Why does any retailer close out inventory? Several reasons usually are true - increase cash flow, get ready for new products next season, eliminate carrying costs.

Builders have been notoriously hesitant to operate in this manner. Many smaller local builders only build "pre-solds" and hence have no inventory. Others are larger regional builders, but since they rarely improve their designs, there is not much incentive to have new models the next season. Many builders of all sizes, are just "hoping" the market will improve (and it will) and that sales prices will move upwards.

National home builders have conducted this annual clearance for years, but it is more drastic and price reductions are larger this time around. Of course, the media has portrayed the truth in its very most extreme light - the only number I ever saw was "Hovnanian's $100,000 off homes". Of course behind that headline was the fact that they were reducing homes $10 - $40,000 beyond some previous reductions - the average reduction was about $30,000 from original (inflated) 2006 prices. But it gave shoppers what they were looking for - an excuse to buy something and brag about the huge savings.

We operate our business like a, well a business. This is to say we are not emotional about what we sell our inventory products for in the market. Like every business, we ask a fair price, get it when we can, and close out what remains.

We are a very design-oriented company, and preferring to have new designs each spring season, the late fall is our time to dispense with inventory.

Often, some of our existing owners may think we are hurting their resale values. It is a fair argument, but one ingredient missing from it is that one builder selling 3-4 homes a month can and does drive pricing in the larger market. While we at Hanson Builders, Inc. appreciate the flattery, it just is not true. Over periods of time, the free market sets prices, and we can choose to either respond to them, or hope they will change.

Ultimately, several prepared, well funded, and rational buyers take advantage of our annual clearance sale to buy a home, that while well designed and constructed, is for sale at a reduced price. They did not get to choose their lot, nor the design nor amenity mix, but they made a good purchase. Often, these homes have floorplans we are discontinuing or at least making significant changes to. They were usually model homes that were open on weekends and had many footsteps through them. They come with a full warranty, but the owners didn't get to be "the first" to set foot in them.

We have several attractively reduced-price homes, and if you are in the market, can put down a six-figure downpayment, and close in 30 days or less, there may be one for you.