Robert Francescon: Yeah. So the average size is definitely increasing in Century Complete. And also some of that’s timing differences as well because just as a reminder, Century Complete only buys finished lots, and so sometimes there may be delays on a developer bringing the lots to us from a cycle time. And so there could just be certain mixed delays within these, within a particular point in time. But as a general statement, the communities are getting bigger.
Alex Rygiel: Thank you.
Operator: The next question is from Alan Ratner with Zelman & Associates. Please go ahead.
Alan Ratner: Hey guys. Good afternoon. Nice quarter.
Robert Francescon: Hi, Alan.
Alan Ratner: Question on the incentives. So sounds like they were pretty steady both on orders and closings during the quarter around 700 bps. But based on your, I guess, comments for fourth quarter, it sounds like you expect an uptick there. What was the trend on orders, I guess through the quarter into September and October? Have you seen that incentive number rising here thus far in October?
David Messenger: We have. As we look at the third quarter and coming into the fourth quarter, interest rates have continued to stay high and actually continue to increase. And as — so when we look at cost of buying down mortgages to be able to offer something in that mid 5% range, it just becomes more costly depending on — as the rate continues to increase. So yes, we have definitely seen an increase and we expect to continue to see an increase.
Alan Ratner: Got it. Okay. That makes sense. And then, the rate you’re offering in that 5% to 6% range, how are you thinking about that in — if rates continue to kind of gradually move higher from here, is that an important kind of line in the sand where you feel like once you get above a 6% rate or in the mid sixes that you see a pretty dramatic pullback in demand? Or will that base kind of gradually move higher along with the current prevailing rate? It’s just kind of you’re trying to ease that trajectory a little bit?
Robert Francescon: That’s really hard to say. I mean obviously, the way we’re mitigating the high rates is to buy them down and we even have some programs for a small dollar amount on very, very select communities that are in the high 4% range. Obviously that’s very costly right now and — but we like a five handle on it. Currently, if rates continue to go up and they get up approaching close to 9%, then the reality is we’re probably not going to be able to offer that and our competitors aren’t either, and the consumer will adjust to that, but it’ll just raise up. But it’s really hard to say how rates are going other than what we do know for a fact is that at the current lifted rates, it is costing us more on the buydowns currently.
Alan Ratner: Got it. Great. And if I could speak in one more. The big increase in your lot count this quarter, can you provide a little bit of color around, what’s the — these lots that you’re tying up today, when should we expect that to flow through to community count growth? What’s the pricing trends in the market today? And are you seeing any compelling distress opportunities either from BFR deals falling through or some other factors that might have contributed to the big jump in lot count this quarter?
Robert Francescon: So we are buying from BFR operators, operators that had picked up lot positions. They were either going to get a fee builder on it or build it themselves. We’ve been successful in purchasing lots from those entities. So that’s been a positive. In terms of the timing of the increase, as you see, it really increased our control percentage and we telegraph this in our previous calls that we were going to increase our land based on how we changed in 2022 on some of our controlled positions with a decrease based on market conditions. We wanted to get back up to levels we felt comfortable with, and this has been a good start in the third quarter to get there. There are a variety of lot types from finished lots. That’s obviously our preference if we can get finished lots in a just-in-time basis.
