Friday, February 6, 2015

S.C. House introduces Business License Reform Legislation

Representative Rick Quinn (R), of Richland County, along with Reps. Merrill, Rivers, and Atwater, and 20 other co-sponsors, introduced H.3490 earlier this week. This bill is a top legislative priority for your Home Builders Association.  The purpose of the bill is to lower the paperwork and tax burden that local government places on businesses.

As introduced, this legislation would create a centralized collection system under the SC Department of Revenue, and bring South Carolina into the 21st century by allowing online payment of these fees. Additionally, the bill would change the payment structure from its current form. Businesses would be required to pay the business license fee only in the jurisdiction where the company's state income tax return is address, and the fee is capped at $100 per business. This would be a huge relief to businesses operating in multiple jurisdictions while also improving the ease of compliance.

Your Home Builders Association is currently working with the National Federation of Independent Business as well as other groups to push for this legislation. Our group is working on a study to demonstrate just how cumbersome and onerous this problem is for our members. It is our hope that this information will illustrate to the General Assembly the significance of this problem and the need for reform.

This is where you come in. If you have experienced difficulties with business license fees in your area, please feel free to send them to Matt Niehaus a mniehaus@hbaofsc.com. If you have any questions about this, or any other issue, please feel free to contact Matt.  You also can call him at 803-771-7408.

Read the media coverage of the legislation by clicking here.

Thursday, February 5, 2015

Builder Breakfast! Rescheduled event- Thursday, March 12th

Attention all HBA of Greenville builder members, there will be a Builder Breakfast on Thursday, March 12th starting at 7:30 a.m. This event is hosted and sponsored by Jeff Lynch Appliance and T.V Center and our featured speaker will be Buddy Skinner, City of Greenville Codes Officer.
Don't miss out on the insider details from this meeting.
Please RSVP by Monday, March 9th. by calling the HBA office at 864-254-0133 or emailing Crystal Yanes.
We look forward to seeing you there!

Greater Greenville reaches 92 percent of normal

The National Assocaition of Home Builders released its Leading Markets Index this week, and the Greater Greenville market is now at 92 percent of normal.  LMI measures, and averages, three basic criteria: Permits, Housing Prices, and Employment.

According to the LMI for the fourth quarter of 2014, Greater Greenville breaks down as follows:
  • Building Permits: 60 percent (the highest since 2008)
  • Housing Prices: 121 percent
  • Employment: 95 percent
  • Overall: 92 percent
The Greater Greenville area is ranked 115 overall out of 351 markets nationwide.  The top market is Midland Texas at 239 percent of normal.  The bottom market is Flint Michigan at 61 percent of normal.

The Greater Greenville area is defined as Greenville, Pickens, and Laurens counties.

Other South Carolina markets are as follows:
  • Spartanburg, 88 percent
  • Columbia, 88 percent
  • Charleston, 102 percent
  • Myrtle Beach, 100 percent
  • Charlotte, 85 percent
  • Augusta, 98 percent
  • Florence, 90 percent
  • Sumter, 99 percent
To read the full report, click here.

Wednesday, February 4, 2015

Avoid These Deal-Breaking Mistakes

At a Jan. 22 International Builders’ Show seminar in Las Vegas, John Palumbo, CEO of The Sterling Group based in Jacksonville, Fla., provided several strategies to help builders to seal the deal more often than not by demonstrating the biggest and most common negotiation deal breakers:

No Differentiation. Most small builders are not doing research that shows why they are better than their competitors, said Palumbo. “If you do what everyone else is doing, you are missing sales.” One example he cited that makes a community stand out is a food truck that comes three days a week to serve the local residents.

Negotiating With Your Customers. “Consumers don’t like ‘aggressive’ salespeople but they love ‘assertive’ salespeople,” said Palumbo. The most successful are those who use information, charm and the power of persuasion to maximize sales. Make the customer feel like they made the right choice in their home purchase without being talked into it.

Treating All Sales the Same. Salespeople who sound automated and like they are reciting from a script come off as insincere to the customer. The most successful, he said, are “unsalespersons” who are spontaneous, casual, authentic and relaxed and who use their own words and stories. They are able to observe, uncover and predict their prospect’s behavior, thereby evoking emotion and communicating more effectively.

Not Using Third-Party Endorsements. Companies that properly use third-party endorsements can increase their sales by 25% to 30%, said Palumbo. When it comes to the bottom line, customers who have seen written correspondence, videos and social media endorsements are better positioned to buy your products with less negotiating and feel as though they have not been persuaded at all.

To make the endorsement process easy, ask a satisfied customer for a few short words or sentences on why they were happy with their home purchase and then write it up yourself and get it signed off by the customer.

Not Hypnotizing the Customer. Customers don’t want to be informed, they have already done their homework on the Internet. They want to be guided and given a reason to feel good about their purchase so that when they go home at night, they are thrilled about the decision they made earlier in the day with you.

Quitting too Soon. “Call me if you have any questions, here’s my card, let me grab a brochure.” These are all examples of salespeople who quit too soon and never make it across the finish line. Don’t throw in the towel on your next customer so soon. Do not let “feeling pushy” stop you from making one more call or letting your customer walk out the door without a contract in hand.

Being a Good Listener. The ability to interpret what you hear from the customer is vital. Most deal breakers occur because of a disconnect between what the customer is actually saying and what the salesperson thinks they are saying. By honing in on the customer’s needs and desires, you can use that information to initiate a solid purchase decision.

Verizon Discounts During the Month of February

Every quarter Verizon provides our members great deals on products and services. Here are some of the latest promotions available to you:
  • Smartphone offers starting at $0.99 when you activate a two-year voice with data plan:
  • Samsung Galaxy S4 (16GB) for $0.99
  • Motorola Droid Maxx for $0.99
  • HTC One (M8) and LG G3 for $99.99
  • Samsung Galaxy S5 (16GB) and Motorola Droid Turbo (32GB) for $149.99.
  • And several other Smartphones starting at $0.99. You can see the entire list here.
Bill Incentive Credits. $100 when you activate a 4G LTE smartphone or 3G iPhone 4S. (Credit applies to new two-year activation or renewal on $34.99 price plan or higher.)

Internet and Tablet Devices. Pricing from $29.99 to $299.99 (Samsung Galaxy Tab 4 10.1) with new 2-year activation or eligible upgrades on $24.99 or higher plan.

For more details on these and other offers, click here.

These benefits are available to HBA members who have become complimentary members of National Purchasing Partners, a program endorsed by your Home Builders Association.  If you would like to discuss NPP membership, call 800.810.3909 or email customerservice@mynpp.com.

Strategies for Selling Green

According to Michelle Desiderio, most buyers interested in high-performance homes are motivated not so much by energy efficiency, but rather by personal interest in making the world a better place to live.

Desiderio, who serves as vice president of innovation services for Home Innovation Labs in Upper Marlboro, Md., spoke at the 2015 International Builders’ Show in Las Vegas about strategies to sell high-performance homes, including which audiences to target.

“You want to make sure you’re really speaking to things that motivate them,” she said. “If you’re only selling energy efficiency, you’re missing the big picture, and even alienating the young buyers.”

For Millennials especially, a message about saving money is a little offensive. “They’ll choose a high-performance builder simply because it’s the right thing to do, not just to save money,” she said.

Desiderio said that today’s high-performance home buyer is looking for a sustainable lifestyle that is healthier, efficient and better for the world at large. And 61% of builders say customers will pay more for a home that meets these criteria.

There are four groups of buyers that are particularly inclined to purchases high-performance homes:

The Persuadable Middle, a.k.a. The Mainstream Consumer
Desiderio pointed to research which showed that 16% of consumers are super green and “out to save the earth,” while another 18% have completely rejected the idea. This leaves 66% of consumers in the middle, most of whom have “good, green intentions,” she said. “They worry that they’re being excluded from the green movement a little bit. So make it real for them with what motivates them, like lower operating costs and walkable communities,” she said.

Women
Women lean green across all areas of the country, income levels and ethnicities. In many households, women are the primary breadwinner and decision maker for the home. “They are interested in the health and safety of the family, not so much what they’ll save on energy bills. And they’re willing to pay a little bit more for the things that will make their house healthier and better for the family,” Desiderio said.

Millennials
This group of home buyers really cares about the environment and the world. They’re socially responsible, globally-oriented, environmentally conscious savers, who are renting and living in green apartments right now. Ninety-three percent of them expect to own a home and don’t want their parents’ home. But they do want a tech-equipped home that is both good for the environment and their wallets.

Aspirationals
“Granite and green will win over this new group of home buyers,” Desiderio said. They are focused on style, social status and sustainability, and desire construction and design that lends to less consumption in trendy ways.

The best overall strategy in catering to these groups, Desiderio said, is to demonstrate that the home is a better product and better value for the consumer, and that sustainability is about better quality of life.

Jenn Nowalk, director of sales and marketing for Homes by Dickerson, which sells high-performance green certified custom homes, provided some tactics, stressing the importance of educating staff and making sure they attain green designations.

“It provides proof to consumers that the company and its employees are experts in green and that your homes meet certain criteria,” she said.

Nowalk also recommends spending time building up your online presence so that consumers, who are spending an increasingly large amount of time shopping online, can see that you are a leader in high-performance home building.

“Blog or tweet pictures of your finished and unfinished homes. Use Pinterest; especially to attract women. It gives people the ability to go and dream,” she said. Infographics are another fun and fairly simple way to show consumers what interior and structural features to look for in your homes.

All of Dickerson’s homes display signs that showcase the builder’s name, designations and any certifications that are underway for the property, she said. In addition, each home also has small touch points inside and out, driving home important messages.

For example, Dickerson uses prominent vinyl wall decals that peel on and off to highlight certain features and provide key talking points to customers.

Participating in local green-related events also helps them get in front of consumers and demonstrate how they are experts in the field.

For Homes by Dickerson, the effort has paid off tremendously. In 2014, the company closed 96 homes at an average sales price of $510,610, leading to revenues of about $48.5 million.

Engaging Realtors is also a key step in reaching green consumers. Annette Bubak, a green-designated Realtor and regional builder sales manager at SolarCity, said that only 3-5% of high-performance homes are properly identified as such within local Multiple Listing Services.

Because agents really depend on builders to provide signage and information, videos and other marketing materials to sell their homes, she said its critical that builders add comments to their listings highlighting the benefits; upload their homes’ certificates; and provide professional-quality images.





Monday, February 2, 2015

Most Millennial Buyers Want Single-family Home in the Suburbs

After rising for four consecutive years, the average size of new homes declined in 2014. The expectation for 2015 is for this receding trend to continue, as more Millennials enter the housing market and demand smaller, more affordable homes. Strong job growth and new lending rules that will allow for smaller down payments and lower mortgage insurance premiums will help drive demand from these buyers.

So where do these mostly first-time buyers want to live?
  • 75% want to buy a single-family detached home.
  • 66% would prefer to live in the suburbs.
  • 24% would opt for rural areas.
  • Only 10% would choose to live in the central city (a larger share than among Gen X’ers, Baby Boomers, or Seniors, but still a minority share).
What home features top their wish list?
  • Laundry room
  • Exterior lighting
  • Energy-efficient appliances and energy rating for whole home
  • Storage options like linen closets, walk-in pantry, and garage storage
In addition, most Millennials would be seriously influenced to move to a community if it had:
  • Park area
  • Walking trails
  • Playground
  • Outdoor swimming pool
If faced with a choice between a highly energy efficient home with lower utility bills over the life of the home, and one without those features costing 2-3 percent less, the vast majority of Millennials (84%) would opt for the energy-efficient home. Translation: this generation will understand and accept the cost of energy-efficiency options as long as the benefits are clearly spelled out in dollars and cents.

All of these findings were presented during the 2015 International Builders’ Show in Las Vegas. A complete copy of the presentation can be downloaded here .