Small Quality Builders Hardly Affected By Market

BrokerIPTV : Smaller Quality Builders Hardly Effected By Market. We are talking with Rick Polland today the principal and owner of Tamrick Homes. Rick thanks for being with us. Firs of tell us about Tamrick building what are they developing these days?

Rick Polland: Tamrick Home is basically been building in Strasburg doing the larger two-and-a-half acre parcels. Last two years we moved into the city area doing fields basically. Our new project is Decono, its a 127 lots of division. We are all excited about that and we have an international product in Costa Rica.

BrokerIPTV : Rick realtors are very sensitive about how much inventory is on the market. I am sure this hasnt gone nervous by home builders. Whats your thought about having too much inventory and still building?

Rick Polland: Its a concern of large, both spec house inventory and the finish large inventory. That we gone out and developed their own lands. So, we tried to develop what we think the next buyer, the new buyer is going to buy and we have half acre to three quarter acre lots that we sell for the same prices as the cookie for a [phonetic] lots. So, we offer larger lots. We allow buyers to have large yards. So that they have room to grow within one house as their family grows.

BrokerIPTV : I heard large builders say the reason why home builders continue to keep building even in the tough market is because Wall Street looks favorably upon land that has improvement on it versus land that doesnt. Is that true?

Rick Polland: I am certain thats true, but I know what we do. We basically dont want to cut or carry inventory land than we can build on in a year and so yes if I have 48 lots at now, there I am going to build on every one of them until they are gone. Its easier for me to sit there and sell a house at a small profit than sit there and carry the land.

BrokerIPTV : Good. Have you jumped into the big incentive packages like a lot of builders in order to move forward?

Rick Polland: Incentive package, the whole gimmick to us is a kind of a crazy game. Its more like lets give you $50,000 back on a house based on the fact that we have 50,000 to give, but really price of houses very low to start with. So, we dont have $50,000 to give to a buyer. What we do is price it right out of the gate, dont over price it and then turn around and build in what we call other peoples upgrades, our standards for example you would something like a built-in home theater, custom appliances in the kitchen and things like that.

BrokerIPTV : Interesting. With so many builders out there competing for business, how are you differentiating yourselves these days?

Rick Polland: We are a small builder. We build 25 houses a year, on a good year, but we are semi-custom custom builder and we sell our product at production prices. So, easy enough if you can get custom more for production prices, thats way we go.

BrokerIPTV : I rub the crystal ball, what is the market forecast, what do you see happening with the real-estate market?

Rick Polland: We always sell our houses. So, its always been good for us. We have had to slowdown here in the last year, but for the most part, I think we have addressed that. I think for everybody as a whole obviously 2008 has to be better than 2007. If interest rates continue like they have been, we probably going to turn around and seen an improvement early in 2008 and a slight improvement 2009 and I hope 2010, carries 2009 space.

BrokerIPTV : Rick thanks for being with us. I really appreciate talking to you.

Rick Polland: My pleasure.

Posted on October 14, 2007 13:20:20 by Blog Author