OpinionIndustry News

‘New-school’ takes over home building

Guest perspective: Gut instinct gives way to research, people skills

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Today's building industry executive is generally nothing like his or her predecessor. A college-educated executive who understands the importance of research, efficient processes and effective leadership has replaced the entrepreneurial framer/deal maker who built a large company based on good instincts. In the 1970s and 1980s, home builders made decisions based on gut feel and experience, and their capital providers made loans based on trust. In today's environment, those who relied on instincts alone are gone, and trust is just one of four factors that capital providers consider before making a deal. Today's successful building industry executives rely on people, processes and research to minimize the risk of making a mistake. We have defined a five-step process we call the Building Market Intelligence Process, but the exact process varies from builder to builder. What they all have in common, however, is an increasingly thorough, methodical approach to all major decisions. The...