John Colantuoni: Great. Two about inventory and growth, starting with inventory. So you saw a ramp in homes purchased, but you’re expecting homes sold to be about flat in the third quarter. If you keep making progress to your goal of 500 home purchases per month in Q3, our math suggests that would sort of imply you’re going to end next quarter with about 1,000 homes in your inventory balance. Does that mean that we should expect to see sort of a substantial step-up in homes sold during the fourth quarter? And second question, when you think about transitioning the business from rightsizing inventory levels and improving efficiencies to reaccelerating growth next year, what are some key areas of sort of permanent efficiencies that you’ve been able to draw out of the business that will help you improve sort of the balance between growth and profitability over time?
Brian Bair: Yes. I think a lot of — I’ll talk on the efficiencies. I think there’s countless efficiencies. We’ve learned a lot, and we’ve done a lot of look backs as well when the market hit the pause button and with the rapid interest rate from last year. We’ve learned a lot, and underwriting is absolutely key into all of the above, and the type of inventory that we want to buy is going to be key. Also, the renovations. We continue to get more efficiency out of our renovations and our reservation teams. And the other thing is just with our customer engagement as well. As we’re not buying thousands of homes a month, we’ve been able to focus on different products we want to roll out for a while. And our customer communication has never been stronger than ever, and we’re getting that from the feedback of our customer satisfaction scores and everything else.
But as it comes from the property level, the segmentation in underwriting. We have a project internally called Limelight that we focus highly on the type of homes so we get smarter and better with every home that we buy. And so we’re constantly trying to learn and how to get better. And so I think our efficiencies are super strong. And I mean it’s strong, and I think everyone is more aligned than ever of what success looks like. And as we talked a lot about growth, that’s a meter to increase our buy box. Like I said, from — is if we can get — the volatility now is coming more from the mortgage market than it is really anything else in the real estate markets. And so that volatility is definitely something. Again, like I said, we’re watching closely.
But as we get more comfortable there in certain markets, we can move from higher up the value of homes and then also take on certain kind of renovation homes as well to help us on the growth side. So again, the ability to grow but really grow disciplined right now in what we’re doing, and we are just laser-focused on being profitable. That’s every day. The teams are talking about that, and that’s really important now and make it through what we just did. And super proud of where we’ve been and really excited about where we’re going, but that is a massive eye on the path to profitability. But I’ll let you, Jim.
James Grout: Yes. And John, your question around inventory and sales pace there, right? So when you look at Q2 650 homes sold, if you exclude the legacy inventory, those homes acquired in August and earlier from last year, there was 491 million of the new inventory that was sold in that in Q2. So the midpoint of our range of 650 is about a 32% increase quarter-on-quarter there. But you’re spot on in terms of as inventory growth, expect things to increase there going forward. The one thing I would caution, though, right, is Q4, in particular, from a real estate perspective is a seasonal slow month with the holidays. And just with market conditions, things are kind of — uncertainty this year of how things will play out, right? So that’s why we need to remain diligent and cautious and with the inventory that we’re acquiring right now to make sure that it’s going to be good performing homes for Q4.
