Re-Phasing Your Development Can Save You Thousands!
As I write this, the S&P500 is down 22% from January, inflation is at a 40-year high, and the Fed is going to raise interest rates another .5% when they meet tomorrow. Home sales are going to continue to pull back as consumer buying power slows. Re-Phasing is an insurance policy for your development!
We’ve been receiving phone calls and emails from concerned clients over the past two weeks, inquiring about what needs to be done to ‘re-phase’ their marketing program, or how to make existing marketing phases smaller – the goal, of course, is to limit exposure to HOA dues.
It doesn’t have to be a guessing game! We have the crystal ball – it’s called Phase Predictor
and it’s free! Simply visit our website, at www.cabuilderservices.com
and its available to you. Here is how it works:
Let’s say you have a 100-lot development with average HOA dues of $130/lot/month. Last month you were expecting to sell 4 homes. Assuming that was correct, I will recommended 8 marketing phases, and you would expect to pay about $21,000 in HOA dues on unsold lots during your sales cycle.
Now, take that same development, and drop the homes sold per month down to 2… If you don’t re-phase, you can expect to pay $42,000 in HOA dues on those same 8 marketing phases. Drop that to 1 home a month and it’s over $83,000! If your sales do slump, you need to re-phase to keep from unnecessary HOA assessments on unsold lots.
If you have a Public Report and sales have been made in the phases, it may not be possible to adjust that phase. However, we should be able to adjust future phases! We can also work with you and your HOA Manager to make sure that all allowable deferments of assessments are being accounted for. These deferments are often overlooked and can add up to sizeable discounts to the assessment program.