Providing New Construction Buyers with "Options" Without the Overwhelm

[Devin James]

We haven't offered any “options” to buyers because it creates a lot to manage during the build process. But we’re starting to realize that not all upgrades have to be complicated.

There are a handful of simple, affordable upgrades we can offer while under contract that add real value for buyers—without adding major complexity for us.

Things like:

- Screened lanais

- Upgraded light fixtures

We’re exploring the idea of having a model home that includes these upgrades, and giving buyers the option to add them in for an additional cost. Clean. Simple. Valuable.

[Jay Hinrichs]

Quote from @Devin James:

Quote from @Clayton Silva:

Do you guys utilize forward commitments?  Can be a great way to attract a larger buyer pool and offload inventory more quickly.  Right now, buyers are just struggling to find value and affordability and forward commitments can be the key to creating those win wins for developers and buyers.

 We have not utilized these with our homes - im sure once we get to a certain scale we will.

Devin we just had this conversation yesterday with another Broker here in Oregon for our 90 home project.. We in fact allowed all sorts of custom items pretty much anything within reason. And this other broker simply stated thats why you guys have sold as fast as you did AND why you averaged 50 to 100k per house higher in price than your direct across the street competition ( Lennar) and some models 200 to 250k higher price) More of a Toll Brother approach. Had we just set up like everyone else sales would have been much slower and our profit market 50% or more less as we simply cant build for the cost of a Lennar so no way to go head to head with those guys..

Ya its a pain and you mess up occasionally you know client said they were to get this or that and sub missed it.. But hey I will take some greif and pocket and extra 100k plus any day.

And Its my wife who did it. Her design concepts her coming up with what we can do .. the buyers wives you know love that crap.. Pintrist.. so many builders are male and just dont get it.

This also created a situation were 90% of all our homes were presold of course.. and closed within 5 days of CO  so we had no carrying costs for houses sitting there waiting to sell and you know if you have debt that adds up  .. Mtg payment  tax's insurance utls etc etc you carry a house a month and it can cost to 5 to 7k in pure profit. you carry it 3 months and you start to feel a big profit suck.