วันจันทร์ที่ 25 มิถุนายน พ.ศ. 2561

How to Become a Professional Home Builder - Pitfalls of Speculative Building

1. Price Of Home

You never want to be the most expensive home in a subdivision. When you're the most expensive home in a subdivision, all you're going to do is pull everybody's value up while they pull yours down. Be comparable with the homes around you. If you can, be the least expensive home in the subdivision. Now don't get too cheap, because builders will realize คอนโดมือสอง ราคาถูก what you're doing to them, and may burn your home down. But try to be one of the least expensive homes in the subdivision, not the most expensive.

2. When To Build In A Given Area

I remember a student of mine who went into a subdivision and built a very beautiful home. As a matter of fact, he brought me a picture of it. It was gorgeous, but he could not sell it and he wanted some advice. I went to the job site to take a look. When I went into the subdivision I drove down this lonely street and there was his home. It looked like national forest on three sides of it. His was the only home in the subdivision. His was the first home to be built.

You never want to be the first home in the subdivision. Don't be a pioneer. Understand that pioneers get arrows in the wrong places. I understand you might have to buy a lot early in order to get into a subdivision. If you do, just sit tight, and wait. Let some pioneers get in there and start the ball rolling. When they start building homes, don't jump in at that point. I've been in subdivisions where you'd see a lot of construction traffic, a lot of building going on, and none of the homes were selling. The builders wind up losing their shirts.

What gets me excited is not only a bunch of building but also a bunch of sales. That's when you want to jump into a subdivision. It's almost like a feeding frenzy. When a developer develops a subdivision there is no telling how long lots may sit before they start selling. Then all of a sudden sales will increase. There may be a tremendous amount of building going on. All the good lots will have been built on and then the subdivision will be sold out. Then the number of sales starts decreasing because the only lots that are left are what we call the 'dog lots.'

I've found the best time to be in the subdivision is right when you see sales, not necessarily construction, but sales taking off. It's like a feeding frenzy up to that point when most of the homes are sold. Then the subdivision goes through a wind-down stage. The time you want to be building is in that period when sales are really on the upswing. You may pay a premium for the lot, but I'd rather do that than to lose my shirt.

3. When To Sell

Don't sell the home too early. Some of you beginners are just scared to death and feel very unsettled about taking on this great responsibility of building a home. You do everything I say and work with a real estate agent and finally commit to a lot in a given subdivision and you break ground. Lo and behold, as you're knocking down trees, the agent drives up and says, "You won't believe it but we have your home under contract!" You fall on your knees, look to heaven and say, "There is a God".

Not necessarily. And I don't mean God. Now you've turned your home into a contract job. This is much, much different than spec building. You think it's a blessing, but I say it's a curse. What I recommend you do is wait until you're hanging the drywall before you put the home on the market. One reason for this is because most of the major mistakes that you're going to encounter, those that you didn't anticipate, will have occurred by this point in time. By now you can quickly figure out what is needed to complete the home. Now when you quote a price, you know that you've earned a profit.

Another good part about waiting until you hang the drywall is that the people who buy the home can't make any major changes. They can pick out their colors, light fixtures, flooring and other essentials but you're going to avoid all those major changes that you encounter when you sell the home too early. The only exception to this might be if the owner currently lives in Saudi Arabia or some distant place and you know he will never be there until the home is completely finished.


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