Going Strong

Going Strong

"GOING STRONG"

While the current economic conditions continue to provide a challenge for homebuilders (especially custom homebuilders), business has been steady for MorningStar Homes. We have completed 3 homes so far this year (all pre-sales) and have two under construction as we speak with one more pending (all pre-sales). Some have been asking us what our "secret" is .... Well, here it is.

Steve and I have been building homes for over 30 years, so suffice it to say, this is not our first "rodeo". We have both been through several recessions in the past and saw the signs, some time ago, for this current recession. As an overall business strategy, we don't own many lots, in fact, we only own three in downtown Raleigh and are sitting on them till the market turns. Additionally, we don't build "spec" homes (unsold inventory) unless there is a very compelling business reason for doing so. We only have one and currently have a couple of different prospects interested in it. Our business strategy has been to reduce overhead, concentrate on the "pre-sale" market and provide exceptional service and detail to our customers. All of this has resulted in a healthy referral business.

As we saw the signs for the current recession, we immediately began to take steps to reduce our overhead. We closed our office space and moved our operations into our homes, we looked at every overhead dollar we were spending and tried to find savings where ever possible. Lastly, we don't live a lavish lifestyle. I know this sounds somewhat "trite" but the bottom line is a lot of builders get in trouble because they spend all their "reserves" on new boats, a house at the beach, one at the mountains etc.

So, what does this mean for our current and future customers? Steve and I are here to stay, we're not in this for the short term ... never have been, never will be. We have been able to stay busy in this market, we have passed the savings from reducing our overhead on to our customers, we have renegotiated all our contracts with our suppliers and vendors and passed this savings on to our customers. So, the bottom line is ... if you have the ability to build a new home right now, Steve and I are ready and able to serve you.