We are engaged in the development, design, construction, marketing and sale
of single-family attached and detached homes in metropolitan areas in Colorado,
Austin and San Antonio, Texas (which we refer to as “Central Texas”),
Houston, Texas, Las Vegas, Nevada and Atlanta, Georgia. Our homebuilding operations
are organized into the following five operating segments based on the geographic
markets in which we operate: Atlanta, Central Texas, Colorado, Houston and Nevada.
In many of our projects, in addition to building homes, we are responsible for
the entitlement and development of the underlying land.
We acquire land for our homebuilding operations with the primary intent to
develop and construct single family detached or attached homes for sale on the
acquired land. From time to time we may sell land to other developers and homebuilders
where we have excess land positions. We generally acquire land for cash, either
through bulk acquisitions of land or through option contracts. Option contracts
are generally structured where we have the right, but generally not the obligation,
to buy land at predetermined prices on a defined schedule. Potential land acquisitions
are identified by our local management within the markets in which we operate.
Our land acquisition process includes soil tests, independent environmental
studies, other engineering work and financial analysis which include an evaluation
of expected returns, projected gross margins, estimated sales paces and pricing.
All potential land acquisitions are approved by our Corporate office to ensure
appropriate capital allocations taking into consideration current and projected
inventory levels and risk adjusted returns.
We build and sell an extensive range of home types across a variety of price
points. Our emphasis is on acquiring well located land positions and offering
quality homes with innovative design elements. The core of our business plan
is to acquire and develop land strategically, based on our understanding of
population growth patterns, entitlement restrictions and infrastructure development.
We focus on locations within our markets with convenient access to metropolitan
areas that are generally characterized by diverse economic and employment bases
and demographics and increasing populations. We believe these conditions create
strong demand for new housing, and these locations represent what we believe
to be attractive opportunities for long-term growth. We also seek assets that
have desirable characteristics, such as good access to major job centers, schools,
shopping, recreation and transportation facilities, and we strive to offer a
broad spectrum of product types in these locations. Product development and
exemplary customer service are key components of the lifestyle connection we
seek to establish with each individual homebuyer. Our construction expertise
across an extensive product offering allows us flexibility to pursue a wide
array of land acquisition opportunities and appeal to a broad range of potential
homebuyers, from entry-level to first- and second-time move-up buyers and lifestyle
homebuyers. Additionally, we believe our diversified product strategy enables
us to adapt quickly to changing market conditions and to optimize returns while
strategically reducing portfolio risk.
Our philosophy is to provide a positive experience to our homeowners by actively
engaging them in the building process and by enhancing communication, knowledge
and satisfaction. We provide our customers with customization options to suit
their lifestyle needs and have developed a number of home designs with features
such as outdoor living spaces, one-story living and first floor master bedroom
suites to appeal to universal design needs. We also engineer our homes for energy
efficiency, which is aimed at reducing the impact on the environment and lowering
energy costs to our homebuyers. As part of these efforts, we offer homebuyers
environmentally friendly alternatives, such as solar power to supplement a home’s
energy needs.
We engage architects, engineers and other professionals in connection with the
home design process who are familiar with local market preferences, constraints,
conditions and requirements. We serve as the general contractor, with all construction
work typically performed by subcontractors. While we maintain long-standing
relationships with many of our subcontractors and design professionals, we typically
do not enter into long-term contractual commitments with them.
We sell our homes through our own sales representatives and through independent
real estate brokers. Our in-house sales force typically works from sales offices
located in model homes close to or in each community. Sales representatives
assist potential buyers by providing them with basic floor plans, price information,
development and construction timetables, tours of model homes and the selection
of options. Sales personnel are trained by us and generally have had prior experience
selling new homes in the local market. Our personnel, along with subcontracted
marketing and design consultants, carefully design the exterior and interior
of each home to coincide with the lifestyles of targeted homebuyers.
We advertise directly to potential homebuyers through the internet and in newspapers
and trade publications, as well as through marketing brochures and newsletters.
We may also use billboards, radio and television advertising, and our website,
to market the location, price range and availability of our homes. We also attempt
to operate in conspicuously located communities that permit us to take advantage
of local traffic patterns. Model homes play a significant role in our marketing
efforts by not only creating an attractive atmosphere, but also by displaying
options and upgrades.
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