Linn said he is weathering a downturn by cutting overhead and not building inventory.
“This thing got so crazy this last year, that people were selling houses making a $100,000, on average trying to make $60,000, they’re going to have to come off that. And the builder that doesn’t discount, if it makes it look like I’m going bust because I would discount, that’s wrong too. It just needs to get back to a normal deal,” he said.
The article comes from the local paper and you can read the story here.
The blurb here is interesting because I think he is smart to avoid building more inventory at a time when there is so much to choose from currently on the market. My previous reports have shown that 40% of the homes on the current market are brand new never lived in homes, i.e. new construction.
Yep the building biz has been very good to many builders in recent years. Interesting to note that this builder is willing to discount the price to sell off his inventory, this is the same strategy that I've been offering prospective sellers in this market. If Ron Linn is still doing well by selling at a lower price, I bet owner occupied sellers can do well also.
Seems as we are heading for a normal market again.
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