Yesterday I spoke with a quality Dallas homebuilder who asked to remain anonymous. Here are the implications of what a guy like Bob Perry has done, he said: ruin it for the rest of the lot.

As I reported, the Texas Residential Construction Commission (TRCC) has been dismantled, and some home builders think the reason why may be Bob Perry:

“I think his heavy handed efforts were one of the main reasons the TRCC went away – it was perceived that that agency was nothing more than a shell for the big builders like Perry. What I really worry about is what kind of damage this does to the rest of us home builders – if we’re perceived as being flush with cash, then what’s to stop John and Jane Homebuyer from firing up the trial lawyers and suing at the first sign of a problem? With the TRCC gone, the potential for that is significant. That’s not to say that people shouldn’t be able to exercise their rights – they clearly should – but I foresee that we, as an industry, are going to face a coming onslaught of blackmail lawsuits. At the end of the day, I have to ask myself, what would it have cost Perry Homes to fix the problem in that $250,000 house?? At the *worst* they could have bought it back at full price.  I don’t know any particulars of the case and whether the demands by the homeowners were unreasonable or if Perry just refused to do what they should have done, but it seems to me that fixing the problem would have been a lot less expensive!”

Totally!

Anthony Holm, a spokesman for Perry Homes, told the Fort Worth Star Telegram the award to Robert and Jane Cull of Mansfield is “equivalent to every single resident in Texas depositing $2 into the lawyer’s bank account”. He said it would be appealed.

The Star Telegram also says Perry has

“given millions of dollars to state and federal candidates. He won the 5-4 Supreme Court ruling in May 2008 to overturn the arbitration award. The nine judges on the all-Republican panel, who overturned two lower-court rulings, had each received contributions totaling more than $260,000 from Perry’s family.”

Gosh, $260,000 is about the price of the Cull’s home.

Perry H0mes reported revenues of $420 million in 2002, and I’m sure made way more than that during the boom. So I don’t get it. Is this all about Bob Perry’s ego? Even if the Culls were buyers from hell who just could not be pleased no matter what, how much easier AND CHEAPER!!!!!!! would it have been for this mega million dollar company to just make them happy?

Republicans or Democrats, you want to talk about saving and creating jobs? Then stop the insanity. I agree that lawsuit abuse is killing us. So maybe the answer is to first kill the egos.

Update: Anyone with trees on their property is in trouble. My yard man lives in Duncanville and has a major tree down. I just heard parts of Forest Lane were closed due to a tree falling right in the street. I’m told Royal Crest looks like a “war zone” . The branch pictured here? Down.

image of house

This is a prototype home about to be built down the street from me. I guess someone in our ‘hood did not like the blue roof, as they wrote “are u kidding me?” on the stone. (Yes, they did.) Today when I went to snap a pic, the writing had been wiped off. I have a feeling the taste Nazis will re-appear. In the meantime, which do you like best?

They just drink it.

Next thing you know, people will be filling their swimming pools.

Note: I am seeking builder horror stories from consumers, so if you have any, please send them my way at candye@dmagazine.com.

“Our biggest obstacle is getting financing,” Ron Connally, president of the Texas Association of Homebuilders said. “We very well could wake up and see shortages in the housing market by the time this thing sorts itself out.”

Wow, wouldn’t that be something. Still keep in mind that loose-goosey lending got us into this mess. And some builders whisper they don’t think they’ll ever do another spec home, when you have to have 20 to 40% equity tied in it. Many do say the $8000 tax credit for first time home buyers is getting us out at least with the home buying newbies. But… “at least three local builders (Arlington-based Wall Homes, Plano-based Sotherby Homes and Irving-based Choice Homes) have either closed or filed for bankruptcy in the past six months. There are countless numbers of unfinished community developments by these and other builders scattered throughout Dallas, Collin and Tarrant counties.” Ditto that with unoccupied condominiums. Still, was talking to a Title Company exec last night who reminded me of Las Colinas in the late ’80s — we thought it was a ghost town. Las Colinas, he told me, is thriving today. All it takes is 20 years!

Don’t tell anyone.