With the election behind us (by the way, I correctly predicted 4 of the 7 outcomes in my previous newsletter. Not bad, but I’ll keep my day job.) it is now time to focus on matters of interest to Nevada’s Manufactured Housing Industry that are being pursued in advance of the 2009 Nevada Legislative Session.
Without a doubt, much of the attention of the Governor Gibbons Administration and legislative leadership will be focused on identifying ways in which to fill the current $300 million budget gap. They will also need to identify ways in which to address the anticipated shortfall of $1.5 billion for the next two year budget cycle that begins July 1, 2009. Discussions have already begun and with the new estimates, the Gibbons Administration has backed down somewhat on their commitment to “no new taxes” by indicating “everything is on the table for discussion”.
One area of savings that has garnered the Administration’s interest is the idea of merging the state Manufactured Housing Division into the Housing Division. While discussions around this move have taken place for several months, the Administration’s interest in the potential cost-savings and ability to maximize resources from such a move is now at a premium.
It is no secret that the industry has had its “customer service” challenges with the Division, and has expressed interest in a merger as a way to address these challenges. Another avenue that is being explored is to try and work with the Division to enact effective change through a series of reforms. To that end, the Nevada Housing Alliance has developed a white paper of requested reforms that was presented to the Division in November. Recommended reforms include:
Bring prospective clients into a website for the purpose of selling a home. This may sound silly, but most websites in the industry never get to the end purpose of easing a prospective buyer into purchasing a home. For every click your client makes on the website there should be a logical progression toward getting a lead by either a phone call or email. It has to be thought through.
2 – Navigation
Don't do too much! Some websites have too much information on the front page and this can bring confusion to aprospective client. Front pages should really have little more than three options, say, a closeout sale, a special featured home, and floor plans. Each of these three strategy paths can be monitored to see what the clients are choosing and this can be modified or accentuated according to how the clients respond.
3 – Design
The design should always support the strategy and it should portray professionalism and trust. The best way to build client trust is with pictured testimonials of your clients. On your front page picture a happy family in front of a new home saying how well you treated them and howeasy it was with “Bill Salesman” by our side. Quiet complementary colors create a harmonious look and also aid in establishing trust. Don't be loud and flashy!
4 – The Hook
Ask them for their business by using of a graphic bug or pitch which in effect gets them to “contact us now”. Another hook is to give them a “privilege” to view a “special price” that routes them through a simple registration. Remember all you need to start is a name, phone and email, so keep it SIMPLE. Offer an incentive for them to contact you, give to get. When they contact you respond immediately, if you wait too long it will be a strike against you. Get back to them ASAP!
With retailer lots shrinking because of new flooring financing requirements, now is the time to get that new website strategized and selling homes. You can beat the slowdown by getting a better sales technique and implementing your new strategic website.
Max Marble 503-378-7166 or
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Calendar of Events
CALENDAR OF EVENTS
December 9 – Utah Board of Directors, Salt Lake City, UT December 10 – Nevada Board of Directors, Reno, NV December 24-January 1 – Happy Holidays to all! January 13-15 – Louisville MH Show, Louisville, Kentucky February 17-19—Oregon Home & RV Show, Salem, Oregon February 19 – ID Board Meeting, Crane Creek, Boise March 4-5—Nevada Continuing Education, Reno & Las Vegas March 16-17—Utah Continuing Education Classes March 18 – Utah Board Meeting, Salt Lake City March 19 – Nevada Board of Directors Meeting, Reno April 14-15 – MHI Congress, Paris Hotel, Las Vegas, NV April 16-17—Nevada Continuing Education, Las Vegas & Reno April 29-30 – Great SW Home Show, Tulsa, OK May—Three State (ID, UT & NV) Golf & Convention, Reno, NV May—Joint Board of Directors’ at Annual Meeting, Reno, NV August 20—Idaho Board of Directors Meeting, Boise, Idaho September 16—Utah Board Meeting, Salt Lake City, Utah September 17—Nevada Board Meeting, Reno, Nevada October 27-29— Idaho Continuing Education Classes November 5-6—Idaho Continuing Education Classes November 19—Idaho Board of Directors Meeting, Boise, Idaho December 9—Utah Board Meeting, Salt Lake City, Utah December 10—Nevada Board Meeting, Reno, Nevada
OREGON – An agreement between Oregon’s Department of Business and Consumer Services (DBCS) and the Department of Motor Vehicles (DMV) will give some county governments the authority to handle document processing and taxation of mobile home. In previous years the DMV has handled mobile home fees and taxes in the same manner as automobiles. Under the agreement extension, counties can act as their own agent and give mobile home owners an ownership document like that provided to traditional home owners. Owners will be able to transfer the homes and acquire a title at a county DCBS office or through a title company.
WASHINGTON— Port Townsend-based architect, Randy Fax has taken a cue from local minimalist builders and created five new modular home designs that emphasize simplicity and affordability. The sizes of these dwellings range from 14-by-28 foot condo-sized units to a much smaller 10-by-12 foot “Outlaw” model. The homes result in no construction waste, as compared to site-built residences that often produce 10-15 percent waste. It is an ideal entry level home at $100 per square foot. Additionally, Kulshan Community Land Trust is partnering with Seattle’s Method Homes to design a factory-built residence or dwelling built onsite using wall panels. The goal is to locate the units in densely populated areas as in-fill homes. A group called Countywide Housing Affordability Task Force (CHAT) is promoting these panel units to create more affordable housing and reduce impact fees.
COLORADO— Modular Construction is the perfect fit for the Aspen resort’s employee housing. In just 12 days, a 44,000 sq.ft. 36 unit housing complex was crane set in the midst of one of the Rocky Mountain’s most upscale ski villages. Thanks to The Neenan Company and Barvista Building Systems, more than 120 workers have attractive, energy-efficient (LEED cert.) housing.
CALIFORNIA— Governor Arnold Schwarzenegger has called for an investigation of building code protocols and emergency policies after two major fires destroyed over 600 manufactured homes. The losses may prompt tougher fire retardant building codes for new homes.
LOUISIANA— Bossier Homes has created a portable house for the Santa’s Workshop on the Louisiana Boardwalk. The new, log-cabin style manufactured home has 2,315 sq ft, superior quality and is fully furnished. It is a real Christmas promotion for MHomes.
Housing Market Opportunity
HOUSING MARKET OPPORTUNITY
As America copes with the financial crisis there are still areas throughout the country that are still doing relatively well in regards to property and home sales. People over extending and buying out of their price range helped to put the U.S. in this position. The necessity to have quality affordable housing will always be a need across the economic spectrum. This will definitely help the manufactured housing industry. Despite the negativity flooding the airwaves, TV and newspapers, there are some pockets of sunshine as far as the overall housing market is concerned.
There are even some up-ticks in housing activity in the hardest hit states, namely Nevada, California, Florida and Arizona. Certain elements of the bank and GSE bailouts and the Housing and Economic Recovery Act of 2008 help our industry. For example, the Act says that when a first time home buyer purchases a house between April 9 of this year and July 1, 2009, he or she will get a $7500 tax credit. It also establishes a “duty to serve” the manufactured housing industry. There is no easy way out of this economic downturn, but in these times of crisis, we must find the opportunities. This is the time to be creative and work collaboratively. The fastest, most effective way to turn this economy around is to shore up the housing sector.
Manufactured and modular homes offer the best cost per square foot and can allow people to have energy efficiency, additional space, amenities and upgrades that they may not have considered or been able to afford in a conventional site-built home. Factory-built homes have come a long way in the design and quality that they offer. Current or future home buyers can do their research and find sites online where manufacturers and retailers display various models and options. These web sites offer some solid information and resources to help consumer decisions. Anyone looking to upgrade their current living conditions may want to check out the new look in homes and may be surprised that a manufactured home payment is less than renting.