So I think the input costs have been about as stable as we’ve seen. We’re starting to see lumber come down at least under the last couple of months, which is going to impact closings going into the first quarter. So I think it is more so about evaluating every community, looking at it on a community-by-community basis from a pricing and expected margin. We’re doing a fantastic job of our estimating. Our purchasing team is doing a great job across the country, really working hard on making sure, we’re getting fair bids, multiple bidders on our projects and I think that is paying off for us. And we have a very high confidence level on what it’s going to cost to build our houses going into the future. So I think that has helped us navigate making sure that we can maintain margins in our historical range.
Ken Zener: Thank you.
Eric Lipar: You bet.
Charles Merdian: You’re welcome.
Operator: One moment for our next question. And our next question will be coming from Carl Reichardt of BTIG. Carl, your line is open.
Carl Reichardt: Thanks. Hi, buddy. Eric, I wanted to talk a little bit about sales. Your team — you’ve got a unique operating model when it comes to selling houses. And I’m curious, how you manage the toggle between volume, since I assume they’re paid on that commission wise versus holding margin and maybe an individual salesperson sells one less house a month. How do you balance that in terms of motivating and rewarding those folks, when you toggle between margin and volume and look more in the direction of margin?
Eric Lipar: Yeah. Great question, Carl. I think the first thing and we talked about it earlier on the call is really focusing on the long-term. Even when we hire salespeople and you’re paid on commission and we all want to close as many houses as possible every single month, but sometimes getting that additional closing is not worth it because we need to think longer term. For example, reducing prices in the communities is something that we want to avoid as much as we can, because when you start reducing prices in the communities, it’s just not really good for anyone, the customers ourselves, our employees. So, that’s one thing that we balance because we believe the interest rate volatility is going to settle in some point. It’s not there yet.
And when interest rates are likely to come down, what the experts are saying the 30-year mortgage, we’re going to be in really good position. Our sales teams across the United States are doing a really good job of working with the customers. It’s more challenging now from an affordability standpoint. We’re seeing more cosigners, the ability for a customer they may have to go pay some debt down in order to qualify. The customer may have to save up money for a down payment, they may have to look at a smaller square footage house, and the team of salespeople, about 400 of them nationwide, they all have a pool of customers that they’re working with to create those closings in the future, even if it’s more of a headwind on a very short-term basis.
Carl Reichardt: I appreciate that Eric. Thanks. And then can we talk about vertical construction times? We’ve heard a mixed commentary from some of your peers about a return to normalcy. Can you talk about how long it’s taken you from start to CFO right now? Are you back to pre-pandemic norms? And if you’re not how far away are you? Thanks.
Charles Merdian: Yes, Carl, this is Charles. I mean we haven’t really seen much movement in our build times. I would describe them as generally the same. We’re constantly working with our trades looking for opportunities to find spots in the schedule. But from a construction time standpoint, we’re still running that 80 to 120 days timeframe depending on the market. So, we’ve seen it very consistent.
Eric Lipar: Yes, similar to pre-pandemic levels.
Charles Merdian: Yes.
Carl Reichardt: Okay, great. If I could sneak one more in. Do you know offhand what percentage of the orders you took this quarter were on homes that were in process already vertically?
