As Published in The Seattle Times/ New Homes Saturday

by Al Doyle

Several years ago I was shopping for a new home and happened onto an open house that caught me eye.  There I met an agent with whom I would have a relationship for at least two decades so far.  I have bought from her. Sold with her. And referred her to numerous friends.  I learned there is real value brought to the table by a highly motivated, well-schooled real estate agent.  Today, I am in contact with dozens of top quality agents who are dedicated to one homebuilder or one community.  This group of New Home Professionals has earned my highest respect based on their knowledge of product and process as well as their unwavering commitment to making sure that the home buyer is well represented in the transcation.  Today a New Home Professional, when working for any of the major new home builders is a consummate professional.  These agents are given hours and hours of training, required to know their homes inside and out.  They know financing options. They understand what it takes to help a home buyer get exactly what they want. The attribute that impresses me the most is their commitment to their buyer’s needs.   If you’re in the market for a new home (and today would be a good day to start looking) I suggested you make friends with the agents, New Home Professionals, you meet along the way.  Get to know them.  Understand that they are pros who are paid to help you find what you need. Be as forthcoming with them as you are comfortable with.  Let them know your price ranges and budgets.  Share about a home you might have to sell. Ask them to assist you on finding out how much home you can comfortably finance.  When you give the New Home Professional the information they need, stand back and expect exceptional results.  Be sure you describe your tastes, your lifestyle, special needs and commuting habits. This way the New Home Professional can match you up with a home that is just right for you. Where the extra value really kicks in is during the process of closing the home sale. Your agent can walk you through the process, do the needed follow-up and make sure all the varied parties from builder to lender to appraiser to closing agent stay on track.  That alone provides huge peace of mind you need to sleep like a baby.

By the way, if you happen to be a New Home Professional reading this message, I want to remind you of the Tribute Awards of The New Home Council.  These annual rewards are designed to recognize those agents who go above and beyond in taking care of their new home customers.  If you, as an agent or manager, would like to nominate one of your peers, visit www.thenewhomecouncil.com for details. It’s quite simple and can really encourage and reward the professionalism of the entire industry.

New, for those who are thinking this might be the right time to buy a new home, my advice is start with the Saturday paper, and get out there today and start meeting some New Home professionals it’s a great way to make a new friend and end up in a new home.

As Published in The Seattle Times/ New Homes Saturday

by Al Doyle

I bought my first home at age 18.  I needed to get the loan co-signed, most of my friends laughed at me, but this was without a doubt one of the best moves of my life.  Today, some 40+ years later, I’m renting for the first time in my life, and thinking a lot about when is the best time to buy a new home.  Every morning there is a new blog, a news story or an office conversation that speculates about the future of the housing industry.  Each expert attempts to top the next with stories varying in nature from The Apocalypse to Pollyanna.  Most of these pundits are focusing on the wrong point — the investment aspect of a new home.  Not until the early 2000s did investment become a major driver in home ownership.  It was a given that over time, owning a home would benefit a family nest egg, but new homes were not get-rich-quick schemes.  Today is no different.

Here are the generation-proven reasons for buying a new home.  A new home is a place to settle in and put down roots.  It’s a chance to make a commitment to a neighborhood and a community and build friends and contacts.  A new home gives a person or a family a sense of pride and wellbeing.  A new home, particularly today, is built to energy efficiency and sustainable standards that can save the owner tens of thousands of dollars in operating and maintenance costs over its lifetime.  A new home is something, unlike a rental, that can be personalized and decorated to reflect your tastes, your values and your entertaining style.  A new home, and making regular payments, not only build equity, but also can anchor a personal credit score, enabling other investments.  With a new home, your monthly cost can be fixed for the next thirty years (then go away when it’s paid off).  Often homebuyers learn that a new home can be paid for in full in less than 15 years with a little extra payment each month.   If you are renting a home or an apartment now, what direction do you think your rent payment is headed?  Historically rents rise, and with an increasing demand on the housing stock in the Northwest and limited new apartments under construction, a shortage of rental units could easily drive rents up faster than the cost of living.

For me, personally, the best reason to buy a new home, instead of renting or shopping for a resale home, is design.  New homes offer floor plans and features that are more exciting that ever.  Homebuilders, particularly in the Puget Sound market, are becoming quite innovative in their offerings.  Now more than ever, the selection is outstanding.  Depending on your stage of life you should be able to find the perfect match in the perfect neighborhood, from high rise condominiums in a downtown setting to cottages tucked along quaint tree-lined streets, to the family home with a big back yard and lots of neighbor kids to play with.

So, what is the best time to buy a new home? How about now?  I always start with the Saturday paper.

As Published in The Seattle Times/ New Homes Saturday

by Al Doyle

“Get Rich Quick.”  It’s a topic that sells books, videos, lectures and seminars.  I guess the peope to teach us how to get rich quick are actually the ones who do get rich off us.  Recently a favorite cocktail party conversation has centered around making a killing by buying a foreclosed or short-sale home.  In theory it sounds tempting, but in reality, the prospects of profiting from the misery of others is something best left o the IRS.  In the Puget Sound market and around the country the inventory of foreclosure and short-sale homes is large and has influenced the entire housing market, new and used, by lowering prices to right around the 2005 levels. Let’s take a look at what it means to take a swim in this pool of distressed housing.  First of all some terms.  A foreclosed property is one that a lender has taken back through a legal process and now holds title to and need to sell to recover their losses.  A short-sale is an offer made to a seller for an amount less (or short) that what is owed to the lender, and therefore the lender has to approve the sale.  It is generally thought that because of the distressed position of the lender, foreclosed or short-sale homes should be great deals.  In reality this is far from the truth.

The truth is shopping for a foreclosure or a short-sale property is not pretty!  There are a few things you might want to consider before you start your search.

§       Do you have a lot of time to search for your home? To find a true bargain takes weeks and weeks of effort.

§       Are you EXTREMELY patient?  Once you find a home you are interested in, it can take weeks or months for the financial institution to respond to your offer.

§       Can you afford the time and possible “lost opportunity” of placing offers on multiple foreclosed properties, hoping you get one?

§       Do you like risks? Foreclosed and short-sale properties often have major hidden defects.

§       Do you have lots of cash to repair a foreclosed home?  Will you have to buy appliances and window coverings?  Will you have to replace stained carpets or refinish floors? This all adds up.

§       Are you willing to take on legal hassles if there are other liens on your new property that may not be easily known?  More cash out of your pocket!

§       Is this strictly and investment for short-term gain, or do you want a place where you and your family can live and enjoy?

My experience indicates a brand new home is a far better option, particularly now with prices at a great level and record low interest rates increasing buying powe.  Here are some of the reasons I suggest home shoppers consider new.

§       New homes are a great value

§       You know what all the costs are before you sign

§       You know who the seller is

§       There is no hidden damage or destruction

§       You won’t face repairs, replacements or cleanup before move-in

§       You can choose your finishes, options and upgrades, and finance it all with one loan

§       New homes are usually in new and up-coming neighborhoods

§       New Homes are energy efficient saving you operating costs for years to come

§       Most new homes have great builder warranties to protect your purchase

§       You get a certain closing date and don’t have to wait around (sometimes months) for lender approval.

The “Get Rich Quick” motive has never been a good reason to buy a home.  It’s not about a fast buck, it’s about a having the home of your dreams, a place to live you are proud of, in a location that’s right for you.  Today would be a very good day to start looking for a new home

As Published in The Seattle Times/ New Homes Saturday

by Al Doyle

I woke up one morning realizing I was an old home junkie. You know the type. We feel the irresistible pull as we  drive through the neighborhoods around Puget Sound.  Old homes seem to jump out and call our name, offering up the plea: “fix me, save me”! It’s all very seductive and I fell for them all. The bungalows, cottages, Craftsman, Victorian. Tudor and even one very appealing mid-Century modern (or Brick Ick a my friends named it). Over the years I’ve bought and sold a few, so I know what it feels like, both the good and the bad.  Old homes had me hooked.  I loved the idea of preserving history.  I adored the ornate trim and the solid woods. I bought the books, the magazines and wore my leather tool belt with great flair. Then recently I realized that old homes had become a very expensive habit and one of the biggest costs was to my lifestyle and comfort. No matter what I did to an old house, or how much money I poured into it, the results were still and old home. I would end up with a home that never had enough bathrooms and never had a master site. It usually had rooms I seldom used and never had rooms I really needed.  And then there’s the money thing.  Last time I went home shopping I noticed used homes cost as much as new one.  What’s up with that?  Don’t used cars cost less than new cars and doesn’t used furniture ends up in thrift stores?  Why on earth was I willing to pay as much for something old, creaky and needed a huge infusion of time and money when for the same price I could get exactly what I want in a new home?  That thought changed me.  Now I’m in the market for a home again  and I’ve started looking at new homes.  Here’s what I’m finding in my last few weeks of searching.  New homes are now designed with the kind of architectural charm we all love. Long gone are the days of the 70s and 80s and those dull split-level boxes.  Now I can choose from a wide array of styles from highly traditional to excitingly modern. I also found that new homes have far better floor plans. Architecture has come a long way and today’s homes are designed for today’s lifestyles. I’ve found home offices, media rooms, flex spaces, master suites-to-die-for and every home I’ve looked at has enough bathrooms (that’s a big deal if you’ve lived in old homes all your adult life!).  Then there is the lower maintenance costs.  Since everything is new and made with advanced materials, you can expect to go years without major repairs or upgrades.  New homes also cost far less to operate, with better insulation, more efficient heating and cooling systems and appliances and water-saving fixtures. I think I’m almost over my old-house habit.  It feels good.  I still may watch reruns of Bob Villa from time-to-time…just for old time sake.  Get our there this weekend and see what you can find.  Buy new, it’s the best investment you can make.

From the MBA Centennial Video: Helping launch the big dig. The team that knows how to shovel it!

I just received a glossy, full color 44-page “President’s Report” from the Master Builders Association of King and Snohomish Counties.  I wonder if these guys have gotten the memo.  Their members are hurting.  The New Home Industry is under siege!  I’m more optimistic than the next guy about good things lying ahead, but right now, I have to wonder why I’m paying these guys big dues so the “President” can report in the most old-skool of ways.  Here’s a suggestion:  try the Internet for Sam’s sake!  Email your report.  Post on the Association website.  Put it on Sam’s Facebook page.  Anything but print and mail a 44-page slick report that actually does little to address the core issues that face our industry.  And  if any MBA’ers are thinking I’m being a little harsh?  Be damn glad I didn’t choose to pick on the wretched, self-serving excess of that thick hard cover you published this year for the 100th Anniversary.  Can I find anything GOOD to say about the Pres’s report? The orange on the back cover is pretty nifty!

“Facebook is Free.” So is Twitter, your Blog and those incessant email blasts we send and receive. That “Free” thing is quite far from the truth, actually! Access to these services may be at no-charge, but using them correctly and effectively is far from free.

That is a good thing.

The typical consumer does not value FREE. We are attracted to free. We are enticed and tempted by free. For years consumer research has shown that the average consumer cares more about products and services they have to pay for than those they don’t invest in. So the fact that “Facebook” has a cost is a good thing.

What is the cost? It’s the cost of creating good content and management. An effective Facebook, Twitter, blog or other Social Media campaign requires commitment and investment. A company and its leadership must treat Social Media like any other communications investment. Put enough resources against the job to do it right, or don’t do it at all. The resources can be the management time needed to state some goals and scratch out a posting schedule on the back of a napkin. It can be the staff time needed to research and add posts. The time it takes to respond to friends, fans and customers. The resolve to promote your Social presence in other places such as on your website, business cards, email signature, literature and packaging. The costs may seem quite reasonable compared to a major advertising or public relations campaign, but when we know we’re making an investment, we’ll take much more care in making it pay off. That is a good thing.

There is also another cost that we often do not see. That is the cost to our audience. I am sure we all put a high value on our own time and attention. We hate meaningless interruptions and rude intrusions on our attention. Remember that when you post. Your friends, fans and customers are investing their precious time and attention in reading what you have to say. Say it well. Say it concisely and move on.

I hope that’s what I’ve done here.

“The Orenco Station study is probably the first to show, in an academic study, such a big difference in social activity between a new urban community and a comparable suburban development. Also, it is the first to show such high rates of walking to stores.” New Urban News, September 2009

http://www.newurbannews.com/14.6/sep09newurban.html

In the late 1990s, the Fusionhappens creative crew led the team working with developer Rudy Kadlub on the branding and marketing of Orenco Station, just west of Portland in the Hillsboro area. Orenco Station was one of the Northwest’s first TODs (Transit Oriented Development) with its own stop on the new MAX train from downtown Portland. As the creative director on the project, my job was to bring to life the concept of a lifestyle that broke with the prevalent suburban mode.

We believed the planners when they said a walkable community would be more healthy. The planners also said that the front porch architecture and community gathering places would foster neighbor-to-neighbor contact and communication, and that should make people happier. We believed that, too. Other experts hinted at the savings in commute time and other cost benefits that would actually save residents money over time, making them wealthier. We bought it all and created brochures, sales presentations, sales offices and newspapers ads that told the story. People bought the story, making Orenco Station one of Portland’s real estate success stories. Our peers bought the story, awarding Orenco Stations the prestigious America’s Community of the Year at The Nationals Awards presented by the National Association of Home Builders.

Recently, Urban Land News published an article summarizing the findings of a study by researchers from Lewis and Clark College, led by sociology professor Bruce Podobnik. Their study takes a look at social issues, transportation patterns, and other factors that make up the overall wellbeing of these neighborhoods. Their findings were very gratifying to our team. We found in it proof positive that residents of a well planned TOD or Urban Village like Orenco Station are happier, healthier, and wealthier. It’s well worth the read.

FIRST KISS: There's a First Time for Everything! Is now the time for YOUR first new home?

Al Doyle, Fusionhappens, LLC November 5, 2009

Hot off the presses: the Senate offered final approval last night, the House of Representatives chimed in this afternoon. Legislation passed containing an extension and expansion of the homebuyer tax credit. President Obama should sign by tomorrow (November 6).

If you have any interest in the new home market, helping people and the economy recover, or just plan have a pulse when it comes to real estate…help get the word out. Details will be sparse for a day or two, but here are some early highlights:

• The legislation takes effect December 1 and is not retroactive.
• Only for primary residences, no second homes or investments.
• $8,000 homebuyer tax credit for first-time buyers will be extended through April 30, 2010.
• Buyers get an additional two months, until the end of June, to close.
• First-time buyers who are in the process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.
• The income limit for couples is now up to $225,000, nearly a $55,000 increase above the level in existing law.
• A $6,500 maximum credit is available to existing homeowners who have lived in their current home for five of the prior eight years.
• Tax credits good for the existing homeowner are on homes worth $800,000 or less.

Most report that the National Association of Home Builders was a big help. For up-to-date reports, visit: firstnewhome.com or thenewhomecouncil.com

A theory…

Embedded in human nature is the need for approval.

People are often motivated by the deep-seated pyschologic need to be liked and respected. We are conscious of our place in the social order of family, work and the world at large. This hidden motivator often deeply drives our behaviors. What kind of car we drive makes a statement about our values. We dress so others will think well of us. Our manners, our speech patterns are often easily seen as attempts to gain the favor of others. With me so far?

I have often believed that one of man’s greatest drivers is his mother-in-law.

This became clear when I tried to understand the motives leading to the purchase of a luxury home.

Why would one be motivated to spend $3,000,000 when $1,200,000 would provide a perfectly adequate dwelling. And when actually maybe $500,000 would meet the true temporal needs of the well-off family.

Then I thought of the mother-in-law effect. What is it going to take to convince that old bat you are not the loser jerk she has always perceived you to be? Not every quite good enough for her precious princess?

That’s it! The mansion on the hill. The ultimate “hey look at me, I must be OK” statement for the whole world to see. Especially for the maternal grandmother of your well clothed, coiffed and educated children.

Once and for all, Christmas dinner with the mother-in-law’s side of the family in a home that takes a GPS to find the nearest power room, should do the trick. Finally, she’ll see her little darling really did make a good choice in her man.

Appearances count. We can never forget that when marketing luxury goods. Behind the purchase is a need to make a statement of some kind, so someone significant in the life of the purchaser. Everything the marketer touches must support the outward statement the purchaser is trying to make.

….I’m just sayin’