Updated 1.2.26

as a home builder coach, I keep dealing with like people in different markets.

 

And they’re like, well how do I price my home? And I said, I just get the number in my head that’s five x whatever their lot prices. And I said, well, what do you see other similar communities, what do you see the average price has. And then they always tell me the price. That’s five times whatever their lot prices every time.

 

And it’s just the math always kind of works out that way. If I have a, $100,000 lot, Brady, I’m not going to put a $250,000 house on it. I’m not going to put a cheap little house on $100,000 lot. I’m just not going to write. Conversely, Ashley, if I could get you can’t get it. But if I could get a $30,000 lot in in your neck of the woods, I’m not going to put an $800,000 house on a $30,000 lot, because probably the houses on the $30,000 lot.

 

You got to knock the wheels off of it when you’re done with the house. So that was fun. There’s you guys are nothing else. Got that was a funny joke today. Home builder coach didn’t get a single laugh. You know, you know what to do when you tell a real joke. Called the trailer, I smirked. I got a smirk. That’s the best I got.

 

I’m just a smirk. Hang on. The house is 500 times the price of just the built. So putting the value at 600. No no no no. Total house price will be 500. Okay. Yeah. By the way, you guys are, walking home last night, I passed by a slice of apple pie, an ice cream sundae, and a lemon cheesecake.

 

And I thought to myself, the streets seem strangely deserted.

 

Did I already tell you you guys have one? No. It’s just. It’s just so good. We were speechless. Anyways. So. Yeah. No, the house cost will be 400,000. Ty to answer your question there. Okay. Yeah. So that’s, And land typically. Okay. So that’s kind of going to be driven now. The other thing I would say is your net price change is going to be it’s a little bit relative, but it’s like Ashley what’s the lowest priced home in the highest priced home in the Brooks ballpark.

 

Just gonna be around 712 and 1.5.

 

So there you go. And you have $115,000 lots, 140, 140. There you go. The math is the math, right. So then it’s like you might typically go up. I would say about 30% on average from the price you start at in the neighborhood, 30 to 40%, because when it gets beyond that, you know, I’ll just say 35% to be kind of in the middle.

 

But when it gets beyond that, think about it this way without a very noted change from one section of the neighborhood to another. You end up in a zone where it’s like I the the guy who’s buying the most expensive home. I don’t want to be near those houses. Those aren’t nice enough for me. Does that make sense?

 

So you create if that spread of the percentage of the net change in price is too big, it ends up like that. Does that make sense? Ty, you can’t have the ghetto in Beverly Hills. Yeah. So to speak. Well, I do now. That’s true. There’s a homeless population issue. So the reason you might be going up in that is like, in a second phase.

 

Might as well. Then there’s phased development. Let home builder coach show you a really good example. Of phased development. So this is a neighborhood here locally for us that is very well that very well done phased development. They have a lot of amenities. We built like half the houses in this neighborhood. Not really, but probably 40% of a lot of those.

 

What are those range in down there like 8 to 1 three. No in this neighborhood. So that’s the part of it. Like there’s everything in this neighborhood. So and that’s what I mean by phased development. This is a true master plan community. So home builder coach will just give you kind of an overview. These are all different sections. Right. This is this is like to the nth degree.

 

And the guy who developed this is a friend of mine. And he’s a really good developer. And, this is a generational community. I lived in this neighborhood for a while. But they’re really good at phasing their development so that you have different sections, right? So this section right here is called, well, Stone. Well, stone is gated and it’s like 500 to 700,000.

 

Right. This section right over here is Spring Hill. And it’s not gated but it’s kind of separated. You can see there’s like a little bit of like, a pond here, and there’s a one of the golf holes separating off this section here. And these were like 350 to 475. Right. So I have a different buyer buying 350 to 475 than I have buying 5 to 700 right now.

 

Right here in Artesia. Right here. This is Artesia Estates. This is smaller. Notice the volume size of it. It’s smaller. You can see that these lots are a little bit smaller than these. Lots are these lots are bigger. These are like 1.5 to 3 million right. Right here. And then you can see that these are bigger than both of these.

 

But they’re not quite as big as these lots. And these are like 800 to 1.1, 1.2. Does that make sense? I love that. Are you following me? And then if I go over here, this is called Creekside Villas. Creekside villas is 55 plus. Empty nester, zero lot line gated. We do 100% of the maintenance on your home. We do all your landscaping, all of your lawn mowing.

 

If a bush dies in your front yard, we replace it like it’s lock and leave. Right, tie. You’ve got a lock and leave neighborhood. So it’s for those people who are like, I just want a house and I travel in the winter time, I’m. I go to Arizona. Whatever. That’s this product right here and then. And these are luxury.

 

So they’re 600 to 7 ish. This neighborhood here, we built almost all of this neighborhood. This is next to it. And that’s 350 to 375 to like 500. And that’s because this part right here, Spring Hill, sold out. This was the next phase they did that was that same product line. Is that making sense to you guys? Yeah.

 

What question do you have. Just curious on a development like this. Obviously, you know HOA dues. Home builder coach would assume there’s a membership for golf and things like that. Right? So does the developer collect those dues once they develop a community like this? Really? So they collect the dues. The dues are a different amount in every section of the neighborhood.

 

That’s what my next question was. So yeah, so like the empty nesters who have the 55 plus luxury empty nester product, they have a clubhouse that’s just for them. Nobody else can use it. There is a clubhouse for the whole neighborhood that they have their own clubhouse. That it’s gated. So you have the cost of the gate.

 

You have the cost of the clubhouse. They mow their lawns, shovel their snow, do all their landscaping, pay for all the watering of all their lawns. It’s all included in their HOA dues. So it’s like I think it’s 410 a month, something like that for their HOA dues. You go into the other section that doesn’t have any of that stuff and it’s like 125 a month or no, that sorry, that one’s like 350 a year.

 

350 a year. So it’s like very different depending on each section. You know, here’s Artesia, Artesia Estates. This is the really high end section. This is the part we built a ton of houses in here. This is the luxury empty nester, right. So your product is very determined based. Any other developer developed it. It’s based on a lot of those things.

 

Am I answering your question, Ty? Is this helping? Yeah. Yeah. One other thing. So if we are the developer, let’s shift to that. Then it’s very much about.

 

Oops.

What is the cost? What does the salesperson say? The customer is asking for? That’s a big part of, like, what we’re going to do. But that is with a grain of salt or a grain of salt because it’s what will the city let me build. Right. And what home builder coach means by that is size. Look.

 

Lot size materials.