MORTGAGE APPLICATIONS AT 5 YEAR HIGH

WOW!  A five year high!  So why I am not excited?

Because 80% of these mortgage applications are for homeowners refinancing their homes to take advantage of the lowest interest rates we've seen in quite some time.

That leaves 20% of the new applications for the used home market and new home builders.  That is pathetic.  The used home market is flooded with foreclosed homes.

I've talked with several Realtors the past month and was shocked to hear what some of them are doing to make ends meet.  One is delivering newspapers!  Another took a job as a pet groomer at Petsmart and a woman who was once one of the top earners in her agency is now a professional dog walker.

A new home builder in PA that I met several months ago told me that business has dropped off so badly that he and his wife are cleaning offices at night to make just to make the mortgage payments on their home.  And to get these offices he had to undercut the price of the people that had been cleaning the offices for years.

LINCOLN LOGS CLOSES THEIR DOORS

Lincoln Log Homes in Lake George, NY, a 31 year old company filed for bankruptcy protection in September, 2008.  This week they announced they are abandoning their efforts to save their company and will sell off their assets next month.

Lincoln Logs employed 48 people as recently as a month ago. Most worked at the company’s Chestertown headquarters, about 20 miles north of Lake George in Warren County. Now, three part-time workers are at the company.

Sales have dropped 36 percent since spring 2006, the company said in court filings. Lincoln Logs has a backlog of $26.4 million, but customers have not yet paid for 90 percent of those orders.

Hopefully somebody will purchase the name and keep Lincoln Log Homes in the market.

ALL-AMERICAN HOMES HAS MAJOR WATER LEAK

Wouldn't you like to find out that a million gallons of water leaked from a water line while you were on vacation?  Who would?

Well, it happened to All-American Homes at their factory in Milliken, CO last week.  After noticing that about a million gallons of water was missing, city officials tracked the leak to the All-American factory that was closed for the holidays.

But here is where it gets bizarre!  Instead of calling someone from the factory, water department workers scaled the security fence at 2:30 AM and got inside the premises where they discovered a huge hole created by the leaking water.

All-American is working with the city to correct the problem.  The leak was in a fire suppression line within the plant.

3 RULES FOR SALES REPS IN 2009

This isn't my New Year's Resolution list.  That comes next week.  But here are 3 rules for any sales rep to follow to make 2009 better.

Anticipate your Customer's Needs.  Use what you learned during this recession to help your customers make 2009 profitable.  Just sitting back and waiting for them to call you isn't going to work in 2009.  Be proactive in becoming a "partner" to help them with marketing and selling new homes.

Brainstorm with your Peers.  Whenever possible, talk to other sales reps in your company and listen to what has worked for them with their builders.  Maybe you should take the lead and work with your Sales Manager and establish a regular time each month for everyone to just "talk and discuss" what is going on in the field.

Manage your Time and Energy.  So many things sap our strengths as sales reps.  It is easy to be distracted by things that don't matter.  Petty gossip and arguments, doing other peoples jobs as well as our own and answering irrelevant emails are just some of the things that can "easily call us away". 

Set some major goals for yourself. This is the end of one of the worst years we've ever had in housing.  Make sure that you don't have the same results for 2009.

"ALMOST" THE PERFECT WEBSITE

I am always looking for great websites and this week I found what I consider one of the best I've ever visited. 

A landscaper in Romania has opened my eyes to one of the greenest websites on the Internet, Greenovia!

After visiting the site, click on the RED box in the upper right hand corner.  I found it to be very relaxing!  Time to take that nap.

If a landscaper in Romania can do this, why hasn't this type of site caught on for our industry considering all the marketing we put into GREEN?

So why did do I call it "almost perfect"?  Because it hasn't been updated in 2 years!  Maybe it's so far ahead of the competition it doesn't really matter, but that's just my opinion.

BERACAH HOMES RECEIVES GREEN CERTIFICATION

Beracah Homes in Greenwood, DE and their preferred builders recently completed Green Advantage certification at a 2 day workshop held at the Beracah plant.

Click here to visit their website:  BERACAH HOMES

David Johnston, author of Green from the Ground Up, conducted the workshop, and represented the 3rd party certification agency Green Advantage.  Green Advantage is the result of collaboration between the Nature Conservancy, Science Applications International Corporation, the University of Florida, and is an environmental certification for building-related practitioners (primarily contractors), subcontractors and trades people.

As the green building sector is growing at a rapid pace, being certified demonstrates a strong commitment by Beracah and their builders towards more energy efficient & sustainably built homes.

GRANDDADDY OF PREFAB HOME BUSINESS IS BANKRUPT

One of the granddaddies of the prefab home business is boarded up.  Empyrean International, the Acton, MA-based builder of Deck House, Acorn Homes, and most recently Dwell homes, abruptly closed in late October, laying off workers and padlocking the gates to its plant. Two weeks ago, a court-ordered receiver took control of the company.

Click here to visit their website:  ACORN HOMES

Patrick Gilrane, the chief executive and principal owner of Empyrean, said the business was brought down by the collapse of the financial sector, including the failure of investment bank Lehman Brothers Holdings Inc., and the rapidly deteriorating economy.

"This really hit us around September 15th, when Lehman went bankrupt, and we had clients postpone and cancel orders," he said.

It is a sad and stunning turn for a firm that helped popularize a modern-postwar style by delivering high quality versions of it to the masses. Though found around the United States and in Europe, the company's homes were particularly prevalent in Boston's western suburbs.

THE DEMISE OF HOA's

The recession is raising another issue that has caught many homeowners off guard.  A lot of newer Home Owners Associations (HOA) are running out of money and essential services are being cut.

Many developers and builders who opened communities within the last 5 years have been having trouble selling enough homes and lots to allow them to remove themselves from being the primary managers of the HOA's. 

Some of the builders have gone out of business and the homeowners are taking over their HOA only to find that the money is gone and community debts are at the breaking point.  Some HOA's are attempting to assess their members one time fees of $750 and up just to keep the street lights on and the sewer and water bills paid.  The community centers in some developments are now shuttered and there is little hope that they will ever be reopened.

Homeowners associations have become ubiquitous in recent decades, as local governments have sought to limit the impact of population growth on the demand for municipal services.  Development standards have evolved to the point where developers are required to include large parks and open spaces in each new community - recreational amenities once provided almost exclusively by the public sector.  Cities and local government liked them because they didn't have to maintain certain areas.

The bottom line is that if you are selling into a development that had been closed to you until recently, this should raise a red flag.  You may be doing your customer a disservice if the HOA is on its last legs.  Be sure to find out some basic facts before you build in these communities.  You could end up being the defendant in a lawsuit if you told your customer about the new clubhouse that is to be built soon or that the HOA is on solid footing.

NOVEMBER NEW HOME SALES LOOK BLEAK

If there could possibly be a ray of sunshine in this tough economic climate, it just might be the bleak sales of new homes in November.  What...that's not a ray of sunshine! 

It could be if the number of foreclosed homes being sold outstrips the number of foreclosed houses coming on the market, and that might be starting to happen.  Sales activity, according to the National Association of Realtors was up 18 percent from a year ago, indicating that low prices coupled with low mortgage rates are drawing some buyers off the sidelines.

Sales of newly built single-family homes however slowed to the weakest levels since 1991, according to the Commerce Department.  The seasonally adjusted annual sales pace of 407,000 was down 2.9 percent from October and was the lowest rate since January 1991.

The median price of a new home sold in November was $220,400, a drop of 11.5 percent from the sales price a year ago.  That was the biggest year-over-year price decline since a 12.7 percent fall in March of this year.   The median is the point where half the homes sold for more and half for less.

AVIS AMERICA QUIETLY GOES GREEN

Last week I visited Avis America Custom Modular Homes in Avis, PA and met with some of their sales staff and production people about "Going Green".  They are doing things that I would never have thought of and I quickly learned that Avis America has been Green for quite some time and not just because it's fashionable.

Of course they recycle their cardboard, aluminum and steel and plastic like just about every other factory, but then I found out what happens with some of the other things that used to go to the landfill.

The office and factory paperwork is shredded and recycled, siding is sent to a recycler and the saw dust is used by a hog farmer.  The hog farmer was what caught me off guard.  From what I saw, it seems that even the "oink" is recycled at this plant.  Drywall scraps are used where it can help strengthen seams and the rest is sent to a drywall recycler.

And they have been doing this for a long time, even before Green became the latest buzzword.  Some companies just go about doing things the right way and don't toot their own horn, so I'm doing it for them.  Way to go Avis America!

RATING YOUR TOWN'S MORTAGE PROBLEMS

Here's a handy site for finding out just how your town or marketing area compares with other areas.  It tells you important information such as:

Loans per 1,000 housing units

Foreclosures per 1,000 housing units

Share 90+ days delinquent

Share late payments last 90 days

Click on the picture to visit the site.

HOW TO STOP FEELING DOWN IN THE DUMPS?

For the past several years you've probably seen your marketing and advertising efforts yielding fewer and fewer leads.  Many small builders are faced with either going out of business or starting over on a smaller scale.  Even the big national and regional builders are feeling the same new housing pinch as you.

If you feel like it's the bottom of the ninth with nobody on base but you still love building homes, here are a few suggestions to help get you our of your slump.

Now is a good time to send a note to EVERYONE you know telling them about the exciting changes in your business concerning Green and Energy Star or the move to a new (less expensive) office or just about anything you can be upbeat about.  A handwritten note and postage is a low cost way to get back in touch but if money is tight, send an email greeting.

When the calls and emails start to come back, I guarantee you will start to fell better.  When you call call them back, use your basic networking skills.   Ask questions like:

" How are you doing?" 

" What's new in your business?" 

"What would you like me to tell someone I meet who might be a good potential client for you?"   "

In addition to keeping you in mind for referrals, is there anything else I can do to help you with your business?"

Put the other person first and communicate your interest. Then tell them about you and your business. Be sure to ask for what you want.

"Do you know anyone who might be looking at building a new house right now?"

Make yourself the focal point for a brand-new co-marketing group. Invite 5 to 7 other business owners, who have the same target clients as you do but provide non-competing products or services, to meet with you once a month.  Have everyone teach the others about his or her business. Then brainstorm ways in which you can market together to the same clients.

If you have never hired a business consultant or coach before now, and you have any money to invest in yourself as a business owner, now is the time to do it!   Getting some professional advice, training, and help can short-cut the amount of time it will take you to turn your business around.

It's entirely up to you not to join this recession and get "down in the dumps".  Do things that help keep your spirits up.  Stay away from people that tend to drag you down and start reading good articles about getting motivated to make more sales.  Have a happy 2009!

UNIQUE MARKETING EFFORTS FOR 2009

Money is tight and you don't want to spend it on the wrong advertising or marketing campaigns.  So what can you do that doesn't cost you an arm and a hammer?  You have to balance the Three T's!

Time, Talent and Treasure

For this marketing exercise, you'll mostly need Time and Talent.  Treasure leaves your pocket fast enough without any extra help.  So here are some unique things that you can try.

1. Print postcards on your computer and send them to prospects in your target audience.  Keep the message brief.  A small message on a postcard can drive traffic to your website and even if you only get one house from it...viola!
2. Buddy up with a supplier or subcontractor that you use and send out a brochure or leaflet announcing a new service that combines all your talents.  Mail them out, hand them out and make sure every one of you has enough to give to everyone you meet.  Each of you will be introduced to a new pool of customers.
3. Try answering your phone differently.  Try this for a week and gauge the reaction.  "Good morning, Hackknee Builders, the Greenest builder in Smithville."  A lot of your callers will ask what green building is and this is your opportunity to tell them.  Wow!  How much did this cost you?
4. Use post-it notes on letters and correspondence.  This catches the readers eye and forces them to read your hand written note about being an Energy Star builder.  Write a brief 7 word (maximum) hand written message on the outside of an envelope or package your mail.  It will be opened first!
5. Send a thank you note to anyone that gives you a minute to explain what Energy Star or Green is.  It will set you apart from everyone else.  Maybe include a offer that has a short expiration date.
6. Send a newsletter to existing customers telling them about the exciting new things you're doing.  Even if they can't take advantage of your new Energy Star rated homes, maybe one of their friends will.  Nice!
7. Hold an Open House at your office/salesroom/model home.  No seminar or classes, just an invitation to your target market to drop by on a certain day, meet you and your staff, look at new products and have a light refreshment.  No pressure!  The people that attend will talk longer and with more interest about your homes.  Make sure you have a hand-out packet for everyone attending.
8. Add your new Energy Star leaflet with all your outgoing mail.  It doesn't cost you any additional postage and you'll be surprised by the response.

Most of these marketing efforts cost little or no money and can get you big returns.  If you only sell one home from these inexpensive marketing ideas, you owe me a cup of coffee.  I like mine with cream.

 

UNIQUE MODULAR HOME FACTORY OPENS IN CALIFORNIA

Located in Sacramento, CA in an old aerospace factory, Details is bucking the trend of other modular factories.  They opened their plant in June of this year, right in the middle of the recession.

Employing 30 people, production is rolling off the assembly line with some of the most unique and upscale houses you will find anywhere.  I wish I lived in California just so I could visit their operation and meet Mark Wintz, the president of the company.

Click on either picture to visit their website, which rates about a 3 out of 5 on my rating system but makes up for it by the homes they offer.  Their brochures say it all! 

"The No Upgrade Home".

NEW HOUSE STARTS DROP AGAIN!

Being a new home builder just became uglier!   The Commerce Department reported that construction of new homes fell in November by 18.9 percent, the biggest drop in a quarter-century. The steep decline pushed construction down to a seasonally adjusted annual rate of 625,000 homes, the slowest pace on records dating to 1959.

With interest rates at the lowest they've been in years, people seem to be buying used homes instead of building new.  When the commercial real estate mortgages start to come due in early 2009, a lot of prime development ground will go on the block. 

Based on what the economists have been saying for some time now, we might be headed for a depression.  Let's hope it never hits!

It's pretty easy to understand depressions once you get the concept of recessions. A depression is simply a prolonged or particularly excruciating recession. Economists don't really have a watermark to indicate a depression.

My father, who lived through the Great Depression used to say "A recession is when your neighbor loses his job; a depression is when you lose your job."  I'm sure this didn't originate with him, but he said it often.

While the presence of a recession is debatable, when a depression hits, the issue is no longer up for debate.

TOP 10 WAYS TO STOP PROCRASTINATING

Since I'm as guilty as anyone about procrastinating, it made me smile when I came across someone who is an expert in the field.  Kerul Kassel wrote the following article and by golly I'm going to follow her 10 steps....just as soon as I can!

The Top Ten Ways to Stop Procrastinating

10. Procrastination Condemnation - Lose the Labels!  All those things you call yourself, such as lazy, scattered, disorganized, not good enough, incompetent, or stupid, for example, aren’t helping you get things done, are they?  You’ve learned to believe them, and you think they’ve become something of a self-fulfilling prophecy. If you look around yourself, though, you’ll see evidence that you can accomplish quite a number of things without delay.

9. Procrastination Exaggeration – Are you really procrastinating, or are you simply focusing on other priorities? It’s possible that those things you’re not doing shouldn’t get done until sometimes later, perhaps not at all. Focus on only the most significant areas first, and the rest will come.

8. Procrastination Temptation – If you hang out with people who coax you to procrastinate, it’s time to start surrounding yourself with better examples. If you know that certain situations are too enticing and will lure you from following through, create a work-around plan that will help you prevent yourself from “taking the bait”.

7. Procrastination Alienation – Recognize that you’re not alone, and are, in fact, in excellent company. Most people procrastinate about something, sometimes about many things. In a recent survey on procrastination, almost 1/3 of respondents who identified themselves as procrastinators had a post-graduation or higher education.

6. Procrastination Inclination – At the moment you are about to procrastinate, stop for just a moment to acknowledge the pattern, even if you continue on to put off whatever you were going to do. Awareness and acceptance that these are your current patterns is a necessary step in procrastination extermination.

5. Procrastination Perspiration – You probably think that the only way to stop procrastinating is to use will power and discipline. While that certainly can work, it can cost you a lot of energy and struggle. By allowing yourself to begin recognizing what is specifically in the way of following through, and creating simple new patterns, progress is pretty painless and immediate.

4. Procrastination Exploration – What is your procrastination costing you? Do you have a procrastination reputation? Do you continually have to make procrastination explanations or reparations to others? Are you in procrastination isolation so nobody will know what you’re not doing? Is your credit history in procrastination degradation because of paying bills late? Are you in procrastination desperation because you might lose that house you quoted? Sometimes understanding how badly you’re paying and in exactly what ways can provoke you to seek assistance.

3. Procrastination Consultation – Talk with friends about how they overcame procrastination. Buddy with them on their own projects, holding each other accountable to get things done. Hire a procrastination coach, someone who has worked with hundreds of people and not only knows about procrastination generation, but has helped many veteran procrastinators with procrastination renunciation.

2. Procrastination Transformation – nothing helps you achieve more easily than knowing all the steps you need to take, having a plan to take them, scheduling that plan into your calendar, creating incentives to make following through more attractive (and consequences to make it less attractive!), and putting some accountability supports into place. This, combined with a simple procrastination meditation, will get you back on track quickly and easily.

1. Procrastination Emancipation – Once you’ve fully understood that one of the big reasons you have been procrastinating is that you’re focusing only on finishing (and that’s too daunting) you’ll begin to instead concentrate on starting, which is a much more approachable and manageable way to get thing done. All you need to do is keep starting, and finishing will take care of itself.

Kerul Kassel is a recognized expert in procrastination and procrastivity.  She’s been quoted in the NY Times, Investor’s Business Daily, the Chicago Tribune, TIME Magazine and elsewhere.  Interested in finding out more about procrastivity? Check out http://www.StopProcrastinatingNow.com and www.Procrastivity.com.

Permission is granted to use this article provided format, content, and contact information are in full and intact.

Copyright © 2004-9 New Leaf Systems

A MAJOR WEBSITE MISTAKE

I've reviewed a lot of websites and one of the biggest mistakes that both manufacturers and builders make in designing their sites is not including any email addresses.

A lot of sites make you fill out a form and a comment area just to get through to someone at the company.  When I see these "Contact Us" pages with only a form for email communications, I just close out the site and go to another.  And if you think calling these companies with the phone number provided will get you anywhere, think again.  I even found one builder that had his own email address on the website sent to his spam folder and he wondered why nobody was emailing him!

PUT AN EMAIL ADDRESS ON YOUR SITE!  TODAY!

BAD DAY FOR CRANE OPERATOR

Just when you thought your day couldn't get any worse!

By Lauren McLane/The Record Herald

This lowboy truck hauling a Grove Rough Terrain crane became stuck under the Interstate 81 overpass over Route 16 in Antrim Township around 10:30 a.m. Saturday. The 135-ton piece of equipment needs a clearance of 15 feet, 4 inches or more to travel under a bridge or overpass. The clearance on the I-81 overpass on Route 16 is 15 feet, 2 inches. In order to make it under the overpass, the driver was forced to let air out of his tires.

SIMPLEX INTRODUCES "PARK MODELS

Simplex Homes in Scranton, PA recently introduced the newest addition to their lineup;  PARK MODEL Homes.  If you haven't heard of these types of homes, you're not alone.

I sold these types of homes from a mid-west manufacturer about 20 years ago and the ones introduced by Simplex make mine look like dog houses.  These homes are built to be 399.9 sq ft or less which allows them to bypass a lot of building codes.

They can be used as hunting and seasonal cabins, getaway cottages or placed on rented lots in recreational parks.  Simplex has taken these "homes" and put their own luxury touches to them.  Click on any picture to visit the Simplex Park Model site.

The Avalon exterior and interior

The Hampton exterior and interior

EPOCH HOMES GETS FIRST NAHB MODULAR GREEN BUILDING CERTIFICATION

Epoch Homes in Pembroke, NH has become the first modular factory to be certified under the new NAHB Modular Building Green certification program.  The NAHB recently gave modular home manufacturers the opportunity to meet the Green standards that they have had for the stick built industry.

With almost one out of five new homes in America built in a factory, this certification was welcomed by the system built industry.  Two years ago Epoch Homes was the first factory to build a LEEDS Platinum factory home east of the Rockies.

Epoch uses Green systems and materials in their homes including optional Icynene Foam Insulation, Heat/Energy exchangers, Radiant Floor Heating, LOC paint and Bamboo Flooring.

10 RULES FOR SMALL BUILDERS

David Letterman isn't the only person to have Top Ten lists.  Here is a list I've compiled from many previous articles about sales, marketing and advertising.

1. Target your market!  You can't be all things to all people.  Narrow your focus and you'll broaden your appeal.
2. Dare to be Different!  Just because your competitors are doing it....don't!  There are a lot of small builders doing the same kind of advertising and marketing.  Stretch your wings and stand out from the crowd.
3. Build a Winning Team!  Even if you a one person show, find the best accountant, attorney and business advisor you can afford.  It's harder to fail if many hands pull the sled.
4. Be Responsive!  Time is your customer's most precious commodity.  Under promise and over deliver!  Return phone calls and emails promptly.
5. Politeness Counts!  Say "Thank You".... a lot.  Tell your subs, employees and customers how much you appreciate them.  Send them a card or letter once in awhile.
6. Be Consistent!  Don't let your customers see or hear anything but your best.  They like to feel that they are dealing with a sound business.
7. Smile!  People don't buy from you because of price, product quality or your wonderful warranty.  They buy from you because they like you.
8. Great Attitude!  Fanatical Optimism is required in this business.  Any less and you will bring down your business. 
9. Soft Sell!  Solve their problems.  Satisfy their wants and needs.  Don't ever hard sell.....those days are gone!
10. Get Restless!  Never accept the idea this this is the way it's always done.  Constantly look for new ideas and procedures.

These would make great New Year's Resolutions too!

EXCEL HOMES UNVEILS NEW WEBSITE

A short while back a friend that works for Design Homes asked me to review their new website and I rated it as one of the best.  Then I received a call from the Vice President of Beracah Homes asking me to review their revised site.  Again I found a great site.

Now earlier this week the President of Excel Homes asked if I would review their newly revised website.  He must be very confident in his website to allow me to tell him what I honestly think of it!

Well, here goes.  I visited the site and found a vastly improved opening page with tons of links that lead to more links, videos, house plans and even their own blog.

The prospective buyer will find many articles about Building Green, Energy Star and lots of floor plans.  The Builder will find a great list of everything that needs to happen to complete an Excel home.

There is a Photo Gallery with only one house in it, but it is a dandy!  In fact, I liked it so much that I have it on the front page of this blog.

Then there is a link to the company blog...Modular Musings.  What is a little different about this blog is that they actually keep it updated and current.  So many builder's blogs are stale, but not this one!

Do I like this website?  As Sarah Palin would say, "You betcha"

2009 MARKETING PLAN

It's that time again to get your 2009 marketing plan started.  Oh, you don't have a marketing plan?  Well, it looks like you're going to be stuck doing what you did in 2008.  Hope that worked well for you.  If it didn't you'll probably not do very good in 2009 either.

You say you do advertise, well guess what....that isn't marketing! 

Advertising is a direct appeal to a specific group through a specific media source for a specific reason for a specific time frame.  Whew, that's a lot of words.  Marketing on the other hand is what you do on a continuous basis for the coordination of advertising, displays and sales strategies that promotes you and your business.

Let's assume you have an advertising plan and budget for 2009.  Hurry, you still have a couple of weeks! 

Now you have to plan how to make that advertising effective.  That's where marketing comes in.  Here are a couple of areas that you need to address in order to make your business the first one prospective home buyers think of when they start their search.

Zig Ziglar, a world famous sales trainer, states, "emotions drive buying decisions". People buy on emotion and then justify it with logic.  Marketing materials that focus on benefits appeal to customer emotions; while marketing materials that focus on features appeal to their logic.  Even customers who insist they are buying based on features, do so because it makes them feel good.

Feature unique or creative customer solutions on your website, newsletter, blog, bulletin and other marketing materials that showcases your company to the marketplace.  Order another 1,000 business cards that show what you do for a living.  Having a business card with just your name, address and phone number along with one of those creepy little house silhouettes just sucks!  Brighten it up!

Create a short and catchy phrase that lets people know what you do.  Be careful when starting this campaign.   The wrong catch phrase can hurt your business.  Read these earlier articles for more info. 

SEVEN LITTLE WORDS

A GOOD SLOGAN IS FOREVER

Take a look at your marketing efforts.  Has it been non-existent?  Marketing pieces, like a good pair of shoes, can get tired looking and worn out. Review your marketing materils and update pieces that no longer communicate your message or identity to the marketplace. 

I have been in many offices where I've noticed manufacturer's marketing material just setting on the shelf gathering dust or worse yet, the handouts were from a factory that they no longer are buying homes  from!   Say it ain't so! 

Remember you never get a second chance to make a first impression.  Click here to read more about "Making a Good First Impression".

Gestures of good will and community service are probably not on top of your marketing to-do lists this year. Buck the trend. Non-profit support is an excellent way to make business connections, build long-term relationships and get free press. The media is desperate for human-interest stories and angles that point to a sign that the future will not be as bleak as today. Take advantage of a quiet marketplace by putting your company on the radar screen now. When something new happens, you won't have to fight for attention.

Creating a marketing plan is not as easy as letting the guy or gal from the radio station or newspaper create one for you, but believe me, you'll get more business from a coordinated marketing plan than you will from a 30 second radio spot.

REPORTER CONFUSES PEOPLE ABOUT MODULAR

I comb the Internet looking for stories about people saying that modular and manufactured homes are the same.  This time I've come across a story that made me stop and ask if any reporter really knows the damage they do to our industry when they make comments like the one below? Laura Koss-Feder, the reporter would have better served her readers if she would have not even used the word "modular" in her headline or article.

How would you like to be the builder or the Realtor for this house when she told her readers that it is modular which means "double wide trailer" to many people.  Too bad.  Sounds like a well built "green"  home.

New construction: a modular Colonial home in Farmingdale

By Laura Koss-Feder;  Newsday.com

November 28, 2008

A modular home that is Energy Star certified is available for sale at 175 Staples St. in Farmingdale.
Offering energy efficient appliances, thicker-than-normal insulation and upgraded windows, the two-story center hall Colonial was completed in the summer, says listing agent Liz Schumann, licensed real estate agent with Coldwell Banker Residential Real Estate in Syosset. The developer is Dreamworks Construction of Farmingdale.The asking price is $585,000.The four-bedroom, 2 1/2-bathroom house has 2,400 square feet of space and sits on a 50-foot-by 100-foot piece of property.

The house features a two-story entrance; a one-car garage; oak flooring; a front porch with large columns; an unfinished basement with eight-foot ceilings; a family room with sliding glass doors to the backyard; an eat-in kitchen with maple cabinets, granite countertops, stainless steel appliances and a breakfast nook; a master bedroom with a walk-in closet; a master bathroom with double vanities and a large stall shower; vinyl siding; oak trim on all windows; landscaping; two-zone gas heat; and two-zone central air-conditioning."This home is ideal for a family who wants easy access to Manhattan and also wants a nice country setting," Schumann says. "The house is also very convenient to shopping in the area."The home is situated within a half-mile of shopping and the Farmingdale stop of the Long Island Rail Road, Schumann says. It is a mile away from Bethpage State Park. Estimated annual taxes are $9,500. The residence is in the Farmingdale school district.

MODULARS ARE REAL HOMES!

YOUR WEBSITE COULD BE YOUR BIGGEST LIABILITY

What?  Your biggest liability could indeed be your website. 

I've always said that having a website was important and that you must have one in today's tough market, but that's just the first step. 

Here is a typical scenario.  A prospective buyer decides that they want to look at modular homes for their next house.  They google "modular house" and up comes about a zillion entries. They refine their search to "modular houses in NJ" for example.  Again a couple of thousand show up.  Then they type "Trenton" at the end of their google and now about a hundred come up.

First they look through the manufacturers websites serving that area and decide that Acme Custom Modular Manufacturer looks good and either find a link to a local builder or redefine their google search again to find an "Acme builder in Trenton, NJ".

Up pops your website!  They look at it and see that it's just a bunch of links and photos with little info about helping them with buying a home.  It might as well be a business card they pulled off the bulletin board at the 7-11.

Now they aren't sure if Acme is the right company for them and they go off to find another manufacturer they like. 

Here both the builder and the manufacturer loses! 

The process starts all over and soon they find a website that gives them good and easy to understand information about modular housing and why they should give this builder a chance.

Moral of the Story.  Make sure you continually check out your competitors' websites and improve and update yours on a regular basis. 

Don't let your business website become just another 7-11 bulletin board story.

COMMERCIAL PROPERTIES NOW FACING FORECLOSURES

The recession is bringing another crisis to the forefront!  This one could turn out the lights at malls, hotels and stores throughout the country.

Even during this Christmas buying season, malls from Michigan to Georgia are entering foreclosure.  Hotels in Tucson, Arizona and Hilton Head, South Carolina are defaulting on their mortgages.  And it's expected to get worse.

“We’re probably in the first inning of the commercial mortgage problem,” said Scott Tross, a real estate lawyer with Herrick Feinstein in New Jersey.

That’s bad news for more than just property owners. When businesses go dark, employees lose jobs. Towns lose tax revenue. School budgets and social services feel the pinch.

In the past, when businesses hit rough patches, owners negotiated with banks or refinanced their loans.  But many banks no longer hold the loans they made. Over the past decade, banks have increasingly bundled mortgages and sold them to investors. Pension funds, insurance companies, and hedge funds bought the seemingly safe securities and are now bracing for losses that could ripple through the financial system.

“It’s a toxic drug and nobody knows how bad it’s going to be,” said Paul Miller, an analyst with Friedman, Billings, Ramsey, who was among the first to sound alarm bells in the residential market.

Unlike home mortgages, businesses don’t pay their loans over 30 years. Commercial mortgages are usually written for five, seven or 10 years with big payments due at the end. About $20 billion will be due next year, covering everything from office and condo complexes to hotels and malls.

The retail outlook is particularly bad. Circuit City and Linens ’n Things have sought bankruptcy protection. Home Depot, Sears, Ann Taylor and Foot Locker are closing stores.

Refinancing formerly was an option, but many properties are worth less than when they were purchased. And since investors no longer want to buy commercial mortgages, banks are reluctant to write new loans to refinance those facing foreclosure.

The worst-case scenario goes something like this: With banks unwilling to refinance, a shopping center goes into foreclosure. Nobody can buy the mall because banks won’t write mortgages as long as investors won’t purchase them.

“Credit markets have seized up,” corporate securities lawyer Michael Gambro said. “People are not willing to take risks. They’re not buying anything.”

That drives down investments already on the books. Insurance companies are seeing their stock prices fall on fears they are too invested in commercial mortgages.

“The system has never been tested for a deep recession,” said Ken Rosen, a real estate hedge fund manager and University of California at Berkeley professor of real estate economics.

IKEA MOVES INTO MODULAR HOUSING

 

I told you recently that Panasonic was preparing to enter the housing market with a series of modular homes, well, guess what, here comes IKEA!

IKEA just introduced their newest product to Gateshead, England — but unlike their popular furniture line, there's no assembly required.

Will they be coming to the US to compete with our manufacturers?  They can and they will.  And the darker the recession gets, the more attractive their homes will become, especially to Gen Y buyers who have grown up with the IKEA furniture and love going to the funky stores and getting the "Manager's Special" in the food court.

Here are a couple of pictures of their new homes.

 

 

FORECLOSURES AND UNEMPLOYMENT

A record one in 10 American homeowners with a mortgage were either at least a month behind on their payments or in foreclosure at the end of September as the source of housing market pressure shifted to the crumbling U.S. economy.

The Mortgage Bankers Association said Friday the percentage of loans at least a month overdue or in foreclosure was up from 9.2 percent in the April-June quarter, and up from 7.3 percent a year earlier.

In addition to that bad new, employers slashed 533,000 jobs in November, the most in 34 years, catapulting the unemployment rate to 6.7 percent, the Labor Department said Friday.

NEW GREEN BUILDING MATERIALS

Emerald Safe ’N Sound solid-core interior doors from Masonite have wheat-straw particleboard cores, skins made from composite wood, and stiles and rails made from solid wood certified according to Forest Stewardship Council (FSC) standards.  Click the door for more info:

 

PlybooPure from Smith + Fong is the first bamboo flooring to carry FSC certification and is made with low-emitting, non-formaldehyde polyisocyanurate binder. Click the flooring picture for more info.

 

 

Natura Paint from Benjamin Moore uses not only a base with no volatile organic compounds (VOCs), but also uses zero-VOC colorants. The paint contains a 100% acrylic resin which, according to the company, will meet the Master Painter Institute’s Green Performance standard as well as Green Seal’s 2009 GS-11 standard covering chemical content and paint performance.   Click on the paint can for more info.

ID THEFT PROTECTION FOR BUILDERS

Let's hope you've never been the victim of ID Theft but with the slowing economy and more and more people trying to get money in their empty pockets, it is on the rise.

Small businesses usually do not take security as seriously as their larger counterparts so a lot of you could be victims soon.    If you own or work for a small builder or other small business, here are some things you can do to protect yourself and your company. 

Here are some simple steps you can take to protect your business and your staff:

• Verify the Snail Mail – Verify that the questionnaire you've been invited to complete and send back is legitimate.  Don't fill out any personal information about the company.  This can be all the opening an ID thief needs to get to your money.
• Only open Email from sources or people you recognize.  I recently got an email from a credit card company asking me to verify my current address, phone number, Visa account number and pin number.  Whoa, that sent up all sorts of red flags and I contacted my credit card company about the email.  They told me they NEVER ask these questions.  They asked me to forward the email.  Use your Spam button on your email account!
• Treat phone calls in the same way you would handle email inquiries.   If you feel the person calling is asking the wrong types of questions, either refuse to answer them or hand the phone call off to the boss.
• The Ultimate ID Theft Protection.   Buy a shredder.  Make sure that anything that has account numbers is shredded along with sensitive company info.  Shredders start at $10.  Enough said!
• Buy locking file cabinets, preferably fire proof ones.  Here is one place that dishonest employees look for account numbers.  Make sure your filing cabinets are locked and in a safe place.  With all the companies going our of business, you should be able to pick up a fire proof file at a huge discount.
• Password Protect your computers.  It doesn't take but a minute for someone to steal your laptop.  Why make it easy for them to get into your info.  Design a unique password and use it! 
• Don't allow flash drives to be used by employees.  These are the latest devices for stealing info about the company.  I was in an office last week that had 3 of them lying on a table with nobody even close by.  It would have been so easy to take them and leave.  When I mentioned it to the owner, he became ashen-faced.  Turns out one of them had his Quick Books backup on it.  Another had all his prospects and his quotes!

WAUSAU HOMES CUTS 1/3 OF WORKFORCE

Wausau Homes cut one third of their workforce at their Rothschild, WI headquarters yesterday.  81 people lost their jobs and only 163 remain at that location.  The company will continue their benefits through the end of January, 2009 and pay severance pay based on how long they worked for the company.

In February of this year, 44 people were laid off in the first round of job cuts.  In addition, WH Transportation Co., their trucking company that delivers homes for Wausau Homes and its sister company, Sterling Building Systems, laid off 340 people earlier this year.

Tom Schuette, company president, said "The housing market, or the housing economy, has been hurting nationally for quite a while, and we seem to have stabilized, and then the recent financial crisis that has been hitting our country kind of has been a second blow,"

Schuette said he would like Wausau Homes to be in a position to begin hiring again when the economy turns around, though he doesn't expect that to happen any time soon, and the company didn't have the ability to wait for a recovery without cutting jobs.