Introduction
The current adjustment in the housing market is a clear indication that an opportunity exists for a new approach to homebuilding. One that will maximize investment returns in the face of rising cost pressures, ever-tighter community sensitivities, an increased global appetite for natural resources, and volatile and changing consumer demands.
Prescient Development Group is a timely response to these trends, delivering high-quality, resource-lean homes more quickly and more cost-effectively than traditional development practices. Prescient combines the architectural appeal and flexibility of site-built housing with the speed and cost advantages of system built (built in a factory) homes. Our product line consists of original designs that can be assembled in a vast array of configurations, anchored by a unique pre-designed core that permits dramatically reduced turnaround from point of purchase through occupancy. We created the Prescient concept to capitalize on a series of emerging truisms about homebuilding:
- “Green” and “sustainable” are becoming part of the consumer lexicon – and homebuilders of the future are going to have to incorporate green practices into their business models. Sustainable development practices are paramount to long-term success.
- Predictable and steady absorption of product can be achieved with proper planning and execution.
- Tighter control at all stages of integrated development – from land acquisition and permitting, to design and engineering, to sales and marketing, to customization and delivery – leads to higher quality and greater efficiency. A comprehensive approach and vertical integration allows better management of scheduling and product delivery.
- Reducing speculation leads to profits that are more predictable and mitigates risk.
- Controlling the production environment eliminates waste and scheduling delays.
How does the Prescient concept achieve these goals?
- Build in a tightly controlled environment, using our own specialized labor force, and manage the process to produce an inventory of product that is largely built-to-order rather than speculative.
- Directly manage the development process including land acquisition, entitlements, and financing.
- Directly manage all aspects of the home building process, from point of purchase to closing and quality assurance.
- Specialize in building a particular product that is designed and engineered to very tight specifications -- one that can be repeated many times with absolute confidence in its constructability and quality.
- Build a product that is of extremely high quality and compatible with increased environmental sensitivity.
It is time for a “new” homebuilder business model, one that will make a significant impact on the homebuilding industry of the 21st century.
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