Nation's Building News Online: January 30, 2012

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New NAHB Primer Aimed at Helping Builders Work More Effectively With Appraisers

With builders around the nation continuing to grapple with faulty appraisals that jeopardize sales of their new homes, NAHB is adding an “Appraisal Primer” to its collection of resources aimed at helping association members strive for the best possible outcome from today’s less-than-perfect appraisal process.

The newly published primer from NAHB discusses in detail the appraiser’s role in the financing of new homes.

“There is a lot behind the scenes that affects the way appraisers must conduct their business,” writes Joan Trice, an appraiser and author of the primer; editor and publisher of Appraisal Buzz, an email publication; and the host of the Alterra Group’s Valuation Expo, which is the largest annual conference for the appraisal community.

Trice is also consulting with NAHB on the association's efforts to resolve appraisal problems.

“Understanding the regulations, methodologies and task of the real estate appraiser will provide home builders with the necessary knowledge to discuss valuation issues with appraisers before they become valuation problems,” Trice says.

Beginning in 2009, NAHB has held a series of four appraisal summits at the National Housing Center in Washington, D.C., attended by representatives of federal banking regulators, the appraisal industry, the housing finance industry, the real estate and housing sectors and others for discussions of deficiencies in the current system of evaluating homes and how to address them.

While much more needs to be done to reform the system — which is expected to be a long-term undertaking stretching far into the housing recovery now beginning to materialize in specific markets across the country — NAHB has made substantial headway on key appraisal issues.

Covered in detail in the Nov. 7, 2011, issue of Nation’s Building News — which was devoted to what NAHB has been doing to fix the broken new-home appraisal system — builders have seen progress on such key concerns as their ability to communicate with the appraiser and the right to have their homes appraised by individuals who are qualified to do the job.

In conjunction with the release of the “Appraisal Primer,” NAHB has updated its “Appraisal Guidance for Builders,” which summarizes information on the selection of appropriate appraisers, the use of comparable sales in determining the value of new homes, what builders can and should do to ensure accurate appraisals and actions they should take if an appraisal was conducted improperly or contains errors.

In a FAQ section at the end of the new primer, Trice answers some specific concerns that builders have been voicing over appraisals.

Among the questions she addresses:

• What should an appraiser do to determine the value of a new home with options and upgrades that do not appear in other homes recently sold in the local area?
  
  Noting that features of homes that exceed local market standards can result in a loss when they are valued at less than their cost, Trice says that the appraiser should perform a cost approach, which includes all options and improvements in the estimated costs.
  
  “The cost approach should accurately reflect the value of these items,” she says, “and can be very useful on unique properties” that are undervalued when a market approach is taken.
  
  She adds that appraisers should research the market area for comparables and look for other properties of similar caliber with similar options — even if they are not brand-new homes.
  
  “If the property is exceptionally unique,” she says, “appraisers can find other new homes with similar options and make adjustments for differences in location as well.”
  
  
• Will the appraised value support the additional costs of expensive geothermal heating and other green options?
  
  “Green construction is a fairly recent phenomenon,” Trice writes. “As a result there are few resales of homes constructed with these green components. Appraisers have a difficult time extracting proper adjustments for these features from the marketplace.”
  
  Calculations can be made on how much the owners will save in utility costs over the period they are expected to live in the home compared to those costs in a standard home, she says, but those calculations are “difficult to support based on the lack of hard data on maintenance and efficiency.”
  
  However, builders should at least expect to see the additional costs of the green amenities included in the value of the home.
  
  
• What are some of the problems that builders can encounter when appraisers are selected by national appraisal management companies (AMCs), which may be looking for appraisers who charge the lowest fees so they realize the highest margin on the referral?
  
  “AMCs have been accused of using appraisers with the lowest fees even if they are located far away from the subject property they are appraising,” Trice says.
  
  Appraisers who are coming from a long distance away are perceived as not being geographically competent in the local market. “Is it really possible for an appraiser from 100 miles away to understand the nuances of a local market segment?”
  
  To competently perform their job, appraisers need to investigate the market area and visit it many times to understand it, she says.
  
  Though it may not occur that commonly, “if an appraiser comes from a long distance they should be challenged to demonstrate their competence in the local market,” she advises.
  
  One test to determine if the appraiser knows the local market is to see if they have access to local conventional data sources.
  
  An appraiser who doesn’t “very likely is not the best choice. Lenders should be called and queried about appraisers that travel from well outside the local market.”
  
  
• Is it true that under the Dodd-Frank bill builders cannot communicate with appraisers?
  
  Trice answers with an emphatic “no,” and says “it is essential that builders communicate with appraisers.”
  
  Communication intended to coerce or inappropriately influence the appraiser is not allowed, she says, but the legislation requires appraisers to be prepared to make corrections, answer inquiries and review information.
  
  “Certainly, parties to the transaction can communicate with appraisers about the logistics of the assignment and may even dispute the results,” she says.
  
  “Some lenders have instituted policies that restrict the flow of communication,” she says. In an effort to comply with the legislation, “they have created untenable working relationships. This is unfortunate.”

The various informational materials on appraisals collected on NAHB's website will continue to evolve as new challenges arise.

Those attending the upcoming NAHB International Builders’ Show in Orlando will have the opportunity to see Joan Trice.

She will be a panelist at an educational panel — “Builders Guide to Appraisals: Obtaining Accurate Valuations on New Homes” — on Thursday, Feb. 9, 1:30-3:00 p.m. in West 306.

In a related story in this issue of NBN, the Government Accountability Office reports that the regulation of appraisers is being inadequately monitored.

For more information, email Steve Linville at NAHB, or call him at 800-368-5242 x8597.

Floor Plans: A Sustainable, Rural Oasis for Active Adults in Northwest Idaho

High in the Pacific Northwest is a rural oasis for active adults that boasts breathtaking mountain views and beautiful sunsets while also being close to extensive recreational activities, shopping, medical and community centers and free public bus transportation.

The award-winning Meadow Ranch, developed and built by ActiveWest Builder in picturesque Coeur d’Alene, Idaho, incorporates smart growth principles, urbanism and green building. The 80-home community is sited on a 12-acre urban infill lot formerly zoned for light commercial. 

A refurbished dairy barn and windmill harken back to the area's rural roots and underscore Meadow Ranch's sense of place.

Harkening Back to a Simpler Way of Life

With its refurbished red barn, originally built in the 1950s, and an 80-year-old windmill near the entrance, Meadow Ranch was created as a friendly, easily accessible, diverse neighborhood that projecting a strong sense of place that underscores the area's rural roots.

Meadow Ranch harkens back to a simpler way of life. There’s a community library, meandering hiking and biking trails, organic community gardens, a greenhouse, a small apple orchard and a seasonal farmers market. Community gatherings and pot-lucks are held in a common area adjacent to the barn and orchard.

Simple craftsmanship

Moving Forward With Award-Winning Sustainability

Winner of the Idaho Smart Growth & Green Building Award and a finalist in the Green category of NAHB’s 2012 Best of 50+ Housing awards, Meadow Ranch green features include Energy Star-certified homes with HERS scores as low as 46; community connectivity to medical facilities, schools, bike routes, open space and more; low-flow plumbing fixtures to conserve water;  and low-maintenance landscaping that features drought-tolerant plants, drip irrigation and no turf — so residents don’t have to worry about mowing their lawns.

Pre-cut framing helped eliminate construction-site waste.

All building materials are local and non-toxic, and all the paints, adhesives and sealants are low-VOC. The homes are built using pre-cut advanced framing. Wood floors and doors are manufactured locally from wood reclaimed from Idaho barns, and 95% of construction waste is recycled and diverted from landfills.

In addition, 100% of the stormwater is captured onsite.

Cottage-style home with low-maintenance landscaping and neighborly front porch

Universal Design

The community's cottage-style homes incorporate such aging-in-place and universal design features as zero-step entrances, wider hallways, adaptable bathrooms and kitchens, roll-in showers and radiant floor heating.

The homes range in size from 800 to 2,200 square fee.t with master suites on the ground floor, and all have front porches to encourage neighborly conversation.

Kitchen

To ease residents’ worries and allow for more leisure time, low monthly home owners association fees cover front landscaping maintenance and watering, the community gardens and apple orchard and snow removal — which helps make Meadow Ranch a winter paradise as well.

Bathroom

Organic community gardens

Low-maintenance yards

Community gathering at the barn

Made from recyled barn wood

Streetscape

Meadow Ranch site plan

Single-story home floor plan

Two-story home floor plan

Features and Specifications

Project Team Builder/Developer — ActiveWest Builder, Coeur d’Alene, Idaho Home Features Cottage-style homes of 800, 1,500 and 2,200 square feet First-floor master bedrooms First-floor laundry rooms Flex rooms Front porches Two-car garages Mud rooms Aging-in-Place/Universal Design Features Zero-step entries Wide hallways Adaptable bathrooms and kitchens with basic gripping features, custom counter and cabinet heights, bar blocking, elongated toilets No-curb roll-in showers Maintenance-free yards Community connectivity to medical and shopping facilities Community Features Common area with apple orchard and restored barn Orgranic community gardens and neighborhood garden boxes Compost and mulching containers Seasonal farmers market Walking/biking trails and sidewalk network Club house/community center (coming in Phase III) Community snow removal Community center Swimming pool Playground Basketball court Close to shopping and bus stops/public transportation Green Features Redeveloped infill site with existing structure  LEED-certified Energy Star-rated plumbing fixtures and appliances Radiant floor heating Low-VOC paints, adhesives Focus on indoor air quality — ASHRAE 62.2, HRV units, radon-resistant construction using non-toxic pest controls Compact development — sustainably-sized homes and lots at 7 units per acre Recycled, low-emission and locally sourced construction materials 100% stormwater capture onsite 95% of construction waste diverted from landfill

Appraisal Process Needs Better Monitoring, GAO Study Finds

Zeroing in on yet another deficiency of a faulty appraisal process that is hurting home values, hampering a housing recovery and often killing sales of homes coming in below the contract sales price, the Government Accountability Office (GAO) earlier this month reported that the Appraisal Subcommittee, which oversees the appraiser regulatory programs established by the states, needs to improve its monitoring procedures.

"These findings underscore the need to establish an effective oversight system to ensure that appraisals accurately reflect true market values and don't harm aspiring home buyers or builders," said NAHB Chairman Bob Nielsen

A recent NAHB survey shows that one out of three builders has lost signed sales contracts because of flawed appraisals, and a fall survey conducted by the National Association of Realtors found 18% of Realtors reporting a recent contract cancellation or delay as a result of a low appraisal.

Numerous flaws in the appraisal system have been causing inaccurate home valuations, during both times of housing market weakness and strength.

NAHB has been actively seeking improvements in appraiser education and training, particularly for appraisals of new homes, as well as more rigorous oversight so appraisal guidelines are enforced and errors can be corrected as they occur.

The GAO report found that the Appraisal Subcommittee's "enforcement tools and procedures for reporting compliance levels have been limited."

The GAO cited "several weaknesses" that have potentially limited the subcommittee's ability to monitor state appraiser regulatory agencies, the federal financial institution regulators and the Appraisal Foundation, which is a private, non-profit corporation that sets criteria for appraisals and appraisers.

Under the Dodd-Frank Act, the Appraisal Subcommittee was granted the authority to establish a national hotline to receive complaints over noncompliance with appraisal independence standards and grievances from appraisers, individuals or other entities over attempts to improperly influence appraisers or the appraisal process.

The hotline currently does not exist, and the GAO report says that its creation could strain the Appraisal Subcommittee's resources.

Observing that "the critical role of real estate appraisals in mortgage underwriting underscores the importance of effective regulation of the appraisal industry," the GAO study calls on the Appraisal Subcommittee to strengthen its oversight by developing specific policies and procedures for monitoring the appraisal requirements of the federal financial institutions regulators.

How homes are valued can have a dramatic effect on home owners' mortgages, foreclosure rates, the health of banks and, ultimately, the condition of the U.S. financial system, said Nielsen.

"The current system is not working," he said. "We must resolve a flawed appraisal process that produces inaccurate assessment of home values, because this fosters price instability, puts more families in danger of default or foreclosure, and undermines the housing and economic recovery.

“It's time that regulators, appraisers, lenders and all of the stakeholders in this debate come together and agree on major reforms in appraisal practices and oversight to ensure that homes are appraised at their fair market rate."

For more information, email Steve Linville at NAHB, or call him at 800-368-5242 x8597.

Nation's Building News Will Not Be Published on Feb. 13

Nation's Building News will not be published on Feb. 13, its regularly scheduled production date, as NBN staff members return from the 2012 NAHB International Builders' Show in Orlando. NBN publication will resume on Feb. 20 and include reports from IBS.

Housing Analyst: Get Rebound Ready

A regional housing analyst who studies the Omaha, Neb., market is warning local builders and bankers that: “We’re going to run out of lots.” Dan Whitney of Olathe, Kan.-based Landmarketing Inc. admits that lenders might look at the metro area’s 12,225 developed yet unoccupied lots and wince at the thought of financing more. But he expects “pent-up demand” to be unleashed over the next five years and noted that it takes considerable time to finance and prepare land. “It’s the 800-pound gorilla in the room,” Whitney told a group of bankers, builders and Realtors, referring to today’s inventory. “On paper, it looks like a lot of years’ supply. But once you break it down to (desirable) lots in good areas…that supply dwindles pretty fast.” Whitney’s call to get more plots in the pipeline is based on his forecast that 2012 will reverse the slide in new-home construction. According to Whitney’s canvass, 12,255 lots currently are platted and ready for home construction in the Douglas, Sarpy and Pottawattamie counties area. Perhaps 25% are in not-so-desirable spots. If more lots are not prepared, he estimates that population growth and other factors could lead to an unmet need over the next five years of 4,300 in the three counties. (www.omaha.com)
Omaha World-Herald (1/25/12); Cindy Gonzalez

Size Matters Most to First-Time Buyers

When first-time home buyers begin looking for new digs, they often have one guideline firmly in mind: think small. “First-time home buyers, because they have not been through the home buying process before, have less confidence that they are making the right decision even in spite of low interest rates and affordable prices,” says Stephen Melman, NAHB’s director of economic services. “While first-time buyers are often looking for the same things as repeat buyers,” he said, “they are more likely to compromise on space and upgrades.” A survey by the National Association of Realtors shows that 51% of first-time buyers said that finding the right property was the hardest part of the buying experience. A 2011 NAHB study about what homes will look like in 2015 showed that builders anticipate building smaller homes with more “green” features, both of which match with first-time buyer preferences. “The top things that buyers want are a great room instead of a formal living room, a walk-in closet in the master bedroom and a laundry room,” says Melman. “First-time buyers want the same thing, but they are more likely to be satisfied with a small laundry room without an attached mudroom and with a smaller master bedroom and a smaller walk-in closet. They are less likely to want a formal dining room and would rather have a dining area that uses less space.” (www.foxbusiness.com)
Fox Business (1/26/12)

A Way to Make People Buy Homes Again

By one recent estimate, the nation has about 2 million fewer households than under more normal economic conditions. Some of these potential buyers hesitate to take the risk of buying, even though their jobs and credit history may qualify them for mortgages. While near-record numbers of houses all over the country are empty, the sidelines are crowded with this huge “shadow demand.” A downpayment protection plan could help activate that demand for houses, according to James A. Wilcox, an economist and professor of business in the Haas School of Business at the University of California. Under the plan, home buyers could purchase protection from the government for a one-time fee, say 1% of the house purchase price, or $2,000 on a house selling for $200,000. The fee could vary with the risk of house price declines in each area. The plan would be open to all buyers. At the end of three years, the government would automatically mail checks to protected home owners if average house prices in their area were lower than when they purchased their homes. (No decline, no check — just like auto insurance.) (www.nytimes.com)
New York Times (1/25/12); James A. Wilcox

Tough Economic Times Bring a More Subdued Approach to Kitchen Renovations

In these economically stressed times, when home prices haven’t appreciated much, the kitchen remodel has taken on a more streamlined approach to reflect the era. Top kitchen designers in the Washington, D.C., area recommend home owners consider this trend when planning improvements to get the most return on their investments. Their expert advice starts with an efficient floor plan for the kitchen. “If the layout doesn’t work, it doesn’t matter how much you spend on appliances and cabinets,” says kitchen designer Nadia Subaran of Aidan Design in Bethesda, Md. As the economy has shrunk, so has the size of a kitchen renovation, according to several kitchen designers. “People are realizing that they don’t need a huge kitchen for it to be efficient and comfortable,” says Bethesda kitchen specialist Jennifer Gilmer. Just a few years ago, she was creating big spaces filled with two of everything — sinks, ovens, refrigerators and dishwashers — and tons of cabinets. “That is considered wasteful by the young generation,” notes Gilmer. “Now people are doing simpler renovations within the existing space rather than adding on. Even without expanding, the kitchen can become more spacious with the right moves. “You can increase square footage and functionality by incorporating smaller spaces around the kitchen such as a closet, butler pantry or bathroom,” says Gaithersburg, Md., kitchen designer Davida Rodriguez. “Taking down walls between a breakfast room and kitchen gives that great room effect without having to bust out.” (www.washingtonpost.com)
Washington Post (1/25/12); Deborah K. Dietsch

Window Fixtures of Rougher Days Come Down

Across neighborhoods long fortified against their own gritty reputations, steel and iron window guards, those often unsightly symbols of the bad old days, have slowly been receding from New York City. Once a reliable visual marker of neighborhood borders — no guards, some surmised, implied there was no need for guards — many bars have been casualties of an aesthetics-driven calculation, as families brush aside what they view as outdated home safety concerns. To be sure, window bars remain a presence along the ground floors of many apartment buildings and single-family homes throughout the city. Paul Gunther, president of the Institute of Classical Architecture and Art, said the practice of protective window guards dated at least to the Roman Empire. When he moved to New York in 1978, Gunther said, he bought an accordion-style window gate for his home on West 80th Street. “My first purchase, before even a mattress, was these hideous window gates,” he said. “But boy, did they make me happy.” During the crime-ridden 1970s, the police offered a free service: Officers would travel to homes in the five boroughs, on request, and provide tips on how to improve security. Window bars were among the suggestions. (www.nytimes.com)
New York Times (12/12/11); Matt Flegenheimer

Consumer Financial Protection Bureau Scrutinizes Appraisals and Other Realty Fees

The new Consumer Financial Protection Bureau is reviewing ways to bring more clarity and better disclosure to the home buying process — including appraisal charges. Although banks and mortgage lenders maintain that there is no need for additional disclosure, appraisers, builders, realty brokers and others say the costs of appraisals to consumers have increased during the past two years, while the quality and accuracy of the work have declined. In a random sample of 3,600 of its members last year, the National Association of Realtors found that 70% reported that consumers were being charged higher appraisal fees — sometimes an additional $100 or more — than was the typical charge previously. At the same time, NAR members who are appraisers reported sharp reductions in their compensation: cuts of 40%-50% per assignment. Many of the Realtors polled said they saw significant increases in the number of appraisers who were unfamiliar with local market conditions because they were from another geographic area. The same poll also found a growing incidence of sales transactions being derailed by appraisals that came in below the contract price agreed upon between the seller and the buyer. (www.washingtonpost.com)
Washington Post (1/27/12); Kenneth R. Harney

NAHB Elevates Housing Issues Among Candidates, Media During Primary Season

NAHB’s efforts to elevate housing issues before the media and the candidates during the campaign season ― through reaction to the President’s State of the Union address, candidate receptions and more ―  has resulted in widespread media coverage for the association and housing.

The following are media highlights of the past several weeks:

• The Sunshine State News quoted NAHB Chairman-Elect Barry Rutenberg in its report on the GOP debate in Tampa, Fla., and specifically mentioned an NAHB/National Journal reception, describing it as a “gathering to mark the political occasion.”
  
  
• The Tampa Business Journal interviewed Rutenberg, who said that 1.5 million to 2 million “unformed households” are itching to move from living with parents or renting with roommates to buying their own home. Stating that owning a home is still the American Dream, Rutenberg added that “even those people who have lost a home are trying to get back in.”
  
  
• National Mortgage Professional and Home Channel News each ran stories on a recent Government Accountability Report, which indicated that the Appraisal Subcommittee needs to improve its monitoring procedures. The articles quoted NAHB Chairman Bob Nielsen, who provided NAHB’s reaction to the report.
  
  
• The Philadelphia Inquirer cited Nielsen in an article focusing on the President’s refinancing proposals in his State of the Union address and how the industry is looking for the White House to do more for housing.
  
• The Hill published a story on the President’s proposal to help ease foreclosures, giving extensive coverage to NAHB’s housing positions.
  
  
• The Las Vegas Review Journal published an article on NAHB’s nationwide housing poll of likely 2012 voters under the headline, “Home Is Where the Vote Is ― As we move into the election year, promoting homeownership remains a top issue among likely voters.”
  
  
• The Philadelphia Daily News quoted Nielsen in an article on the health of the housing industry. Commenting on the rising Housing Market Index and the improving market conditions it indicates, Nielsen said that "this emerging trend is allowing builders to put more crews back to work.”
  
  
• NAHB CEO Jerry Howard was cited in a USA Today article on the impact of housing in the Florida elections. “It’s folly to talk about pulling Washington out of home finance,” he said.
  
  
• The NW Indiana Times quoted Nielsen on the release of the latest NAHB/First American Title Insurance Co. Improving Markets Index (IMI). “The fact that the list of improving housing markets nearly doubled this month shows that a significant positive trend is developing,” he said.
  
  
• NAHB Chief Economist David Crowe was quoted in an Omaha Herald World story on a potential housing rebound for the Omaha market. Crowe said that pent-up demand from households that have not been formed yet will help to spur construction. “Builders are seeing greater interest among potential buyers as employment and consumer confidence slowly improve in a growing number of markets,” he said.
  
  
• Crowe was interviewed by CBS Radio, ABC Radio, CNN Radio, AP Radio, CNN Money and The Wall Street Journal on the December new-home sales data released on Jan. 26 by the Commerce Department. 
  
  
• A CNN Money report, Crowe said that for every 100 homes built, 300 jobs are created. “Half of those are on construction sites and the other half are people building appliances, cabinets and other goods for the home,” he said.
  
  
• An article by The Hill on new-home sales cited NAHB’s job creation statistics and quoted Crowe, who said: "The three-month moving average for new-home sales and numerous other indicators — such as builder confidence, new building activity and the razor-thin inventory of new homes for sale — shows that the market is basically holding its own, and no longer moving backwards."
  
  
• An article in HousingWire suggesting that unemployed home builders are migrating to multifamily jobs cited Crowe, who noted that “many in construction have found or are looking for jobs in other sectors. Some uptick in residential remodeling and multifamily has employed a few more workers.”
  
  
• The Wall Street Journal, Fox Business, BusinessWeek, The Washington Post, MSNBC and the Washington Business Journal were among scores of media outlets that reported on the four-point rise in NAHB’s latest Housing Market Index (HMI), which gauges builder confidence in the single-family housing market.
  
  “Builder confidence has now risen four months in a row, with the latest uptick being universally represented across every index component and region,” Nielsen said.
  
  
• Howard  discussed the state of the housing market and the latest HMI report with Fox Business.
  
  
• Crowe was interviewed by CBS Radio, Marketwatch and Wall Street Journal Radio about the HMI data.
  
  
• Crowe was quoted in a USA Today article on an improving housing outlook. “There’s now more evidence of an improvement in the economy, and housing will follow the economy,” Crowe said.
  
  
• The Motley Fool reported on Crowe’s housing forecast for 2012.
  
  
• NAHB Chief Lobbyist Jim Tobin was quoted in an article in The Hill on the future of Fannie Mae and Freddie Mac and the challenges of passing legislation to deal with them
  
  “We’re bracing for a year where it’s difficult to break through on important policy issues,” Tobin said.
  
  
• The Wall Street Journal posted an online blog on Newt Gingrich attending the recent Rally for Homeownership in Columbia, S.C., and noted NAHB’s opposition to tampering with the mortgage interest deduction and the association’s effort “to make sure creditworthy consumers and small businesses can get mortgages and loans.”
  
  
• An HSH Financial Publishers story on NAHB’s recent nationwide poll on the mortgage interest deduction and the value of homeownership quoted Nielsen on Congress passing higher FHA loan limits.
  
  “We commend congressional leaders in both parties and each chamber of Congress for taking this action to boost overall mortgage liquidity in the marketplace, create jobs and provide home owners and home buyers with safe and affordable financing.”
  
  
• Crowe was interviewed by CNN Money, ABC Radio and CBS Radio on the December housing starts data. U.S. News and World Report also ran a story on the new-home construction data and quoted Crowe, who said he expects the upward trend in new single-family home construction to continue at a slow and steady pace.
  
  
• Smart Money blog quoted Crowe on December starts. “Builders are beginning to see more activity in their sales offices — an indication that the environment will continue to improve in selected markets.”
  
  
• NAHB Senior Economist Elliott Eisenberg was cited in an Omaha World Herald story on the health of the Omaha, Neb., housing market. For every 100 homes built, an estimated 324 jobs and $23 million flow into a local community, he said.

Obama Talks About Housing in State of the Union Address

During his State of the Union address to the nation on Jan. 24, President Obama focused part of his speech on housing issues, offering a proposal to help families stay in their homes and stem the tide of foreclosures.

“President Obama’s refinancing plan offers an opportunity for continued exploration of ways to aid struggling home owners and tackle the foreclosure crisis,” said NAHB Chairman Bob Nielsen.

“We look forward to working with the White House and Congress to tackle this issue and continue to make progress on foreclosures that are hampering the housing market,” he said.

Nielsen also reminded the media and public office seekers of the critical importance that Americans continue to place on the dream of homeownership, and called on policymakers to reopen the lines of credit for builders and buyers alike in order to create jobs and further stabilize housing and the economy.

“In this election year, voters will be looking closely at President Obama, the GOP presidential contenders and congressional candidates from both political parties to determine how they plan to put housing and the economy back on track,” said Nielsen.

“How the candidates respond will decide not only their political fate but the economic prospects of most Americans,” he said.

Coverage of the President’s speech by The Hill included a story on his proposal to help ease foreclosures and discussed NAHB’s positions on housing extensively.

“The group's main priority is on the lending front — home builders are urging Congress and federal regulators to figure out a way to get credit moving again for builders so they can start projects in markets where new housing stock is needed, and for home owners,” the article said.

In an article focusing on the President’s refinancing proposals in his State of the Union address and how the industry is looking for the White House to do more for housing, the Philadelphia Inquirer cited NAHB Chairman Bob Nielsen.

“National Association of Home Builders Chairman Bob Nielsen applauded Obama’s statement that ‘there has never been a better time to build,’ but he added that wouldn’t be possible without easing credit for the group’s members and buyers,” the story said.

A Response From the Home Builders Institute

John Courson, president and CEO of the Home Builders Institute (HBI), also commented on the State of the Union remarks, commending the President’s call to support “a national commitment to train 2 million Americans with skills that will lead directly to jobs.”

“Investing in job skills training to boost employment and spur economic growth is critical for meeting the demand for a qualified workforce in the residential construction sector,” said Courson.

“Skills training and job placement are key pillars of the HBI mission,” he added.

Courson noted that a need for skilled workers is beginning to re-emerge with the slow return of the housing industry from the economic downturn.

He cited NAHB projections that housing starts would increase by 17% this year.

Courson also cited a report from the ManpowerGroup that 52% of employers are having difficulty filling job openings, and that the top category of hard-to-fill jobs is skilled trades.

Courson said that HBI agreed with the President’s assessment that many companies that want to hire cannot find workers with the right skills.

HBI, he added, “has the workforce development programs in place so that we can, as the President noted, ‘turn our unemployment systems into a reemployment system that puts people to work.’ The residential construction sector is poised and ready to help our nation build a strong economy.”

“We look forward to working with the President, Congress and others to ensure that skills training opportunities and associated quality jobs can be found in communities nationwide,” he said.

NAHB Draws Attention to Housing Issues at Florida GOP Debate

Taking advantage of every opportunity to elevate housing issues in the current campaign season, NAHB co-sponsored a reception for the media, candidates and the public during the GOP presidential debate in Tampa, Fla., on Jan. 23.

The event — a collaborative endeavor with the National Journal — was hosted by NAHB Chairman-elect Barry Rutenberg and Second Vice Chairman Rick Judson.

The reception provided representatives from the housing industry with an excellent opportunity to meet with the candidates, their top aides and scores of media — and to highlight the important role that housing must play in the economic recovery.

Among other media coverage, the Sunshine State News quoted Rutenberg in its report on the GOP debate and specifically mentioned the NAHB/National Journal reception, noting it was a “gathering to mark the political occasion.”

The Tampa Business Journal interviewed Rutenberg, who said there are 1.5 million to 2 million “unformed households” that are itching to move from living with parents or renting with roommates to buying their own home.

Stating that owning a home is still the American Dream, Rutenberg added that “even those people who have lost a home are trying to get back in.”

This was the latest in a string of successful NAHB efforts to put housing front-and-center and defend the dream of homeownership during the presidential election cycle.

NAHB hosted similarly themed events during the fall Michigan Straw Poll and just prior to the South Carolina primary earlier this month.

Going forward, NAHB will continue to keep up the pressure on all of the candidates to address the most persistent obstacles that continue to weigh on the emerging but fragile housing recovery.

House Judiciary Panel Approves Eminent Domain Bill

The House Judiciary Committee last week approved H.R. 1433, the Private Property Rights Protection Act, legislation that would penalize states that use their eminent domain powers to seize land for purposes of economic development.

Reps. Jim Sensenbrenner (R-Wis.) and Maxine Waters (D-Calif.) championed the bill in response to the U.S. Supreme Court’s 2005 decision in Kelo v. City of New London, which gave the government power to take land from one private property owner and transfer it to another to further economic development.

NAHB believes the Supreme Court’s interpretation of “public use” imposes almost no checks or balances on eminent domain actions by state and local governments, and it could allow the government to take undeveloped land and affordable housing and transfer ownership to another private property owner if there is a higher potential for revenue.

The legislation seeks to discourage state and local governments from using their eminent domain powers for economic development by prohibiting them from receiving federal economic development funds for two years after they exercise such authority.

Prior to the panel consideration of the bill, NAHB sent a letter to lawmakers expressing support for curbing eminent domain abuse while raising some concern over potential unintended consequences as a result of the bill’s narrow definition of "blight," which could prevent the use of eminent domain in situations where there is true blight but no immediate threat to public safety or health.

NAHB is an advocate of protecting the private property rights afforded by the U.S. Constitution.

To view the legislation, go to http://thomas.loc.gov/ and enter H.R. 1433 in the box at the upper center of the screen.

For additional information, email Alex Strong at NAHB, or call him at 800-368-5242 x8279.

New-Home Sales Slip Slightly in December

Following three consecutive months of gains, sales of newly built, single-family homes edged down 2.2% to a seasonally adjusted annual rate of 307,000 units in December, according to figures released by the U.S. Commerce Department on Jan. 26.

"December's small decline in new-home sales follows three consecutive months of gains and means the fourth quarter was still stronger than the third," noted NAHB Chairman Bob Nielsen.

"The bottom line is that, while 2011 was the worst year for new-home sales on record, signs of gradual improvement began to emerge near the end of the year across a growing number of markets,” he said.

“This nascent recovery should continue to gain strength in the year ahead as more buyers take advantage of the very good deals that are out there for newly built homes."

NAHB is forecasting that new-home sales will rise 18% in 2012 following a 7.3% dip to 302,000 units in 2011 — the lowest number in the history of the government's recordkeeping.

"The three-month moving average for new-home sales and numerous other indicators — such as builder confidence, new building activity and the razor-thin inventory of new homes for sale — shows that the market is basically holding its own, and no longer moving backwards," said NAHB Chief Economist David Crowe.

"However, many of the same challenges that builders have cited in the past continue to pose obstacles to the market's advancement,” he said, “including buyers' inability to sell an existing home, consumer concerns about job security, and tight credit conditions for both building and buying new homes."

December's decline in new-home sales mostly stemmed from a 10.1% decline in the South, which is the nation's largest regional housing market.

The Midwest posted a more modest decline of 3.7% in December, while the Northeast and West posted substantial gains of 46.7% and 9.0%, respectively.

The inventory of new homes for sale continued to slide in December, reaching a new record low of 157,000 units, which was a 6.1-month supply at the current sales pace.

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For in-depth analysis of the latest housing statistics and research from the federal government, NAHB and other sources, Eye on the Economy readers are encouraged to visit Eye on Housing at http://eyeonhousing.wordpress.com/.

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Data You Can Build On

Get historical data, industry analysis and the latest forecasts, including state and metro, from HousingEconomics.com. Support your business decisions with in-depth analyses, detailed Excel tables, overviews and more. For more information, visit HousingEconomics.com.

Single-Family Housing Starts Rise in December for Third Straight Month

Nationwide production of new single-family homes rose 4.4% to a seasonally adjusted annual rate of 470,000 units in December, according to figures released by the U.S. Commerce Department on Jan. 19.

This was the third consecutive monthly increase for single-family housing starts, bringing them to their fastest pace since April of 2010.

However, a 20.4% dip on the more volatile multifamily side to 187,000 units slowed overall housing starts in December by 4.1% — to a 657,000-unit rate.

"The December report adds to the growing evidence that demand for new, single-family homes is finally starting to firm up in an increasing number of markets nationwide," said NAHB Chairman Bob Nielsen.

"This emerging trend is allowing builders to put more crews back to work, and could be even stronger if not for the overly tight credit conditions that prevail for both builders and buyers, as well as the continuing foreclosure crisis and the challenges of obtaining accurate appraisal values on new homes,” Nielsen said.

“Policymakers should be doing everything possible to alleviate these problems and nurture the fledgling housing recovery in order to promote job and economic growth," he added.

"This report is in keeping with our expectations for slow but steady improvement in the single-family market, where production hit its lowest yearly rate in more than 50 years in 2011," said NAHB Chief Economist David Crowe.

"Meanwhile, it should be noted that the decline in multifamily starts in December was coming off a dramatic increase from the previous month and simply brought that sector back closer to trend, he said.

“Apartment production generally has been gaining strength heading into 2012 after posting a gain of more than 50% in 2011,” he said. “Looking forward, NAHB is forecasting gains of approximately 17% in total housing production in 2012."   

Overall housing production in 2011 totaled 606,900 units in the Commerce Department’s initial estimate, which was a 3.4% improvement over starts in 2010.

Regionally, December housing starts rose 54.8% in the Midwest following a big decline in the previous month.

The Northeast posted a 41.2% decline that offset a big gain in the previous month, while the South and West posted declines of 3.0% and 17.6%, respectively.

Permit issuance, which can be an indicator of future building activity, held virtually flat at a 679,000-unit rate in December.

Single-family permits rose for a third consecutive month — by 1.8% to 444,000 units — while multifamily permits declined 3.7% to 235,000 units.

Regionally, permits in December rose 5.8% in the Midwest, held unchanged in the West and declined 6.5% in the Northeast and 0.6% in the South.

Subscribe to the Free Eye on Housing Blog

For in-depth analysis of the latest housing statistics and research from the federal government, NAHB and other sources, Eye on the Economy readers are encouraged to visit Eye on Housing at http://eyeonhousing.wordpress.com/.

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Data You Can Build On

Get historical data, industry analysis and the latest forecasts, including state and metro, from HousingEconomics.com. Support your business decisions with in-depth analyses, detailed Excel tables, overviews and more. For more information, visit HousingEconomics.com.

Builder Confidence Rises for Fourth Consecutive Month in January

Builder confidence in the market for newly built, single-family homes continued to climb for a fourth consecutive month in January, rising four points to 25 on the NAHB/Wells Fargo Housing Market Index (HMI), which was released on Jan. 18.

The index rose in January to its highest level since June of 2007.

"Builder confidence has now risen four months in a row, with the latest uptick being universally represented across every index component and region," noted NAHB Chairman Bob Nielsen.

"This good news comes on the heels of several months of gains in single-family housing starts and sales, and is yet another indication of the gradual but steady improvement that is beginning to take hold in an increasing number of housing markets nationwide — and that has been shown by our Improving Markets Index,” Nielsen said.

“Policymakers must now take every precaution to avoid derailing this nascent recovery," he added.

"Builders are seeing greater interest among potential buyers as employment and consumer confidence slowly improve in a growing number of markets, and this has helped to move the confidence gauge up from near-historic lows in the first half of 2011," noted NAHB Chief Economist David Crowe.

Even so, he said, “caution remains the word of the day as many builders continue to voice concerns about potential clients being unable to qualify for an affordable mortgage, appraisals coming through below construction cost and the continuing flow of foreclosed properties hitting the market."

Derived from a monthly survey that NAHB has been conducting for more than 20 years, the HMI gauges builder perceptions of current single-family home sales, sales expectations for the next six months and the traffic of prospective buyers.

Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. 

Each of the HMI's three component indexes in January registered a fourth consecutive month of improvement:

• The component gauging current sales conditions rose three points to 25, which was its highest point since June of 2007.
  
  
• Sales expectations in the next six months also rose three points — to 29 — to the highest level since September 2009.
  
  
• Traffic of prospective buyers was up three points — to 21 — its highest since June of 2007.

The HMI posted gains in all four regions in January, rising nine points to 23 in the Northeast, one point to 24 in the Midwest, two points to 27 in the South and five points to 21 in the West.

Subscribe to the Free Eye on Housing Blog

For in-depth analysis of the latest housing statistics and research from the federal government, NAHB and other sources, Eye on the Economy readers are encouraged to visit Eye on Housing at http://eyeonhousing.wordpress.com/.

They can also subscribe to the blog’s free RSS feed, which will automatically alert them to every new posting.

Data You Can Build On

Get historical data, industry analysis and the latest forecasts, including state and metro, from HousingEconomics.com. Support your business decisions with in-depth analyses, detailed Excel tables, overviews and more. For more information, visit HousingEconomics.com.

FHA Extends ‘Anti-Flipping’ Rule Waiver a Second Time to Boost Foreclosure Resales

The Federal Housing Administration on Dec. 28 announced that it was extending a temporary waiver of its “anti-flipping rule,” which, with certain exceptions, prohibits a mortgage from being insured on a home owned by the seller for less than 90 days.

The FHA initiated the waiver in 2010 and originally extended it through Jan. 31, 2011, in an effort to accelerate the resale of foreclosed-upon homes to help stabilize home values and improve conditions in housing markets with high foreclosure rates.

The new extension is effective through Dec. 31, 2012 — unless the FHA decides to extend it again or withdraw it.

The extension will enable buyers to continue to use FHA-insured financing to purchase properties owned by the Department of Housing and Urban Development or banks or resold through private sales.

Since the original waiver went into effect in February 2010, the FHA has insured nearly 42,000 mortgages worth more than $7 billion on properties resold within 90 days of acquisition.

The FHA said that its research has found that in today’s market acquiring, rehabilitating and reselling foreclosed properties can often take less than 90 days.

“This extension is intended to accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight,” said Acting Federal Housing Administration Commissioner Carol J. Galante.

“FHA remains a critical source of mortgage financing and stability and we must make every effort to promote recovery in every responsible way we can,” she said.

Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition makes sellers less willing to accept contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

To protect FHA borrowers against the predatory practice of quickly reselling a property at an inflated price to an unsuspecting borrower, the waiver is limited to sales meeting the following conditions:

• The transactions must be at arms-length, with no interest between the buyer and the seller or other parties participating in the sales transaction.
  
  
• In cases where the sales price of the property is 20% or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
  
  
• The waiver does not apply to the reverse Home Equity Conversion Mortgage (HECM).

For more information, email Steve Linville at NAHB, or call him at 800-368-5242 x8597.

Eye on the Economy: Growing Optimism for Housing Rings in the New Year

The new year has opened with a sense of growing optimism for housing.

Existing home sales climbed 5% in December while inventories dropped more than 9% to a 6.2 months-supply, down from 7.2 in November, which should help reduce downward pressure on home prices and increase confidence in the housing sector.

Single-family housing starts rose 4.4% in December to a seasonally-adjusted annual rate of 470,000, their fastest pace since the end of the home buyer tax credit program in 2010. This was consistent with recent improvements in builder confidence, as indicated by the NAHB/Wells Fargo Housing Market Index (HMI), which rose to 25 in January ― its highest level since the summer of 2007.

From an unsustainably high level in November, starts in buildings with five housing units or more fell 28% in December to a rate of 164,000 units, which was still 69% above the pace of a year earlier.

Although overall construction hiring slowed somewhat in December, 2011 is expected to be the first year since 2006 in which total hires exceeded total job losses in the construction sector.

Consumer prices and producer prices ― including building materials ― were both flat at the end of 2011, after increases earlier in the year.

The NAHB/First American Improving Market Index (IMI) has grown to 76 markets, many of which rely on health care and educational institutions for a solid economic base. As construction and other sectors continue to improve in 2012, the list of cities on the IMI is expected to grow.

And housing has been receiving attention from the Federal Reserve, which remains concerned over foreclosures, prices and tight credit conditions, even as improvements in multifamily building provides a boost to some areas.

Examining problems in the housing market ― including an excess supply of vacant homes, reduced availability of mortgage credit and an inefficient foreclosure process ― a Fed white paper concludes that restoring health to the housing market is necessary to promote a more robust economic recovery. While suggesting possible solutions, the paper indicates that there is no one policy that will accomplish this task.

Latest Posts

• Pending Home Sales Decline in December
  Pending home sales fell 3.5% in December after reaching a 19-month high. However, the December level was 5.6% above the level of a year ago. Posted: Jan. 25
  
  
• Strong Increase in Existing Home Sales
  Existing home sales rose for a third consecutive month in December, climbing 5.0% to a seasonally adjusted annual rate of 4.61 million. This reduced the inventory of existing homes for sale by 9.2% to 2.38 million ― a 6.2-month supply, down from a 7.2 months in November. Posted: Jan. 20
  
  
• CPI Holds Steady While Real Rents Notch Third Consecutive Monthly Increase
  The Consumer Price Index for All Urban Consumers (CPI-U) remained unchanged for the second month in a row. With apartment vacancy rates tightening appreciably over recent quarters, however, rental rates have started to rebound. NAHB’s measure of real rental rates increased at an average annualized rate of 2.6% during the fourth quarter of 2011. Posted: Jan. 20
  
  
• Multifamily Production Down From Previous Month, But Still Up Year-Over-Year
  The Census Bureau’s preliminary estimate of starts in buildings with five or more apartments came in at a seasonally adjusted annual rate of 164,000 units for December. While this was down 28% from November, starts were up 69% over a year earlier. Posted: Jan. 19
  
  
• Single-Family Construction Up Again
  Single-family housing starts increased 4.4% in December to a seasonally-adjusted annual rate of 470,000, the best monthly number since May 2010 when the home buyer tax credit ended. Posted: Jan. 19
  
  
• Producer Prices in December — A Flat End to the Year
  Producer Price Indexes (PPI) for December showed prices for finished goods declining 0.1% following sharp increases early in the year. Prices for construction materials and supplies followed a similar pattern. Posted: Jan. 18
  
  
• Builders’ Sentiment Up for Fourth Straight Month
  The NAHB/Wells Fargo Housing Market Index (HMI) rose to 25 in January, indicating the highest level of builder confidence in the single-family housing market since June 2007. Posted: Jan. 18
  
  
• Federal Open Market Committee Minutes: A Glimpse Behind the Curtain
  In its Dec. 13 minutes, the Federal Reserve’s monetary policy committee saw housing market conditions depressed by the inventory of foreclosed properties, weak demand, tight mortgage credit and uncertainty over future home prices. Posted: Jan. 13
  
  
• Improving Markets Index: Jackson, Miss.
  The NAHB/First American Improving Markets Index (IMI) now stands at 76 and includes Jackson, Miss., which has benefited from its local health care sector and higher education institutions. Posted: Jan. 12
  
  
• New NAHB Research: Apartment Rent Estimating Model
  A new rent estimating model from NAHB can give builders and prospective renters an idea of how the addition of a particular amenity affects the rents charged for similar apartments in the region. Posted: Jan. 12
  
  
• Fed Beige Book: Modest Pace of Growth Continues for Most Districts
  The latest Beige Book from the Federal Reserve indicates that economic activity expanded at a “modest to moderate pace” in nearly all 12 Fed districts, while the residential market continued to struggle overall and multifamily rentals provided a boost in several areas. Posted: Jan. 12
  
  
• Federal Reserve Weighs In on Housing
  A Federal Reserve white paper issued on Jan. 4 discusses current problems in the housing market and how to address them. Posted: Jan. 11
  
  
• Construction Hiring Slows While Overall Hiring Increases, Per November JOLTS Data
  Construction hires slowed to 309,000 in November, in a tie for the second lowest month of the year, but total hires for 2011 were still on pace to exceed total construction job losses for the first time since 2006. Posted: Jan. 10

Eye on the Economy is a bi-weekly digest of the latest economic and housing policy news, analysis and studies as posted on NAHB’s free Eye on Housing blog. The preceding is a reissue of the Jan. 26 edition. To subscribe to Eye on the Economy, click here.

Subscribe to the Free Eye on Housing Blog

For in-depth analysis of the latest housing statistics and research from the federal government, NAHB and other sources, Eye on the Economy readers are encouraged to visit Eye on Housing at http://eyeonhousing.wordpress.com/.

They can also subscribe to the blog’s free RSS feed, which will automatically alert them to every new posting.

Data You Can Build On

Get historical data, industry analysis and the latest forecasts, including state and metro, from HousingEconomics.com. Support your business decisions with in-depth analyses, detailed Excel tables, overviews and more. For more information, visit HousingEconomics.com.

Useful Links to Monitor Economic and Housing Trends

The following are links to useful information from government agencies and NAHB that will enable you to monitor the housing market.

To access the latest information available, simply click the links.

• U.S. Census Bureau Construction Price Indexes
  
  
• NAHB's Housing Forecast
  Housing starts, sales and interest rate projections through 2009.
  
  
• Latest Home Mortgage Interest Rates
  Contains current and historical data on fixed and adjustable mortgage rates. Updated weekly.
  
  
• Characteristics of New Housing
  Highlights the latest data on new-home characteristics released by the U.S. Census Department. Includes links to the complete Census report and other trends researched by NAHB.
  
  Additional breakouts of this data and other trends researched by NAHB are available at www.nahb.org/constructionstats under “Selected Characteristics of New Housing” (dated 4/3/2008).
  
  
• Housing Starts
  Updated monthly and based on a seasonally adjusted annual rate.
  
  
• New and Existing Home Sales
  Updated monthly and based on a seasonally adjusted annual rate.
  
  
• New and Existing Single-Family Median Home Prices
  Updated monthly.
  
  
• Home Price Index
  The index measures average home appreciation in more than 250 metropolitan markets. Updated quarterly.
  
  
• Metro Home Building Permits
  Local and state data on housing construction rates. Updated monthly.
  
  
• Employment Trends for Metro/State Markets
  Provides metro and state employment data nationwide. Updated monthly.
  
  
• Local Economic Impact of Housing
  Shows how building 100 homes benefits a typical metropolitan area.
  
  
• Home Building’s Direct Impact on the Economy
  
  
• Housing’s Contribution to Gross State Product
  Measures how much housing contributes to the economic output of each state.
  
  
• Housing Market Statistics from HousingEconomics.com
  Full array of statistical categories available to NAHB members, a limited number available to non-members.
  
  
• In-Depth Analysis from HousingEconomics.com
  Full array of analysis of factors affecting housing and the impact on the industry available to NAHB members, a limited number available to non-members.

Subscribe to the Free Eye on Housing Blog

For in-depth analysis of the latest housing statistics and research from the federal government, NAHB and other sources, Eye on the Economy readers are encouraged to visit Eye on Housing at http://eyeonhousing.wordpress.com/.

They can also subscribe to the blog’s free RSS feed, which will automatically alert them to every new posting.

Data You Can Build On

Get historical data, industry analysis and the latest forecasts, including state and metro, from HousingEconomics.com. Support your business decisions with in-depth analyses, detailed Excel tables, overviews and more. For more information, visit HousingEconomics.com.

Builders’ Tip: Drill Bits Make Measuring Out-of-Level Floors Easier

As a renovation contractor, I work mostly in old homes that require straightening — where possible.

To determine how much a floor has sagged from one corner to the other, I used to lay down my level, lift up one end to level and, lying on the floor, try to read the dimension of the gap — usually in 16ths — on my tape measure.

That was then.

Now I simply use drill bits to make the job easier — and more accurate.

Instead of measuring the low end with a tape, I slide a drill bit under the raised end of the level. Whatever the diameter of the bit is, as indicated by the void in my bit box, is how far out of level the floor is over a 4-foot section.

I make a note of the gap on a pad and move on to the next section, extrapolating the data to a map of the floor, and note the tendencies.

This method of measuring also works great when cutting door jambs and I need to know exactly how much a floor dips.

— Craig Shields; Toronto, Ontario

Tips & Techniques provided by Fine Homebuilding.
©2012 The Taunton Press

To contact Fine Homebuilding, email fh@taunton.com.

IBS Sessions Look at Legal Pitfalls of Social Media, Green Building, Construction Defects

Several educational sessions at the upcoming NAHB International Builders’ Show (IBS) will cover legal issues that can get even the most skilled, and most respectable, home builder or remodeler into trouble — such as construction liability, accusations of false advertising or a contract leading to extensive profit losses.

Programs examine the potential legal risks of using social media, legal issues that arise during land development and green building and how to use contracts to manage expectations and avoid disputes.

In addition, NAHB’s “90-Minute Law School” returns to IBS, providing an overview of the laws that affect most businesses involved in residential construction.

Included in the IBS lineup of educational sessions on legal issues:

Wednesday, Feb. 8

• “Legal Compliance for Green Building”
  1:30-3:00 p.m.
  West 305
  
  Focusing on best practices for green promotion and marketing content, this session outlines misleading techniques that can result in legal consequences and should be avoided.
  
  
• “Property Rights & Land Development”
  3:30-5:00 p.m.
  West 304E
  
  Updated annually to reflect changes in the law, this session features nationally recognized land use attorneys with insights on litigation taken from case studies highlighting current trends in land development.
  
  This year’s session will focus on strategies for settling land use litigation, identifying which green building features to incorporate in a project to expedite project approval and assigning a proper value to those projects.

Thursday, Feb. 9

• “90-Minute Law School”
  10:00-11:30 a.m.
  West 304F
  
  This session provides a primer on the key legal considerations for the home building community — including the appropriate steps for establishing or operating a business, and how to structure it and establish practices to reduce personal liability and improve efficiency.
  
  The session also covers the use of strong, effective contracts and how to handle compliance and warranty issues — including the use of alternative dispute resolution and other situations.
  
  
• “Independent Contractors and Employees: Recent Efforts by the Department of Labor, the Internal Revenue Service and State Agencies to Fight Misclassification”
  10:00-11:30 a.m.
  West 313
  
  At a time when regulators have been stepping up their enforcement efforts, this session details the steps companies should take to prevent or reduce exposure on employee misclassification by understanding how to distinguish between independent contractors and employees.
  
  
• “Legal Risks of Social Media”
  3:30-5:00 p.m.
  West 304E
  
  Attendees will learn about the potential risks of using social media as part of their business plans — from privacy violations to inappropriate postings. The session will also provide examples of the types of social media that may be the best fit for various companies.

Friday, Feb . 10

• “Impact of the Real Estate/Mortgage Foreclosure Crisis on Construction Defect Litigation”
  8:00-9:30 a.m.
  West 304E
  
  This panel discussion looks at the real estate foreclosure crisis with a focus on the legal issues surrounding construction defect lawsuits — including the impact of foreclosure and ownership interests during mediation and how to address settlement issues.
  
  Attendees will glean tips on business planning, risk management and financial services strategies and gain a better understanding of the legal standing of home buyers and home owners to sue — including the legal ramifications of foreclosure on these rights.
  
  In addition, the session will offer practical recommendations on how to steer construction defect cases toward settlement and resolution when home owners have mortgage foreclosure issues — including selecting the best approach to negotiations and choosing the right mediator.
  
  
• “How to Make the Most of Your Contracts”
  1:30-3:00 p.m.
  West 313
  
  This session discusses how to craft a contract that leads to reasonable expectations from both parties, lessens the prospects for disputes and provides rational and efficient resolution of claims.

For more information, email Felicia Watson at NAHB, or call her at 800-368-5242 x8229.

IBS to Feature Full Day of Universal Design Sessions, Tours, Information, Networking

NAHB’s 50+ Housing Council is hosting a full day on universal design — including a session on builder and remodeler success stories, plan and marketing reviews, products tours and networking — during Universal Design Day on Wednesday, Feb. 8, at the 2012 NAHB International Builders' Show in Orlando.

All Universal Design Day events, which are sponsored by AARP, will be held at 50+ Lifestyle Central, room W 314A in the Orange County Convention Center in Orlando.

Universal Design Day begins with breakfast at 8:30 a.m. followed by a one-hour “meet the universal design experts” session — architects, designers and industry consultants who will lead informal and interactive discussions about specific design issues — beginning at 10:30 a.m.

The educational session, “Universal Design: Affordable Alternatives for Builders and Remodelers,” which will be held in a meeting room adjacent to 50+ Lifestyle Central, begins at 10:00 a.m. Panelists will discuss how builders, remodelers and designers can include features and products that will appeal to all clients.

Following that session, universal design experts Amy Levner, of AARP; Dick Duncan, of the R.L. Mace Universal Design Institute; and aging-in-place consultant Louis Tennenbaum will lead the session, “Building a Successful Business Through Universal Design.”

The session is followed by a luncheon, sponsored by Masco Cabinetry, from noon-1:00 p.m.

Product Tours

From 1:15-2:15 p.m., Sarah Reep of Masco Cabinetry and other experts will discuss universal design products with universal appeal and function that are also attractive and non-institutional in appearance.

Following the discussion, the day includes guided tours of the show floor that showcase universal design products. The tours will be held from 2:30-4:30 p.m.

Plan and Marketing Reviews

Concurrent with the tours, universal design-savvy architects will review builder and remodeler plans and point out potential universal design problems, solutions and missed opportunities that can inexpensively add value to a project.

At the same time, marketing specialists will review marketing materials and suggest ways to broaden their appeal to include clients interested in universal design.

Both review sessions begin at 3:00 p.m.

To schedule half-hour plan or marketing reviews, email 50Plus@nahb.org, or visit 50+ Lifestyle Central earlier in the day to register for a session.

The day ends with a reception, sponsored by Whirlpool, at 50+ Lifestyle Center from 5:00-6:00 p.m.

For more information, email Lynn Basso at NAHB, or call her at 800-368-5242 x8130.

‘Universal Design for the Home’ Available From NAHB BuilderBooks

“Universal Design for the Home,” available through NAHB BuilderBooks, features a blend of projects, creative ideas and substantive planning information for incorporating universal design.

Highly visual, the book features projects showing room contexts and photos of details. Basic specifications, how-to tips and other technical content are featured throughout the book in easy-to-find boxes and sidebars.

To view or purchase this publication online, click here.

Find Out What 45+ Housing Buyers Want

“Right House, Right Place, Right Time: Community and Lifestyle Preferences of the 45+ Housing Market,” available through NAHB BuilderBooks, will help determine the right design, home features and amenities to attract boomer home buyers in your market.

Author Margaret A. Wylde guides readers through the latest survey results on this important consumer group and explains what their responses mean for today’s and tomorrow’s home building industry.

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

Finalists in Best of 50+ Housing Awards Selected; Winners to Be Announced at IBS

NAHB’s 50+ Housing Council has selected 79 finalists from entries in 44 categories representing active adult housing, service-enriched housing and marketing activity for the 2012 Best in 50+ Housing Awards, the premier design and marketing competition for the 50+ housing industry.

The winners will be announced during the NAHB International Builders’ Show in Orlando next month.  

“The finalists demonstrated how green and universal design features can be seamlessly incorporated throughout a home to enhance the lives of active adults, their children and grandchildren,” said NAHB Chairman Bob Nielsen.

New categories added this year focused on such areas as fitness and wellness, integration of technology and green communities. The judges also singled out several entries for innovation awards.

NAHB’s 50+ Housing Council launched the Best of 50+ Housing Awards to encourage quality and innovation in the 50+ housing market. The awards program is sponsored by Lowe’s Commercial Services.

Visit the NAHB website to read a complete list of 2012 finalists.

IBS Panel Session to Provide More Proven Strategies for Builder Success in a Down Market

At a special panel session at the NAHB International Builders’ Show, NAHB Chairman Bob Nielsen will bring together builders who have created and implemented successful business strategies to survive — and even thrive — during the ongoing economic downturn.

The builders will share their strategies to successfully sell homes, secure AD&C financing and gain the advantages they need to thrive in a down market.

“Builder Focus: Proven Strategies for Success” will be held on Thursday, Feb. 9, from 10:30-11:30 a.m. in West 414A, level IV, in the Orange County Convention Center.

The panelists include:

• J. Gary Hill, vice president of sales and marketing of Tradition Homes in Greensboro, N.C., and president-elect of the North Carolina Home Builders Association
  
  
• Carolyn Rolfes, president of Potterhill Homes, in Milford, Ohio, and president-elect of the HBA of Greater Cincinnati
  
  
• Stillman Knight, president and CEO of The Knight Company in Alexandria, Va.
  
  
• Philip Beere, founder of G Street in Phoenix

During this informative session, panelists will share how they have steered their businesses to prosperity through tactics such as focusing on green certification, cost-savings, enhanced amenities and event marketing.

Attendees will also hear how panelists converted distressed lots and foreclosures into sales growth, and how unique financing can benefit multifamily building.  

This is the third installment of a series that began at the 2011 spring board meeting.

NAHB members can view video excerpts from the spring and fall “Builder Focus” panel sessions at www.nahb.org/springboardbuilderpanel and www.nahb.org/fallboardbuilderpanel.

The audience will have the opportunity to ask the panelists questions following the presentations.

For more information, email NAHB Communications, or call Gwyn Donohue at 800-368-5242 x8447.

Returning to IBS, Finance Pavilion Brings Together Builders and Lenders

NAHB’s Finance Pavilion is returning to the NAHB International Builders’ Show in Orlando to provide home builders and potential lenders the opportunity to do business together.

This year’s pavilion will be part of IBS Live! events, which are being held on the trade show floor in a space set aside for education, networking and entertainment as show attendees peruse the hundreds of exhibits in the West Hall of the Orange County Convention Center.

“We want to bring builders together with financial institutions to explore financing solutions so they can get their projects off the boards and into production,” said David Ledford, NAHB senior vice president of housing finance.

The lenders will be offering traditional sources of housing credit as well as joint ventures and partnerships through both debt and equity positions, Ledford said.

Also, financial advisors will be on hand to discuss how builders can put their best foot forward when they present their financial statements to loan officials.

In addition to the one-on-one consultations featured at previous IBS Finance Pavilions, at this year’s program there will be open builder and lender roundtable discussions on financing trends, best practices and other topics.

Exhibitors are invited to participate in the Pavilion on Thursday, Feb. 9, from 3:00-4:00 p.m., for a roundtable on “Strategic Advice Regarding the Capital Raising Process.”

“We also want to provide a service to our building product manufacturers to give them advice on how to secure financing for their companies,” said Mark Pursell, NAHB senior vice president of expositions.

The Finance Pavilion is being sponsored by Wells Fargo.

To participate, NAHB member home builders, developers and financial institutions can sign up in advance and schedule meetings before they arrive in Orlando.

Onsite registration is available to all IBS attendees.

The Finance Pavilion events take place in the West Hall of the convention center, booth W 1939. It will be open from 10:00 a.m.-5:00 p.m., Wednesday, Feb. 8, through Friday, Feb. 10.

The roundtable discussions take place on Thursday and Friday from 3:00-4:00 p.m.

For more information, email Dennis Harrison at NAHB, or call him at 800-368-5242 x8188.

New IBS Live! Puts Education and Entertainment on the Show Floor

NAHB has created a new venue on the exhibit floor for the 2012 NAHB International Builders’ Show that offers a mix of education, information and entertainment for all IBS registrants. 

Located in booth W 1939 in the West Hall of the Orange County Convention Center, IBS Live! includes a theater where short mini-education sessions will be presented on a wide range of topics; the NAHB Finance Pavilion, where attendees can meet individually with a variety of capital sources and financing advisors; and a lounge for relaxing with fellow attendees.

IBS Live! opens at noon on Wednesday, Feb. 8, with Bob Vila, former host of “This Old House,” talking about the trend towards a more compact, energy-efficient home and the new, luxury details that consumers want. 

J.R. Martinez, who was severely injured in Iraq before becoming TV’s “Dancing with the Stars” champion, will talk about his work with Operation Finally Home, a national charitable program providing new homes for injured soldiers. Martinez will be available for autographs and photos after his presentation. 

“J.R. Martinez won the hearts of many viewers with his can-do attitude and spirit even before he won the dance competition," said NAHB Chairman Bob Nielsen. "Having the opportunity to hear his inspiring story is another great reason to attend the show."

Among other IBS Live! highlights:

• Better Homes & Gardens magazine editor Jill Waage will discuss top consumer trends noted by reporters, editors and designers around the country.
  
  
• A  panel of green building experts will review the findings of the new Green Market Report, which will be released at IBS by McGraw Hill Construction Analytics.
  
  
• Professional Builder editor Patrick O’Toole will host panels on the latest building and remodeling apps for smart phones and tablets and lead a panel discussion with some of the up-and-coming home builders featured in the magazine’s June 2011 “40 Under 40” issue.
  
  
• Fine Homebuilding editor Brian Pontolilo will discuss the criteria he uses to determine what projects get published in the magazine and how home builders and remodelers  can  increase their chances of being covered.
  
  
• Hosts Eric Stromer and Cindy Dole of Home Wizards — a weekly radio show heard throughout Southern California on KFWB News Talk — will broadcast their live radio show on Saturday morning.

“We developed the IBS Live! concept based on feedback we had from past attendees that wanted more education and networking opportunities on the floor,” said Mark Pursell, NAHB senior vice president of exhibitions, marketing and sales.

“We think the area will be a big draw and add an energy that will benefit both the attendees and exhibitors alike,” he said. “It will be right smack dab in the middle of the show floor, so if you are on the show floor you can’t miss it — and I hope you won’t.”

A full schedule of IBS Live! events will be available on Feb. 1 at buildersshow.com/live.

To register for the 2012 NAHB International Builders’ Show, go to buildersshow.com/register. Register by Feb. 5 to avoid the more expensive onsite registration cost.

Options and Upgrades for Every Price Point Showcased on Show Floor Tour at IBS

For home builders looking for ways to make their projects stand out, NAHB’s National Sales and Marketing Council’s (NSMC) “Options & Upgrades Show Floor Tour” on Thursday, Feb. 9, will guide them through the floor and show how to add options at any price point.

The tour is designed to show participants how these products — from flooring products and bathroom upgrades to cabinets and fixtures — can help sell homes.

“Options like a green countertop or home automation help show how a home’s unique features can make it stand out to buyers,” said Joe McGaw, NSMC executive director.

The tour begins at 9:30 a.m. in Sales Central, room West 311E, of the Orange County Convention Center with a discussion by Jane Meagher, MIRM, president of Success Strategies, on how to give buyers the home they really want — and how to profit from it.

Meagher — whose company creates award-winning design studios, offers training programs for sales and design studio staff and provides analysis and revenue-enhancing process improvement programs for its clients — will lead the tour beginning at 10:30 a.m.

Among the products on the tour:

• Nexia home automation products will be on the show floor tour.

  Nexia from Ingersoll Rand. The growing trend of home automation and home owners’ ability to control safety, comfort and energy efficiency is a big incentive for builders to include it in their homes. Nexia Home Intelligence enables home owners to remotely manage features and functions — including door locks, heating and cooling, video surveillance and storage, lights, shades and energy usage — via any Web-enabled computer and most smart phones.
  
  
• Formica. Making their debut at IBS are new patterns from the 180fx line that include large-scale, sweeping granites and bold quartzites in lighter, more neutral tones designed for buyers on a budget. These specialty laminate countertops were introduced to elevate the kitchen’s design without raising the cost. In addition, Formica will display e Series Solid Surfacing, made with pre- and post-consumer recycled content.
  
  
• Kohler. Consumers looking for high-end features in their kitchens are increasingly looking for apron-front designs. Kohler’s cast-iron Whitehaven model offers solutions for standard 30” or 36” cabinets and in 18 colors, saving builders time and money on installation over traditional fireclay apron-front sinks.

Also on the tour are products from Masco, Ingersoll Rand businesses Trane and Schlage, Boral Bricks and Daltile.

Information on taking a self-guided version of the tour will be available on Friday, Feb. 10, in Sales Central.

For additional information, email Joe McGaw, or call him at 800-368-5242 x8693.

Option 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.

View or purchase this publication online through NAHB BuilderBooks, or call 800-223-2665.

IBS Centrals: Six Hubs Where Show Attendees Can Relax, Network and Learn

Several NAHB councils and committees will be hosting special events and activities at six Centrals at the 2012 NAHB International Builders’ Show in Orlando on Feb. 8–11, providing IBS attendees convenient places to relax, meet with experts and connect with other professionals who share their interests.

Centrals events — including breakfasts, luncheons, workshops and roundtable discussions — will focus on 50+ housing, apartment and condos, custom building, design, remodeling, and sales and marketing, in the respective Centrals, and are open to all Builders’ Show attendees who have IBS badges.

“The Centrals are a convenient way for professionals in specific industry niches to get more value from the show,” said Mark Pursell, senior vice president for the NAHB Exhibitions, Marketing & Sales Group. “Attendees can visit their Central for a few minutes to rest their feet, get recharged and plan their show experience.”

Two Centrals to Showcase Interior Merchandising

In addition, the 50+ Housing and the Apartments and Condos Centrals will showcase current design trends for the 50+ and multifamily markets, as they did last year, by replacing typical convention center-supplied furnishings with interior designs and furnishing provided by the Orlando firm, Kay Green Design.

Kay Green, the company’s president, is giving the Apartment and Condo Central a “contemporary, urban feel” and providing the 50+ Central with more traditional design elements “to create an environment in both Centrals where people will feel comfortable,” Green said.

In addition to providing sofas, couches and grouping seating areas — for networking as well as for the seminars — the company designed the lighting schemes and will bring in floral arrangements and other accessories that are distinctive and appropriate for the 50+ and multifamily markets so attendees can see the latest merchandising trends when creating model homes.

“People are more comfortable sitting in groups, in big cushy chairs, than they are with traditional theater seating for these seminars,” Green said. “It also gives these events the element of interaction.”

The merchandising enables suppliers to showcase their product and enhances networking — and council membership inquiries. “If someone feels at home in the spaces that multifaily and 50+ create, they’re going to start meeting people and, more likely, to want to be part of it,” Green said.

Just as importantly, all six Centrals make it easy for IBS attendees to gain insights into the unique questions, issues and strategies that matter most to them. They can sit in on special sessions and roundtables with top names in their field to discuss trends, challenges and solutions.

“Instead of just hearing the experts speak, builders can meet them at the Central. In fact, we encourage builders to bring design plans with them, so they can get valuable feedback and ideas that they can use to improve their products when they return home,” Pursell said.

To learn more about the Centrals and see their schedules of special events and activities, visit BuildersShow.com/centrals.

Nearly 175 Valuable Education Sessions Available at 2012 International Builders’ Show

Nearly 175 education sessions on a variety of industry- and business-related topics will be offered at the upcoming 2012 NAHB International Builders’ Show in Orlando on Feb. 8-11.

Attendees will be able to acquire new skills, training and the continuing education needed to obtain the CAPS and other designations — and to work effectively with clients, bankers, architects, suppliers and others in the industry.

“Most builders, remodelers and other industry professionals know that one of the chief benefits of attending IBS is the wide array of educational sessions — led by acknowledged experts in the field,” said Mark Pursell, senior vice president of NAHB’s Exhibitions, Marketing and Sales Group.

In 13 separate topic tracks, the education sessions will cover almost every conceivable topic of interest to builders.

Some of the sessions being offered include:

1. “Economic & Market Forecast for the 50+ Housing Industry”
2. “Design Application Workshop: Creating and Designing Product Using a Team Approach”
3. “Great Kitchens! Expert Ideas to Improve Your Kitchen Designs”
4. “Gen Yers and Boomers — The Future of the Apartment Industry”
5. “2012 Super Sales Rally: Back in the Black”
6. “Universal Design/Build — Taking CAPS to the Next Level”
7. “Building Green Homes, From Start to Finish”

Forty-seven of these education sessions and four pre-show education sessions are approved by the American Institute of Architects (AIA) Continuing Education Systems. They span a range of topics including green, multifamily, construction codes and technology. NAHB will report all credits earned to AIA's CES Records.

Free Access to the IBS Online Session Library After the Show for a Full Year

In addition, full registration to the Builders’ Show entitles attendees to free access for a full year to the IBS online library of all the recorded sessions — a $399 value if purchased after the show.

“Until this year, many IBS attendees had to choose between sessions being offered simultaneously — attending one while missing out on another,” Pursell said. “The online library solves that issue by giving attendees much of the same value they would have gotten if they’d attended the session in person.”

The password-protected resource will be available a few weeks after the show has ended and will include audio and online slides of each speaker’s presentation. View a sampling of the 2011 online library and the materials available here.

For more information, to view the courses being offered and to register for IBS, visit www.buildersshow.com.

Comedian Tracy Locke to Host IBS TV Broadcasts on Builders’ Show Website

Comedian Tracy Locke will be hosting IBS TV and feature daily reports from the trade show floor, the opening ceremonies, awards programs and other special events during the 2012 NAHB International Builders’ Show in Orlando on Feb. 8-11.

Locke has been performing for more than 10 years — from sold-out shows at Radio City Music Hall to intimate comedy clubs and hosting television and live events.

At the Builders’ Show, she will be interviewing attendees, exhibitors, speakers and honored guests to produce a nightly program that can be viewed on www.buildersshow.com.

In addition, Locke will preview each day’s activities for attendees riding the shuttle buses from convention hotels to the Orange County Convention Center.

“I think attendees will really enjoy interacting with Tracy as she roams the convention center. She’s quite charismatic,” said Mark Pursell, NAHB vice president of conventions, sales and marketing.

Register online for IBS by Feb. 5 to take advantage of pre-show pricing.

Register for Spokesperson Training Sessions at the 2012 NAHB International Builders’ Show

Members of NAHB and home builders association staffs can register online for the NAHB Spokesperson Training seminars at the 2012 NAHB International Builders’ Show in Orlando on Feb. 8-11.

The seminars can help NAHB leaders be more persuasive and effective in media interviews and while giving speeches and making presentations.

Three training seminars will be offered at IBS:

• "Interview Skills"
  Tuesday, Feb. 7
  
  
• "Interview Skills" — Sold Out
  Wednesday, Feb. 8
  
  
• "Presentation Skills"
  Thursday, Feb. 9

Secure online registration using a credit card is available on the IBS online registration page.

"Interview Skills" teaches master strategies for broadcast and print interviews, including message development, the “bridging” technique and controlling the interview. The training also helps participants learn how to give clear, concise answers while in a high-pressure, spur-of-the moment interview.

Members attending the "Presentation Skills" session learn how to confidently prepare and deliver dynamic presentations to any audience. The session focuses on how to organize and deliver a speech and make a presentation with accompanying question and answer sessions.

"Being put on the spot and seeing it on TV was very helpful, and the information was top-notch," said attendee Rick Parmeter, of Clear Creek Log Homes in Eau Claire, Wis.

The sessions are led by professional communications consultants with more than 30 years of experience; focus on issues and situations frequently faced by home builders, HBA staff and affiliate members; and include on-camera role playing.

Each full-day session is $495 per person. Registration is limited to 12 participants.

To Register

To learn more about Spokesperson Training, visit www.nahb.org/spokespersontraining.

Register online on the IBS website; or for registration information, email Andrea Raggambi at NAHB, or call her at 800-368-5242 x8153.

For more information about Spokesperson Training content, contact Gwyn Donohue, x8447.

Las Vegas IBS in 2013 to Pack Four Days of Events and Activities Into Three

Four days’ worth of exciting events and activities will be packed into three when the NAHB International Builders’ Show lands in Las Vegas on Jan. 22-24, 2013.

IBS — the largest annual light construction tradeshow in the world — is expected to attract 50,000 attendees and more than 800 industry suppliers. 

“It’s all about helping our attendees and exhibitors meet with each other in a much more efficient way,” said Mark Pursell, senior vice president of NAHB’s Exhibition, Marketing and Sales Group. 

“Tightening the trade show floor experience to three full days with expanded hours saves everyone money and results in a more productive experience for all,” he said.

Gone are the days when home builders, remodelers and designers had time to invest in what can turn into a full week of time away from their businesses when travel and other considerations are taken into account, he said.

“It’s a trend that professional convention and expo planners see in all fields — not just the home building industry,” Pursell noted. “Attendees are eager to get back to their businesses and put the new knowledge about products, services and management to work right away. Businesses must be more nimble to thrive in today’s economy.” 

Flexibility and speed are also the thinking behind NAHB’s online and mobile show planning tools, which attendees can use to schedule meetings with exhibitors and choose from the more than 165 educational sessions and networking events, he said.

“At the same, we are investing into a wider selection of networking opportunities at the show — which is what both attendees and exhibitors say they want,” Pursell said. 

There will be savings for show exhibitors as well. “Dropping day four and adding an additional half hour to the schedule each day allows exhibitors to save resources on an extra night of hotel accommodations, meals and other staffing and contractor expenses,” Pursell pointed out. 

“Surveys of IBS attendees tell us that builders prefer to be home on the weekends. Wrapping up the show on Thursday will allow everyone to do so — even those from the East Coast,” said Larry Swank, chairman of NAHB’s Convention & Meetings Committee and a home builder from Mishawaka, Ind. “This is a great solution for all of us — and a way to stay ahead of trends in the industry.” 

More information is available at www.buildersshow.com.

Remodeling Market Index Rises to Five-Year High in Fourth Quarter of 2011

In the fourth quarter of 2011, professional remodelers saw remodeling market conditions rise to their highest level in five years, according to NAHB’s latest Remodeling Market Index (RMI), which climbed to 46.6, up from 41.7 in the third quarter.

The RMI component measuring current market conditions rose to 48.4 in the fourth quarter from 43.0 in the previous quarter.

The component measuring future indicators of remodeling business also saw positive movement, increasing to 44.8 from 40.4 in the previous quarter.

An RMI below 50 indicates more remodelers reporting market activity is lower than in the prior quarter than those reporting it is higher. Based on results from a survey of remodelers, the overall RMI averages ratings of current remodeling activity with indicators of future activity.

“As more consumers remain in their homes rather than move in this economy, remodelers benefited from a gradual increase in home improvement activity, taking us to a five-year high,” said NAHB Remodelers Chairman Bob Peterson, CGR, CAPS, CGP, a remodeler from Ft. Collins, Colo.

“2011 ended on a strong note for the remodeling industry,” Peterson added.

Current market conditions improved significantly in all four regions over the third quarter of 2011.

The RMI reported higher market activity in two important categories: major additions 52.3 (up from 45.2) and minor additions 50.1 (up from 45.7).

Future market indicators in each region also experienced gains from the previous quarter.

Two of the indices climbed above the level of 50: calls for bids at 50.7 (up from 45.4) and appointments for proposals at 50.1 (up from 43.3). Work committed for the next three months, by comparison, only rose to 31.5 (up from 29.9).

“With several key components above 50, the latest RMI provides reason for guarded optimism going forward,” said NAHB Chief Economist David Crowe.

“The residential remodeling market has been improving gradually,” he said, “mirroring the trend in other segments of the housing market. Stringent lending requirements and economic uncertainty continue to be a drag on demand, but we expect modest growth in remodeling activity to continue throughout 2012.”

Learn How to Run a Successful Remodeling Company

“The Paper Trail: Systems and Forms for a Well-Run Remodeling Company,” available through NAHB BuilderBooks, shows how to use proven management systems to run a successful remodeling company.

The publication includes a CD containing 160 essential forms and documents — culled from successful remodelers across the country — that you can customize to suit your business needs.

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

Data You Can Build On

Get historical data, industry analysis and the latest forecasts, including state and metro, from HousingEconomics.com. Support your business decisions with in-depth analyses, detailed Excel tables, overviews and more. For more information, visit HousingEconomics.com.

'How to Find a Professional Remodeler' Brochures Available at BuilderBooks.com

"How to Find a Professional Remodeler," available at NAHB BuilderBooks, promotes the professionalism of your remodeling business by offering a wealth of valuable advice to customers on the process of selecting a remodeler.

The newly updated brochure highlights the before and after photos of the most frequently remolded rooms in the house.

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

Networking, Educational Sessions, Remodelers Roundtables at Remodelers Central at IBS

Remodelers with questions and concerns about issues, strategies and trends unique to residential remodeling can get expert advice during remodelers roundtables, special sessions and networking events at Remodelers Central during the upcoming 2012 NAHB International Builders’ Show in Orlando.

Remodelers Central is in room W 310 of the Orange County Convention Center.

IBS attendees can add the discussions and events to their Trip Planner at www.buildersshow.com.

Remodelers Central Highlights

Wednesday, Feb. 8

• Remodelers Local Council Roundtable
  10:30 a.m.-noon
  
  The roundtable is an opportunity for local remodelers council leaders and staff members to network, brainstorm and discuss membership recruitment challenges and solutions with their counterparts from across the country. This event is sponsored by Lowe's Companies Inc.
  
  
• Remodeling Hot Topics: Bring Your Issue and Ask the Experts, Part I
  2:00-3:00 p.m.
  
  Seasoned remodeling professionals will address hot topics on a range of issues — such as company branding, what remodelers can do to ensure success in 2012 and more — that attendees bring to the table. Attendees are encouraged to bring questions to this event.

Thursday, Feb. 9

• Successfully Incorporating CAPS Into Everyday Remodeling
  11:00 a.m.-noon
  
  Seasoned Certified Aging-in-Place Specialist (CAPS) remodelers will lead this roundtable discussion on incorporating aging-in-place principles and features in their projects and designs and discuss the CAPS designation. Panelists will also be available to meet one-on-one with remodelers to discuss this growing segment of the industry.
  
  
• Overcoming Seniors' Reluctance to CAPS Remodeling
  1:30-2:30 p.m.
  
  During this roundtable discussion, CAPS designation holders will discuss how to overcome customer reluctance to adding aging-in-place and universal design features to their homes. Panelists will also meet individually with attendees to answer questions and share their experience.

Friday, Feb. 10

• Regulations in Remodeling: Lead Paint, OSHA and Energy Codes
  11:00 a.m.-noon
  
  Attendees of this small group discussion will be updated on the latest information on the U.S. Environmental Protection Agency’s Lead: Renovation, Repair and Painting regulation, as well as tips on how remodelers and contractors are meeting compliance requirements and how they are being enforced.
  
  
• Remodeling Hot Topics: Bring Your Issue and Ask the Experts, Part II
  3:00-4:00 p.m.
  
  More professional remodelers will be on hand to provide solutions that can be used to improve remodeling businesses and to answer questions.

Learn How to Run a Successful Remodeling Company

“The Paper Trail: Systems and Forms for a Well-Run Remodeling Company,” available through NAHB BuilderBooks, shows how to use proven management systems to run a successful remodeling company.

The publication includes a CD containing 160 essential forms and documents — culled from successful remodelers across the country — that you can customize to suit your business needs.

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

'How to Find a Professional Remodeler' Brochures Available at BuilderBooks.com

"How to Find a Professional Remodeler," available at NAHB BuilderBooks, promotes the professionalism of your remodeling business by offering a wealth of valuable advice to customers on the process of selecting a remodeler.

The newly updated brochure highlights the before and after photos of the most frequently remolded rooms in the house.

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

Offsets for New Growth in Chesapeake Bay States to Have a Big Impact on Many Builders

Setting the stage for efforts to reduce water pollution in impaired watersheds around the country, a new environmental program that will be implemented next year in the Chesapeake Bay watershed will make construction projects more expensive and more complex.

Under the program, builders will have to meet initial requirements to reduce stormwater runoff from roofs, driveways and other impervious surfaces prior to the start of building activities. Additional requirements will fall on the home owner.

As with current Stormwater Pollution Prevention Plans (SWPPPs) that must be prepared as a prerequisite for construction activity, home builders will need to obtain good technical assistance to meet the offsets for new growth that will be required by the Environmental Protection Agency.

The effort to restore and maintain the water quality of the Chesapeake Bay will hold nitrogen, phosphorus and sediment runoff entering the bay at baseline levels established by the Chesapeake Bay Total Maximum Daily Load (TMDL) rules that were finalized at the end of 2010.

Once the states implement their offset programs for new growth, builders in the Chesapeake Bay area will be among the first in the nation to have to comply with such regulation.

Late this year or in early 2013, the EPA is expected to introduce a rule that would impose offset requirements for impaired waters nationwide; it will be modeled after the Chesapeake Bay program. This would eventually apply to all watersheds in the U.S. for which TMDLs for nutrients and sediment have been established.

To make up for stormwater pollution resulting from new structures, builders may be able to purchase water quality credits whose costs are determined in a public marketplace; or offsite mitigation measures may be available in some areas.

The credits being sold could come from a farmer, for instance, who installed low-cost Best Management Practices to reduce runoff from the farm.

While home builders would be able to purchase the credits to satisfy the initial offset requirements, home owners would then be required to purchase credits periodically throughout the life of the home.

Credit trading will be complex and be governed by many oversight and verification provisions mandated by the EPA.

Observers say that the success of the Chesapeake Bay TMDL may hinge on the success of the water quality trading programs, which are necessary both for the offset programs and to lower other costs associated with the TMDL.

Late last year, the EPA analyzed the work of each state in the bay watershed on their trading and offset programs; each state in December submitted to the EPA an analysis of how their efforts complied with TMDL requirements.

The EPA early this year is expected to send the states assessments of their offset programs for new growth and it plans to conduct these assessments periodically.

For more information, email Glynn Rountree at NAHB, or call him at 800-368-5242 x8662.

Housing Could Feel Effects of Plan to Help Species and Habitats Adapt to Climate Change

A draft plan released by the U.S. Fish and Wildlife Service (FWS) on Feb. 20 to help identify and preserve vulnerable habitats and species affected by climate change could potentially restrict construction projects in certain areas and impose additional compliance requirements for new homes, including using low impact development to control stormwater runoff.

The proposed plan — “National Fish, Wildlife and Plants Climate Adaptation Strategy” — identifies actions that state, federal and tribal authorities could take to minimize the impact of climate change on vulnerable species and help them adapt to a changing environment.

Resulting from a 2009 request from Congress to the Interior Department and White House Council on Environmental Quality, the report includes contributions from more than 100 technical and scientific experts from across the country.

The report cites the need for further research on the impact of climate change, but also presents dramatic recommendations to conserve habitat. Those suggestions include:

• Paying farmers in the Great Plains to remove some land from agricultural production for the restoration of prairie grass and sagebrush to protect the habitat of the threatened lesser prairie chicken
  
  
• Adjusting the planting practices of Louisiana rice farmers to protect waterfowl and shorebirds whose habitat is threatened by wetlands loss and a rising sea level
  
  
• Mitigating or reducing habitat degradation, pollution, the loss of open spaces and the incursion of invasive species in vulnerable habitats

FWS will hold a webinar on its proposed climate adaptation strategy on Feb. 22. Those interested in attending can register at www.wildlifeadaptationstrategy.gov/public-workshops.php.

For more information, email Larissa Mark at NAHB, or call her at 800-368-5242 x8157.

Savvy Log Home Manufacturers Find Success Selling 'American Houses' in Overseas Markets

In the midst of the worst housing slump in U.S. history, members of the Log Homes Council, part of NAHB’s Building Systems Councils, have found success in new marketplaces overseas.

Last November, Bloomfield, Mo.-based Gastineau Log Homes signed a contract to export log home packages to China for a 700-acre development near Shanghai as part of a larger $4.4 billion agreement reached by the Missouri Governor’s Trade Mission to China.

Earlier last year, Estemerwalt Log Homes of Honesdale, Pa., shipped 15 log home packages to Bispingen, Germany’s Snow Dome Resort and Hotel — the first indoor skiing, snowboarding and ice-climbing facility and hotel in the country. The log cabins will provide additional housing around the perimeter of the resort.

“People throughout the world are envious of American housing,” said Lynn Gastineau, of Gastineau Log Homes. “We have the highest quality housing in the world and it’s a status symbol to have an ‘American house.’”

Kurt Propst, of Estemerwalt, agreed. Noting that log construction is not new to Germany, he said there is a certain mystique about American log homes that residents of some foreign countries find irresistible.

“Why this is, we’re not sure, but we’re not going to argue with it,” Propst said.

Katahdin Cedar Log Homes will be shipping materials for a 10,000-square-foot lodge similar to this one, which will serve as the centerpiece of a log home development in southwest China.

Katahdin Cedar Log Homes in Oakfield, Maine, is not arguing, either. The company is preparing to ship materials for a 10,000-square-foot cedar log reception center to China within the next several weeks.

The $1.2 million building will be the centerpiece of a log home development along the shores of Lake Chengdu in southwest China that is targeting home buyers in China’s growing middle class. The log homes will sell for the U.S. equivalent of $375,000.

The log homes overseas market is not restricted to large-scale developments, either. Log home manufacturers are also providing individual homes and structures to private clients overseas.

Last year, PrecisionCraft Log & Timber Homes, based in Meridian, Idaho, provided a private-use, 12,000-square-foot log-and-timber lodge for a high-end client in the Mediterranean island nation of Cyprus. The lodge is currently under construction.

PrecisionCraft also has provided structures to clients in more than 15 countries — including Turkey, Japan, the Philippines, Ireland and Mexico.

Targeting Markets Experiencing Wood Shortages

According to David Gordon, owner of Katahdin Cedar Log Homes, any region with a wood shortage is a prime candidate for American-made housing.

In China, for instance, trees are small and scarce, and developers in the country are eager to import wood-based homes. Other countries and regions ― like Australia and parts of Europe ― face similar lumber shortages and have expressed a desire for American-made log homes.

Securing Business Overseas

Winning business abroad has its challenges, but with patience and perseverance, it can be lucrative, according to Log Homes Council members who have found success overseas.

They offer the following advice:

• Tailor marketing strategies to fit the market. Markets vary from country to country so log home manufacturers and producers should research each market individually and craft a marketing strategy for the particular market they want to pursue, according to Gastineau.
  
  “Doing business in China is very different than it is in England,” she said. “You need to research your potential customers, learn the prevalent construction methods and building codes and find out who is currently selling in that market.”
  
  
• Develop relationships. Developing relationships can be accomplished several ways, but council members who have conducted business overseas all recommend that strong relationships lead to success.
  
  Gastineau suggested that manufacturers visit their targeted country when developing relationships.
  
  “It is very difficult to develop an ongoing relationship with a distributor in a country without a visit to their market area,” she said.
  
  Another option is to cultivate relationships closer to home — such as with the economic development office in home states. These groups specialize in creating partnerships between local businesses and international clientele and can be invaluable resources for navigating the challenges of doing business in a foreign country.
  
  
• Use websites to the fullest. PrecisionCraft has been able to attract strong international traffic to its website through search engine optimization (SEO) techniques that have maximized the relevance of its website content to an international audience.
  
  Estemerwalt developed a separate website specifically for its European prospects. Another option for manufacturers seeking a substantial amount of foreign business is to create an “international” Web page or tab on their website.
  
  Whichever option manufacturers choose, the Log Homes Council members stressed that the manufacturer or producer needs to make it clear that they are is actively seeking to do business internationally.
  
  
• Overcome the "measurement barrier."  Most countries outside the U.S. use the metric system. Manufacturers and producers who convert to metric measurements in overseas markets will give prospective clients a clearer understanding of what they are offering.
  
  
• Factor in export and shipping costs. According to Estemerwalt’s Propst, log home manufactures and producers have to adhere to countless import/export requirements when shipping overseas.
  
  “You must be mindful of exchange rates and take special taxation laws of foreign countries into consideration,” he said.
  
  
• Establish an overseas office or employ an agent. Manufacturers generally cannot be onsite for most of the construction process. For this, and other reasons, they should establish an overseas office or have an agent represent them.
  
  Local agents can overcome the language barrier, which in some cases can be a manufacturer’s biggest obstacle.
  
  In addition, good local agents are more familiar with the laws, codes and governmental regulations of their region, which can dramatically reduce a manufacturer’s learning curve.
  
  Manufacturers can also establish a foreign branch office using their own personnel, who are more familiar with the product.
  
  Both types of overseas representation have their advantages, but above all else, the log home council members stress that manufacturers and producers need to work with representative they can trust.

For information on systems-built resources available from NAHB, email Tony Gacek, or call him at 800-368-5242 x8357.

NAHB’s Log Homes Council, part of the Building Systems Councils, is comprised of log home manufacturers and producers who have united to develop and promote quality building systems and ethical business practices by participating in both mandatory and voluntary council programs designed to benefit log home customers.

Estemerwalt Log Homes, of Honesdale, Pa., shipped 15 log home packages to Bispingen, Germany, for the Snow Dome Resort and Hotel now under construction.

From Cuban Cigars to Dancing With the Stars, There's a Lot on Tap From the BSC at IBS

The Building Systems Councils have plenty going on at the upcoming 2012 NAHB International Builders' Show in Orlando.

From a night of food, entertainment, hand-rolled Cuban-style cigars and networking at Cuba Libre, to top-notch education, "meet the experts" sessions and J.R. Martinez, of “Dancing With the Stars” fame, talking about the benefits of systems-built technologies on the IBS Live! stage, there’s plenty to see and do.

Follow the links below to learn more about BSC activities at IBS:

• Building Systems Councils' "Night Out" Networking Event
  
  
• Events, Courses on Building Smarter and Greener with Modular Building Systems
  
  
• IBS to Show Time, Cost and Energy-Efficiency Benefits of Panelized Building Systems
  
  
• Learn How Concrete Building Systems Can Benefit Builders
  
  
• Explore Log Homes — A Growing Custom Niche

Martinez also will be discussing the homelessness epidemic among the country's returning servicemen and women and the importance of helping them secure adequate housing.

In particular, he will discuss how systems-built housing — such as the home the BSC is currently building for U.S. Marine Staff Sgt. (ret.) Vincent Gizzarelli in North Carolina — is a solution for fulfilling this worthy need. His discussion will be from 10:15-11:00 a.m. on Thursday, Feb. 9, on the NAHB Live! stage in the exhibit hall of the Orange County Convention Center.

Martinez also will be at the BSC booth ― W 33 ― throughout the Builders’ Show to sign autographs and answer questions.

IBS Roundtables Discuss Diversifying Into Small-Scale Commercial Projects

Roundtable discussions at the upcoming NAHB International Builders’ Show in Orlando will focus on how residential builders looking for opportunities to diversify their businesses in today’s challenging housing market can apply their skills to small-scale commercial projects.

Sponsored by the NAHB Commercial Builders Council (NCBC), the “Move Into Commercial” roundtable discussions are geared to promoting a dialogue among builders interested in working on projects that are less than four stories — including schools, religious facilities, strip malls, mixed-use retail, self-storage, warehouses and medical offices.

The roundtables will be held on Thursday, Feb. 9, noon-1:30 p.m., in the NCBC headquarters, West 303A.

The NCBC headquarters is open to all IBS attendees and provides a place to relax and network with commercial builders.

Discussion will occur simultaneously and will focus on three topics:

• Ted Clifton — a designer and builder from Coupeville, Wash., who owns Zero-Energy Home Plans and Clifton View Homes — will lead a discussion on building commercial properties to own, which can help in difficult economic times.
  
  
• Incoming NCBC Chairman Ken Ringe, president of Bayview Construction Corp. in Stuart, Fla., will discuss the basics of bonding basics and common mistakes to avoid.
  
  
• 2011 NCBC Chairman Gene Graf III, owner of Gallatin Center LP in Bozeman, Mont., will lead an open discussion entertaining questions from attendees on their own commercial projects and the commercial industry.

Lunch will be provided during the discussion.

Other opportunities for commercial builders during IBS include:

Wednesday, Feb. 8

• "Surviving With Light Commercial"
  1:30-3:00 p.m.
  West 304E

Friday, Feb. 10.

• "Improving Trade Contractor Relationships — From Good to GREAT!"
  1:30-3:00 p.m.
  West 311B-C

To RSVP for roundtable registration or for more information, email Lisa Leone at NAHB, or call her at 800-368-5242 x8455, and leave a name, telephone number and email address.

Hard Economic Times Can Call for a Business Facelift

By Christine Fortenberry Fortenberry Construction Services

The stories of three women in the building industry show the good a facelift can do for businesses that have strong values at their core but begin to falter as they confront tough market conditions.

Switching Niches

Darlyene Dennon, president of Solid Energy Inc. in Seattle, came from a construction family background in Montana.

In the 1970s, paying her way through school, Dennon started painting houses and refinishing furniture and decks. Ultimately, she expanded her repertoire to include general contractor services, bath renovations and small additions.

In 1991, she decided to specialize in painting, which proved profitable and allowed her to open a second business in 2006 focused on small remodeling and carpentry.

In 2008, however, it became clear that the growth she had enjoyed and the size of her company were unsustainable.

In 2009, Dennon had the opportunity to give her career a facelift. “We took a look at how we were running our business, looking at where we could save money, and revamped our entire operations to meet the needs of the new economy,” she said.

She shuttered her second business and reinvented her painting business to offer high-end painting systems — along with carpentry, maintenance and repair.

Her company now works on residential and commercial projects, providing services that are not as large as full remodels but are more than what the average handyperson provides.

For example, she repairs dry rot, refurbishes and rebuilds decks, and installs and replaces siding.

Reinventing her business allowed Dennon to draw upon all she had learned in the previous 30 years.

Dennon said she redirected her focus to “the customers that we loved working with and centered our marketing on those customers only.” 

She zeroed in on two market segments:

• Neighborhoods where home owners have achieved success in their careers and have room in the budgets for investment in their homes, but are not eager to incur a much higher mortgage payment by selling their house and "buying up"
  
  
• Upscale neighborhoods where home owners are young professionals who have purchased older homes in need of restoration, repairs and painting  

Dennon targeted her company’s marketing to those specific neighborhoods by using signs, advertising in the local papers and joining professional roundtable groups.

Now she is holding seminars for the consumers in those communities and reaching out to them through social media.  

Dennon said she attributes much of the success of her business facelift to associations such as NAHB and the Painting and Decorating Contractors of America, which provided the educational tools to keep her business professional and up-to-date with trends and policies.

“Having access to mentoring from other members and support from NAHB’s Professional Women in Business (PWB) helped to sharpen my skills as a business owner,” she added.

Focusing on Quality and Convenience

Hailing from the Midwest, Melanie Spurgeon of Design Built Homes is another champion of NAHB and PWB.

She also grew up around construction. In her youth, she played near her grandfather’s under-construction home sites and her father’s custom cabinet shop.  

Spurgeon’s family background set her on a career path focused on quality craftsmanship as she learned the world of kitchen design. She stayed true to her roots by expanding into rehabbing houses and reconfiguring outdated and inefficient designs and spaces.

Wanting “to create something out of nothing,” she founded her own building company in 1993 and started out by designing and building spec houses.

Spurgeon established a growing reputation for really listening to her clients, and she worked with them to find the most cost-effective means to transform ordinary structures into showpieces.

With the collapse of the housing industry, Spurgeon realized she needed to take stock of the situation and reinvent herself.

To give her business a facelift, she redirected her focus to remodeling projects and custom homes, while still continuing to build spec homes — only one at a time.

“The key for my continued success is to do a variety of things to keep up my cash flow,” she said.

“I have found that people do not have time to shop,” she said. “So when I bid a job, I bring the total package, including samples, paint swatches, etc.”

This focus on convenience has set her apart from the competition, she added, as she continues to rely on her reputation and word of mouth to bring in new projects.

Staying Flexible

Linda Hebert of Diversified Marketing and Communications began her career selling real estate in 1978.

Working mostly with investor clients, she found herself enrolled in the school of hard knocks when interest rates soared to 18% and seller-provided wrap-around mortgages became commonplace.

At the time, thinking this was normal, she was highly successful at what she did. But as she now admits, she was also “young and uninformed.”

“After a few career jigs and jogs,” she said, “I ended up publishing a magazine in the residential real estate industry, which ultimately led to forming my own strategic sales, marketing and advertising consulting firm serving the building industry.”

Hebert attributes her long record of success to staying constantly in flux so she can address the changing needs of her clients throughout the ups and downs of the housing and business cycles.

“I still provide those same initial services,” she said, “but I am always looking at ways to improve and add different elements and depth to my portfolio.”

Aside from her marketing services, she sometimes assumes the role of sales manager, escrow coordinator, and options and design coordinator for some of her smaller clients.

“I believe the key is to be flexible and to keep all contacts open,” she said.

“Through my numerous association contacts, I have found that I can usually find an answer or solution to a question or challenge. If I don’t know the answer directly or have the ability to provide the service myself, I can typically find someone who does, and that is exceptionally valuable to a client — it’s called teamwork.”

As housing contracted, Hebert saw both herself and her client base confronting a period of survival instead of growth. Knowing a business facelift was imminent, she decided to meet that challenge by focusing on staying in contact with her industry associates.

“At the end of the day, we are all people and all we want is to help others succeed — especially in a tough market or difficult situation,” she said.

Like Dennon and Spurgeon, Hebert was forced by economic adversity to draw upon all her previous career experiences to revise her budget, profit plan and business priorities.

And by offering loyalty discounts, incentives and flexible payment plans, she worked with her clients to ensure their mutual survival.

“They know I am there for them,” she said, “and they are there for me with referrals and other business.”

Dennon, Spurgeon and Hebert each found a spirit of renewed determination from the facelifts they gave their businesses.

They are experienced women in business, confident that they will be around 10 years from now to share their journey as they mentor other women following in their footsteps.

Christine Fortenberry, CAPS, CGB, CGP, CAASH, is founder and CEO of Fortenberry Construction Services in Georgia.

This article originally appeared in the 2012 winter issue of Building Women magazine from NAHB’s Professional Women in Building.

Successful Women Share Professional Development Tips at IBS

A panel of successful women professionals in the building industry will appear at the NAHB International Builders’ Show to discuss the challenges they have encountered in their careers and how to set and meet professional goals.

Sponsored by NAHB’s Professional Women in Building Council, the educational session “Real Life Lessons: Taking Charge of Your Career in the Building Industry” will address how to take bold career steps and obtain the education, community support and mentors needed to successfully navigate the business world.

The session will take place on Friday, Feb. 10, at 1:30-3:00 p.m. in West 308A-B.

Panelists include:

• Lorraine Martin, co-owner of M3 General Construction Resources LLC in Slingerlands, N.Y., which is a women-owned business that provides general contractor services particularly to women and minority groups.
  
  
• Veronica Ramirez, CEO and president of Joseph Chris Partners in Kingwood, Texas, an executive search firm serving the commercial and residential development and construction, finance, investment, restoration, transit/transportation, civil infrastructure and medical/healthcare industries.
  
  
• Joanne Theunissen, director of weatherization at Inspired Green in Lansing, Mich., where she works to improve the energy efficiency and comfort of her customers' homes.

Linda Hebert of Diversified Marketing and Communications in San Francisco will moderate the discussion.

Other education opportunities at the show focused on women in the construction industry include:

Wednesday, Feb. 8 

• “Sister Act 2: The Laws of Attraction”
  1:30-3:00 p.m.
  West 308A-B
  
  The presentation will cover how to attract women customers through websites, social media marketing and onsite demonstrations.
  
  
• “Time Management”
  3:30-5:00 p.m.
  West 304G-H
  
  The session will look at a variety of time management tools that will help business owners meet their work goals, identify their priorities and manage their time accordingly — increasing their efficiency and productivity in the process.

Thursday, Feb. 9

• “Sweets and a Seat”
  11:30 a.m.-1:30 p.m.
  West 303B-C
  
  These informal roundtable discussions with women who are experts in the industry will focus on: balancing work and life responsibilities, opportunities for women in a male-dominated industry and marketing to maximize business.

Friday, Feb. 10

• “Marketing to the Female New Home Buyer”
  10:00-11:30 a.m.
  West 313
  
  This session will discuss the best ways to market to today’s women, who are different from female buyers in previous generations and can be alienated by the wrong approach.
  

View complete details on PWB events at IBS.

For more information, email Lisa Leone at NAHB, or call her at 800-368-5242 x8455.

OSHA Intends to Review Injury and Illness Prevention Rule

The Occupational Safety and Health Administration intends to review its injury and illness prevention (I2P2) rule, according to a notice it provided on Jan. 6 to the Small Business Administration and the Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA).

This rule — long viewed as OSHA Chief Dr. David Michael’s top priority — would require employers to develop written safety programs and find and fix hazards in their workplaces.

NAHB is concerned that OSHA’s I2P2 rule could require small home builders and other small businesses to implement sophisticated safety and health management systems in order to proactively and continuously address presumed hazards on the job site that may not even be covered under OSHA’s existing regulations.  

As part of the Small Business Regulatory Enforcement Fairness Act (SBREFA), a panel is convened when any rulemaking will have a significant impact on a substantial number of small businesses.

Through the SBREFA process, small business representatives are able to review the proposed regulatory text and draft rule proposed by OSHA.

During a June 29 OSHA stakeholder meeting last year on I2P2, NAHB emphasized that the agency can ensure that small business employers implement and maintain an effective I2P2 plan by promulgating a rule that is simple, practical and flexible, and that brings value to the residential construction industry by improving worker safety.

NAHB also said that it appears that the I2P2 would require a company-wide management system that most small businesses do not have in place, and the association argued that OSHA should consider allowing smaller employers to implement an abbreviated plan.

OSHA is currently preparing materials on the rule for small business representatives and for conference calls with the small entity representatives (SERs) that will take place in mid-March. 

NAHB is planning to have a member participate on the small business review panel, which will give the industry a chance to review the draft proposed rule and inform OSHA of its impact on home builders.

For more information on OSHA’s Injury and Illness Prevention Program rule, email Rob Matuga at NAHB, or call him 800-368-5242 x8507.

Help Make Job Site Safety a Priority With Video From NAHB BuilderBooks

The “Jobsite Safety Video,” available through NAHB BuilderBooks, is the first-ever job site safety video for home builders.

The video provides an overview of the key safety issues that residential builders and workers need to focus on to reduce accidents and injuries.

Based on the NAHB-OSHA Jobsite Safety Handbook, this DVD is intended to be used as part of an essential residential construction safety-training program and includes two 20-minute videos on one DVD.

View or purchase this DVD online, or call 800-223-2665.

Learn How Some Builders Earned a Profit Despite Struggling Economy

Although the housing downturn and struggling economy hit all builders hard, some managed to earn a profit in spite of the odds by building equity and positioning their companies to prosper when more buyers return to the market.

Builders have an opportunity to see which companies earned a profit and how they did it with NAHB's “Cost of Doing Business Study, 2012 Edition.”

Available from NAHB BuilderBooks, this one-of-a-kind resource gives home builders a rare glimpse at other builders’ financial information by providing data on profitability, cost of sales and expenses from hundreds of home builders across the country.

The “Cost of Doing Business Study” examines and compares financial performance according to builder type and size, as well as industry-wide averages using the following key indicators:

• Gross margin
•  Net profit
• Cost of goods sold
• Financial ratios — current ratio, debt-to-equity ratio, and more

The study contains a wealth of data, analysis and guidance to help builders boost profitability, increase efficiency, set realistic budget targets and improve upon their business practices.

It also includes more than 35 proven cost-cutting, profit-raising ideas that builders can apply to their businesses.

To Order

Learn more or order the "Cost of Doing Business Study" online here, or call 800-223-2665.

Customized Experience at Custom Building Central Available to Builders at Builders’ Show

Builders visiting the Custom Home Building Committee’s  Custom Building Central lounge — room W 309 at the Orange County Convention Center — can meet to share knowledge, swap ideas with like-minded professionals, unwind and create a customized experience during the 2012 NAHB International Builders’ Show in Orlando on Feb. 8-11.

They’ll also be able to participate in events and education designed to provide the tools, knowledge and resources to assist them with their business.

During breakfasts, luncheons, “Q&A’s” and other events held at Custom Builder Central throughout the show, IBS attendees can meet with experts, discuss the issues that custom builders face and learn effective strategies that address changing trends in the custom home industry.

The custom building hub and events, sponsored by the Propane Education and Research Council, are available to all registered Builders’ Show attendees interested in the custom home building market.

Some of the events and discussions planned at Custom Builder Central include:

Wednesday, Feb. 8

• “Q&A on Social Media and the Custom Home Builder”
• “Meet the Experts on How to Talk to Clients About Technology”
• The Excellence Awards Luncheon — presented by Residential Design+Build magazine
• “Q&A on Design Trends and Solutions for Custom Builders”
• Custom Builders Mix-and-Mingle Happy Hour

Thursday, Feb. 9

• Custom Builder Meet-and-Greet Breakfast
• “Meet the Experts on Integrating Technology in the Design and Build Proces”
• Custom Products for Custom Builders Tour
• “Strategic Thinking for the New Reality Series”
• “Meet the Experts on Stand-By and Off-Grid Generation” ― presented by the Propane Education and Research Council and sponsored by Custom Building Central Tile

Friday, Feb. 10

• “Meet the Experts on Attainable and Affordable Technology Options for Your Clients”
• “Collaborative Approach to Incorporating Technology Into the 2012 New American Home”
• “Q&A on Top 10 Technology Trends”
• NAHB Custom Home Builder of the Year Award Luncheon
• “Q&A on Creating Profits on Lower Margins”

Saturday, Feb. 11

• Custom Builders Breakfast

For a full list of education and events held at Custom Building Central, visit www.buildersshow.com/custombuilding.

For more information, email Marcia Childs at NAHB, or call her at 800-368-5242 x8388.

Don’t Wait for Spring; Capture Prospects Now With a Pre-Season Selling Event

By Jeff Shore New Home Sales Training

“Selling Season” is nearly here, and builders would do well to consider how to leverage the expected, annual, spring surge in sales into a campaign that fits in the slower winter months.

Many builders have taken a hunker-down approach as they wait for spring to bring in new sales. But what if there were a strategy that could be employed now that would move some of prospects to purchase before the selling season begins?

One effective strategy is a “Pre-Season Selling Event,” an educational campaign designed to create an urgency to purchase among prospects just before the anticipated spring buyers do.

And only three basic elements are needed to implement it:

Step One: Educate

Begin the campaign by marketing to prospects and letting them know that the spring “buying season” is a real occurrence — and that it is close at hand.

It’s critical that prospects believe that an increased sales pace is imminent. Builders can use charts and graphs in their marketing materials to illustrate the annual sales surge.

The charts should show the month-by-month sales pace going back for years or, for established builders, decades. And because the buying season covers all homes sold, a builder could also show resale activity over the same time period.

Step Two: Sweeten the Pot

Many builders already dig a little deeper into their marketing budget during the winter months, when traffic is down and prospects are few. For this campaign, simply repackage those offerings as a “Winter Sale” — something that expires soon to create urgency.

Another way to sweeten the pot is to release a few prime home sites, if possible. Let prospects know that the homes are being released now in anticipation of the coming spring selling season, and that deciding now assures them a choice from among the best locations.

Step Three: Challenge

During the sales presentation, challenge prospects to act quickly by simply asking them if it’s better to purchase before the sales surge or to wait until the surge has begun.

Sales professionals should be well versed in explaining the benefits of making a late winter purchase. By buying now, prospects are assured of the:

• Best location of home sites and showcase homes
• Best values and prices — prices go up when everyone buys
• Historically low interest rates

This strategic pre-season sales event gives prospects a sense that they are doing a smart thing and that they have the foresight to purchase before everyone else does.

Plan for Higher Conversion Rates

With the buying season upon us, every sales agent needs to understand that, while traffic levels might be down, conversion rates should skyrocket during a “pre-season sale.” While it’s true that fewer prospects will visit sales offices in the winter months, those who do are more motivated.

Sales professionals must never underestimate the quality of winter traffic. Those who visit a sales office are proving that they have a serious housing need.

Jeff Shore is a sought-after new-home sales trainer and expert in sales management and provides training and consulting services to companies across the country. He is also the author of three books on new-home sales, including “Deal With It! Mastering 21 Tough Sales Challenges,” and a blog. For more information, email Shore, or call him at 530-558-9109; or visit http://jeffshore.com.

‘Internet Marketing: The Key to Increased Home Sales’ Available at NAHB BuilderBooks 

“Internet Marketing: The Key to Increased Home Sales,” available through NAHB BuilderBooks, explains how to get more quality website traffic, convert it to sales center visits, and provide the right information to home buyers online.

This informative resource includes strategies on how to compete online, apply formulas for search engine optimization, identify and incorporate the right keywords and boost open and click-through rates for email marketing.

Order this publication online, or call 800-223-2665.

'Social Media for Home Builders 2.0' Available at NAHB BuilderBooks

“Social Media for Home Builders 2.0: It’s Easier Than You Think,” available through NAHB BuilderBooks, demonstrates the power of social media through case studies and online outlets created specifically for the home building industry.

The publication explains how builder can use social media sites to build their brand, engage new and existing consumers, manage their online reputation and sell more homes.

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

In Today’s Market, 'Think Sold!' With Help From NAHB BuilderBooks

“Think Sold! Creating Home Sales in Any Market,” available at NAHB BuilderBooks, is a practical, how-to guide for developing the self-awareness, knowledge and skills needed to succeed in the competitive field of new home sales.

The book covers everything from the home buying process and new home financing to strategies for making better sales presentations and sizing up the competition. It teaches readers how to overcome customers’ concerns and provides specific examples of how to explain the benefits of new home features in customer-friendly language.

“Think Sold” provides insights on how to approach sales and life from a position of optimism that will create successful outcomes; how to improve upon potential customer prospecting and follow-up skills; and how to communicate effectively with various types of buyers and learn how to adjust communication strategies to increase rapport and alignment with buyers’ motives.

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

Subscribe to Sales + Marketing Ideas Magazine for Cutting-Edge Information

For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales + Marketing Ideas magazine (www.smimagazine.com).

Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing.

Nine Steps That Can Improve Your Brand, Help You Make More Sales

Jason Forrest

I like the idea of personal branding, as explained by Tom Peters in “The Brand Called You,” and believe that every salesperson and new-home sales manager should understand what sets them apart.

The following are nine ways sales people and sales managers can define their personal brand:

Know Your Vision and Purpose

Rather than letting the winds of chance blow you around, have a clear vision of who you are and what you want to become. When you have clarity and understanding about where you stand in life, people will see it in you.

To clarify your purpose, write out your vision of where you’d like to be in a year, five years and 10. Ask yourself what kind of career you want to have, what you want people to say about you, and what your purpose is as a salesperson, a parent, etc.

Essentially, determine your vision and how you are going to fulfill it.

Define Your Philosophy

Determine and record your philosophy on selling, marketing, work, labor and life.

Here are three of my own philosophies:

• Live life to the fullest ― Live in such a way that you feel good about each passing year. Ask yourself, “Did I just fly by that decade or did I enjoy life and make decisions that helped me live life to the fullest?”
  
  
• Pick a career (not a job) that you love ― When we’re happy, we do better work. Consequently, my assistant has been instructed to tell me if she really hates doing more than 20% of her daily work. I want her to enjoy what she does.
  
  
• Make decisions based on what’s best overall, not just for yourself ― What do you want your kids to have learned from you when they go to college? I want mine to be able to say, “My dad taught me x, y, and z and I’m better because of it.”

Set Goals

Set goals because they will create your brand and help give you purpose. How you achieve them will follow.

Assess Your Top Brand Attributes

Define your top brand attributes, then work to strengthen them.

For example, if you want to be a premier sales professional, then learn everything about your community and neighborhood, construction and all the working relationships involved.

If your brand is to be known as someone who is easy to talk to and work with, then work on your emotional intelligence ― your ability to connect with all types of people.

Identify Your Strengths

Whatever you’re good at — working with Realtors, selling existing inventory, developing deals through creative financing options, etc. — do more of it and get even better. Focus on your strengths while working on your weaknesses.

And speaking of weakness…

Get Feedback

Feedback is one of the most important, and often the most difficult, things to accept. But if you change the way you look at criticism, you will be able to grow — by leaps and bounds.

Get feedback from loan officers you work with, your boss, customers and just about anyone else involved in the sales process. Ask them how you can improve and to identify your weaknesses.

Once you know how others see you, you can work to become the best version of yourself.

Define Your Target Audience and Learn How to Sell to Them

Know your target market and how to connect with them and motivate them.

In Dallas, we have communities near Lockheed Martin, so we have salespeople who are detail-oriented and can break down the numbers.

You can’t be all things to all people. Find your niche and focus on it.

Know Your Competition

Shop the competition and learn their strengths and weaknesses so you can clearly explain what sets your builder apart.

Don’t bash the competition. Just be clear about how you can meet their needs and why other customers have chosen you. Things run together and can be confusing for prospects, so the clearer your niche, the better you’ll do.

These attributes can also help you define your brand. “If you’re looking for a salesperson that’s the best at x, y and z, then I’m the one.”

Remember the Three Characteristics of a Strong Brand

Three characteristics can help you define your brand — and be successful, even in a difficult market. They are:

• Clarity — Be clear on who you are and what you want to accomplish — and be proactive. Visit with Realtors, don’t just distribute flyers and post information on social media sites.
  
  
• Consistency — Present the same brand whether you’re communicating through social media or face-to-face.
  
  
• Constancy — Put yourself in a position to be the obvious, top-of-mind person for Realtors in your area.

Take the next 30 days to define yourself, determine how you want people to define you in the future, figure out what you need to do to evolve and start working on your brand.  

I reassess my goals and brand every six months or so because the market is constantly changing and evolving and I have to evolve to succeed in it.

In new-home sales, it’s not the product, location or price that makes the sale. It’s you. So make sure you are the best “you” you can be.  

Jason Forrest is a new-home sales trainer and consultant and the author of “Creating Urgency in a Non-Urgent Housing Market” and "40 Day Sales Dare.” For more information, email Forrest, or visit his website at www.jforrestgroup.com.

Create Urgency Among Prospective Buyers With Help From NAHB BuilderBooks

Urgency is the key component to a strong market, but in tough markets, sales counselors must create that urgency. In “Creating Urgency,” available from NAHB BuilderBooks, Jason Forrest explains how to tap into this important, high-powered, emotional resource.

Based on the principle that every home buyer has a desire is “to improve their life,” the publication illustrates how to fulfill this powerful impulse and create an atmosphere of excitement and immediacy — no matter the state of the market.

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

‘Internet Marketing: The Key to Increased Home Sales’ Available at NAHB BuilderBooks 

“Internet Marketing: The Key to Increased Home Sales,” available through NAHB BuilderBooks, explains how to get more quality website traffic, convert it to sales center visits, and provide the right information to home buyers online.

This informative resource includes strategies on how to compete online, apply formulas for search engine optimization, identify and incorporate the right keywords and boost open and click-through rates for email marketing.

Order this publication online, or call 800-223-2665.

'Social Media for Home Builders 2.0' Available at NAHB BuilderBooks

“Social Media for Home Builders 2.0: It’s Easier Than You Think,” available through NAHB BuilderBooks, demonstrates the power of social media through case studies and online outlets created specifically for the home building industry.

The publication explains how builder can use social media sites to build their brand, engage new and existing consumers, manage their online reputation and sell more homes.

View or purchase this publication online, or call 800-223-2665.

Visit Sales Central at IBS for One-on-One Meetings With Sales, Marketing, Design Experts

Builders can network with sales and marketing professionals, merchandisers, finance experts, branding specialists and more ― as well as attend a variety of sessions that address today’s market challenges ― at Sales Central during the 2012 NAHB International Builders’ Show in Orlando on Feb. 8-11.

All events at Sales Central — a new feature at the Builders’ Show — are free to IBS attendees. Sales Central is in room W 311E in the Orange County Convention Center.

Sales Central Schedule of Events

Wednesday, Feb. 8

Builder Power Plays Day
Sponsored by Wells Fargo Home Mortgage

Programs and discussions will explore the sales and marketing tools builders should have to be successful in today’s uncertain market — a solid, comprehensive marketing plan; super closers who understand financing and how to use it to close the deal; and strategies on how to use community-based events to increase community traffic. 

• NSMC 50th and IRM 40th Anniversary and Sponsor Recognition Breakfast
  7:30-9:00 a.m.
  
  
• “It’s Not All Social: Comprehensive Builder Marketing Plans”
  David Miles, MilesBrand
  9:15-10:15 a.m. 
  
  
• Meet the New MIRMs Lunch
  Noon- 1:00 p.m.
  
  
• “Builder Events 2.0 — Building Traffic With Community-Based Events”
  Carol Ruiz, NewGround PR and Marketing
  1:15-2:15 p.m. 

Thursday, Feb. 9

Design Day
Sponsored by Boral Bricks
Programs and discussions will highlight the hot new design trends that are attracting new-home buyers.

• Networking Breakfast
  7:30-9:00 a.m.
  
  
• “Options & Upgrades Selling for Profit-Driven Builders”
  Jane Meagher, MIRM, Success Strategies
  9:30-10:30 a.m.
  
  
• “Options & Upgrades Show Floor Tour”
  Jane Meagher, MIRM, Success Strategies
  10:30-11:30 a.m.
  
  
• Merchandiser’s Mix and Mingle Luncheon
  Noon-1:00 p.m.
  
  
• “How Builders are ‘Right-Sizing’ Today’s New Homes”
  Steve Moore, CGP, BSB Design
  2:00-3:00 p.m.
  
  
• The National Gold & Silver Winners After Party
  5:00-6:00 p.m.

Friday, Feb. 10

Tech Friday
Programs and discussions will focus on the technologies that can help builders reach and engage with their buyers.

• Meet and Greet Breakfast
  7:30-9:00 a.m.
  
  
• “eLead Management: Online to Onsite”
  Meredith Oliver, MIRM, Meredith Communications
  9:30-10:30 a.m.
  
  
• “Social Media for Home Builders 2.0”
  Carol Flammer, MIRM, mRelevance
  10:30-11:30 a.m.
  
  
• Tech Luncheon
  Noon-1:00 p.m.
  
  
• “Creating Effective, Lead-Generating Websites”
  Kelly Bosetti, CEA Marketing Group
  1:15-2:15 p.m.
  
  
• Options and Upgrades Tour Encore
  2:30-3:30 p.m.
  
  
• Builders’ Networking Reception
  5:00-6:00 p.m.

Saturday, Feb. 11

Grab and Go Breakfast and Networking
Reconnect with NSMC members and others before heading home.

For more information, visit www.buildersshow.com/sales.

‘Internet Marketing: The Key to Increased Home Sales’ Available at NAHB BuilderBooks 

“Internet Marketing: The Key to Increased Home Sales,” available through NAHB BuilderBooks, explains how to get more quality website traffic, convert it to sales center visits, and provide the right information to home buyers online.

This informative resource includes strategies on how to compete online, apply formulas for search engine optimization, identify and incorporate the right keywords and boost open and click-through rates for email marketing.

Order this publication online, or call 800-223-2665.

'Social Media for Home Builders 2.0' Available at NAHB BuilderBooks

“Social Media for Home Builders 2.0: It’s Easier Than You Think,” available through NAHB BuilderBooks, demonstrates the power of social media through case studies and online outlets created specifically for the home building industry.

The publication explains how builder can use social media sites to build their brand, engage new and existing consumers, manage their online reputation and sell more homes.

View or purchase this publication online, or call 800-223-2665.

In Today’s Market, 'Think Sold!' With Help From NAHB BuilderBooks

“Think Sold! Creating Home Sales in Any Market,” available at NAHB BuilderBooks, is a practical, how-to guide for developing the self-awareness, knowledge and skills needed to succeed in the competitive field of new home sales.

The book covers everything from the home buying process and new home financing to strategies for making better sales presentations and sizing up the competition. It teaches readers how to overcome customers’ concerns and provides specific examples of how to explain the benefits of new home features in customer-friendly language.

“Think Sold” provides insights on how to approach sales and life from a position of optimism that will create successful outcomes; how to improve upon potential customer prospecting and follow-up skills; and how to communicate effectively with various types of buyers and learn how to adjust communication strategies to increase rapport and alignment with buyers’ motives.

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

  Subscribe to Sales + Marketing Ideas Magazine for Cutting-Edge Information

For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales + Marketing Ideas magazine (www.smimagazine.com).

Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing.

Free IBS Seminar Shows How to Create an Effective Blog That Generates Traffic

With blogs one of the easiest, most effective and cost-efficient solutions for driving additional traffic to builder and remodeler websites, social media and Internet experts Carol Flammer and Mitch Levinson will conduct a free International Builders' Show seminar on blogging.

“Blogging to Build Traffic: Online and Onsite” will be held from 1:30-3:00 p.m. on Thursday, Feb. 9, in W 311G-H of the Orange County Convention Center.

During the session, Flammer and Levinson — the authors of "Social Media for Home Builders 2.0: It’s Easier Than You Think" and "Internet Marketing: The Key to Increased Home Sales," respectively — will share case studies that demonstrate the impact of blogging, including one involving a builder who determined that 22% of his onsite traffic was a direct result of his social media program.

The panelists also will provide field-tested advice on how to make blogs the engine for a social media program to improve search engine optimization, enhance customer interaction and increase sales.

Attendees will:

• Learn the basics of setting up a self-hosted WordPress blog and how to incorporate keywords into content to maximize visibility during searches
  
  
• Gain insights into the power of well-built, strategic social media campaigns in contributing to increased sales
  
  
• Benefit from expert advice on gauging the return on investment of social media activities and learn which metrics to track

This seminar is part of the Innovation & Technology and Sales, Marketing & Customer Focus tracks on the Builders’ Show website.

Both the panelists' resource publications are available at NAHB BuilderBooks.

Feb. 22: Learn How to Market Effectively, Even on a Tight Budget

The National Sales and Marketing Council’s Institute of Residential Marketing and NAHB Joint Venture Education will present a webinar on how to market cost-effectively when promotional dollars are scarce, and on marketing’s role in management and business operations.

“The Basic Steps of Marketing” will explore in detail the first section of the NAHB course, “Effective Marketing on a Shoestring Budget.”

The webinar will be held from 2:00-3:00 p.m. EST on Wednesday, Feb. 22.

Attendees will learn about:

• The seven basic steps of the marketing process
• The primary expense categories in an effective marketing budget and the factors that impact allocation
• Key principles for maximizing return on marketing dollars
• The role of the marketing plan in managing and operating a business

The course will be presented by Gian Hasbrock, MIRM, MCSP, CGP, CRS, of Critical Wheel/Wowism and a new-home counselor in Durham, N.C., who helped write the “Effective Marketing on a Shoestring Budget” course.  

Webinar participants can earn one hour of continuing education credit toward their designations. They also can receive 20% off the online “Effective Marketing” course, which will be available in January.

To Register

The webinar fee is $19.95 for NSMC members, $24.95 for NAHB members and $44.95 for non-members.

To register online or for more information, visit the "The Basics Steps of Marketing" page; or call NAHB’s Office of the Registrar at 800-368-5242 x8338, or email registrar@nahb.org.

Feb. 29: Get Tangible Tips for Marketing and Selling Green Homes in Tough Markets

During an NAHB webinar from 2:00-3:00 p.m. EST on Wednesday, Feb. 29, three builders who have successfully promoted and sold green homes in today’s challenging housing market will explain how they did it.

“Tips for Selling and Marketing Your Green Certified Home,” presented by NAHB Green, is part of the Webinar Wednesday series presented by NAHB Education to provide business management, marketing, building science and design advice to home builders and remodelers.

Veteran green-certified builders Tom Stephani, president of Stephani Enterprises LLC and Custom Construction Concepts Inc. in Crystal Lake, Ill.; John Freer, the 2008 NAHB Green Building Advocate of the Year and owner of Riverworks Inc. in Missoula, Mont.; and Matt Belcher, chair of the NAHB Green Building Subcommittee and owner of Belcher Homes in suburban St. Louis, will discuss how they leveraged green certifications and sustainable building practices to sell more homes. They’ll also offer practical and proven advice on how to better position green projects.

In addition, the panelist will disucss the results of research gleaned from a recent green building consumer preference and builder practice survey. The survey results will be released during the upcoming 2012 NAHB International Builders’ Show in Orlando.

To Register

The webinar fee is $19.95 for NAHB council members, $24.95 for NAHB members and $44.95 for non-members.

To register online or for more information, visit the Webinar Wednesday page on the NAHB website; or call NAHB’s Officer of the Registrar at 800-368-5242 x8338, or email registrar@nahb.org.

Lowe’s Commercial Services Selected as Exclusive Sponsor of NAHB Education

NAHB has selected Lowe’s Commercial Services to be the exclusive sponsor of NAHB Education for three years, from the beginning of 2012 through 2014. 

“Lowe’s Commercial Services, which serves the needs of professionals in the home building industry, is a perfect partner for NAHB Education,” said NAHB Chairman Bob Nielsen.

“NAHB Education administers professional designation programs for members of the home building community. These designations offer people working in various aspects of the housing industry the opportunity to improve their skills, advance their career and be recognized for their commitment to professional growth.” Nielsen said. 

“Lowe’s Commercial Services doesn’t see itself as just a company that sells products to builders. We want to be a resource to help NAHB members succeed in managing their business,” said Mike Horn, vice president of Lowe’s Commercial Sales.

“The NAHB Education sponsorship will provide us with an exceptional way to connect our contractors and customers with NAHB’s builder and remodeler experts, as well as the education providers at the state and local home builders associations,” he said.

Through intensive educational programs requiring both classroom instruction and practical experience, NAHB awards 13 basic and advanced professional designations in home building and remodeling, multifamily, sales and marketing, and for product and service suppliers and manufacturers. 

Classes are taught by highly qualified experts and are held at local home builders associations throughout the country as well as at the NAHB International Builders’ Show and other national venues.

Every year, between 2,500  and  5,000  members of the home building industry receive professional designations such as  Graduate Master Builder (GMB),  Master in Residential Marketing (MIRM),  Graduate Master Remodeler (GMR), Certified Aging-in-Place Specialist (CAPS) and Certified Green Professional (CGP).

(See www.nahb.org/designations for a full listing of the professional designations offered by NAHB.) 

“Lowe’s Commercial Services also sponsors a number of NAHB events and professional councils, and is a long-time exhibitor at the International Builders’ Show,” said Nielsen.

“NAHB very much appreciates the company’s support and commitment to promoting professionalism within the home building industry,” he said. “We are very proud to welcome Lowe’s Commercial Services as the exclusive sponsor of NAHB Education.” 

Speakers Wanted for 2013 NAHB International Builders' Show in Las Vegas; Apply by Feb. 24

NAHB is accepting program proposals for the 2013 NAHB International Builders' Show in Las Vegas.

The deadline for submitting proposals is Feb. 24, and only online proposals will be accepted.

There is a $50 non-refundable application fee for each education session proposal.

Visit Speaking Opportunities at the International Builders’ Show to view the 2013 IBS education session proposal guidelines and submission requirements.

For a list of the 2012 IBS educational seminars, visit www.buildersshow.com/education.

For more information, or to recommend a topic or speaker, email Robert Ebbin at NAHB.

Education Calendar

Feb. 4	"Advanced Green Building: Building Science"	Orlando, Fla.
Feb. 4	"Advanced Green Building: Project Management"	Orlando, Fla.
Feb. 4	"Business Management for Building Professionals"	Orlando, Fla.
Feb. 4	"The Challenge of New Home Sales Management (IRM IV)"	Orlando, Fla.
Feb. 5	"Green Building for Building Professionals"	Orlando, Fla.
Feb. 5	"Marketing & Communication Strategies for Aging & Accessibility (CAPS I)"	Orlando, Fla.
Feb. 5	"Train the Trainer"	Orlando, Fla.
Feb. 6	"Design/Build Solutions for Aging and Accessibility (CAPS II)"	Orlando, Fla.
Feb. 6	"Lifestyle Merchandising, Advertising, and Promotion Strategies (IRM III)"	Orlando, Fla.
Feb. 6	"Project Management"	Orlando, Fla.
Feb. 7	"Builder Assessment Review (BAR)"	Orlando, Fla.
Feb. 7	"Design/Build"	Orlando, Fla.
Feb. 7	"Home Technology Integration"	Orlando, Fla.
Feb. 7	"Negotiating Skills"	Orlando, Fla.
Feb. 7	"Sales & Marketing for Remodelers"	Orlando, Fla.
Feb. 7	"Professional Remodeler Experience Profile (PREP)"	Orlando, Fla.
Feb. 7	NAHB/Builders Mutual Safety Award for Excellence (SAFE) Awards	Orlando, Fla.
Feb. 8-11	2012 NAHB International Builder's Show	Orlando, Fla.
Feb. 22	"The Basic Steps of Marketing"	Webinar
Feb. 29	“Tips for Selling and Marketing Your Green Certified Home”	Webinar
April 29-May 1	National Green Building Conference and Expo	Nashville, Tenn.
Aug. 7-12	Executive Officers Council Seminar	New Orleans, La.
Oct. 9-12	The 2012 Remodeling Show	Baltimore, Md.

Learn More About NAHB Professional Development Offerings

View the variety of professional development offerings available through NAHB and its local associations at www.nahb.org/education.

Search for Upcoming Courses in Your Area

Or, search for specific course offerings in your area and check out upcoming conferences.

Take NAHB Online Courses on Your Schedule

Two popular and essential courses from NAHB Education — “Basics of Building” and “Customer Service” — are now offered online and attendees can take the courses at their convenience.

The dynamic online versions include audio and video content, on-screen text, transcripts and other downloadable resources.

Learn more about NAHB’s online courses at www.nahb.org/elearning.

Plumbing Student Excels in National Trade Competition, With Support of HBI Instructor

After spending less than 10 months learning his new trade, Home Builders Institute plumbing graduate Sean Connolly placed fifth against much more experienced plumbers in the most recent national SkillsUSA trade competition.

With help from HBI plumbing instructor John Gallagher, of the Fred G. Acosta Job Corps Center in Tucson, Ariz., Connolly not only learned the skills necessary to successfully compete in the national trade and career competition, he was able to overcome the challenges he faced when he was younger.

At the 2011 national SkillsUSA Championships, he successfully completed a series of plumbing projects in an allotted six and a half hours in head-to-head competition with other plumbers.

More than 5,700 contestants competed in 94 events at the championships, which showcasethe abilities of the best career and technical education students in the country. Industry representatives help evaluate student performance, and the competition helps keep the career training pertinent to employers’ needs.

After beginning his plumbing training with the HBI Job Corps program in Tucson in 2010, Connolly was able to do extremely well ― and turn his life around ― because he set goals for himself and worked hard, said Gallagher, who recognized his student's potential and encouraged him to enter the SkillsUSA competition.

“We sat down and he wrote a list of what he wanted to accomplish,” Gallagher said. “Sean is very goal-oriented and just never stopped until he reached every one of his goals.”

Alongside his HBI Job Corps training, Connolly spent four months preparing for the competition. He had to learn how to read a blueprint, connect cast iron pipe and rough in a bathroom — all within the allotted time and without assistance.

Connolly placed first in the regional and state SkillsUSA competitions in Arizona, which required that he build a bathroom from scratch. Those finishes qualified him for the national competition, where he created the plumbing for a bathroom and a mop room with a floor drain.

Connolly credits the HBI Job Corps program with helping him gain the skills to be proficient in his trade.  

“The HBI Job Corps program worked well for me because I could learn at my own pace and take my time until I understood everything,” said Connolly.

The program also helped boost his employability. Connolly is now working as a plumbing apprentice in California.

For more information on HBI Job Corps, email Keith Albright at HBI, or call him at 800-795-7955 x8911.

Celebrating Students at IBS: Home Builders Institute Schedule of Events

The Home Builders Institute schedule at the 2012 NAHB International Builders’ Show in Orlando is full of events that engage and celebrate students who are committed to making residential construction their careers.

One highlight of HBI’s celebration of the youngest members of the home building industry is the presentation of the NAHB Chairman and the Shirley McVay awards for Exceptional Promise to two exceptional HBI Job Corps graduates during the NAHB Joint Executive and Resolutions meeting on Feb. 8.

IBS attendees are welcome to attend all HBI events listed on the schedule below, from HBI Job Corps and NAHB Student Chapters exhibit hall booths to the NAHB Student Chapters Residential Construction Management Competition (RCMC) awards ceremony that honors RCMC winners and other outstanding NAHB Student Chapter members.  All events are at the Orange County Convention Center.

Wednesday, Feb. 8-Friday, Feb. 10
7:30 a.m.-6:30 p.m.
Residential Construction Management Competition
West 109/110, Level I Fifty-six teams from NAHB Student Chapters at four-year, two-year and high school residential construction management programs present their solutions to a specific construction problem to a panel of home building executives and a live audience. Winners will be announced at a ceremony on at 5 p.m. Friday, Feb. 10 in West 415, Valencia Ballroom, Level IV.

Wednesday, Feb. 8-Friday, Feb. 10
9:30 a.m.-5:00 p.m.
Saturday, Feb. 11
9:30 a.m.-2 p.m.
HBI Job Corps Skills and Employment Booth
Booth #W5088, Exhibit Floor, Level II
Discuss employment possibilities with HBI Job Corps pre-apprentices from across the United States as they demonstrate their brick masonry, carpentry, electrical, facilities maintenance, painting and plumbing skills at booth #W5088. HBI Job Corps staff can answer questions about the 153 HBI Job Corps trades training programs and how employers can hire their graduates. Visitors can enter a drawing for a professional tool set and compete against an apprentice in a nail-driving contest.

Wednesday, Feb. 8-Friday, Feb. 10
9:30 a.m.-5:00 p.m.
Saturday, Feb. 11
9:30 a.m.–2 p.m.
NAHB Student Chapters Networking Booth
Hall A Lobby, Level II
NAHB Student Chapter members will answer questions about the benefits of membership and how NAHB members can get involved with local student chapters in their communities.

Wednesday, Feb. 8
12:30 p.m.
HBI/Lowe’s Scholarship Presentation
Booth #W2529, Exhibit Floor, Level II
Lowe’s will award $50,000 in scholarships for HBI Job Corps students. Since 2004, Lowe’s has contributed more than $450,000 to the HBI/Lowe’s Building Careers Scholarship, which has helped more than 350 HBI Job Corps graduates launch their careers.

Wednesday, Feb. 8
2:00-2:30 p.m.
HBI Job Corps Jeopardy
Booth #W5088, Exhibit Floor, Level II
HBI Job Corps pre-apprentices compete in the annual “Job Corps Jeopardy” championship. The contest tests their knowledge in subjects such as safety, materials and tool identification and employability skills. The winner receives a $100 Lowe’s Home Improvement gift card.

Wednesday, Feb. 8
3:00-3:30 p.m.
Thursday, Feb. 9
1:10-1:40 p.m.
You Be the Judge! The RCMC Showcase at IBS Live!
IBS Live! Stage, Exhibit Floor, Level II
2011 NAHB Student Chapters RCMC winners present their solutions to real-life construction problems.California Polytechnic University, San Luis Obispo will showcase its solution in the four-year level on the stage on Feb. 8. Penn College and Cumberland Perry AVTS will showcase their solutions in the two-year level and high school levels, respectively, on Feb. 9.   

Thursday, Feb. 9
9:45 a.m.-10:00 a.m.
IBS Live! Stage, Exhibit Floor, Level II HBI C-CORE (Construction-Coaching Opportunities to Reach Employment) Video Presentation Learn more about the HBI C-CORE mentoring program to engage youth in the home building industry, the benefits of mentoring and how to become an HBI C-CORE mentor during this video presentation that previews the HBI C-CORE educational session that afternoon. (See details below.)

Thursday, Feb. 9
1:30-3:00 p.m.
Building the Next Generation While Strengthening Your Community Connection
West 313, Level III
In this session, attendees learn from HBI C-CORE mentors how to help ensure a healthy future for the industry by conducting outreach and mentoring youth, garnering tips for implementing a successful mentoring program and learning about its positive impact on local organizations, communities and the entire home building industry.

Friday, Feb. 10
5:00 p.m.-6:30 p.m.
NAHB Student Chapters Awards Ceremony
West 415, Valencia Ballroom, Level IV
The winners of the Outstanding Student Chapter Awards, Outstanding Education Awards, Outstanding Student Awards and the Residential Construction Management Competition are honored.

Cool Energy House at IBS Retrofitted With BASF’s Neopor Rigid Foam Insulation

BASF announced on Jan. 26 that its Neopor rigid foam insulation is a key ingredient in the Cool Energy House, an energy-retrofit demonstration project made possible by the technical innovations of the Department of Energy’s Building America Retrofit Alliance (BARA).

The home will be open for tours during the NAHB International Builders’ Show on Feb. 8-11.

Improvements to the home, which was built in 1996, have reduced its energy consumption by more than 50%.

Making a major contribution to the improved energy performance of the home was the specification of structural insulated panels (SIPS) from FischerSIPS made of BASF Neopor insulation fabricated by Opco.

Standing apart from traditional expandable polystyrene (EPS), Neopor contains graphite particles that reflect and absorb thermal radiation and boost insulating performance by up to 20% more.

“We know that energy efficiency starts with a well-insulated building envelope,” said Damian Pataluna, president of FischerSIPS.

“Since FischerSIPS with Neopor can increase energy efficiency by up to 20%, using them in wall and roof systems makes it easier for builders and architects to reach aggressive energy-saving goals,” he said.

“Making it easy and cost-effective is the key,” said Aaron Wood, BASF’s North American marketing and innovation manager for the Global Forms Business.

“We believe, through innovation, we can accelerate the industry’s efforts to commercialize more sustainable and energy-efficient building solutions,” she said. “Projects like this are an important part of that process.”

More information on BASF’s energy-efficient, durable and sustainable construction offerings is available at www.basf.us/construction.

BASF Corporation will be on the IBS exhibit floor in booth W 3443.

Headquartered in Florham Park, N.J., BASF is a member of NAHB’s Leading Suppliers Council.

Cool Energy House Interactive Tours

Tours of the Cool Energy House will feature interactive audio and video exhibits on upgrades that result in an energy-efficient, healthy, comfortable and durable home.

Tour hours are:

Wednesday, Feb. 8: 9:00 a.m.-5:00 p.m.
Thursday, Feb. 9: 9:00 a.m.-3:00 p.m.
Friday, Feb. 10: 9:00-5:00 p.m.
Saturday, Feb. 11: 9:00 a.m.-2:00 p.m.

The house is located at 11068 Bayshore Drive in Windermere, Fla. — about 10 miles from the Orange County Convention Center, at 9801 International Drive in Orlando.

This feature is solely for educational and informational purposes. Nothing on this page should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the featured product or the product manufacturer. The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained on this page.

HELP Grant Benefits College Construction Students in Cincinnati Area

Through a HELP — Homebuilding Education Leadership Program — grant awarded in 2010, students earning an associate’s degree at Cincinnati State Technical and Community College are now able to continue their studies and earn a bachelor’s degree in residential construction management at nearby Northern Kentucky University.

The grant, awarded by the National Housing Endowment, also was used to establish a program that teaches high school students college-level construction classes that can count towards their associate’s degree at Cincinnati State.

“The grant is beginning to develop student leaders, which will result in an increased number of graduates headed for successful careers within the home building industry,” said Tom Burns, a professor in Cincinnati State’s Center for Innovative Technologies, which awards construction and engineering-related associate’s degrees.

The HELP grant also supports co-op incentives for local builders to hire students for summer internships.

Last year, Cincinnati State awarded three summer internships, including one to Mark Ornella, who interned at Fischer Homes, based in Crestview Hills, Ky. The internship was Ornella’s first construction-related job and Fischer Homes was so impressed with his performance that it offered him a full-time position as an estimator after he graduates in May.

“The co-op experience gave me a chance to show Fischer Homes that I was the person they were looking for,” said Ornella, who plans to earn a bachelor’s degree in construction management at Northern Kentucky.

"We are gratified and encouraged to see the progress made at both schools in just two short years and know that our HELP funds support is making a difference in the Cincinnati area,” said Bob Mitchell, endowment chairman and 2000 NAHB president.

The endowment established the HELP initiative in 2006 to bolster or start residential construction management programs in two- and four-year colleges and universities across the country and to increase the number of qualified graduates entering the industry.

To date, the endowment has awarded more than $2.4 million in HELP grants to educational institutions.  

Schools awarded the latest HELP grants will be announced at the upcoming 2012 NAHB International Builders’ Show in Orlando.

NAHB Board of Directors, IBS Meetings Set for Orlando Feb. 5-11

OFFICIAL MEETING NOTICE OF
THE NATIONAL ASSOCIATION OF HOME BUILDERS
BOARD OF DIRECTORS

The following schedule of events is a partial listing provided as a notice for the upcoming NAHB Board of Directors meeting and other associated NAHB meetings to be held at the International Builders’ Show in Orlando from Feb. 5-Feb. 11, 2012.

The board of directors meeting will be held at the Orange County Convention Center on Thursday, Feb. 9, from 3:00-5:00 p.m. and on Friday, Feb. 10, from 8:00 a.m.-12:00 p.m.

The International Builders’ Show program will identify the exact time and place of each scheduled meeting.

Sunday, Feb. 5
State Representatives
National Area Chairmen
Executive Board

Monday, Feb. 6
Committees and Subcommittees
Home Builders Institute
NAHB Research Center
National Housing Center Board of Governors
Nominations Committee

Tuesday, Feb. 7
Committee Meetings
NAHB Past Chairmen/Presidents Council

Wednesday, Feb. 8
IBS Opening Ceremonies
Area Caucuses 1-15
Joint Executive Board, Budget & Resolutions Committee

Thursday, Feb. 9
National Housing Endowment
Spike Party & Directors Reception
Board of Directors Meeting (Session I)

Friday, Feb. 10
NAHB Annual Meeting of the Members/Board of Directors Meeting (Session II)
Federal Reserve Chairman Bernanke Address

Saturday, Feb. 11
Educational Seminars

A Message From Tom Woods, a Candidate for 2012 NAHB Third Vice Chairman

Following is a message from Tom Woods, who is a candidate for 2012 NAHB third vice chairman.

At the NAHB International Builders’ Show (IBS) in Orlando, there will be the annual election for NAHB third vice chair. Through this election process, as I have campaigned vigorously to earn that seat, it has become increasingly more important to hear from you, and to listen to your concerns, stories and ideas on how to improve the housing industry and our association. 

This isn’t just about the last year of campaigning or about the five-year term. It is about the future of our association, our industry and the American dream of homeownership. 

Winston Churchill famously said, “When you are going through hell, keep going.” I cannot think of a better quote to describe these chaotic times. 

I know if we all keep going forward, no matter the obstacles before us, together we will persevere and triumph. I respectfully ask for your vote to be elected leader of this association, an association where we are united championing the dream of homeownership. I am running for NAHB third vice chair because I care deeply about this industry, I care deeply about our association and I care deeply about the future of our country.

As owner of T.E. Woods Construction, Inc., I joined the Home Builders Association of Greater Kansas City, serving on its board for 30-plus years, including as president. I am a single-family home, commercial and land developer. I have been an active volunteer in my church and community, elected mayor of Blue Springs, Mo., and appointed to the Des Moines Federal Home Loan Bank board and elected its vice-chair.

I am an NAHB senior life director, past national vice president, past Missouri state representative and Executive Board member (15 years). I have chaired many committees — including Federal Government Affairs, State and Local, Education, State Representatives and BUILD PAC, and have been on the HBI Board of Trustees. I was honored as the 2009 NAHB Governmental Affairs Member of the Year.

I have a reputation as a consensus builder, an innovative professional and a tireless worker who loves this industry and believes its strength is in its members; I am ready to help lead NAHB toward a brighter future.

I invite you to join me at the IBS in Orlando. Our campaign office will be located in the Orange County Convention Center in room West 103A on Level I.

Between now and IBS, if you would like to learn more about me, view my addresses to the spring and fall board meetings or contact me, go to www.tomwoods2012.com.

Lastly, let me thank you for your kind words, thoughts and support throughout this endeavor. Once elected, I look forward to working together for the industry we both love and cherish.

Former Tennessee HBA President, NAHB Senior Life Director David Burleson Dies at 77

David “Dave” Burleson — a former president of the home builders associations of Tennessee and Knoxville, NAHB senior life director and trustee with the National Housing Endowment — died in Ft. Myers, Fla., on Jan. 18. He was 77.

A graduate of the University of Tennessee who founded the Dave Burleson Construction Co. in Knoxville, he was a prominent builder and developer in the East Tennessee area. One of his favorite projects was the Landmark Golf Course at Avalon in Lenoir City, Tenn.

Burleson was named builder of the year by the Tennessee HBA in 1981, and in 1994 he was inducted into the Tennessee Building Industry Hall of Fame.  

At NAHB, he was a member of the Executive Board, served as a national vice president, chaired the State and Local Government Affairs Committee in 1992 and served on numerous committees, including Nominations, Conventions and Meetings, Public Affairs and Associate Members.

He continued his active service on the NAHB board through 2011 as a senior life director.

He is survived by his wife of 29 years, Brooks Burleson; son and daughter-in-law, Gary and Julienne Burleson of Knoxville; daughter, Sherron Burleson of Jupiter, Fla.; and several grandchildren, great-grandchildren, nieces and nephews.

NAHB ‘Touch System’ Membership Retention Upgrades to Be Demonstrated at IBS

At the upcoming 2012 NAHB International Builders’ Show, NAHB will be demonstrating improvements to the Touch System,  a customizable membership retention program designed to help small and mid-sized home builders associations stay in contact with their members and promote membership benefits.

Many HBAs lack the staff time and resources to write, design, produce and send effective collateral materials to their members.

The Touch System enables HBAs of all sizes to create collateral materials that can  “touch” their members and keep them up-to-date easily and cost-effectively.

NAHB’s recent Touch System upgrades allow for greater customization options for collateral materials and improve the creation of custom emails, letters and brochures ― with a variety of text and image options ― to promote a wide range of events.

Local association officers and other interested members can visit the Membership Booth in the Member Advantage Area of the Orange County Convention Center at IBS to see a demonstration of the new Touch System features.

To learn more about Touch System, visit the Touch section on the NAHB website; or email William Deiss, or call him at 800-368-5242 x8231.

NAHB Study on Enhancing Spike Club to Be Released In February

NAHB plans in February to release recommendations from a study on improving and enhancing the Spike Club ― the member volunteers most involved in membership recruitment and retention for the association.

“For any association to remain strong, relevant and reflective of the industry it represents, it must continuously work to grow and engage its membership,” said Gabrielle Alahouzos, NAHB director of membership marketing.  “Many thousands of NAHB members are Spikes, and collectively they represent the largest source of organic membership growth for the federation.”

“For obvious reasons, these members are highly valuable to NAHB and their local associations, and from a strategic management perspective, we would do well to learn more about what makes them tick.” she said.

Through focus groups and a survey of more than 2,000 members, NAHB is working with Virginia-based research firm Rockbridge Associates to analyze the current state of the Spike Club and a series of proposed changes.

The study was designed to see how NAHB can motivate more members to participate in the Spike Club and assess their reactions to newly proposed incentives and other changes designed to strengthen the program and elicit more interest from members not currently participating.

The results will be used to develop a new incentive structure and implement program changes that can improve and simplify the Spike Club.

Responding to survey questions about motivation and participation, one Spike Club member pointed to the “great satisfaction in signing up new members for our local association” and for getting “a little recognition for doing so” as reasons for being a Spike Club member.

Other respondents said new incentives ― such as local destination trips, membership dues rebates and access to NAHB’s economic research ― would help spur local recruitment activity.

When NAHB essentially had to eliminate the member recruitment prize structure in place before 2010 because of budget challenges, the NAHB Membership Committee initiated the study to explore potential Spike Club changes.

 “We wanted a strong and accurate business case for the modernization and reinstitution of the program, including an optimal incentive structure that is statistically likely to spur the broadest number of members to recruit new members,” Alahouzos said. 

In February, NAHB will publish a white paper for local association managers that will examine the differences in local Spike Club characteristics that affect member satisfaction, willingness to participate and the sense that a club is generally successful.

“The white paper will serve as an information source for membership workers who aim to strengthen and revitalize their local Spike Clubs and help keep the industry and the local membership united,” she said.

For more information on this study or the Spike Club, email Gabrielle Alahouzos, or call her at 800-368-5242 x8351.

Let Love Bloom This Valentine’s Day With FTD 20% Discount

FTD is offering NAHB members 20% off just in time for Valentine’s Day.

From now through Sunday, Feb. 29, members can save 20% on all flowers and gifts from FTD.

Visit www.FTD.com/NAHB for more information and to take advantage of this special opportunity.

This discount is until Feb. 29. Savings are available online.

Other Member Advantage Discounts

For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA.

NAHB Calendar of Events

Feb. 4	"Advanced Green Building: Building Science"	Orlando, Fla.
Feb. 4	"Advanced Green Building: Project Management"	Orlando, Fla.
Feb. 4	"Business Management for Building Professionals"	Orlando, Fla.
Feb. 4	"The Challenge of New Home Sales Management (IRM IV)"	Orlando, Fla.
Feb. 5	"Green Building for Building Professionals"	Orlando, Fla.
Feb. 5	"Marketing & Communication Strategies for Aging & Accessibility (CAPS I)"	Orlando, Fla.
Feb. 5	"Train the Trainer"	Orlando, Fla.
Feb. 6	"Design/Build Solutions for Aging and Accessibility (CAPS II)"	Orlando, Fla.
Feb. 6	"Lifestyle Merchandising, Advertising, and Promotion Strategies (IRM III)"	Orlando, Fla.
Feb. 6	"Project Management"	Orlando, Fla.
Feb. 6	Building Systems Councils Night Out at IBS	Orlando, Fla.
Feb. 7	"Builder Assessment Review (BAR)"	Orlando, Fla.
Feb. 7	"Design/Build"	Orlando, Fla.
Feb. 7	"Home Technology Integration"	Orlando, Fla.
Feb. 7	"Negotiating Skills"	Orlando, Fla.
Feb. 7	"Sales & Marketing for Remodelers"	Orlando, Fla.
Feb. 7	"Professional Remodeler Experience Profile (PREP)"	Orlando, Fla.
Feb. 7	NAHB/Builders Mutual Safety Award for Excellence (SAFE) Awards	Orlando, Fla.
Feb. 8-11	2012 NAHB International Builder's Show	Orlando, Fla.
Feb. 9	2012 Best of 50+ Housing Awards	Orlando, Fla.
Feb. 9	Best in American Living Awards	Orlando, Fla.
Feb. 22	"The Basic Steps of Marketing"	Webinar
Feb. 29	“Tips for Selling and Marketing Your Green Certified Home”	Webinar
April 29-May 1	National Green Building Conference and Expo	Nashville, Tenn.
April 30	National Green Building Awards	Nashville, Tenn.
Aug. 7-12	Executive Officers Council Seminar	New Orleans, La.
Aug. 9	EOC Association Excellence Awards	New Orleans, La.
Oct. 9-12	The 2012 Remodeling Show	Baltimore, Md.

Learn More About 2009 NAHB Professional Development Offerings

See the variety of professional development offerings available through NAHB and its local associations in this brochure.

Or, search for specific course offerings and check out upcoming conferences.