NBN Online for the week of October 19, 2009

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In This Issue:

Front Page
Lawmakers Look at Home Buyer Tax Credit to Spur Jobs
50+ Housing Sales Slump at the End of the Road
Coast to Coast
Uproar Over Appraisals: Property Owners Chafe at Change in System Designed to End Fraud
Politics & Government
Appraisal Groups Respond to NAHB Testimony
Economics & Finance
White House Gives a Boost to Affordable Mortgage Finance
Builder Confidence Slips in October
Eye on the Economy: The Economy Is Improving, Or Is It?
Don't Miss Oct. 21 Construction Forecast Conference, Webcast
Useful Links to Monitor Economic and Housing Trends
Downturn
Decorate With Emerging Trends to Extend Model Life
Manage Cash Flow With Accurate, Timely Cash Flow Projections
Tips
Builders’ Tip: An Easy-to-Build Dust-Isolation Box
codes and standards
2,400 Code Changes Under Consideration in Baltimore
IBS
Enter Talent Contest to Sing the National Anthem at IBS
Multifamily
Oct. 22 Webinar to Explore Multifamily Marketing
Sales
Go for The Nationals Gold — Entries Due Oct. 28
Remodelers
Attend NAHB Remodelers Events at Remodeling Show
Education
Nominations for 2009 Designee of the Year Awards Due Nov. 13
Education Calendar
Green Building
N.C. Builder Leads the Nation in Certified Green Homes
500th Home Achieves National Green Building Certification
hbi
Project CRAFT Success Cited at ICCA Conference
Building Products
Dow Breaks New Ground With Affordable Solar Roof Shingles
TV
NAHB-Produced Programs on the DIY Network
Endowment
BIA Uses CBG Funds to Create Student Recruitment Materials
Applications for Endowment IBS Scholarships Due Oct. 30
Submissions for Lee S. Evans Scholarships Due Oct. 30
Association News
Chicago Dream Home Raffle Supports Worthy Causes
Save Big — at Least 60% — on Selected FedEx Shipping
Earn One Free Hertz Rental Day for Every Two Hertz Rentals
Members, Save on HP Business Products and More
Authorization Process for GM’s $500 Offer Now Much Easier
Calendar of Events
NAHB Career Center

Related Articles

Manage Cash Flow With Accurate, Timely Cash Flow Projections

Decorate With Emerging Trends to Extend Model Life

More years ago than I care to remember, when my husband and I were searching for our first home we saw every single model in the area, whether in our price range or not. And then we walked into — the one.

To this day I can still remember the thrill I felt. The home was similar to many other models that we’d seen, but the merchandising blew me away. Inside, the home was poppy red and kelly green — really — and I loved it.

The color scheme in the model was so different and fresh; I had never seen anything like it. I wanted to move right in and we did. That was the beginning of my love affair with the new home building industry and the business of fulfilling dreams.

Today’s home buyers are more design savvy than ever. They watch HGTV; they pore over catalogues from Pottery Barn, Crate and Barrel, Restoration Hardware and any other home fashions catalogue and shelter magazine they can get their hands on.

Retailers such as Target, Ikea and Pier One have created stylish furniture and home accessory lines that are affordable and attainable for first and second move-up buyers. No matter their income, these buyers know good design when they see it, and their expectations are high.

When they tour models that don’t meet their expectations, they're disappointed. And for builders, that translates into disappointing sales.

Step Out of Your Comfort Zone

 

 

Monterey Homes in Austin, Texas, created a "Modern Traditional" bedroom using classic elements — without the traditional clutter. Photo by Robert McGee

So, what does it take to make sure that your models are going to resonate with your buyers and embrace their individuality?

It takes a fearless commitment to thinking outside the box and the ability not to do “the same old thing.” Model homes should reflect future design trends, not what’s been popular in the past. Your models will not only stand out from the crowd, they will have a much longer shelf life if they reflect emerging trends in lifestyle and design.

Now, it isn’t always easy to get builders to accept the idea of showcasing unfamiliar designs and color schemes in their models. They often balk at such changes, saying, “That’s not our style,” or, “Our market doesn’t like that.”

But you’ll be rewarded if you step outside your comfort zone and allow your merchandiser to lead you in the right direction — the future.

 

 

Landstar Homes, in Dallas, uses inviting spaces and color to create a "Warm Contemporary" style, putting homey touches in all the right places. Photo by Doug Handel

Say Good-Bye to Tuscany

Since Tuscany has been popular as home décor for the last 10 years or so, it's no longer an emerging trend. Consequently, it’s time to let Tuscany go — just as the home furnishings industry has done.

That industry has supplanted Tuscany's over-draped, over-furnished, over-accessorized, over-planted décor with a much simpler contemporary minimalistic style — and you should, too.

That doesn’t mean that your models need to look like über-cool urban condos. You can showcase your homes with modern-traditional, modern-country or any other style that reflects the regional and lifestyle preferences of your target market.

In Texas, for example, “Tuscan”  has been replaced with “Hill Country Modern,” a fresh approach to classic standards that will be a breath of fresh air to your buyers.

 

 

"Hill Country Modern" by Penco Companies in Lakeway, Texas, combines clean lines with colors and textures of the Texas hill country. Photo by Robert McGee

Some of the characteristics of a contemporary-styled home include:

  • Furnishings that aren’t “overstuffed,” but have clean, simple lines

  • Fewer, larger accessories that make a statement

  • Fewer plants that clutter end tables and the top of cabinets and fewer large trees that suck the light out of corners and make rooms feel smaller. “Grassy” plants and see-through palm trees, used in moderation, will bring nature indoors.

  • Interesting artwork placed to create punctuation in a room and matted in light colors. We only use white to contrast with rich wall colors. No more Renaissance paintings matted in burgundy or framed iron scrolls or wall sconces with ivy.

  • Demonstrating the latest trends in flooring, wall tile, cabinetry and other interior finishes


This approach should work for you because all of the characteristics of a contemporary-merchandised home exemplify what model home merchandising really is all about — showcasing the home, not its furnishings.

Displaying clean, uncluttered interiors will enable your buyers to see the home and how they will live in it. This look embraces the architectural features and benefits of the home, rather than the decorating.

That’s not to say that your salespeople shouldn’t take advantage of being able to connect with their buyers through the decorating ideas in your model home.

Debora Trimpe, sales coach with Texas builder Highland Homes, teaches salespeople how to use decorating to overcome objections.

For instance, when her salespeople tell her that their buyers often tell them that they don’t need any help, that they’re only looking around “to see the decorating” (an almost guaranteed signal that they don't want to be bothered or pressured), Trimpe trains her salespeople to overcome this hurdle by pointing out the latest design trends incorporated in the models.

Rather than leave them alone, she tells them to respond with, “Great! Let me show you some of the cool new ideas in the home,” which then creates an opportunity for the salespeople to demonstrate the home and bond with the customer.

 

 

Grand Haven Homes, of Austin, Texas, takes the time to include trends and atmosphere in places that sometimes get neglected — like a pantry — to make the impression needed to sell a home. Photo by Robert McGee

Don’t Forget the Small Stuff

A large part of the merchandising budget should be allocated for artwork, accessories and all of the memory points that engage your customers and keep them in your model longer. The reason we merchandise pantries, closets, linen closets, laundry rooms and the like is to make sure that your buyers remember that you have them.

But don’t just merchandise them, put a “smile” in those areas to add the unexpected and some fun.

Coordinate the pantry with the theme of your kitchen. If your kitchen is staged to show pasta being prepared, why not have potential buyers open the pantry and find it filled with nothing but warehouse-store sized spaghetti jars? They’ll laugh. More importantly, they’ll remember it.

In a recent model for Grand Haven Homes in Austin, Texas, we placed black and white professional and very adorable baby photos prominently over the master bed. Not only was this guaranteed to produce “awwws,” it presented a great solution for first-time move-up buyers who probably didn’t have large budgets for artwork.

 

 

Grand Haven Homes uses small, inexpensive touches, like adorable, framed baby photos, to evoke a valuable reaction from buyers — yet another way to stand out in the crowd. Photo by Robert McGee

Don’t Use Living Space as Your Sales Office

Finally, don’t plan to use a bedroom, or any other space inside your model, as a sales office. Your buyers won’t remember that it should be a bedroom. Instead, they’ll simply negate that space as a part of the home.

Between meeting high customer expectations and trying to stay within a limited budget, remember that there is a difference between “merchandising” and “decorating” — and that difference will put a smile on your buyer’s face and money in your pocket.

Mary DeWalt, MIRM, CMP, is president of Mary DeWalt Design Group, a national model home merchandising firm based in Austin, Texas. DeWalt is a frequent speaker at the International Builders' Show as well as state and local conferences. DeWalt currently serves on the board of directors of the 50+ Housing Council and the National Sales and Marketing Council. For more information, e-mail DeWalt, call her at 512-236-0017 or visit her Web site at www.marydewaltdesigngroup.com.



Options Selling Can Boost Sales, Make Lasting Impression

In “Option Selling for Profit: The Builder’s Guide to Generating Design Center Revenue and Profit,” authors Gina Gullo and Angela Rinaldi share their hands-on understanding of high-powered selling in the ever-expanding market of options for new homes.

By offering a range of options and upgrades, the design phase provides the best opportunity to make a lasting impression and ensure that buyers will favorably remember the entire buying experience.

To view or purchase this publication online, click here, or call 800-223-2665.


 

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