One of the “facts” of production homebuilding is that spec homes, on average, produce 2+% less gross profit (and this doesn’t include the extra sales commission often required by selling specs via a co-broker) than pre-sold homes. With this fact well documented, it is easy to see that one of the quickest ways to improve margins is to lower the percentage of spec homes sales to pre-sold home sales.
There is a reason that Northern Virginia Ryan Homes (NVR) limits their division managers to a budget of only 10% spec sales.
Westwind Homes Laredo division took this lesson to heart last year and lowered their spec sales rate from 70+% to 25% in less than one year.
Come and hear Westwind Division President Lance Price explain the challenges faced in making this successful transition.Back to Schedule List