The Best Time to Build?

Whether it's saving two cents on a gallon of gas or building your dream home, everybody wants a bargain.

Everyone loves a deal. No one likes paying retail.

If you are considering building a new home, now or over the next year or two, you face a number of difficult questions...

• Can I do better if I wait to build my home?
• Will interest rates go lower?
• Have home values bottomed or will there be further declines?

On the surface, it may seem as though the housing market has yet to begin climbing out the hole it fell into nearly three years ago. But we see a number of key indicators that point to some compelling reasons why now may be the time to get the best value for your home building investment.

Home Prices: Like the stock market, it is impossible to pick the bottom of the current housing market. No one can say with certainty that we've hit the absolute bottom. Like any market, supply and demand impact price. The inventory of older homes continues to dwindle. According to the Census Bureau, the US will add over a million new households each year. The current supply of new homes coming on line is nowhere near that number. As the demand for new homes rise, so will prices.

Interest Rates: We've already seen mortgage and construction loan interest rates inch up in 2011. They are likely to maintain that trend as the overall economy and demand for new homes continues to improve.

If you determine that interest rates are likely to go up, acting now can save money. Every quarter-point change in interest rates is equivalent to approximately $6,000 for each $100,000 borrowed over the course of a 30-year fixed-rate mortgage.

Materials and Labor Costs: We are in the middle of a commodity boom. The global demand for raw materials from countries like China and other emerging markets continue to put upward pressure on commodity prices. As the price of raw materials goes up, so do housing costs.

In addition, those manufacturers, suppliers, and trade contractors who are still standing after the housing bust did so by streamlining their operations and honing their costs of doing business. They are running very lean. In all likelihood, these companies will raise prices if there is an increase in demand for new housing.

Streamlined Operations: In order for our company to prosper during this difficult business cycle, we've had to sharpen our operations and systems, cut the fat out of our ledgers and operate on thin margins. As a result we are poised to meet our current demand with better processes, improved technology and lower overhead. Those efficiencies translate into lower costs for homebuyers willing to invest in a new-home project today.

If you can look past the headlines and scare tactics, you may realize that in these times, the best time to build a new home may be about to slip away.

Defining Value

In the current economy, it has become fashionable to define "value" as simply the lowest price among new homes. But doing so discounts the value of providing a high level of construction quality, as well as service, before, during, and after your new home is built. This may not be in your family's best interest.

It's been said many times... a new home is likely to be the largest single financial investment anyone will ever make. Why, then, would you trust that investment -- both financially and in your enjoyment of it -- to the lowest price and a limited definition of a home's value?

As a professional builder, we operate with a different and broader definition of value. We believe value includes a positive building experience for the owner and a sense of confidence and pride about a home's quality. Value should also consist of a high level of personal service and a commitment to maintaining a relationship built on trust long after the move in date.

Some builders play the low-price game. They narrowly define value as a stripped-down house, built on the cheap, to achieve a cut-rate price. The goal: make a sale and move on. They typically don't have the staff or systems in place to respond to issues once title is transferred.

Here's how we define and deliver a higher level of value:

Communication: As professional builders, we listen and respond to our clients' ambitions and dreams for their new home. We help them define and discover their wants and needs, while working within their budget. We seek to educate them about the complexities of the building process, set realistic expectations and keep them informed about what happens -- and why -- as their new home takes shape. We seek to be prompt and respectful when we meet to discuss a project. We follow through on promises made and keep our clients informed about a job's progress.

An Efficient Job Site: Our crews and job site managers follow an agreed-upon schedule and detailed list of specifications that we develop with each client. Materials for a new home are ordered and delivered as needed and on time. We manage and coordinate our trade partners and suppliers toward the common goal of meeting our company's standards and our clients' expectations.

Follow-Through: When a new home is finished and we turn over the keys to our clients', we don't disappear. We know that it is critical to our clients' ultimate satisfaction that we continue effective communication while providing thorough and prompt service. When issues crop up -- and they always do -- we have policies and procedures in place to respond in a timely fashion. We work the problem; we don't pass the buck. We belong to this community. This is where we've chosen to raise our family and we intend to be here for years to come.

We believe our definition of value instills confidence and helps ensure satisfaction. We respect that our clients' entrust us to deliver a product that only exists on paper and is created before their eyes. It's a responsibility we take seriously and it's the cornerstone of what we call value.

What is a "homeowner's manual"?

A homeowner's manual is a printed document that helps orient a client to his or her new home. It outlines various policies and procedures for after-the-sale questions and requests. It includes warranty paperwork and user and maintenance manuals for appliances, heating and cooling equipment, and other products and systems.

The Advantage of a "Single-Source" Builder

As a professional builder, we understand the importance of being in tune with the expectations of our homebuyers. We engage in continuing education to stay up-to-date with current trends in residential design and construction. We seek to anticipate what our homebuyers are looking for in a new house. We offer choices that fit each client's budget and lifestyle. At the same time, we commit to high quality standards, remain on schedule, within budget, and service our work and the components we use to build each new home.

To achieve these goals, we must be very particular about the materials and products we recommend to our homebuyers.

Occasionally, a homebuyer may suggest something that’s not within our package of standard, upgraded or optional products. Although we constantly look for new and better ideas, some of the suggested products and materials may not meet the expectations we and our homebuyers have for lasting performance and cost efficiency.

To better understand the value of our role in offering a market-savvy selection of finishes, products, and materials for use in our new homes, consider the following questions and answers:

Q: My builder insists that I choose certain products and finishes by a prescribed date after signing the contract. Why is it so critical to meet those deadlines?

A: Making product selections early in the construction process, often before your home is started, allows us to insure that the products will get to the job site on time and within budget. Coordinating vendors and trade contractors involves a certain amount of “lead time”. This is the time it takes to receive a product from a supplier and schedule an installer. With timely selections from our clients we are able to keep a project on schedule and avoid paying a premium for rush deliveries.

Q: A contractor in my area says he’ll roof my house for a lot less than what my builder quoted, but my builder advised against using him. Why?

A: As with most things in life, a lower price doesn’t necessarily mean a lower overall cost. We seek out the best trade partners (like roofers) and negotiate the price of their work based on a variety of considerations. These include their availability, skills, experience, and ability to meet our deadline and quality standards. A low-priced roofer may not be sensitive to our schedule, leave the job unfinished or fail to meet our quality standards. This delays construction, often resulting in higher overall costs and extra work. Simply put, if the roofer is unknown to you and us, that’s a risk we’re uncomfortable taking on your behalf.

Q: I found some great outdoor light fixtures that would be perfect for my house. Can I use them instead of the ones being offered?

A: Some builders provide their clients with allowances to purchase certain products (usually finishes, like light fixtures) on their own. Even in those cases, however, we’re going to point our clients to the showroom of a reliable supplier; one with whom we work with regularly, can stay within budget and steer an owner in the right direction. An off-the-shelf or mail-order item, even a brand name, carries some risk for both builder and homebuyer. The builder must guarantee its installation and durability without truly knowing how it will perform in your home. It may also be more difficult to install than the line of products we offer, raising costs.

Q: Why does my builder charge more for the exact same faucet I found online for less?

A: A builder’s cost is more than just the price of an item. It may include the cost to ship and install it, to service it, and a nominal markup to cover overhead costs, insurance, storage, and profit. For all the products and systems in a home, we assume certain risks and costs on your behalf.

In order for us to give reliable assurances and properly service the products and features of your new home, we must be allowed to control and coordinate every aspect of the construction process. While we offer plenty of choices, those choices are determined based on extensive market analysis and years of experience in offering the most valuable commodity of all: your peace of mind.

New Albany Here We Come!

3 Pillar Homes is happy to announce that we are branching into New Albany! The Tidewater Community is a new custom home community in New Albany that features great views, green space, trees, ponds and a creek that winds its way throughout the community. Tidewater is located off of Central College Rd. near Route 62.

Our journey in Tidewater/New Albany begins in the Spring of 2011 when we will break ground on the home belonging to Pam and Joe VanPatten. Their quality custom built 3 Pillar Home will feature upgrades like granite countertops, oversized woodwork, 3 Pillar signature custom arches, wrought iron railings, and hardwood floors just to name a few!

3 Pillar Home would also like to announce the newest members of the 3 Pillar Homes family, Lori and Tim Mininger! Lori and Tim will be building a custom traditional two-story home which includes a finished lower level with a rec room, full bath and an extra bedroom!

3 Pillar Homes is excited to begin building in New Albany and want to thank the VanPatten's and Mininger's again for placing their trust in our company!

Franklin University

3 Pillar Homes president, Zenios Michael Zenios, will be speaking on Monday, September 27th at Franklin University Main Campus!

Check it Out!

Movin on Up!

We are happy to report that 3 Pillar Homes is ranked #4 among the top Custom Home Builders in Central Ohio for 2009 by Business First! The market is definitely moving in the right direction and activity has picked up significantly! The lot inventory is dwindling down and the rates are historically low. If you are thinking of buying and taking advantage of any opportunities left, I would strongly encourage you to act quickly.

As always, thank you for your continuing support!

Cheers!

Zenios