Unidentified Participant: Okay. Appreciate it that. And I apologize if I missed this. Did you ever break out the incentives in the quarter as compared to last quarter?
Bob Martin: Versus Q3. So Q3, we talked about 800 basis points of incentives, and that’s on sales. In Q4, that was closer to 1,200 basis points on sales. On closings for Q4, it was about 800 basis points.
Unidentified Participant: Okay. I really appreciate that. That’s all for me. Good luck for the next quarter.
Bob Martin: Thank you.
Operator: The next question comes from Jesse Lederman with Zalman & Associates. Please go ahead.
Jesse Lederman: Hi. Thanks for taking my question. So in the past, you guys have really largely resisted doing more spec building for a number of reasons. And we agree with the interest rate dynamics, it makes it more attractive to home buyers having this quick moving product, but your business seems really built upon built-to-order from your sales strategy and revenue generation with your options and upgrades to your overhead structure. So how confident are you in being able to execute this pivot compared to other homebuilders who specialize in the sales model? And how can you compete from a cost perspective?
David Mandarich: This is David speaking. I’ll tell you, we’re very encouraged over the last couple of months because we are getting a percentage of what I call build-to-order houses. And I think this month, Bob will go through the numbers, but we’re seeing a lot of customers that are coming in I want my lot in my house I’m going to give you a deposit, I want to pay whatever it is for upgrades at our home gallery. So we’ve got a number of customers that are looking at that kind of product. In the past, we’ve done mainly that kind of product. And so we’re excited that there’s customers out there that really are willing to wait for that kind of house, but they want their house on their lot with their options. So Bob, you might kind of go through the numbers.
Bob Martin: Yes, I think that was about.
Jesse Lederman: Just to step in here and clarify. I’m just curious about your ability to execute the spec strategy given that’s kind of veering away from the build-to-order model that your business kind of built around. So in terms of like selling specs, particularly, how confident are you in being able to compete against some of your competitors who specialize in this strategy, the spec strategy?
David Mandarich: I’d say we’re very confident. I mean, we executed it really well at fourth quarter. And Larry, I’ve been doing this for 46 years. So over time, we’ve had times where we did inventory houses. I think the last couple of years, we’ve just been built to order, but we’re very confident on the execution and the product that we’re putting out. Bob?
Bob Martin: No, I think that’s absolutely right. There’s a lot of experience during the period of time where it’s much higher spec concentration, what we saw as a percentage for now. We were about 25% dirt for orders and about 75% spec. So we have pivoted. We think that makes sense. We think we can execute, and it’s in line with consumer preferences. So we definitely have the team to execute on that strategy.
Jesse Lederman: Absolutely. Thanks for that. And then just a quick follow-up. Are you altering the product given presumably you generate a fair amount of revenue through your design studio. So how are you thinking about creating these spec homes? Are you just trying to drive the price lower versus your build-to-order product?
