America's 2nd largest home builder The Lennar Corporation said on Monday that it would merge with CalAtlantic Group for a deal settling in around $9.3 billion. The merger will create a powerhouse in the home building sector and push Lennar into the #1
According to the Denver Business Journal
, Lennar is currently the second largest home builder
in Colorado and CalAtlantic the 3rd. With the merger, Lennar will be the largest home builder in Colorado and the entire nation. The merger is expected to start in early 2018
What does this mean for your average home buyer? Not much for now. Both builders have earned mostly positive sentiment from the general public. In my opinion, they are both what I call "Level 2" home builders. Level 2 is your average quality national
home builder. You get what you pay for here. I've had some clients with good and bad experiences with both. I rank them high on my Level 2 builder list because of there attention to detail and build quality. I'd say 4 out of 5 stars. Again this is a Level
2 builder. Level 1 is your high end or custom home builder, and Level 3 builders are what most people want to avoid all together.
So what is a Level 2 builder exactly? Level 2 builders typically employ cheap laborers with lower skills and experience. These builders will typically use cheaper building materials to construct the home as well. A useful car company analogy would be
to say Level 2 homes are comparable to Chevrolet cars, where as Level 1 homes are comparable to Mercedes-Benz.
Time will tell whether this merger increases or decreases the build quality and customer service of both companies. To search for new homes currently under construction in Colorado please follow this link Click Here