Here's my current head scratcher: The professionals in the homebuilding industry, including myself, are puzzled as to why folks are buying foreclosed, short-saled, bank-owned, distressed-sale money-pits built by who-knows-who with who-knows-what kind of materials or standards of quality. When on the other hand they could be buying beautiful homes built by reputable builders who offer warranty and personal service into the future.

It's about price isn't it?

I am reminded of a quote that hung on the wall of the lumberyard where I did business many years ago when I was first starting out. It read, "The Pleasure of a Cheap Price is Usually Replaced by the Pain of a Poor Product".

Here are some items to consider in assessing quality: insulation values, grade of lumber products, sound attenuation, space planning, workmanship, warranty, spacing of framing members, attention to detail, grading. There are others.

Price is important. Prices have declined a lot, primarily because of land and lot price decreases. There is no disputing that for three years land and lot inflation created a monster. Fortunately, those days are behind us. I have been tracking the sales price of one of our most popular homes for a long time. Today it is priced the same as in 1997, adjusted for 3% p.a. appreciation.

A good many homes on the market today are priced below replacement cost. Someone (usually a bank) wants out real bad. Sadly, these properties are not well looked after and I worry about the buyers who end up stuck in a lemon.