Jim Brickman: Yeah. I think that’s a correct assumption. We really see it in Atlanta where they only have kind of AAA locations. They are in higher price points and we don’t have any of the builders. We self-develop all those lots and we are the only builder in those locations.
Jay McCanless: Right. So, I guess, in the — what is it 20% to 30% of communities where you are not raising price, are you at least dialing back incentives and what are the factors that are causing you not to raise prices in those communities?
Jed Dolson: Just more competition from other competitors.
Rick Costello: And Jay, one of the things that we are seeing is we are really not having to offer long-term rate buy-downs either and that’s a very big number. So not having to do that is in effect kind of like a price increase.
Jim Brickman: Kind of in the most — this is Jim. The most simplistic way to look at some of our locations is that, we kind of are very, very in tailor in Costco locations and those are just experiencing pretty great margins and sales velocity. We could sell pretty much what we want. Then we kind of go to a super Walmart location, the BB+ locations. Those are very, very strong. And then when we go to a C dollar general type location, there’s a lot more competition, expected interest rate’s high, we are going to have to be buying down mortgages on that 20%, 30% of our business and it’s a lot more competitive, because you have other public builders right down the corner.
Operator: Thank you. Your next question comes from the line of Carl Reichardt of BTIG. Please go ahead.
Carl Reichardt: Thanks. Just one follow-up for you guys. Rick, I think, you mentioned, average order price is down 8% year-on-year and you talked about incentives plus mix. Can you break that 8% out between the two, between incentives and mix? Thanks.
Rick Costello: All right. No. That’s probably too deep of a dive. It — and it — some of it can be attributed no doubt to going from a Frisco location to a Princeton location, for instance. And like-for-like, as Jed said, the ultra-high end is not only is performing well, but it also carries a much higher price tag.
Jed Dolson: Carl, this is Jed. Let me try to answer or add this to that. In our A locations our mortgage and closing cost incentive is usually half of what it is in the periphery locations on an absolute dollar amount, even though it’s probably double the high price on the home price. Does that make sense?
Carl Reichardt: Yeah. Yeah. Okay. I got it. The mix is variable for you guys in particular. So that’s why I asked. And then actually, I have one follow-up for Jim, too. So, Jim, you talked about the private builders are strong, you put a lot of equity in and a high cost of debt. So from an acquisition standpoint, are we starting to see any movement at all of the privates as they look at the future cost of funds type banks and thinking about maybe selling on, are you seeing more activity across the transom, whether you are interested in it or not? Thanks, guys.
Jim Brickman: Well, I chuckled. I saw one or two builders closed and I knew both of the investment bankers/brokers that did the deals. We never saw them and I expect that, because they know the way we buy things in our buying criteria. So it’s a yes and no answer. There are some transactions taking place out there. But we actually didn’t see them and I am sure we didn’t see them, because after talking to the brokers and bankers involved, they wouldn’t meet our hurdle rate.
Operator: Thank you. There are no further questions at this time. So this concludes today’s conference call. You may now disconnect.
