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May/June Tidewater Builder

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May/June edition of The Tidewater Builder

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Page 1: May/June Tidewater Builder
Page 2: May/June Tidewater Builder

ABT Custom Homes LLCAffordable Homes, LLC-1Allen Loree Homes L.L.C.Area Builders of Tidewater, Inc.Associated Contracting Services Inc.Associated Development Management Corp.Beachtowne Realty Corp. Belmeade Associates, LLC Billore, LLC Brighton Park Development, Inc. Carole-Anne Construction Co. Clark Whitehill Enterprises Clark Whitehill Homes LLC Cohen Homes, LLCCorinth Homes, LLC Crestline Homes, LLC DeBord Custom Homes, Inc.Definitive HomesDeFord Companies, Inc. Executive Homes Corp. of VA Gallagher Construction Corp. GBK Builders, Inc.George Newsome Luxury Homes LLC Great Bridge Builders Inc. Grifland Builders Corp. Jesse Franklin Jackson III Kotarides Builders, LLC L & B Quarterpath LLC L and M Contractors, Inc. L.R. Hill Custom Builders, Inc. Lawson HomesMichael Lee CompanyMiller Custom Homes Murray Homes Inc.

Ocean Bay Homes, Inc. P & A Construction Inc. Platinum Homes, Inc. Preserve Development LLC Princess Anne Builders, Inc. Property Endeavors LLC Real Developments Residential Concepts, Ltd. Richardson Homes, Inc. RML III CorpSadler Building Corporation Sasser Construction L.C. Southmoor Development, Inc. TBA - Building Trades Academy Terry Peterson ResidentialThe Ainslie GroupThe Breeden Co. Inc. The Old Beach Village Co., LLC The Runnymede Corporation The ST Paul’s Place Company LLC The Widener Corporation Virginia Vintage Builders, Inc. W H Builders, LLC Warner Construction Watab Construction Corp. Wendell Homes, LLC William T. Wingfield, Inc. WPL Ventures, Inc.

These builders support TBA by using Bonded Builders Warranty Group to protect their homebuyers.

Contact your local representative to enroll:

Joe Pushak800 749-0381 ext. 3625 703 582-7727 cell [email protected]

ENDORSED BY

TIDE

WATER BUILDERS ASSO

CIA

TIO

NNot only are our warranties affordable, but we can save you money. Our maintenance manual is a great reference guide for buyers, showing them how to maintain their new home, and for you, it can cut

down on costly callbacks.Online enrollment also saves you processing time and money.

Protecting the American Dream

www.BondedBuilders.com

Reduce costly callbacks for home owner maintenance issues

Page 3: May/June Tidewater Builder

MAY/JUNE 2011 1

From the Preview Party to the homes to the special events in between, we’ve got the rundown on what you need to know for Spring Homearama at Eagle’s Nest.

Some builders have found that the key to keeping doors open is finding alternative ways to make the most out of a slow market.

Attorney Brian Slaughter just returned from taking depositions from some top-ranking Chinese officials. See what’s new and what’s next in the saga.

One Pilot Media Group’s research analyst has taken the guesswork out of how home buyers make their decisions. Learn how this can help you communicate with them.

Departments2 President’s Pen

4 Events Calendar

4 Headliners

12 Counsel’s Insights

13 Builder Services

Features

The mission of Tidewater Builders Association is to im-prove the climate for affordable housing; promote the growth and development of the shelter industry; pro-mote excellence and professionalism among mem-bers through education and networking opportunities; and support and enhance the community through charitable projects.

2011 OFFICERS: William H. Halprin, president; S.L. “Sam” Cohen, vice president; Scott M. Gandy, as-sociate vice president; Steven E. Lawson, treasurer; Dennis M. Graf, secretary; Eric Sasser, appointee; Lucky C. Peterson, appointee; and Pete A. Kota-rides, immediate past president.

2011 BUILDER DIRECTORS: Douglas C. Smith, Gary L. Werner, Scott L. Crumley, Chris Ettel, Erin Widener Speckhart, Lucky C. Peterson, Tuck Bowie and Stephen Quick.

2011 ASSOCIATE DIRECTORS: Joseph W. Kester-son, Kelly M. Beck, Robert L. Nicholson, Robert M. Boyd, Gregory Dodd, Thomas Dye, Brenda Reid and Edward O. Yoder.

DIRECTORS EMERITI: Edward P. Brogan, William J. Fanney, Richard D. Guy, Doyle E. Hull, Frederick J. Napolitano, Richard E. Olivieri, John H. Peterson Jr., Julian Rashkind, Stanley Waranch, Howard M. Weisberg, Wendell A. White.

CHIEF EXECUTIVE OFFICER: Channing A. Pfeiffer

Managing editor . . . . . . . . . . . . . . . Mary Prier, APR

Editor . . . . . . . . . . . . . . . . . . . . . . . . . . Sara Steil

Advertising sales . . . . . . . . Kim Powers, Tara Davis

Production coordinator . . . . . . . . . . . Stella Council

Adviser . . . . . . . . . . . . . . . . . . . . . Sandra Amidon

Graphic Artist . . . . . . . . . . . . . . . . . Diane Trumbull

Copyright: 2011; all rights reserved. No permission to reprint unless ex-pressly given by Tidewater Builders Association. The Tidewater Builder is published for all TBA member firms through the $15 subscription price, which is included in the annual membership fee. Opinions expressed by contributing columnist are not necessarily those of this publication.

The Tidewater Builder is published bi-monthly, January through December, by Tidewater Builders Association, lo-cated at 2117 Smith Ave., Chesapeake, VA 23320. Edito-rial deadline is 5 p.m. on the 1st of the month preceding publication. The advertising deadline for copy and insertation can be obtained by calling the Homearama/Home Shows and Special Project division at (757) 420-2434. All advertising is subject to current rates, copies of which can be obtained from the Homearama/Home Shows and Special Project di-vision, 420-2434. The magazine reserves the right to de-termine the suitability of any advertising or editorial copy, and all real estate advertising is subject to the Federal Fair Housing Act of 1968, which makes it illegal to advertise any preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin, or an intention to make any such preference, limitation or dis-crimination.

22 Membership Matters

25 Shop Talk

28 Advertisers’ Index

26 Big Pic

28 Membership Update

Vol. 58, Number 3

The Cameron Lea, built by Mike Thompson of TCI Inc., is ready for interior design for Spring Homearama almost a month ahead of the show’s opening. The Cameron Lea is one of the seven homes already sold. Only two homes remain for sale in the show, which will be open from May 28-June 12, in Virginia Beach’s Eagle’s Nest community.

Megan Martz, center, tries to catch a toilet brush with a training seat while her Clark Whitehill teammates Carlton Terrell, right, and Travis Godfrey, back left, encourage her. The team participated in the annual TMHC olympics during the 34th annual TBA Picnic. For more picnic photos, see pages 14-16.

Page 4: May/June Tidewater Builder

2 MAY/JUNE 2011

So let’s celebrate with Spring Homearama

William H. Halprin

Why is TBA producing two Homearamas a year when the housing market is so slow?

A. Because we’re a bunch of masochistsB. To bring in non-dues revenuesC. To stimulate interest in new housing and new housing

productsThe correct answer is C. It’s certainly not easy to pull everything together for a

great show during an economic recession, let alone two of them. Banks are not as willing to invest in spec homes, build-ers are not as likely to take on the risk of a spec home and buyers are having a more di!cult time qualifying for mort-gages. So Answer A would have been a good guess.

As for Answer B, there is always signi"cant "nancial risk involved for TBA in putting on an event like this, especially in this economic environment. Two Homearamas don’t at-tract double the sponsorship or exhibit center or Plan Book dollars, but they do double our expenses.

Not to mention the time and resources needed to make the show worthwhile for our developers, builders, exhibitors and all of the other participants — as well as our visitors. So, two annual Homearamas are obviously not a revenue enhancement plan, but they are e#ective promotions of our industry.

Since the "rst Homearama in 1982, this event has served as the industry’s “buy now” campaign — and it works. Our builders need to sell homes and our associates need a market-place for their products.

Homearama allows us to $ood the airways and "ll the print media in a way we could not otherwise accomplish. It also gets tens of thousands of people to visit new homes and think about what they want for their own homes.

When Homearama is coming, there is a buzz about new homes in the community. You can overhear people talking about what they saw and what they liked. %ey also talk about what they want, and in many cases, about what they are going to buy.

Research from past Homearamas shows that 75 percent of visitors have actually made purchases of products they saw or learned of at Homearama. Another 38 percent recommended products from Homearama three or more times.

In the past, many members have asked why we don’t do something during the spring selling season to help stimulate the market — especially during a time when the market needs

it more than ever. So we did. It’s a second Homearama in the spring.

When the housing market is strong, builders and develop-ers don’t perceive as much of a need for Homearama’s market-ing power. And now that lending is tight, Homearama can be a deciding factor for banks considering loans to developers and builders.

Last year was the "rst year we produced two Homearamas. All 18 of the homes from both events are sold. Site tra!c at Founders Pointe and East Beach was dramatically higher than it would have been without it. And guests saw two great shows from some of the area’s best builders in two beautiful settings.

This year’s spring Homearama is at Eagle’s Nest in south-ern Virginia Beach. Already, seven of the nine showcase homes are sold and the developer reports site tra!c and sales in the community are already bene"ting from Homearama.

This year’s event marks a return to the traditional Ho-mearama-style homes many of our guests have been asking for. As usual, the builders and their subcontractors and sup-pliers will be putting forth their best e#orts. At TBA, we’ll be doing our best to make it a “can’t-miss” event for the region.

We all know what the statistics and the housing numbers are saying, but think about what a positive message we send when Homearama homes are sold. It says it’s a great time to buy a new home and stimulates new home sales in all price ranges as a rising tide li&s all ships. It also creates a spin-o# ef-fect in the industry for all businesses related to home sales. In short, Homearama is for everybody in the housing industry.

So think about how you can be a part of this event. If you’re not in the homes or the exhibit center, you can do your part by attending the show and encouraging others to do so as well.

Look for your TBA-member mailing of two free tickets, plus a packet of specially discounted tickets. Purchase them for your employees and your clients so that you, too, can help spread the “buy now” message and celebrate the spring-selling season.

See you at the show!

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MAY/JUNE 2011 3

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4 MAY/JUNE 2011

May

June

Safety !rst, builders and remodelersFredda Jernigan, compliance o!cer with the Virginia Department of Labor and

Industry, will be speaking at the June 2 TBA member breakfast forum. Jernigan will discuss how to maintain safety on the job site, as well as provide a brie"ng on OSHA regulations of interest.

The forum, sponsored by TowneBank Mortgage, will be in the TBA boardroom on "ursday, June 2, at 7:30 a.m. It’s free and open to all members.

To register, please contact Stacey Turner at 305-9042 or [email protected].

Reserve your spot in the year’s only golf tournament TBA is hosting the Building Trades Academy (BTA) Charity Golf Tournament,

which raises money for the academy. %e tournament will be held at Sewells Point Golf Course on Tuesday, June 14.

The tournament costs $150 per player. For more information, please see page 10 or contact Shannon Pfei#er at 305-9034 or spfei#[email protected].

Get ready for a celebrationThe Tidewater Multifamily Housing Council’s annual Associates’ Showcase,

awards banquet and RAM graduation is fast approaching. %e annual event will be held at the Virginia Beach Convention Center on "ursday, July 21. Festivities begin at 5 p.m. with the associates’ showcase. Dinner and the presentation of the Awards of Excellence and Merit Awards will follow, as well as the RAM graduation.

For more information, please contact Maggie Rickard at 305-9053 or [email protected].

Only $200– 2 minute video home tour

for the web, your website, or…

757-620-6091www.prier.tvOFFER EXPIRES JUNE 30, 2011

MEMBER

BUILDER SPECIAL

Page 7: May/June Tidewater Builder

MAY/JUNE 2011 5

Enjoy a pig pickin’ good time at the Preview Party

TBA members can take advantage of discount tickets to Spring Homearama at Eagle’s Nest by purchasing them at TBA.

THE DETAILS:

May 28-June 12 Noon-9 p.m.

COST:

$10 general admission at the gate

Each TBA member will receive 2 free tickets in the mail.

IN ADVANCE AT TBA:

$8 for TBA members

$6 for TBA members who purchase 20+ tickets

MORE INFORMATION:www.homearama.tv

Tidewater Builders Association is kicking o! Memorial Day weekend with a bang at its second Spring Homearama. Join us as we celebrate TBA’s 31st Homearama, which will showcase nine custom homes from eight of the area’s most talented builders.

Seven of the homes sold before the builders broke ground. "e homes start in the low $500,000s and mark a return to the traditional homes of Homearamas past.

Here’s what you need to know before you go:HOMEARAMA PREVIEW PARTY

Celebrate the show’s opening with champagne, barbecue and colleagues on Friday, May 27, 4-7 p.m. at Eagle’s Nest in Virginia Beach.

Be the #rst to preview the nine showcase homes and enjoy a casual evening with friends and music from Lewis McGehee. Gates open at 3:30 p.m. and the open-ing ceremony will take place from 4-4:30 p.m.$

On the menu: Pork barbecue, grilled chicken, coleslaw, baked beans, potato salad, mini cupcakes from Carolina Cupcakery and all the beverages you’ve come to enjoy.$

Ticket prices: $30 by May 20, and $35 thereafter. Call 420-2434 or visit www.tbaonline.org/events for more info. DATES TO CELEBRATE:

Military Appreciation Day, on Monday, May 30 (Memorial Day), military guests can take advantage of buy one, get one free admission with a valid military identi#cation card.

Realtors Day, set for Wednesday, June 1, area Realtors will be admitted free all day with a business card and ID. Breakfast is from 9:30-11 a.m.

ODU Day, !ursday, June 2, features coaches, “Big Blue” the mascot and cheerleaders, and o!ers a $2 discount to ODU sta!, students and faculty as well as anyone wearing ODU gear.

A Taste of Virginia Beach, from 6-8 p.m. Monday, June 6, sponsored by Hampton Roads Magazine and Virginia Natural Gas, invites guests to sample cui-sine from Virginia Beach restaurants and vote for their favorite.

Mother’s Day Out, Wednesday, June 8, gates open early at 10 a.m. so moms can get home before the kids are out of school.

!e Homearama Furniture Sale from noon to 6 p.m., Monday, June 13, visitors can purchase their favorite furnishings and décor from the Homearama homes. Free entry tickets for the sale will be given to all Homearama visitors in their show bag during the event.

Page 8: May/June Tidewater Builder

6 MAY/JUNE 2011

STEPHEN ALEXANDER HOMES LLC

J.F. SCHOCH BUILDING CORP.

ABT CUSTOM HOMES

ROBERT M. LETCHWORTH

HOUSE

[house s i ze ] 3,600 square feet, 5 bedrooms, 3! baths

HOUSE

[house s i ze ] 4,000 square feet, 5 bedrooms, 4! baths

HOUSE

[house s i ze ] 3,813 square feet, 4 bedrooms, 3! baths

HOUSE

[house s i ze ] 3,260 square feet, 5 bedrooms, 4 baths

!e Spring Homearama homes range from 2,600 to 4,400 square feet and are priced from the low $500,000s and above. !e community features brick and brick-accent estate-style homes with large lots and swimming pools along with trails, ponds and 50 acres of conservation area. !e show will also feature these themed homes:

!e Space Exploration House: Show-cases how NASA developed-technologies bene"ts the daily lives of people at home, work and elsewhere. Built by Robert M. Letchworth, the home highlights technol-ogies made available by NASA research.

!e ODU House, built by Je# and John Ainslie and Ken Cohen of Ainslie Group/Cohen Homes, will pay tribute to Old Do-minion University, with input from the academic and athletic departments.

!e Celebration House, built by Jack and Margaret Schoch, will demonstrate how to decorate for life’s major celebrations.

Page 9: May/June Tidewater Builder

MAY/JUNE 2011 7

AINSLIE GROUP/COHEN HOMES

HOUSE

[house s i ze ] 4,080 sq. ft., 6 bedrooms, 4 baths

ORE BUILDERS

HOUSE

[house s i ze ] 4,650 square feet, 5 bedrooms, 3! baths

TCI INC.

HOUSE

[house s i ze ] 3,200 square feet, 4 bed-rooms, 3 baths, 2 half baths

HD WATSON BUILDERS

HOUSE

[house s i ze ] 3,407 square feet, 4 bedrooms, 3! baths

HD WATSON BUILDERS

HOUSE

[house s i ze ] 3,604 square feet, 4 bedrooms, 4 baths

Page 10: May/June Tidewater Builder

8 MAY/JUNE 2011

he adage is that the best award a Homearama build-er can receive is the sold sign in front of his house. For seven of the Spring Homearama builders, that award was earned before they broke ground.

In fact, the last three Homearamas have all seen more than the majority of the homes under contract before the shows have premiered to the public — a promising sign for the cur-rent economic climate.

But what does that mean for the Homearama builder? How does having a buyer change how he proceeds with his showcase house?

Economically, it’s smarter “In these days, it’s much better to have a buyer lined up,”

said Herb Watson of HD Watson Builders. Watson is build-ing %e Rutherford and %e Hartford in the Spring Homear-ama showcase at Eagle’s Nest.

“It’s more work on our front from our perspective,” he con-tinued. “You have to pay a lot of attention as there is a lot of communication and correspondence back and forth with the customer, but this is de"nitely the way to do it.”

While the number of builders willing to build a spec house is dropping, some, such as Les Ore of Ore Builders, have man-aged to come out on the winning end. %is show marks the fourth Homearama for Ore, who throughout his Homearama experiences has built unsold homes and homes with buyers.

“Because Homearamas brings buyers in,” Ore said build-ing a spec home is an option. However, he’s con"dent that he’ll get a buyer if one’s not already on board when he breaks ground.

Why? “We’re marketing the home and we’re getting our plans straight well ahead of time,” he said. “%ere’s a lot of forethought put into it before the "rst shovel is put into the ground. We’re marketing it before it happens.”

Homeowner involvementWhen a buyer is on board, there has to be a lot of $exibil-

ity with the home’s customization. For Mike Martz and his wife, the buyers of Watson’s %e

Hartford, this isn’t their "rst new home. However, it is the most custom home and the most involved that they’ve been in building a home.

“We have a lot more say so and involvement in every aspect of the process. We got a construction perm loan, so we’re more involved in that aspect of it too,” said Martz. “It’s more custom, so we’re going and talking to the vendors vs. this is what’s available and we don’t know who the vendors are.”

For Watson, he prefers it this way, even though it’s more work and communication on his end.

“We encourage people to get what they want,” Watson said. %at normally entails the customers changing their minds several times throughout the process. “I expect that on a custom home because you don’t want to get to the end and have the customer with regrets, especially when we could have made a change and given them what they want.”

Ore agrees, but has also found that starting the process, especially when a buyer is not involved, with nice, neutral products is the key.

“We have an interior designer who is helping us decide what to put in the home to begin with,” said Ore. “%ere is some back and forth and changes with a buyer, but we’re normally so far out on the home plans and building the house

Homearama builder Herb Watson of HD Watson Builders dis-cusses the remaining carpentry work with Jason Howell of Triple Crown. Watson pre-sold both of his Homearama entries, this be-ing for the Martz family.

Seven of the nine Spring Homearama homes were sold before the builders broke ground in Eagle’s Nest in Virginia Beach.

Homearama builders navigate the showcase homes with buyers in tow

Page 11: May/June Tidewater Builder

MAY/JUNE 2011 9

that we have time to make changes within a certain time frame.”

Once the buyer is on board, Ore con-nects him with the interior designer.

Working with budgetsAnd then there are their budgets,

which can sometimes limit a builder.“%e buyer gets to make all the deci-

sions. So in some ways, it kind of limits you,” said Mike %ompson of TCI Inc., builder of %e Cameron Lea. “But I always throw in extra things to make it look nice for the show.”

For %ompson, diversifying his busi-ness has helped to make building cus-tom homes a smoother process for the buyer. %ompson operates a showroom that allows his buyers to take advantage of a one-stop-shop experience.

“To me, whether I have a buyer or a spec, it’s a smooth transition the whole

way either way. But it’s nicer to know it’s sold and you don’t have to worry about it.”

The perks for buyersFor the buyers, it’s the perks that

o&en seal the deal for committing to building a Homearama home.

“My buyers are actually from Cin-cinnati, where Homearama originated,” said Ore. “When they found out, they were really excited. It’s a big perk for them. %at’s one of the reasons our cus-tomers are buying Homearama homes — it’s because of the extra perks.”

(continued on page 28)

Most banks have tightened their lending in this economy.

How constructive is that? LOCAL DECISIONS ARE HOW WE HELP KEEP the local economy strong. A real estate market slowdown is no time for a fair-weather lender. We finance projects large and small, from acquisition to development to construction. So if something has been missing with your bank, we invite you to learn more about the Monarch experience. Because until you see this bank, you have not seen them all. For help with your next project, contact Monarch’s Real Estate & Construction Group.

www.monarchbank.com

Jim FerberPresident(757) 955-8605

Joe DrepsExecutive VP (757) 309-4520

Cathy LockwoodFirst Vice President (757) 955-8602

Chris LyleFirst Vice President (757) 955-8603

Amber StyronFirst Vice President(757) 955-8601

Proud member of TBA’s 2011 Cornerstone Foundation

Page 12: May/June Tidewater Builder

10 MAY/JUNE 2011

ALL PROCEEDS go to TBA’s Building Trades Academy, a 501c-3 nonprofit job training program that has helped more than 4,500 economically disadvantaged, at-risk men and women build better lives for themselves and their children. The academy facilitates promising careers in building and facility maintenance trades, provides counseling and life skills instruction and ben-efits the community through hands on renovation, remodeling and construction projects.

TOURNAMENT registration starts at 11 a.m. and tee time is at noon. The style will be Florida Best Ball. NO BLUE JEANS. Refreshments and dinner will be provided. Awards given for first and second place teams for two flights. All payments must be received before the tournament. No rain date.

PLAYERS COST: $150 per player; add $25 per player for value package (includes 1 mulligan, 1 ladies aid, 1 throw & 2 raffle tickets – V.P. can only be used for scoring purposes – only one V.P. per player) PAY NOW and your package will be ready for pick up at tournament registration. Check box before name to sign up for Value Package.

NAME #1: ______________________________________________________ NAME #2: _____________________________________________________

NAME #3: ______________________________________________________ NAME #4: _____________________________________________________

SPONSORSHIP GOLF CARTS: $1,500 – BEVERAGES: $750 – DINNER: $500 – SCORE BOARD: $500 – EXCLUSIVE HOLE (set up a hole station with your staff, giveaways, signage, etc.): $500 – HOLE (signage): $350 – PRIZE (cash donation with recognition on rules sheet)

COMPANY NAME (for signage): _____________________________________ TYPE OF SPONSORSHIP: ___________________________________________

PAYMENT $_______________ + $_______________ + $_______________ = _______________ total player cost total value packages sponsorship TOTAL

CHECK ONE: VISA MASTERCARD AMERICAN EXPRESS CHECK ENCLOSED (payable to Building Trades Academy)

CARD #: ___________________________________ SIGNATURE: _______________________________ EXP. DATE: _____________ CRV: ___________

CONTACT INFO. COMPANY: _____________________________________________________________________________________________________

CONTACT PERSON: ______________________________________________________________________________________________________________________

EMAIL: ____________________________________ PHONE: ___________________________________ FAX: _____________________________________

RESERVE your space in the tournament. Mail or fax (757-965-6586) this form with your payment info to: Building Trades Academy; Attn.: Shannon; 2117 Smith Ave.; Chesapeake, VA 23320.

For more information call 420-2566. ext. 234 or e-mail [email protected].

TUES., JUNE 14 SEWELL’S POINT GOLF COURSE

2011 Charity Golf TournamenT

Page 13: May/June Tidewater Builder

MAY/JUNE 2011 11

“Diversify or die” was the advice from Bill Wing"eld in a May 1990 issue of !e Tidewater Builder newspaper.

Wing"eld stands by that slogan today and credits diversi-"cation for his success as a home builder for the past 47 years.

“When I "rst started, the old-timers used to joke that if you stay in this business long enough, it’ll break you,” Wing"eld said. “If you don’t have something else to fall back on during the slow times, it will break you.”

At 69, Wing"eld has seen four downturns in the market, one ev-ery decade. “%e one in 1989-90 was the worst for me, but I was more prepared for it this time. It had been 14 years since we had a crunch. We were overdue.”

The rental market While new home sales have struggled, rentals have been

good for Wing"eld. “For the past 15 years, I’ve tried to build at least one proj-

ect a year to keep as an investment property with the idea it would be there for me when I got to retirement age,” he said.

Today he owns 38 rental units, commercial and residential, and all of them are rented.

Finding new customers We call it “"nding new revenue streams,” said Lana

O’Meara, who, with husband Jerry Edmonds, operates De-signs of Distinction.

Her company has recently teamed with a commercial builder to bid government jobs, choosing only projects that would be “a good "t.”

The company also has another new customer – banks. %ey are working on foreclosed properties, getting them ready to market. “It’s mostly paint and new $oors, and quite o&en light "xtures are missing and minor repairs are needed,” said O’Meara.

It has been their background in remodeling, however, that has served as their major recourse. “We have always done remodeling jobs,” said O’Meara. “During the boom, we re-ferred out all remodeling because we were so busy with new construction. We’ve completely $ipped and now we do a lot of remodeling. People are staying in their homes instead of selling.”

Most of their projects re$ect the trends — kitchens, baths and now, outdoor living spaces.

“We signed a contract today on a multi-phase outdoor liv-ing project for a previous client. We’re also in the middle of

an outdoor living project for the new owner of a house that we built and sold in the past.”

One big di#erence today is that they’re not so picky, said O’Meara. “Yes, we can do that,” is their new slogan. “You

never know what might come later from doing a small job today.”

Remodeling apartments/building commercial space

Custom builder Sam Cohen is in the midst of a four-year project remodeling 385 apartments in Vir-ginia Beach, apartments he actu-ally helped to build in 1980.

Cohen says the opportunity came along at the right time and has helped him through the tough

times. “I’ve always had a tool belt and tools,” he said. “It’s not really a big switch for me.”

Cohen says the owner “knew I was hands on and that’s what he wanted. He has a high level of expectation.”

The home builder began to diversify in 2005, when he and a partner purchased raw land at what is now Bennett’s Creek O!ce Park in northern Su#olk.

Commercial activity also slowed during the recession, but Cohen sees an uptick in interest for the 1,500-square-foot o!ce condos. %ere are two units le& in the "rst seven-unit building. “We hope to start another building in the next 60 days,” he said.

Cohen is also doing a major remodel project in Chesa-peake, gutting an entire 6,500-square-foot house. “%ere is satisfaction in tearing it all to pieces and putting it back together. New cabinets. New $ooring. It helps that I’m a car-penter by trade.”

Still building homesAll three veteran Homearama builders are still building

homes. Cohen is getting ready to start a house under contract in Su#olk. O’Meara is working with a client who has a rental house they will demolish to build a new one.

With "nancing tight, it helps when the client has the funds or the loan. “It was a one-time closing loan,” she said. “%e client gets the loan and it closes up front. %e construction loan goes into place "rst and when the home is complete, it rolls into permanent "nancing.”

Wing"eld is building homes under contract. “Most of what I build right now is construction cost plus a manage-ment fee. I’ve done it throughout my career. %e last three years, that’s all I’ve done. I’m getting 16 percent to 18 percent on it, which is more than I was making on houses in the spec market. And I’m still able to save them money.”

What are they doing now?

(continued on page 23)

Page 14: May/June Tidewater Builder

12 MAY/JUNE 2011

THE BUILDERS CHOICE

C!"#$%& P&'()*"+& H!%#*"+ I",.

(757) 424-3761820 Greenbrier Circle Chesapeake, VA 23320

[email protected]

Va Reg. #021668A NC State Reg. #18337

Plumbing Heating Air conditioningNew Construction Residential/Commercial

24 hour emergency service available

he 2011 session of the Virgin-ia General Assembly has ad-journed a&er considering cer-tain amendments and vetoes

by the governor. %is article provides a summary of certain new laws that a#ect the real estate industry.

Commercial real estate In an e#ort to stimulate private sector

investment in certain “tourism zones,” and in recognition that there o&en is a gap that needs to be bridged between development costs and the debt and eq-uity capital that can be provided by the developer, the legislature has permitted localities to establish certain tourism zones and grant certain tax incentives and regulatory $exibility within those zones.

Among other things, the legislation allows a qualifying project to receive 1 percent of the sales tax revenue gener-ated by the transactions taking place on the project’s premises and use that rev-enue to make payments of principal and interest on quali"ed gap "nancing. %is approach can assist certain projects that are unable to be "nanced under more conventional methods.

Another bill permits localities to cre-ate a separate tax rate for certain build-ings that are on the Virginia Landmarks Register and that are properly main-tained. %is will assist owners of histori-cal properties by reducing the tax bur-den imposed on the properties.

Land use There were several new pieces of leg-

islation enacted in the land-use area. Cluster development received some

attention by limiting the ability of a lo-cality to impose more stringent land use requirements for a cluster development that is otherwise subject to applicable land use ordinances. Similarly, localities are prohibited from preventing exten-sion of water or sewer from an adjacent property to a cluster development so long as the cluster development is lo-cated within an area already designated for water and sewer service.

Localities are now required to give written notice to property owners with-in 10 days if someone other than the property owner requests a determina-tion from the zoning administrator that would bind the property owner. On appeal of a zoning administrator’s deci-sion to the local governing body, a deci-sion by the local governing body will be binding on the property owner only if written notice has been provided to the property owner of the zoning violation, written determination or other appeal-able decision.

Several pieces of legislation addressed the Virginia Department of Transporta-tion’s role in land-use matters. If a plat or plan is permissible by right under the local zoning ordinance, then no supple-mental tra!c analysis must be submit-ted to VDOT simply because the plat or plan substantially a#ects transporta-tion on state-controlled highways.

In the rezoning arena, if a property considered for rezoning already has been subject to VDOT review in con-nection with development of a local comprehensive plan, then the required review by VDOT in the rezoning mat-ter is limited.

Trusts When a trust is the grantor or the

grantee of a deed, it is now required (continued on page 18)

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MAY/JUNE 2011 13

Parties impacted: Soon-to-be new homeownersAdvocate: Greg Rich-ardson of Crestline Homes Issue: Richardson was building a home on a tight schedule to accom-modate the homeowners’

loan period. When Richardson called to have an inspector come out and look over the house, the inspector failed to show. Another call resulted in a week’s wait and then a next-day promise to in-spect the property. %e inspector failed to show the next day due to a training con$ict and Richardson was told it would be several days to accommodate the backlog of inspections. Action taken: Since Richardson was

nearing the expiration date for the ho-meowners’ loan, he turned to Builder Services for help in expediting the "nal inspection. Result: Builder Services contacted the city and an inspector was sent to the property. Richardson was then able to close on the house in time to meet the homeowners’ loan period. Comment: “With Claudia’s help, we were able expedite the inspection process and obtain a certi"cate of occu-pancy,” said Richardson. “Our clients’ expectations were met and they were able to take ownership of a beautiful home without a potentially stressful situation in the end. %anks, Claudia!”If you or your company has a building or development issue you would like help re-sol"ing or a question you need answered,

please contact TBA’s Builder Services Specialist Patrice Kyle at 305-9015 or [email protected].

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14 MAY/JUNE 2011

Picnic serves up food, fun and Olympic

competitionApril didn’t deliver showers as the old adage

promises, much to the relief of the folks who turned up for TBA’s 34th annual picnic. Held at the Chesapeake City Park on April 14, the

picnic saw numerous changes, includ-ing being held on a !ursday afternoon, vs. the previous Friday after-work time-slot. Toss in a band, Borderline Crazy, some friendly jousting with co-workers, lots of food, spirits and some fun games… and this year’s picnic proved to have some-thing for the more than 1,100 folks who ventured out.

A huge thank you to the commit-tee members who helped to make it a great success: Chair Paulette Frantz, vice chairs Chris Dembitz and Kelly Beck, Ed Brogan, Dorothy Hardee, Jim Jackson and Michael Johnson.

!e Tidewater Multifamily Housing Council celebrated another year of the TMHC Olympics. Fifteen teams took to the "eld to compete against other multi-family communities in 10 challenging and innovative games. At the end of the day, the battle was won over tug-o-war. How-ever, the winners won’t be announced until the annual TMHC awards banquet/RAM graduation July 21.

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MAY/JUNE 2011 15

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16 MAY/JUNE 2011

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MAY/JUNE 2011 17

Send radiant heat back where it came fromAs temperatures and cooling costs soar, the new frontier in house construction is increasing energy efficiency. Solarbord uses heat-reflecting foil laminated to OSB to stop 97% of the sun’s radiant energy. That can mean attics are up to 30˚F cooler, which translates into cooler houses, lower energy costs and happier homeowners.

Make it the crowning achievement of every buildSolarbord, SFI CoC certified, installs like any roof sheathing and gives builders an extra edge in these energy-conscious times. And because it’s made in the USA and backed by a 25-year warranty, you’ll have total confidence in its quality and durability.

RADIANT BARRIER SHEATHING

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Build energy efficiency into every house – watch the video at SolarbordOSB.com to find out how.

BIIA Insurance has made the business decision to focus on its core strengths of writing workers’ compensation and general liability insurance, as well as the

addition of commercial auto. We will no longer accept new ap-plications for other insurance products (with the exception of Builders Risk in the territory west of Williamsburg.)

A&er working for a year and half on developing a multifam-ily property insurance package, it became apparent we would not be able to develop the critical mass needed for a successful statewide launch.

While we were successful in bringing additional products to market, such as property and inland marine, we could not make a business case for o#ering these new programs without the multifamily products.

Thanks to this initial groundwork, however, BIIA Insur-ance will be ready to respond if and when it becomes apparent that these products are in high demand.

Meanwhile, we are strengthening our customer service sup-port for our other products.

BIIA has been providing workers’ compensation coverage throughout Virginia since 1999. Originally designed by and for those in the home building industry, the coverage has since expanded to service a wide range of business classes.

We o#er personalized safety classes, including online train-ing materials in English and Spanish exclusively to our clients.

BIIA developed a General Liability product in 2004 when builders found it increasingly di!cult to obtain a#ordable coverage because other carriers quit writing residential build-ers or dramatically increased their premiums.

The policy comes with a variety of loss control measures that dramatically reduce the risk of doing business. %is cover-age is now available to a wide range of business classes through-out the state of Virginia.

We also added coverage for commercial auto earlier this year. We established new written commitment standards for our

customers: • Any complete submission will be quoted or responded

to within 24 hours or the next business day.• Upon receipt of all documents required to bind cover-

age, BIIA will issue the new business policy(ies) within 10 business days.

• Any phone call received before 5 p.m. will be returned the same working day.

If you "nd we are not meeting these standards at any time, please let me know.

Please encourage your agent to get a quote from us before you renew your current policies.

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18 MAY/JUNE 2011

Meet with government buyers Mark your calendars for the Business

Matchmaking Summit for small, wom-en-owned and minority-owned compa-nies on June 7 and 8, at the Portsmouth Renaissance Hotel. It is presented by the Virginia Department of Minor-ity Business Enterprise and the cities of Portsmouth, Norfolk, Virginia Beach, Chesapeake, Newport News, Hampton and Su#olk.

Participants will meet with govern-ment buyers who purchase more than $10 million in goods and services annu-ally.

For more information or to register, visit www.dmbe.virginia.gov.

that the deed contain the name of the trustees serving at the time the deed was signed.

ForeclosuresIn the landlord-tenant arena, a land-

lord must disclose in writing to any prospective tenant that the landlord has received a notice of mortgage default, notice of mortgage acceleration or no-tice of foreclosure sale with respect to a loan on the dwelling unit. If the land-lord fails to provide such notice to the tenant, then the tenant has the right to terminate the rental agreement a&er giv-ing the landlord "ve-business days’ prior written notice.

As you can see, even though this was short session the legislature was active. Please keep in mind that the informa-tion in this article provides a very brief overview and you should consult the speci"c statutory language for a clear understanding of the new laws.

C. Grigsby Sci#es is a partner in the Virginia Beach o$ce of the law %rm of Williams Mullen and is Tidewater Builders Association’s general counsel. !is column features legal issues of inter-est to TBA’s members. For further infor-mation contact Sci#es at (757) 473-5370 or gsci#[email protected].

(continued #om page 12)

Congressman Rigell signs on to industry legislationA&er meeting with TBA President Bill Halprin and past president

Vince Napolitano (National Association of Home Builders Build-PAC trustee), U.S. Rep. Scott Rigell agreed to co-sponsor the Home Construction Lending Regulatory Improvement Act of 2011, cre-ated by NAHB for the industry.

The act would provide authority and guidance to bank regula-tors to ensure that federal and state chartered banks and thri&s that

provide "nancing to America’s homebuilders are permitted to make loans, provide ongoing liquidity and ensure stable "nancing to America’s home builders. It would direct banking regulators to abstain from compelling "nancial institutions to call or curtail land acquisition, development and residential construction loans in good standing. Stay tuned for more details as this bill makes its way through Congress.

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MAY/JUNE 2011 19

As I reported in the last edition of !e Tidewater Builder, the litigation arising from the installation of allegedly defective Chinese-manu-factured gypsum drywall in Virginia is focused on two things — getting the

Chinese manufacturer in the litigation, and determining whether any of the hundreds of Chinese drywall claims will be covered by any type of insurance.

A#ected homeowners and the devel-opers, builders, installers and suppliers they have sued, have uno!cially joined forces, and expended a great deal of time and money pursuing Taishan Gyp-sum Co. Ltd., the manufacturer of the defective drywall sold in Virginia.

On April 2, lawyers from Virginia and I traveled for more than 20 hours each way to take the depositions of sev-eral Chinese corporate representatives in Hong Kong, SAR, China. Among others, we took the deposition of the highly-placed Chairman of the Board of Taishan Gypsum, Jia Tungchun, as well as the Manager of Foreign Sales for Taishan Gypsum, Peng Wenlong, a.k.a “Frank Clem.”

We have learned, among other things, that the sale of drywall to local supply-house Venture Supply Inc. was the only sale of such drywall by that company to a supplier in the U.S. Subsequent sales of drywall, which did not come to Virgin-ia, appear to have been made by a new subsidiary of Taishan Gypsum, called Tai’an Taishan Plasterboard. %ese wit-nesses appeared evasive and uncoopera-tive while being questioned under oath, and there is the possibility that lawyers for the various interested parties may seek a court order to bring these people to the U.S. for further questioning. %e e#ort to establish jurisdiction over the Chinese is ongoing.

In addition to e#orts to go a&er the source of the allegedly defective

drywall, lawyers for homeowners, as well as lawyers for developers, builders, installers, suppliers and brokers, are also pursuing insurance claims against homeowners’ insurers and insurers providing commercial general liability policies. %ere are a number of lawsuits pending, seeking a court declaration of their rights under the insurance policies of many of these insurers. Insurers have denied these claims, asserting that they are excluded under the terms of these policies. Because of the number of suits pending in di#erent courts, there is a serious concern as to the possible inconsistency in the interpretation of these policies.

Last month, Judge Davis of the United States District Court for the Eastern District of Virginia issued an order requesting that the Virginia Su-

preme Court decide the issue in two cases before him. %e lawyers for the various homeowners have requested that each of the federal judges with similar cases do the same, so that the Virginia Supreme Court can decide the issues once, and make it applicable to all. We should know in the next month whether the high court in Virginia will decide the issue, and a timeframe with-in which we can expect a decision.

There have now been more than 160 lawsuits "led across Virginia related to problems with Chinese drywall.

J. Brian Slaughter represents 17 builders and developers in the “Chinese drywall” litigation. He may be reached at (757) 461-2500 or [email protected]. More information about the topic is also available at www.va-law.org.

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20 MAY/JUNE 2011

These days, we’re all trying to be more environmentally responsible — and making energy-e!cient choices at home is one of the best ways to go green without sacri"cing comfort or style. By conserving energy, your wallet will see more “green,” too, with the sav-ings you receive on your utility bills.

Studies show that improving e!ciency is one of the quickest ways the United States

can reduce its overall energy use and protect the environment from greenhouse gases. Natural gas companies like Virginia Natural Gas are already making that happen. Today’s aver-age American home uses one-third less natural gas than three decades ago, thanks to utility energy-e!ciency programs and higher-e!ciency natural gas appliances.

Virginia Natural Gas has promoted energy conservation for years as the right thing to do for customers and for the environment. Its innovative energySMART program o#ers a variety of ways for customers to learn about energy conserva-tion, save money on their energy bills and take advantage of energySMART rebates on high-e!ciency equipment.

Free programmable thermostat One of the most popular energySMART programs is the

free programmable thermostat from Virginia Natural Gas. Customers who have a natural gas furnace as their primary heating source can log onto virginianaturalgas.com to request their free programmable thermostat, which will help them regulate their energy use.

Proper use of a programmable thermostat can save the aver-age homeowner around 15 percent annually on energy bills and is a convenient way to monitor energy use. Simply set the thermostat to regulate your home’s temperature automatically, night or day. VNG’s free thermostat takes the guesswork out of remembering to lower the thermostat when you’re away from home or asleep.

E#ciency rebate program The Virginia Natural Gas rebate program o#ers a variety

of options for customers who upgrade their current heating equipment to a high-e!ciency furnace. Heating and cooling your home accounts for the largest portion of your energy ex-penses, so upgrading to a high-e!ciency furnace makes good energy sense. A new furnace will work more e!ciently than older models, thus reducing your energy use. High-e!ciency furnaces with a .90 EF factor can receive a $500 rebate.

Heating water is the second highest energy cost in the home. Upgrading to a tankless water heater will save on en-ergy use by heating water only when you need it — instantly. You don’t waste precious energy — or dollars — maintaining a tank full of hot water. And no more worries about running out of hot water. Tankless systems provide a continuous sup-ply so the whole family can enjoy hot showers, even while the dishwasher is running. VNG currently o#ers a $500 rebate on a tankless water heater with an EF of .82 or greater.

If a tank water heater is more your style, a high-e!ciency one with a .62 or greater can qualify for a $150 rebate from VNG. Don’t wait until it’s too late to make the right choice for your energy needs… learn the age of your current equipment, check the e!ciency rating and replace it before it breaks down.

Educating homeownersEducating homeowners on the importance of prop-

erly maintaining their equipment is another goal of ener-gySMART. Regular heating system checkups each season and routine replacement of air "lters keep equipment running at peak e!ciency, which can help save on energy bills. An online home energy audit tool and other educational tips can be found on the energySMART page at virginianaturalgas.com. You can even test your energy smarts with VNG’s online quiz.

You don’t have to sacri"ce comfort or style to save energy and do the right thing for the environment. Visit virginianatu-ralgas.com for full energySMART program o#ers and terms and conditions.

Karen Bradley is in charge of Mid-Atlantic Marketing & Communications Elkton Gas, Elizabethtown Gas, Virginia Natural Gas. She can be reached at (757) 616-7533 or [email protected]. For more information on coordinating an energySMART event, contact Christy Morton at (757) 616-7591 [email protected]. Virginia Natural Gas is a member of the TBA Green Building Council.

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MAY/JUNE 2011 21

“I live with my father, who owns a small business and struggles to keep up with every day expenses. He is also working to pay off many medical bills. Every amount of money I get through scholarships is money he can save to pay for these expenses. My father has supported me and has always encour-

aged me to strive for my goals.”

“My mom is a 57-year-old single parent. She has raised four kids on her own. I cannot even begin to tell you all the things she does to keep our household sta-ble. I want to prove that all her support and dedication to me and my siblings over the years has been worthwhile.”

“My Dad is a businessman. He has had two heart attacks this year. He has only been able to work a few hours a week. Without his income, my fam-ily has been required to use up savings to pay bills. Many medi-cal bills have not been covered by the HMO my mom has at work. Our savings are now almost depleted.”

“Seven years ago my dad took his own life. This tragedy has made me a stronger and more determined individual. Through-out my life I have always been an active community member. I do my part, and I believe that every bit helps and if everyone did just one thing, the world would be a better place.”

“My mother, before I could see myself as a man, was strung out on drugs. As an 18-year-old, I live indepen-dently of my mother. My only escape from my life is education. It may be trite and cliché, but it holds

true – education is the gateway to a lot of positive things in life.”

Fall charity house honors TBA

scholarship recipient

Dear friends and colleagues:

I am writing to invite you to be part of a TBA tradition that makes a proven difference in our

community and in the lives of young people.

This fall, Clark Whitehill is building the Homearama Charity House at The Riverfront at Harbour

View to benefit the TBA Scholarship Foundation. We will dedicate this home in honor of one

of our 2004 recipients, Justin Kauflin.

Justin is a talented jazz pianist who graduated

from William Patterson University where he

worked with some of the nation’s jazz masters.

Like many of our recipients, Justin overcame

major challenges to pursue his dreams.

On his scholarship application, he wrote

“I was born with a degenerative disease…

which eventually claimed my vision at age 11

after numerous surgeries. I did not view this

life-changing experience as a traumatic event,

but as an opportunity to live with a brand

new perspective on life.”

His story is one of many we see from promis-

ing young students with academic credentials

and life challenges. It’s humbling to see how hard Justin and the other recipients

have worked to achieve their success when it might be easier to lose heart and give up.

It’s truly a gratifying experience to know we’ve contributed to helping these talented

young people achieve their dreams.

The Scholarship House will allow us to continue this important outreach to the community

and carry forward a legacy started in 1965 by some of our founders.

Your donation of services or supplies will help offset the cost of the home so that more

proceeds will be available to strengthen the scholarship foundation for the future.

If you can help support The Justin Kauflin House to benefit the TBA Scholarship

Foundation, please let me know.

I can be reached at (757) 340-5300 ext. 232 or [email protected].

Sincerely,

Michael Newsome

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22 MAY/JUNE 2011

Are you taking advantage of your bene!ts?

As a TBA member, you’re eligible for many bene"ts, including an expanded wireless discount program, a rebate pro-gram, a $500 discount on GM vehicles and much more.

For detailed information about any of these bene"ts, visit www.tbaonline.org or call Stacey Turner in the membership mar-keting division at 305-9042.

Let us help you bank on the bene"ts you earn as a TBA member — bene"ts that will more than cover the cost of your annual dues.

Did you know…?• If you bring in a new member by

May 23, you’ll win a ni&y prize from the National Association of Home Builders?

• Lowe’s Commercial Services is now o#ering members a 2 percent discount on purchases?

• Bonded Builders Warranty Group o#ers a $35 gasoline gi& card when you recruit your very "rst new member?

• TBA’s quarterly breakfast forums are now open to all members?

• You can pay your annual member-ship dues in three monthly pay-ments?

• Through RSVP and Valpak, local direct-mail promotional compa-nies, TBA promotes its website and Find A Member section, as well as upcoming events, to thou-sands of residents across Hampton Roads?

• The two numbers you receive when you join TBA — a PIN number and an MSN number — allow you access to NAHB bene"ts as well as privileged online information on key home building topics?

Please keep TBA in the know!If you’ve changed location, phone number or e-mail address, please let us

know. It’s as easy as visiting www.tbaonline.org, clicking on Members and then on Update Your Information. Or contact Stacey Turner at 305-9042, [email protected] or you can "ll out the form below and fax it to us at 424-5954.

We’d also like to know if you’ve added new lines of business so we can make sure your company is listed correctly in our online Find A Member section, which receives about 1,500 visitors each month.

Company name ________________________________________________________

Owner/manager/principal _______________________________________________

Address ______________________________________________________________

Phone _________________________ e-mail address ________________________

Additional representatives (with e-mail addresses) ______________________________

Type of business _______________________________________________________

TBA board plays a winning handThe TBA Board of Directors is anteing up in a con-

certed e#ort to increase the association’s membership base by May 24, National Membership Day.

Joining in on the national “Winning Hand” mem-bership campaign, your directors, and the TBA mem-bership committee, are gambling that they can bring in at least one new member each this spring.

This game isn’t limited to the leaders. Every member is encour-aged to recruit a new member — and win a prize in the process. Just think about the folks you do business with and if any of them aren’t TBA members, invite them to join. A stronger association means a stronger advocate for all businesses in the housing industry.

For more information and for recruitment tools, contact Stacey Turner at 305-9042 or [email protected]. Remember, membership is just like poker. You gotta play to win!

Online courses are now available to TBA membersIf you’re trying to earn a designation through NAHB, need continuing ed-

ucation credits to maintain a designation or just want to stay on top of your game, you can now do so from the comfort of your o!ce.

National classes once o#ered only at large conferences will now be available in an online format, providing the opportunity for self-paced, hands-on learn-ing.

To launch its new online education program, NAHB is o#ering a course on Customer Service, which teaches you how to manage every phase of customer interaction, from the initial contact through construction and beyond.

Completion of the course will earn you six continuing education hours that can be applied to the following designations: CAPS, CGA, CGR, GMB, CSP, Master CSP, CMP and MIRM.

The cost is $245 and you can register by visiting www.nahb.org and going to the Education & Events section. If you need assistance, contact the Professional Designation Helpline at (800) 368-5242, ext. 8154 or [email protected].

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MAY/JUNE 2011 23

Getting through tough times“A&er more than 20 years of this

business, we’ve learned to move with the market,” said O’Meara. “Be $exible and meet the needs of supply and demand. It’s also personal marketing, being cre-ative and staying in touch with your clients — customer service.”

“Keep on moving forward, I always say,” said Cohen. “Good things happen to people who do the right things. I have a lot of friends in this business and we’re all still working. We’re working harder for less, but we’re working. We’ve all seen the ups and downs. Hopefully we’re at the bottom and we’re on our way back up.”

“Keep in touch with your peers,” added O’Meara. “We’re all in this to-gether and we have to help each other get through this. I have seen more cama-raderie among builders than I’ve seen in the past because we’re all in tough times. We can help each other. “

(continued #om page 11)

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24 MAY/JUNE 2011

Understanding how potential home buyers make decisions can help you e#ectively com-municate with them.

A national study conducted by CNW Research in 2010 helps us gain better insight into the consumer decision-making process (start to "nish). CNW Research is consid-ered an industry leader in providing insights into how consumers make major purchasing

decisions.While the average time it takes buyers to go through this

process can vary from market to market and given di#erent economic circumstances, CNW has found all buyers typically adhere to a seven-stage process.

A need or desire is bornIt generally takes seven stages from when potential buyers

start outlining parameters for their potential purchase to when they close on the actual purchase. It’s not unlike like a sculptor starting with a mound of clay. Buyers start creating wide ranges for needs and begin passively collecting information from mul-tiple sources (three to four bedrooms, two to three bathrooms, etc.).

In the "rst stage, they take personal stock in what their needs will look like months and years from now; much of which is done in context of their current living conditions.

By the second stage, a clearer picture emerges. Instead of three to four bedrooms, it’s a solid four. Decisions and in-volvement start moving from passive to active.

As stage three begins, their basic needs are clear and the focus shi&s. A general sense of location has always played a role, but now they are focused on speci"c communities and neighborhoods.

By stage four, the buyer directs attention toward the details (style, type and design). “Do we want a ranch or colonial, new or existing construction, modern or conventional?”

It becomes clear that in stage "ve the buyer feels invested in the decision to buy and focuses his attention on price and payment.

For the remaining stages, six and seven, price is clearly a dominant focus. Since location can o&en impact price, it regains consideration in stage six. Interest in features across the "nal two stages is likely attributed to the subtle di#erence buyers look to when choosing one home over another (e.g., garage size, pools, fences, security systems, "replaces, etc.). Again, these features can have a direct impact on price.

Consider the sources Buyers no longer use one source when making a decision.

Instead, they seek advice from agents, friends, local newspa-pers (online and in print) and the Internet. At least 20 percent or more of potential buyers use these sources in concert with one another as well as others.

It’s important to note that at stage "ve the agent has estab-lished his dominance as a source at 70 percent usage. %is is also where the Internet, in general, reaches its peak in usage. %is points to the moment where buyers painted the clearest picture they could with the resources available and elect to have an agent help them the rest of the way.

This is not to say buyers only rely on the agent the rest of the way. In fact, the numbers of di#erent sources used increas-es the closer they get to the actual purchase. Local newspapers (online) continue to grow in utility through stage six (an ad-ditional trusted source buyers rely on for pricing and location decisions). Finally, local newspapers (print) rise in usage in the "nal stage. %ere’s still something to be said about consumers and the habit of relying on the permanence of “the printed word” as a trusted source.

Key vehicles of communication for builders and Realtors are in their website, search engine optimization and market-ing, social media applications and newspapers (print and online). A Realtor’s ability to demonstrate how his agents are best equipped to help buyers "nd the home they are looking across these di#erent sources will help in attracting prospec-tive buyers and maximizing its marketing investment.

ImplicationsProviding the information consumers need through the

sources they use gives you a competitive edge in selling homes and attracting potential buyers, as evidenced in the CNW Research.

Adam Cook is a senior research analyst with Pilot Media. His work has been recognized with eight national and two interna-tional research awards. He has also been published in Quirk’s Marketing Research Review. Cook can be reached at (757) 446-2664 or [email protected].

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MAY/JUNE 2011 25

To submit items for Shop Talk, please e-mail !e Tidewater Builder editor Sara Steil at [email protected] or fax it to her at (757) 420-5539.

John Mack to head up academyJohn Mack has joined Tidewater Builders As-

sociation as sta# vice president of the Building Trades Academy.

He brings several decades of leadership expe-rience with Boys & Girls Clubs throughout the

country and most recently served as Executive Director of Boys & Girls Clubs of South Hampton Roads.

The BTA is a 501(c)3 program that provides education, train-ing and employment services in the building trades to low-in-come residents of South Hampton Roads through partnerships with industry, government, and community organizations; to deliver vocational training through partnerships that enhance the community and promote a#ordable homeownership.

Tony Davis will continue to serve the Building Trades Acad-emy, where he is responsible for recruiting students and placing them in jobs when they have completed the program. If your company is interested evaluating BTA graduates for positions with your company, please contact him at [email protected].

If you or your company is in a position to support the BTA, please contact Mack at (757) 420-2566 or [email protected].

MSA crew advances their certi!cationsMSA project surveyor Gregory Zoby and survey crew

chief George Franklin recently earned their land surveyor li-censes in Virginia.

Soil scientist Jason Fulbright received his onsite sewage system operator license from the Virginia Department of Health. He is also an Authorized Onsite Soil Evaluator and is the vice president of professional advancement for the Vir-ginia Environmental Health Association.

Civil project engineer Crystal Bloom also earned her Vir-ginia Professional Engineer (PE) license.

MSA P.C. is a regional consulting "rm headquartered in Virginia Beach that provides environmental consulting, plan-ning, surveying, civil and environmental engineering, and landscape architecture for public and private projects. For more information, visit www.msaonline.com.

BloomFulbrightFranklin ZobyMack

Page 28: May/June Tidewater Builder

26 MAY/JUNE 2011

Past NAHB and past TBA President Frederick J. Napolitano Sr. shares

a moment with late actress Elizabeth Taylor

during the 1977 Nep-tune Festival. Napolitano

was King Neptune, while Taylor and her

then-husband former U.S. Sen. John Warner

were also in the parade. Taylor passed away at age 79 on March 23.

TBA President Bill Halprin, CEO Chan-ning Pfeiffer and “Thinking Out Loud” host Mark Cox get ready for their interview, which aired on Chesapeake TV25. The men discussed TBA’s Building Trades Academy and the Chesapeake students who have been through the program.

April Litton and Connie Edwards of Virginia Natural Gas serve up hot dogs, hamburgers, chips and drinks for the Homearama subcontractors at Eagle’s Nest. Working the grill are Buren Lowery and Tom Rumley.

John G. “Chip” Dicks III of FutureLaw LLC, left, presented his annual Virginia Residential Landlord and Tenant Act/Fair Housing review on April 21, at the Norfolk Waterside Marri-ott. With Dicks are Sharon Hamilton Taylor, the dean of RAM school, and her husband John Taylor.

Home editor Victoria Hecht chats with Matt Des-Roches of Suntrust Mortgage following her town hall luncheon with TBA members in March. Waiting to speak with Hecht are Lana O’Meara of Designs of Distinctions and Victor Dzarnowski of Floorcrafters.

Remembering Liz

Page 29: May/June Tidewater Builder

MAY/JUNE 2011 27

The companies listed here have joined TBA or renewed their membership in March 2011.

Steven W. Stafford, P.E. .. (757) 564-8898www.cdgva.com

P.J. Yates ........................ (757) 497-8000www.esi.net

John Mullen .................... (757) 397-1248www.harrisonsmoving.com

Meghan Hodges ............. (757) 244-1777

Robert Howerin .............. (757) 440-0036www.howerinconstruction.com

Micah Losciale ................ (757) 518-2970www.piginc.net

David West ..................... (757) 778-0498www.westhaven-construction.com

The phone number for Dr. Energy Savers was incorrectly listed in the March/April issue of The Tidewater Builder. The correct number is (757) 969-6000.

Page 30: May/June Tidewater Builder

28 MAY/JUNE 2011

BOXX SYSTEMS is a locally owned and operated company serving both commercial and residential customers throughout Hampton Roads.

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We deliver & pick upLoad at your convenienceShort or long term storage

STORAGE

Roll-off containers for easy removalHeavy/industrialLight/residentialMany sizes available

WASTE REMOVAL

Call us today for your storage or waste removal needs: 757-465-2699 or go to www.465boxx.com

Available in many sizes to meet your needs.

Advertisers’ IndexFrom the vendors to the builders,

Homearama buyers take advantage of everything from deeply discounted items to free upgrades.

Test drive the marketFor Ore, o&en times he’ll add items

to the Homearama house as not only a perk for the buyer, but also as a way to see if the market will support it.

“If I want to do something di#er-ent, I might give it to them to try it in their house because I want to see what the response is before I put it in other houses,” he said. “It gives me an oppor-tunity to get the feel for what consum-ers are looking at.”

“As far as building a Homearama home,” Martz said, “it’s de"nitely a big bene"t.” Even though it’s very time consuming, “you get so many di#erent options. %e vendors come out and give you great options and great pricing that you’re able to get a little bit more bang for your buck.”

(continued on page 9)

Page 31: May/June Tidewater Builder

MAY/JUNE 2011 29

Builder David DeBord rests easy knowing he is protected by his BIIA policy.

“!ey tried to sue me.”With lawsuit behind him, builder “sleeps better” with TBA’s GL coverage.It began as a scenario all too familiar for many builders. !e homeowners wanted the builder to be responsible for the warped hardwood "oors and the mold on the "oor of the laundry room months after closing, even though the problems were caused by the buyers. !ey even hired an attorney and #led a $1.5 million lawsuit.“I didn’t sleep much the night after I was served with the papers. I felt like my world was falling apart,” said DeBord.!e next morning, after meeting with his GL insurance company, Building Industry Insurance Association, (BIIA) he felt “the weight of the world lifted o$ my shoulders.”BIIA provided him with legal representation and in the end, the BIIA team was able to resolve the case for both parties without going to court.

We know the business. !ink of us "rst for: General liability Competitive rates Workers comp Superior coverage Commercial auto Excellent customer service

Page 32: May/June Tidewater Builder

You save at The Discount Kingand they get a fancy new kitchen.

eastcoastappliance.com

Sales professionals Ed DeVriesand Tom Huxtable.

Top name appliances at unbeatable prices. It’s how savvy builders impress their clients and save money at the same time.