KB has a gooseegg that fails, and now Paul's brave enough to be back in business under his name! Geesh. Then you have the old Trinity Homes.....pretty decent homes, sold out to Crossman, now homes by John McKenzie is part of that ownership returned. I could name probably 5 or 6 more similar incidents and now that I think about it...........before we start dogging the industry.....it happens in other industries as well. Bankruptcy, reorganization, resizing, downsizing, etc etc. New name, stock transfers, etc. Is it ever in the mind of good consumer relations or customer service.............rarely. Mostly at the altar of the almighty dollar. Businesses are in it to win it and make money.
And to criticize the bankruptcy.......pullease.....how many personal folks have run their debt to the max, gambling on no crisis in their forseeable future and then had to eat dirt and file? Short of a crystal ball, people make mistakes. Some chronically.
Okay, off my soapbox.
Posted on 2008-09-11 08:50:40
Mike Taylor
Melissa - You make some good points, this has happened many times over in this industry and in many others and I am quite sure it will happen again.
Posted on 2008-09-11 12:11:41
Rob Wagoner
SMACK!
Well said Melissa.
Give that girl a "Hurumph" everyone
Posted on 2008-09-11 12:19:40
insider
well at least westport has the nuggets to stick it out unlike davis taking the money and running.and from the homeowners i have been working with i would say the 2-10 warranty is a joke if you have a davis home i would not brag when you go to sell.and where did you read they filed bankruptcy i was told they were going to a year ago but i dont believe they have?and yes your right it is old money but it is here supporting our economy.SMACK
Posted on 2008-09-13 06:06:12
Melissa
Rob Wagoner? Hi, there....me....Melissa Roark. i still talk to Paula on occasion. Nice to see your name. All take care! Oh, and insider.........I guess I should clarify...the bankruptcy comment was in response to someone else above...can't remember who. Davis didn't file, to my knowledge.
Posted on 2008-09-14 22:47:38
Joe
Brad Davis is a drunk! He can't stay out of the bar long enough to make any type of educated or sober business decision! Thus, the reason that after he bought the brains in the family his brothers) the business went UNDER! Nice job - time to hang up your court side Pacer tickets and your Colts Season tickets!
Posted on 2008-10-02 10:46:31
Silent
I dated Brad Davis for a brief period 
! Not only did he have a drinking problem which caused him to drag into work late into the afternoon - he bitched about his brothers all of the time. Like the above comment from Joe, Brad thought he knew more than his brothers (when yes, his brothers were definately more educated, professional and more involved in the business). Brad was always trying to find a way to run his brothers out of the business. Funny how after Brad bought his brothers out of the business - the business failed! I guess if he treated the business like he treated his girlfriends - he was probably drunk, psycho and abusive at work too!!!
Posted on 2008-10-22 09:48:20
insider
while what you all say about brad may or may not be true davis homes was well on the way out before he took over the idea was for him to take the hit instead of mike i believe. seems like it worked.
Posted on 2008-10-28 07:39:43
Jenna
Who would work for him ? And better yet who would buy from him ? Maybe the People who were left there until the day they closed maybe they got a good send off package because most of the ones he let go after working and being loyal employees didn't!
Posted on 2008-07-25 09:57:13