Steve Seawright - Frederick County Building Industry Association

Vol. 26
Issue 4
Fall 2012
Pictured at left are the champions of the 2012 FCBIA Golf Classic: Jerry Grable, Jim
McCormack, Ross Ostrander, and Steve Plyler, from the Advantage Homes team. In second place was the Vintage Security team with Pierre DeGrandchamp, Greg Loss, Robert
MacDonald, and Mike Murphy. And third place winners were David Greminger, S.J. Honacki,
Randy Krom, and John McConnell from NVR.
Other winners:
Closest to the Pin Contest at Hole # 4: Jim Joyce
Closest to the Pin Contest at Hole # 6: Randy Frey
Longest Drive Contest for Men: Stuart Badra
Longest Drive Contest for Women: Lisa Coblentz
Straightest Drive Contest: Greg McKever
Putting Contest: Tony Worley (who made the putt)
Formore about the tournament turn to page 4.
Upcoming
FCBIA Events
November 13
General Membership
Meeting & Election of
Board of Directors
4:00 - 6:00 pm
Barley & Hops Grill &
Microbrewery
Steve Seawright
Frederick County Building Industry Association President
2013 FCBIA Membership Dues Increase
Dear Fellow FCBIA Member,
By now you should have received a letter communicating the same information as related herein;
but the message is sufficiently important that it
bears repeating.
December 4
Installation of
Officers
11:30 am
Ceresville Mansion
Though there may be circumstances when a professional association is hesitant to communicate
with members about a forthcoming dues increase,
this is not such an occasion.
For details see inserts
Clasina Van Velzen-Stup
Membership Coordinator
clasina@frederickbuilders.org
Among the principle factors giving rise to this
straightforward communication are that FCBIA
carries no surplus, is an exceptional steward of
membership resources, is responsive to the interests of each constituent membership group, has
an unequaled record of advocacy accomplishment
locally and now must prepare to meet unavoidable costs associated with maintaining essential
membership services at both state and local levels.
And, it is by reason of these same considerations
that your Board of Directors, comprised of involved representatives from each diverse membership group, voted overwhelmingly in support of
an across the Board dues increase that will range
from an additional $100-$175, but will average
$109 per member company.
Phone: 301.663.3599
Fax: 301.663.1966
www.frederickbuilders.org
As all who follow Maryland’s regulation of our
industry recognize, it is at the State level where
Denise Jacoby
Executive Officer
dbradyjacoby@
frederickbuilders.org
Donna Kraft
Executive Administrator
donna@frederickbuilders.org
Always reluctant ___ “yes”, but hesitant ___ “no”.
the greatest and increasing number of regulatory
and legislative threats now originate and must be
dealt with. While the “good news” for each of us is
that we do business in Frederick County, the “bad
news” reality affecting our collective futures is that
Frederick County is located in Maryland.
On-going legislative and regulatory challenges related to septic systems, the Watershed
Implementation Plan Off-set Program, pending
requirements for greenhouse gas emissions reductions, and other ill-advised regulations and legislation not turned aside or modified in Annapolis
and in State agencies in Baltimore become unavoidable, mandatory local impositions. When
that happens, typically, unalterable damage has
been done. And, by reason of these considerations,
FCBIA, HBAM and MNCBIA each will adopt
a 2013 dues increase, $65 of
Continued on next page
Jerry Connelly
Builder
Member of the Year
Bruce Dean
Associate
Member of the Year
Continued from page 1
Board of Directors
2012
Steve Seawright
President
Thomas Hyde, Jr.
First Vice President
Doug MacMaster
Second Vice President
Hugh Gordon
Treasurer
Brendan Madden
Secretary
Bob Mochi
Immediate Past President
Jerry Connelly
Fran Denmark
William R. Norton, III
Ross Ostrander
Stuart Terl
Keith Tunell
Dave Wiegand
Jason Wiley
Directors
Bruce Dean
President
Land Use Council
which will become part of an on-going $130 per
member contribution towards State-level legislative and legal advocacy. That advocacy is focused
upon countering the constant tide of poorly considered measures emanating from a Governor and
State regulators intent upon crippling our industry.
Locally FCBIA requires additional resources to
continue a record of exceptional accomplishment
focused upon prompting and supporting a receptive Board of County Commissions (BOCC) as it
modifies and adopts policy and regulatory practices that further the goals of FCBIA. Those goals
have been for heightened economic development
and a more business-friendly environment for
FCBIA Members. While maintaining our effectiveness in advocating, educating and networking does
not require more staff, it does require caring for
present, highly valued staff in terms of providing
equitable compensation and benefits in the same
fashion that each of us must be attentive to these
same considerations for our own employees.
Now added to FCBIA’s long list of local accomplishments are the BOCC’s adoption of Comp
Plan/Zoning Map Amendments, its recent approval of FCBIA and Land Use Council-supported revisions to the County’s subdivision regulations, the
County’s planned increase in the use of Developer
Rights and Responsibility Agreements (DRRA’s)
and the County’s anticipated support for local
amendment of the state-adopted 2012 version of
the International Energy Conservation Code.
When you consider the totality of FCBIA services
to members supported by membership dues, you
will not forget, I trust, that apart from $130 per
member now earmarked for support of state level
housing advocacy, $150 of each Members’ dues
goes to NAHB, making each local BIA member
a member of the national organization. NAHB
is a tireless advocate for addressing the current
credit crisis in a manner that assures adequate
capital allocated for housing and for preserving
the Mortgage Interest Deduction (MID). At the
same time NAHB has been effective in amending
EPA’s Lead Paint Rule and lends invaluable technical support and personnel resources in countering poorly considered regulatory proposals that
arise in connection with Maryland’s Watershed
Implementation Program.
When you take time to reflect on what your membership support of FCBIA can and does make
possible for you at the local, State and national
levels, it should be clear that that your investment of time and resources in FCBIA is a Value
Investment, generating a tangible return that each
of us can only wish were so large in all of our other
investments.
Dues increase? Reluctantly__yes. Hesitantly__ no.
Please call (301-370-6771 - m) or E-mail me
(steve.seawright@clarkus.com) if you desire additional information concerning the information
provided.
Steve Seawright, FCBIA President
Bennett Goldberg
Representative
Professional Remodelors
Organization
Members Mingle at July Crab Feast
Gary Large
Representative
Commercial Roundtable
Todd Walker
President
Sales & Marketing Council
J. Maurice Carlisle
Robert Hilton
Jim MacGillivray
Fred W. Rudy
David C. Smith
Dolores Wilson
FCBIA Life Directors
Debra Borden
Board Attorney
Thomas Hyde, Jr.
Dusty Rood
State Directors
FCBIA Bulletin
The annual Crab Feast drew a big crowd to the Buckeystown Pub. Members and their families, friends, and co-workers enjoyed the
best Maryland crabs and great fried chicken while catching up on what everyone has been doing. The mood was light and there was
a lot of optimism about the state of the local building industry, but maybe that was the beer talking!
Fall 2012
Page 2
Bruce Dean
Land Use Council President
Entering the fall Presidential Election Season, I
am reminded that our local respite from election
challenges is only temporary. While many of us are
heavily involved with, and emotionally and politically invested in, the outcome of national elections, it is a truism which I believe in firmly that
the closer an elected official is to being your neighbor, the more important his or her actions are to
your wellbeing as a citizen and to the successful
outcome of your business ventures. So it is also
true that the Land Use Council is not only working
with currently elected officials and their staffs on
initiatives of crucial importance to our industry,
we are also watching upcoming political seasons
make their way, slowly but surely, into our paths,
and we will be as active as ever over the upcoming
months in assessing the political actors who wish
to be elected to future local office and providing
you with our insights. Just so you know, in 2013 a
new Mayor and Board of Aldermen will be elected
in the City of Frederick, and we will be interviewing as many of the viable candidates as possible
prior to the primaries in September of 2013.
As far as current events go, as I stated in my last
column, the Land Use Council has continued to
retain our momentum from 2011 and sustained it
through the first three-quarters of 2012. Frederick
County Staff and elected officials continue to work
with us in easing local regulatory burdens, the City
of Frederick is also making significant progress,
and the State of Maryland continues to march to
a completely different drummer, endeavoring to
make development the scapegoat for all environmental problems, real and imagined, which may
exist in our State while ignoring how states surrounding us strive to act reasonable, further leaving Maryland alone on an island of greater and
greater taxation and regulatory burdens. I could
spend an entire column or more on the challenges we face on a State level, but will leave that to
Steve Seawright and the Maryland State Builders
Association to discuss.
At Frederick County, we have finally reached
our goal of having the subdivision ordinance realigned with logical development practices. This
has been an enormous challenge over many, many
years and the final result could not have been better for the development industry. The County’s
new Comprehensive
Plan has also finally
The closer an elected official is to being
been adopted, reversing the illogical, inyour neighbor, the more important his
tellectually dishonest
or her actions are to your wellbeing as
and confiscatory plan
a citizen and to the successful outcome
approved by the prior
Board of County
of your business ventures.
Commissioners and
restoring property
rights and zoning to a large number of Frederick
County property owners and also restoring some
sanity to our future growth projections to much
more accurately reflect the fact that Frederick
County is in the high growth state of Maryland,
adjacent to Montgomery County, Maryland and
Loudon County in Virginia, and not set in the hinterlands of Nebraska or Wyoming.
At the City of Frederick we have recently weighed
in on Stormwater regulations and are working on
revisions to the City’s Moderately Priced Dwelling
Unit program to make it much more business
friendly and actually work toward a fair result for
those who may be priced out of the local market in
the future. The City is also undergoing a Citywide
Comprehensive Rezoning and I have attended all
hearings and workshops on this undertaking. An
upcoming workshop on “Form Based Zoning”
will also be watched
carefully.
The Land Use Council
members continue to
work hard, and there
is a lot on our plate.
Thank you to everyone
who contributes their
time, money, intellect
and plain hard work to
helping our industry.
Page 3
Fall 2012
FCBIA Bulletin
2012 FCBIA Golf Classic
On Friday, August 10 FCBIA hosted its annual golf classic at Hollow Creek
Golf Club in Middletown. Despite early morning thunderstorms threatening to cancel the tournament for the first time in its 36 year history, over a
hundred players and volunteers braved the rain to show their support for the
FCBIA. The wet start did not dampen their spirits and the skies soon cleared
to make for a perfect golfing day. So with a little bit of luck and the hard work
of the committee and the many volunteers, as well as the contributions of our
loyal sponsors, the annual tournament was once again a succesful fundraiser
and a great place for members to build strong business relationships. Thank
you to all who participated!
2012 Golf Volunteers:
2012 Golf Committee:
Mike Beans
Katie Bowersox
Fran Denmark
Michael Denmark
Val Duffy
Jennifer Franey
Hugh Gordon
Bill Norton
Brian Duncan
Ken Ebmeier
Mike Goldstein
Brian Wetcher
Thank You 2012 FCBIA Golf Classic Sponsors!
AmeriGas
Barley & Hops
BB&T
Bill Norton @ Morgan Stanley
Bowman Consulting
Brandenburg Electric
Buckeye Development
Buckeystown Pub
Budget Blinds
Carefree Kitchens
Charles P. Johnson & Assoc.
Costco
Dan Ryan Builders
Dutch's Daughter
Elm Street Development
Emmitsburg Glass Company
Environmental Alternatives
Everedy Square
Fireside Hearth & Home
Foulger Pratt
Fox & Associates
Frederick Brick Works
Frederick County Bank
Geo-Technology Associates
Glory Days Grill
Grand Rental Events
Green Brothers Construction
Habitat ReStore
Harris, Smariga & Associates
FCBIA Bulletin
Glenn King
Gary Brooks
Amber Demour
Bill Norton
Bob Mochi
Rick Pastor
Ed Smariga
Dick Johnson
Paula Preston
Jack Purcell
Lee Johnson
Patricia Clements
Timothy L. Cowan
Danielle Swaedner
Jason Wiley
Dan Reaver
Mike Ensor
Bert Anderson
Ken Ebmeier
Brigg Bunker
John Mazelon
Clayton Minnick
Amanda Ebert
Stephen Cutter
Maribeth Harper
Dwain Remsberg
Brandon Green
Dean Jacoby
Chris Smariga
Fall 2012
Hollow Creek
Holly Hills Country Club
J. Maurice Carlisle
Law Offices of Rand D. Weinberg
Manpower
MidAtlantic Farm Credit
Miles & Stockbridge
Monocacy Crossing
NAHB
Natelli Communities
P.B. Dye
Prospect Mortgage
Red Horse
Rentals Unlimited
Rentals Unlimited
Seawright Homes
Severn, O'Connor & Kresslein
Sport & Health
Sport Clips
Talon Construction
Taste of Asia
The Ott House
The Traffic Group
Thomas, Bennett & Hunter
Thompson Gas
Vintage Security
Wetchco Signs
WFRE/WFMD
William H. Gordon & Assoc.
Josh Rickets
J.P. Lunn
Bo Carlisle
Rand Weinberg
Lisa Coblentz
Adam Cramer
Noel Manalo
Kelly Regan
Katie Harman
Paul Coleman
Jenna Schulten
Hugh Gordon
Ken Bromfield
Jim Joyce
Rick Bricker
Steve Seawright
Dave Severn
Shaun Gilbert
Melissa Griffith
Bob Deiuliis
Kevin
Alexis Ott
Joe Caloggero
John Alexander
Doug MacMaster
Jennifer Franey
Bryan Wetcher
Nikki Bamonti
Mark Dyck
Page 4
2012 FCBIA Golf Classic
Page 5
Fall 2012
FCBIA Bulletin
Todd Walker
Sales & Marketing Council President
2012 has been a good year. Although much of the U.S. is still
stuck in the economic doldrums, the greater Washington, DC
region’s real estate and building market is doing well. Metro
Study’s predictions have proven accurate. Although there
are still pockets of sluggishness, the local building industry is
healthy. Or should I say ‘healthier.’ New home sales are up.
Resale home sales have remained steady*. Even individual lot
sales, which have been a lost cause the past three years, are up.
Yes, it’s been a pretty good year.
I visited Sasha Scaun at her model home last Sunday, thinking she and I would have time to chat. Well, we did speak for
a couple minutes, in-between an existing appointment (new
buyer) and an incoming appointment (contract appointment).
I spoke with her assistant, who told me that she has been busy
like that every weekend. Other salespeople have similar reports. Drive by many of the area’s new home communities and
you’ll see three or four houses in various stages of completion.
It’s nice to see.
I’ve just completed numbers for the resale market. As of today
(Oct 1st), there are 935 active listings in the MRIS database.
10 are foreclosures (down 65%), 104 are potential short sales
(down 23%), and 108 are active rental listings. That leaves
just 713 active standard listings. * Sales have remained steady
for the past eighteen months, averaging 211 sales per month.
With only 3.9 months of active inventory, the market is still in
a ‘Seller’s Market’ mode (equilibrium market is 6 months of
inventory). This is most likely one of the reasons for increased
new home sales (lack of resale inventory).
Looking ahead, I see continued improvement. Going out on a
limb, I expect home prices to begin increasing (5% over the next
eight months), so with renewed optimism, we begin to wind
down 2012 and look forward to 2013.
A special note of thanks goes out to Denise, Clasina and Donna
for their continued hard work, for keeping the rest of us in line,
and for making difficult work look easy.
Learning English Ain’t Always Easy
Literacy Council Looks to Builders and Contractors to Help Build English Skills of Employees
Learning a foreign language is never easy – that is, unless you’re
a preschooler. How many of us took German or Portuguese in
high school and, despite receiving passing grades, never learned
it well enough to speak that language outside the classroom
without getting tongue-tied or feeling totally humiliated?
With its 50th year serving the Frederick community on the horizon, LCFC has set a goal to reach even more potential students
by targeting businesses and industries that typically employ a
large percentage of the area’s foreign born population, in particular construction companies and restaurants.
Of course, if you don’t end up living in a non-English speaking
foreign county, you don’t usually have a compelling reason to be
proficient in another language apart from our mother tongue.
It’s quite a different situation, however, for those who immigrate
to the U.S. with few or no skills in the English language. That’s
where the Literacy Council of Frederick County (LCFC) enters
into the picture.
When employers encourage employees to improve their English
language skills, the benefits flow in both directions. Clear verbal
and written communications between a supervisor and worker
can build confidence and trust between both parties and add
to the company’s overall productivity. It can also lead to better
customer relations even if the worker has minimal dealings with
customers. Increased safety performance on the job is another
important reciprocal outcome. From the employee’s vantage
point, better language skills can contribute to higher job security and the opportunity to advance within the company. And
for those who aim even higher, proficiency in English would
definitely boost their chance of attaining U.S. citizenship.
Founded in 1963, the Literacy Council traces its roots to Church
Women United who discovered that many of the area’s migratory
farm workers they were helping could not read. As a volunteer,
nonprofit, nonsectarian organization, LCFC serves two adult
populations: one that speaks English as their native language,
basic students; and the other that speaks English as a second
language, ESL students. It currently reaches about 120 students
annually about 80% of which participate in the ESL program.
Locally, LCFC is the only group that provides one-to-one tutoring and at NO charge to the student. Recently, LCFC has initiated small classes as a way to serve more people and reduce the
waiting time before new students are assigned tutors. Several
of these classes focus on conversation skills, an important but
often overlooked aspect of learning a language.
Page 6
The Council would be happy to meet with you individually or
together with your workers to explain more about the classes we
offer. We’re most interested in accommodating your needs and
can schedule small group sessions at your place of business, if
you think that would work best, or arrange to sign-up workers
for group or individual tutoring sessions that are regularly held
in the LCFC office at 110 East Patrick Street. For more information, call Diana Halleman (301) 600-2066 or visit LCFC online
www.frederickliteracy.org.
Fall 2012
FCBIA Bulletin
Business
The Changing Landscape of Home Building Finance
Courtesy of NAHB
A recent webinar, Financing for Home Builders, sponsored by
NAHB’s Housing Finance Committee, offered valuable information on the current and prospective environment for home
builders seeking acquisition, development and construction
(AD&C) financing.
Ed Brady, president of Brady Homes, offered an overview of the
difficulties NAHB members experience as they try to finance
new single-family and multifamily projects and complete projects already in progress. One of the most common concerns
is the continuing lack of willingness by commercial banks and
savings and loan associations to make loans to home builders.
This trend is supported by data gathered in NAHB’s quarterly Survey of Acquisition, Development and Construction
Financing. In fact, the total stock of outstanding AD&C loans
for 1-4 unit properties totaled $43.7 billion in the first quarter of
2012. This is 79% lower than the peak level of AD&C lending of
$203.8 billion reached during the first quarter of 2008.
A substantial part of the decline since 2008 represents the writedowns of bad or non-performing loans. Regulators list high
levels of AD&C lending as a top reason for bank failures and
have put pressure on banks to reduce the concentration of commercial real estate and AD&C loans in their portfolios.
Not only are lenders reluctant to finance new projects, but
builders report they face additional hurdles from lenders
wanting to tighten or renegotiate terms on outstanding, often
performing, loans. Lenders are requiring home builders to
put more equity into a project based on a new appraisal or demanding additional assets as collateral. Still, commercial banks
remain, by far, the largest source of AD&C financing for multifamily and single-family housing production.
In his remarks, Mike Warren, founder and president of AMJ
Inc., confirmed the tightening activities of commercial banks,
but offered the perspective of a community bank that faces pressure from examiners to reduce CRE and particularly AD&C
portfolios. Warren told builders that community banks do not
want to foreclose on loans and own improved real estate, developed or undeveloped lots. Banks want to keep the builders engaged in their projects because the builders are the experts and
they view foreclosures or “deeds-in-lieu” as a last resort.
He believes home builders must be more educated than ever
before about their market, vendors and competition. While
minimizing costs to maximize profits is not a new concept, it
is increasingly critical. Budget development and cost-cutting
must both be approached aggressively. Engelland offered the
following advice for builders looking to enhance operational
efficiency:
1.Build homes more quickly to reduce financing costs and counteracting lower per unit margins. The goal should be 75-115 day
build times.
2.Minimize labor cost and ensure consistent labor capacity to
drive profit. No down time for crews.
3.Maintain the lowest sustainable price levels with both subcontractors and suppliers. $70 per foot to construct a home, not including land, is nearly a necessity if a builder is to compete. ($70
per foot is the new $100 per foot. The benchmark has dropped
30% from pre-2007 to 2012.)
With regard to financing, Engelland pointed to the following
developments:
1.Private money loans tend to carry rates and fees that are double what regional banks offer – although these financing opportunities are hard to find and tend to be available to very select
builders and have significant restrictions.
2.All sources of construction financing are offering less money
per home, thereby reducing the risk of loss to an investor.
3.Typical financing has moved from 80% to 60% loan-to-value.
4.Profit margins have moved from 12-20% (pre-2007) to 4-12%
in 2012.
5.Land value and land cost as a percent of overall costs have
gone down in absolute and relative terms.
If you would like to hear the full audio of the webinar, please visit
http://www.nahb.org/showpage_details.aspx?showPageID=12459
Of particular interest to today’s home builder was the presentation by Eric Engelland, president of Builder Division,
Rohrbaugh Engelland Group, which focused on new trends in
builder financing and stressed how important it is for home
builders to adjust to changing conditions if they want to survive
and succeed in the future.
Page 7
Fall 2012
FCBIA Bulletin
Area Building Market
Area
Building
Special
reviews fromMarket
Strategic Marketing
GroupSpecial
newsletters
reviews from
The following is from my 2012 newsletters. Call me
at 301-831-6536 or at lshanton@edurostream.com
for details, a military market review presentation, or a Fort
Detrick tour. Construction
permits
are S
summarized
By John
Lynn
hanton on page
2 and 3 includes builder and owner built homes. I hope the
The
column comes
futurefollowing
residential construction
improvesfrom
soon. my 2012 newsletters. Call me at 301-831-6536 or at lshanton@
edurostream.com
for details, a military
market
Frederick
Residential
review presentation, or a Fort Detrick tour.
Strategic Marketing
Group Newsletters
Construction Market
Builders in Frederick County (August 2012)
Builders submitting residential permits — Ag/Condo — Morton Buildings;
Builders submitting residential permits (August 2012)
Ag/Apartment — B&R Design Group; Single Family Detached — Advantage
Ag/Condo:
Morton Buildings; Ag/Apartment: B&R Design
Homes, C.E. Rensberger & Family LLC, Cordell Custom Homes, Dan Ryan Builders,
Group;
Single
Family
Detached:
Homes,
C.E.Barber LLC,
Doug Remsburg, Drees
Homes,
Greg Paul,Advantage
Insignia Homes
LLC, Jeffrey
Rensberger
&
Family
LLC,
Cordell
Custom
Homes,
Dan
Ryan
NVR Inc, and Tristate Affordable Homes; SFD/Mobile Home — Lupcho
Construction;
Builders,
Doug —Remsburg,
Drees Homes, Greg Paul, Insignia
and Townhomes
Advantage Homes.
Homes
LLC,
Jeffrey
Barber
LLC, NVR
Inc, and
Tristate2012)
AffordSubdivisions in Frederick
County
(August
able Permit
Homes;
SFD/Mobile
Home:
Lupcho
Construction;
applications — Aspen, Brunswick Crossing, Boyer Wood, Canal and
Run, EagleTownhomes:
Advantage
Homes.Poplar Ridge, Preston, Phillip Culler Estates,
head @ Woodridge,
Linton @ Ballenger,
Signature Club @ Greenview, Strayer Ridge, Westwinds, Woodridge @ Eaglehead, and
Subdivisions in Frederick County (August 2012)
three other lots in the county.
Permit applications: Aspen, Brunswick Crossing, Boyer Wood,
Growth
in Adjoining
Counties
Canal
Run, Eaglehead
@ Woodridge,
Linton(January@ Ballenger, Poplar
August
2012)
Ridge, Preston, Phillip Culler Estates, Signature Club @ Greenfollowing
data was
collected fromWoodridge
permit departments
in Berkeley, Frederick,
view,The
Strayer
Ridge,
Westwinds,
@ Eaglehead,
and
Howard,
Loudoun,
and
Washington
counties
on
the
next
two
pages.
The permit applicathree other lots.
tions in our database are from January to August 2012, except Loudoun County:
Berkeley County (without municipalities) ..................................327
Frederick (City & County) ......................................................... 719
Howard Frederick
County .........................................................................660
County Summary Sales Data
Loudoun County (Jan-Jul 2012) ..............................................2,396
July ...................................92
2012
July 2011
% Change
Washington County (without Hagerstown)
Sold Dollar
Volume(Adams and$57,429,116
$57,685,121
-0.44%
The two Pennsylvania
counties
Franklin), Carroll,
and Montgomery
counties are not available.
Unfortunately, we do$265,876
not have any$261,019
data from these
four
Avg Sold Price
1.86%
counties. Other counties
have
reported to Strategic
Marketing
Group even6.97%
though
Median
Soldnot
Price
$251,375
$235,000
we have made an effort
obtain this information.216
Units to
Sold
221
-2.26%
Avg Days on Market
68
111
$271,120
$268,927
-38.74%
Military Business for FCBIA 0.82%
Avg List Price for Solds
Avg SPbusiness
to OLP Ratio
92.1% throughout
3.53%the
There is significant
available in the95.4%
military facilities
of Avg SP to Avg
95.3%that can be
92.2%
four states. Ask forRatio
my presentation
or OLP
the summary
sent to you3.44%
via the
Attached
$197,856
$170,977
15.72%
internet...it has many
detailsAvg
to Sold
helpPrice
you get started.
Detached
Sold with
Price the Contracting
$299,182 Officers
$312,106
FCBIA members
need toAvgmeet
at the Fort.-4.14%
There
Attached
Units Sold business there...as
71
-11.25%
is a lot of commercial
and remodeling
we wait80for the residential
Detached
Sold
145remodeling141
construction to return.
ThereUnits
is significant
residential
work at the2.84%
various
military bases...you need to talk with the bases in this area.
Growth in Adjoining Counties (January- August 2012)
The following data was collected from permit departments in
Berkeley, Frederick, Howard, Loudoun, and Washington counties on the next two pages. The permit applications in our database are from January to August 2012, except Loudoun County:
Berkeley County (without municipalities).................................327
Frederick (City & County).......................................................... 719
Howard County..............................................................................660
Loudoun County (Jan-Jul 2012)...............................................2,396
Washington County (without Hagerstown).................................92
Two Pennsylvania counties (Adams and Franklin), Carroll, and
Montgomery counties did not report to Strategic Marketing
Group.
Frederick City/County Residential Permits (January-August 2012)
John
FCBIA Bulletin
Lynn Shanton • Strategic
Group • 301-831-6536
FallMarketing
2012
Page 8
Sales & Marketing
Make The Sale by Knowing Your Competition
In most cases, when a prospect walks in to your sales office it is
not the only stop they will make during the day. They have probably scheduled their day so that they can visit several new home
communities in order to make a final purchasing decision.
The good news is that if they enter your sales office, chances are
they have been to your website and have seen something that
piqued their interest enough to get them to physically go there.
It could be a specific floor plan, a price point or even your community’s amenity center….whatever it is, your job is to find out
what brought them into your community.
So, let’s say you have determined they went to the website and
you have found out that they love the location of your community, the amenities that are offered, and the Wellington floor
plan. You are thinking slam dunk, right? Wrong! Just as you go
in for the ‘close’ they tell you that while they do indeed love your
community, they have plans to visit several more before making
a decision. Major bummer! So, you say your goodbyes, promise to follow-up, and then watch them drive off into the sunset
knowing that you will probably never see them again.
Hm...something is not quite right with this picture. What could
you have done to change the scenario? Here are a couple of easy
tips to help you conquer the competition and get the sale!
1. Know everything about your competition. This includes pricing, floor plans, incentives, amenities, schools, and anything else
that would be considered when making a purchase decision.
2. Create a notebook with all your competitor’s marketing collaterals. This way you can show them why your Wellington floor
plan is a better fit for them than the competition’s Buttonwood.
3. Ask your prospects what other communities they are considering and why. This will allow you to determine what their ‘hot selling buttons’ are and to position yourself against the competition.
4. Set up a firm follow-up appointment with your prospects.
Encourage them to come back to see you after they have finished
looking at the other communities because you are so positive that
what you offer meets their specific needs.
5. Never, ever speak negatively about your competition. Instead
position your builder and community as the leader in every aspect. But, in order to do this, you MUST find out what the prospect’s decision making factors are.
Melinda Brody and Company helps builders evaluate, train, and motivate sales
people. To contact, call 407-294-7614 or e-mail sell@melindabrody.com
Does your Workers’ Comp
Insurance measure up?
Frederick County Building Industry Association Members have access to:
Better rates, year after year
Better ways to pay premiums, with the ParallelPay® pay-as-you-go plan through your in-house
payroll accounting or payroll service
Better risk management, with local consultants who understand your unique business needs
Better claim management, to control claim costs and return injured employees to work faster
Better results, helping your bottom line and productivity
For more information or a quote, contact an FCBIA member agent:
Bob Hammond
BB&T Frederick Underwriters
Phone: 301-644-6544
Email: rhammond@bbandt.com
Page 9
Fall 2012
Brooks Yetter
Insurance Brokers of Maryland
Phone: 301-668-2233
Email: brooks.yetter@ibmofmd.com
FCBIA Bulletin
New Members
FCBIA
SPIKE CLUB
ROSTER
Robert Hilton
Larry Schaffert
Bev Shelton
James Rudy
Hugh Gordon
Mark Lancaster
Ken Abrecht
Marvin Ausherman
David C. Smith
Gary Sanbower
Stuart Terl
Bo Carlisle
Steve Oder
Billy Shreve
Howard Payne
John Clarke
Scott Gove
Doug Maddox
Lynn Shanton
Mark Pelletier
Bob Dalrymple
Dick Johnson
David Lingg
Jim MacGillivray
Jack Marshall
Frank Dertzbaugh
Gail Sexton
Ed Smariga
Barry Weller
Steve Seawright
Doug MacMaster
Andy Mackintosh
Mark Friis
Joe Pushak
Energy Services Group
Thiel Butner
705 Fairview Ave
Frederick, MD 21701
Phone 703-517-4345
thiel@energysvc.com
Environmental/Energy Services
158.00
131.00
126.50
121.50
108.50
96.25
92.00
Member Spotlight
83.00
74.00
72.00
72.00
Advantage Homes recently won three Great
American Living Awards for their Westbridge
model at Crown Pointe, the Van Buren model at
The Mill at Clearfield, and the Innsbruck model
at Valley View of Damascus. The Great American
Living Awards (GALA) is a regional competition that recognizes excellence in design, interior
merchandising, land planning, community amenities, sales, sales management, marketing and
media, and is judged solely by new home industry
professionals,
63.00
61.00
58.50
51.00
50.75
44.50
44.00
42.25
41.75
41.00
40.50
38.50
37.00
33.00
33.00
30.50
28.50
18.00
16.75
15.00
13.75
12.00
10.00
These are the members
who make the FCBIA
stronger by recruiting
new members.
Thank you!
Would you like to
become a Spike Club
member? For each new
member you sign up,
you earn one point.
Contact the FCBIA office
for details.
FCBIA Bulletin
March 16 & 17, 2013
Registration now open!
Contact Donna Kraft 301-663-3599 x101 or donna@frederickbuilders.org
Fall 2012
Page 10
Member Savings
Discounts Through the Home Builders Purchasing
Program (www.mynpp.com.)
Airgas • 30-35% discounts
Alamo Industrial • Lawn and landscaping equipment
CradlePoint • Up to 20% off 4G/3G network router
solutions
EarthCam Inc • 25% off webcam technology to monitor, document, and promote projects
Econz • 50% off setup fees for timecard solutions
Level 3 • Ready Access audio and web conferencing,
operator assist conferencing, Webex meeting center
and Microsoft LiveMeeting
Staples Advantage • Discounted prices on over
30,000 supplies
TalentWise • Up to 67% discount on employment
screening services
Tiger Corporation • Residential & Commercial mowers
Verizon Wireless • Discount of up to 22% on calling
plans for construction businesses
YRC • Significant discounts on less-than-truckload
shipping needs
Page 11
Member-to-Member Discounts:
BB&T
Save money with bonus interest rates
on savings, and discounts on loans with
BB&T@Work.
Contact Jessica Jarvis at 301-644-6334 or
jjarvis@bbandt.com
Remodelers Advantage
FREE set of 5 Remodelers Advantage
books when joining Advantage Associates or Round Tables. (Mention FCBIA).
Contact Rose Grabowski at 301-490-5620
or rose@remodelersadvantage.com
Bonded Builders Warranty Group
Receive a 10% discount on home warranties, as well as a reduced application fee.
Contact Joe Pushak at 703-582-7727 or
jpushak@bondedbuilders.com
Strategic Marketing Group
10% discount on a1-year subscription
to P+D (planning, permits, development articles for Frederick City/County)
or QSDN (monthly data on prices and
development in the four-state area.)
Contact Lynn Shanton at 301-831-6536
or lshanton@edurostream.com.
Kohl Building Products
$50 coupon for first order of $1500 or
more on a new account. $50 restaurant certificate for existing customers
who refer a new client who purchases
$1500 or more.
Contact Chad Hartzell at 301-695-5335
or Chartzell@kohlbp.com
Vintage Security
$100 off a Vintage Security system, or
switch for free to Vintage Security monitoring, with reduced monitoring fee of
$240 for a year.
Contact Jennifer Franey at 410-977-5971
or jfraney@vintagesecurity.com
Visit the Member Discounts page on www.frederickbuilders.org for updates on these offers
and more ways to save. If you would like to list your member-to-member discount here, please
contact Clasina at 301-663-3599 x102 or clasina@frederickbuilders.org
Fall 2012
FCBIA Bulletin
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Helping to Build A Strong Foundation
In Support of The Building Industry
Gold Members
Natelli Communities
Rodgers Consulting
The Frederick News-Post
Platinum Members
Silver Members
Dan Ryan Builders
Drees Homes
Elm Street Development
Harris, Smariga & Associates
Lancaster Craftsmen Builders
Linowes & Blocher
Miles & Stockbridge
Specialized Engineering
The Wormald Companies
Bronze Members
ADDRESS SERVICE REQUESTED
Ausherman Properties
NV Homes/Ryan Homes
Pleasants Development
Advantage Homes
All Around Plumbing
Bowman Consulting
Buckeye Development
Builders First Source - Atlantic Group
Charles P. Johnson & Associates
Dewberry
First United Bank & Trust
Foulger-Pratt
Macris, Hendricks & Glascock
Matan
Miller & Smith
ProBuild Hagerstown
Seawright Homes
Thompson Gas