Elite 20 Builder Meeting: Feedback From Shana
Elite 20 Builder Meeting . So we have elite builders, Elite 20 builder meeting that you had the other day. And this is part two of it. You had had great insights that you’re bringing up. The other day we did.
Elite 20 is a network group that I belong to, and it was great. We had three builders come in from Highland traditions and American legend, and we had a great discussion with them. So we touched on pricing and how that’s, you know, gone up and and all of that.
But I want to tell you a couple of things to look out for. If you have somebody building a home. Yeah, this could be catastrophic. Ok? So they some of the builders are putting into their contracts these escalation clauses. So the escalation clause just says that by the time your home is completed, we could basically raise the price.
So if you have someone that is looking or you have somebody that’s under contract now, hopefully you guys went through that contract to understand, you know, some of these things. I know the appraisal is something that we all know that regardless of appraisal, you’re responsible, right?
But the escalation clause? I mean, that’s crazy. So you almost have to know in the beginning, what’s your situation? Are you approved? How much higher can I go without having a problem right to be in the safe zone? So I know Highland traditions and American legend does not do the escalation clauses.
I’m a huge fan of all three of them. They, you know, we talked about it before. They support us greatly. They are really good to realtors and we should in turn be great to them. You know, having these strong partners in the market, especially when it’s super challenging like this, is really important.
So, so yeah. So you want to watch out for the escalation clauses buyers right now who say, You know what, I don’t want to take a year to build, what do I do? I’m going to just wait. Well, I think you, as a professional, not being super salesy should really talk to them.
And I like to explain facts what has happened in the past, so the people who have waited and are now ready? Well, the prices have gone up. So my advice to when I hear that question like, should I wait? I don’t want to be in multiple offers. I don’t want to do know, wait and have my bill delayed. I’m just going to wait for things to calm down.
They may calm down, but interest rates could go up, the prices could go up and it could price you out of a home.
And don’t forget that I had predicted that some two Fortune 500 companies are going to move here relatively soon and announce that and then home prices are going to just jump like crazy again, right? So you want to get in before that happens?
So, you know, we all get upset at the builders like, what’s wrong with you guys? You’re being greedy. You know, with these prices, it’s ridiculous and it’s not really the case. We really talked with these builders and went kind of went back to hear kind of what they go through just to secure a lot, and it’s changed for them as well. So you have to think about this now they’re being asked to come in and bid.
So basically, they’re creating a multiple offer and a bidding situation for all the builders to come in for maybe 17 spots. They’ll have 10 10 builders. Wow. Right. So are three spots, and they’ll have that many come in and bid. So it’s really, I don’t know.
I don’t think they like it, obviously. So once they secure the lot right, then they have their interim financing. So when they get delayed from the city and materials and all of these things to be able to start, they’re still paying. They’re paying their interest on it, they’re paying the HRA and all of these fees until it gets built.
So, you know, bidding on the land alone, that’s creating the the demand and the prices, that is the factor that’s that’s, you know, pushing these prices up. It’s not the materials, you know, it’s not a direct correlation of, well, I heard lumber has gone down.
These builders should have lower prices. It’s not that it is the land that is the underlying factor here.
While I’m glad land prices are going up for new builds. Perfect news. Yeah, thank you for reporting that.
Great news. So now what I heard is so lumber, lumber is kind of caught up. Not a big deal right now, but windows are a huge issue. They can’t get the windows. I’ve also heard that the meters like getting the actual gas meters to put on the property.
That’s an issue. That’s a delay. So it’s just all these things that you really wouldn’t think about, but it goes far beyond the lumber, the lumber issue. So just know that when material prices may stabilize and come down and get caught up, it’s still not going to result in a lower price.
Just not so. The main point that they were trying to make and that you’re making here is that people are sitting on the sideline waiting. You might find out that they are waiting for the wrong reason and enough things have passed. Right.
The virus is kind of went through and we’re kind of back to closer to normal times. So we kind of see that has has went through. We do see that there’s a ton of job openings and we see that, you know, things have kind of stabilized, right?
They have. And now if you’re waiting, don’t wait for prices to drop.
Now the next three to five years are going to remain strong, I believe. And if you listen to any economists out there, they they feel the same way. And then you think about all the opportunities here and people coming from other states, it’s going to be pretty good for quite some time now.
So you know what, I’ve always stayed consistent on is is when a client will say, is this the right time? When is the right time to buy? When is the right time to sell? Well, you have to ask further questions. What is your situation? Do you have to sell right now?
Do you need to buy right now? But if the time is right for you to do one of these things, then do it because you can’t ever predict the future. As much as we all think we have crystal balls and we hear all these top economists and so forth. None of us know what’s going to happen.
So if the time is right now, just do it.
And this does go back to one of the things that I had previously spoken is what if we had a recession and everybody missed it? So everyone was worried because they say that it would go up and then it has to come down right like these, these natural cycles.
But what if we had that recession as soon as the virus hit and we recessed and then we went right back up, but people missed it because it happened so fast? So what if we already had that reset? And now we’re in year two and a half of an expansion year two of an expansion?
And so I don’t know. I kind of feel that that’s about what’s happened and things are headed in that direction. Yeah. And it created all these different shortages from vehicles to everything else. So just enjoy life. Yeah. And go buy a House, enjoy life and work with building partners that support us. Very good
Episode Links
HRA , American legend, Highland traditions, Elite 20 , Mike Acquisto , Shana Acquisto , TNT
