Updated 11.19.25

So I would actually write it down 351 900 or 351 500 minus three three three 900. Every time I have a customer shopping two neighborhoods, I would do this 100% of the time every time. How long did that take? A couple seconds, 17,600. I would just do that when you have a customer looking between two neighborhoods, right? And now what is going to be one of the other big differences, though?

 

Was this client wanting to do a walk out right?

 

Where are they? I mean I don’t know. Yeah. Okay. So I would also go open this up. Let me come in here. I want to go back here. Oops. Here. And I would go to Pleasant Hill.

 

I want to live on a hill that’s pleasant. That’s what I want. I would find one of the basement home sites. I don’t know where they are. Let’s see these ones along here. I have no idea which one they’re looking at. 40, 41, 42. In there are basements. I would come down here, you know, 40, 41, 42 or 1000 ish.

 

Looks like 15, 16, 17, 18.

 

16 and 17 are basements. These are -1000. Right. So I would just kind of look and see, like, what’s the difference. So it’s a plus 3000 homes, a premium on some of them. And in Full Creek and it’s a -1000. Some of them in, in pleasant Hill, that’s another four grand. So it was 17,600 plus another 4000 in premiums.

 

Right. This doesn’t take very long to look at this, but this is the homework you have to do when you have a client. Like you got to go through this process.

 

And then you got to go in and you got to look at some of these other things, right.

 

Oops. Gone too far. You know, if there’s any other major things like maybe I’m going to unfinished the basement, that should be the same. And both are pretty darn close.

 

The answer to why is the price difference is different is always going to be because the cost is different. That’s why.

 

Okay. That’s it. I mean, it’s not we’re not trying to hide anything. The cost is different. Costs less in this neighborhood to build it than it does in the neighborhood for the reasons of the land costs, something different. Do locations is Beverly Hills different than Compton? Yes. Is. You know, Beverly Hills different than Springfield, Missouri? Yes. Cost is different.

 

Cost of labor is different, right? Do you pay people more money to do construction in one area than another? Maybe. Maybe I use a different framer in one neighborhood than another electrician. Or maybe there’s some different things that are required by the covenants of the neighborhood that have to be in a house in this neighborhood that do not have to be in a house in this neighborhood, because the covenants are different.

 

Right.

 

This is an electric water heater, an electric Hvac system. Those are different costs than a gas one.

 

In the other neighborhood.

 

Is this making sense? Sense? Does that help you guys understand that better? Sure. Yeah. Yeah. For sure. What questions am I not making clear? What questions do you guys have honestly on that? I think I got it.

 

Okay.

 

I guess I would, I guess I don’t know if anybody here knows, but I wonder how like how that conversation start, like how they got down that road initially. Well yeah. Well she had a real. Go ahead. She had just said that, the homes were the same price no matter where you built, which never in a way the like.

Yeah. I mean, it was just wrong. And like I said, I told her just to own it and move forward, like, there’s no reason to get hung up on it. Just just move forward. Yeah, I know for sure. I was just trying to better understand how to avoid, you know, that road, but that makes sense. That’s that makes perfect sense.

 

Home builder coach would  just know in the back of your mind and sorry. Now go ahead, buddy. I was just going to say I would just keep in the back and remind, like Aaron said, that, one, it’s in our contract. The home site disclaimer that all home sites are unique, none are the same. And there’s a reason for that.

 

And the second thing is that depending on where you build, the costs are different. And just know that going forward, like they’re going to be similar, I mean, somewhat similar, but there is going to be a discrepancy in there. So but she just didn’t she just didn’t know because she hasn’t seen, you know, Bolivar or she hasn’t seen Marksville.

 

You know, there’s just differences in prices. Yep. Yep. Exactly. So, you know, there’s a lot of things that can make homes, sites different costs as well. Right? It can be a different size, like I pointed out in those two home sites. Right? I mean, even in Fall Creek, like I don’t see the dimensions on here in Jordan. Do we, not have a fall creek that has home site dimensions because their map that they’re using has no dimensions of home sites?

 

Not if it wasn’t provided, but let home builder coach see. Can you double check that? Because I feel like that will hamstring them a little bit. So like, for example, you guys, I’m just looking at on this bailiwick drive, which I don’t believe it’s actually bale wick. I think it’s misspelled and it’s supposed to be bailiwick, but, if I really zoom in on this, do you see how this line that’s separating these home sites starts to curve down right here?

 

Yeah. And this starts to curve down. I’m just curious if the dimension of depth here is identically the same. I don’t know if it is. They all say 0.24 acres, which, you know, leads me to believe maybe they are the same, but they might be slightly different. And then these are definitely bigger. .36. That should have a big premium on it because it’s literally half again it is 50% more homesite than 35.

 

You know what I mean. So like that should have a higher value to it right. That should have a premium on it. So and then so these are all the reasons why home sites will have premiums on them. Right now. But we’re never going to get into telling the customer what the price of the land is.

 

That should not be a part of the discussion. If they ask, how much is the home site in this neighborhood? My response would be, I have no idea. It’s included in the average cost of a home site in this neighborhood is included in the base price of the home, and I don’t know what it is. You don’t ever want to get into a discussion of how much that home site costs.

 

In my opinion as a home builder coach, however, it is a deal blower upper conversation. Do not discuss it with clients. Now in some unique situations, you can’t get away from it because there’s other builders quoting it to people. So sometimes you’re stuck in that and it kind of sucks, but it happens. But I would try to stay out of that conversation every single time.

 

Makes sense. So.

 

There’s also, just let me throw out one other thing about this. There’s also, perceived value.

Differences.

 

So let me give you an example. If home builder coach has  a home site that backs up two railroad tracks and in the same neighborhood on the other side of the neighborhood, I have a home site that’s the exact same size. It’s also a slab home site, just like the one that backs up to the railroad tracks. Everything else is identical between the two, but the one over here on the other side of the neighborhood backs up to a wooded preserve with no railroad tracks.

 

Which one has a higher perceived value?

 

Somebody answer my question. The private one. Yeah. Yes. The remove the, What would you rather back up to? Railroad tracks or a wooded preserve? I guess it depends on whether you have a car, you know, or if you’re a hobo. Hobos being closer to the train you currently really are doing, like a documentary on hobos. And this is great, you know, for you to live there.

 

Maybe. But outside of that, probably not. I mean, as a home builder coach, every single time that I am talking to a builder, I am explaining to them that there are multiple ways to value properties right? So you want to be very strategic as a home builder coach. You want to be strategic in how you value your properties, right?

 

If I’ve got one that’s, you know, just like we looked at here, this one right here, it says .36 acres. Do you see that 0.06 all of the rest of these on this road are 0.23 or 0.24. This one is 50% more. Does that mean I should have a value that’s 50% more? Maybe. Should it be higher or lower?

 

Higher. Sure.