Tuesday, January 03, 2006

What's all this talk about Luxury home builders vs

low end builders?

I've been looking for an "expert" to go to bat in my corner on my view of this take. Couldn't find any. Not one "expert" sides with me. But then I started thinking. I've roofed houses, I dug trenches for utilities, I've worked with a paving crew building residential street, I've been to the county office and purchased permits, I've bid on the site work for residential construction. I've projected managed the site work for residential construction, and I've met and worked with many people from the home builders. May be I am the only expert I need to quote.

Here is my quote. Go ahead and tell your friends this is what the expert is saying.

There are 5 pavers in the D.C./Baltimore market - they don't give a sh*t who's roads they build. There are 7 curb and sidewalk contractors that all the home builders turn to, and they don't give a sh*t who they build for. There are 8 utility contractors that all the home builders turn to, and they don't give a sh*t which home builder they work for. There are 6 major framers that all the home builders turn to, and they don't give a sh*t which home builder they build for. The home builder builds nothing. He has no patents worth a sh*t. He is a broker. Noot one employee working for the home builder knows how to swing a hammer.

Can anybody broker? It depends. Securing the permits, buying the land, getting the zoning rights approved requires much more skill when building next door to a bunch of f*cking attorneys and CEO's and the b*tches they married. Some companies like Toll Brothers and Beazer are better than others at shoving their will down the throats of a b*tch married to an attorney. THIS IS WHAT MAKES TOLL BROTHERS AND BEAZER LUXURY HOME BUILDERS. Many will also say Beazer builds both ends of the spectrum. Sort of true. They build a lot of subsidize and low income housing. And if you think building houses with every f'ng politician involved is an easy task. You are sadly mistaken. I've been involved with a couple of such Beazer projects. There were times when there would be 20 government officals from every department in Washington you can imagine sitting in on a meeting. You are nuts if you think a traditional low end home builder could survive with a client like Washington D.C.

And what of the others? When you lack Toll Brother's and Beazer's skill you build where you can. When you are force to build where you can you have no choice but to sell to the lower marked up "starter home" crowd.

The notion that Toll Brothers and Beazer being luxury builders during a time when houses are predicted to become simpler is a handicap is the most absurb thing I have ever heard. Theses companies have talent that will insure they always have the highest profit margins regardless of the type of homes they choose to sell.

Also on my radar is Ryland Homes

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