Toll Brothers Sounds Off on 'Ceaseless' Recession Talk

February 27, 2008 RSS Feed Print
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Endless recession talk is apparently cramping Toll Brothers' profits. According to CEO Robert Toll in the company's first-quarter earnings release: "Ceaseless talk of a recession continues to dampen the mood of consumers, in general, whether or not a recession actually occurs." He added, "For home buyers, we believe this drumbeat, coupled with concerns over mortgages, the direction of home prices, and foreclosures, has kept pent-up demand on the sidelines." Toll Brothers, the country's largest luxury home builder, posted a loss of $96 million, or 61 cents a share, in its fiscal first quarter.

Are we too gloomy on the economy? Money manager and Forbes columnist Ken Fisher might agree with Toll.

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recession,
housing market,
economy

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Toll Brothers is a completely dishonest and greedy company and they discriminate against protected classes as well in the buying process.

Did you see the news, i.e., CEO Toll is asking for a bail out yet gave himself a $42,000,000 bonus for 1 year. He is on the list with AID, for getting one of the highest bonuses of all companies, the same year the company LOST money?

When I went to look on their opening day they were charging every 3rd person in line $10,000 more than the people in front FOR THE SAME MODEL AND LOT! Yes, they would say 1-2-3, oh you are going to pay $10,000 more than the people standing in the line in front.

A couple months later, the people on their buy list that sold their homes to remove contingencies and how qualified with Toll's lender had a big surprise. They called them in the office, sat them down and said "You are going to have to enter a bid for the house. We are accepting the highest bidder for your house". This was unethical. They didn't prove that anyone else was bidding. These were on houses buyers had contracted for and the house was supposed to be reserved for them alone! But the Toll Brothers contract had 'fine printing' that allowed them to raise the price until a contract was signed.

Toll Brothers is the greediest builder of them all, and there are alot of greedy builders out there.

I saw potential buyers walk in the office and ask what was for sale and they would say "We are sold out". Then other buyers would come in and they would tell them about new phases that would become available and they would sit them in the office.

I also walked several new Toll Brother developments nearby to see what the new homeowners thought of their Toll Brothers houses. I didn't hear one positive thing. They all said they were disappointed with the quality and customer service.

May invited me in and showed me problems. The most significant thing I noticed was how boxy and plain the homes looked when you strip away the hundreds of thousands of dollars in upgrades Toll Brothers puts in its model homes. The homes were big but looked like KB homes without the frills.

BEWARE OF TOLL BROTHERS! It's all bad news when you search for the truth.

Harry of CA 12:30PM April 04, 2009

Let us add overbuilding by every developer and his brother, plus the considerable inflation, denied by the government, but much felt by the wage earner. Add in the greed-driven hyper increase of new housing for the final kiss of death. That the developers unjustly increased selling prices is proven by the huge price drops for recent new homes, often even larger and for much less than the same home built adjacently only last year. These developers are not selling these homes at a loss, only at less profit because they cannot currently get more. Everything has a cost, even greed.

Jon Elkin of AZ 2:44PM February 28, 2008

Let us add overbuilding by every developer and his brother, plus the considerable inflation, denied by the government, but much felt by the wage earner. Add in the greed-driven hyper increase of new housing for the final kiss of death. That the developers unjustly increased selling prices is proven by the huge price drops for recent new homes, often even larger and for much less than the same home built adjacently only last year. These developers are not selling these homes at a loss, oly at less profit because they cannot currently get more. Everything has a cost, even greed.

Jon Elkin of AZ 2:44PM February 28, 2008

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Katy Marquardt came to U.S. News from Kiplinger's Personal Finance magazine, where she profiled rising stars in the mutual-fund world and wrote about investing in stocks and racehorses. Katy hails from Abilene, Texas, and graduated from the University of Texas-Austin.

Kirk Shinkle is a senior editor at U.S. News. Formerly, he covered business and economics on both coasts for Investor's Business Daily. A native of the Montana-Texas corridor, he currently resides in the wilds of west Brooklyn. His checkered online evolution looks like this: Friendster, still (!). MySpace, no. Facebook, yes. He blogs here, Twitters occasionally, and has yet to Tumblr.

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