The MAB
Homefront May 2017
Design Studios Take Center Stage
Americans Are
Taking Out The Largest Mortgages On Record
Introducing the Tool Belt Barbecue and the Battle of the Board!
Join us for May’s Lunch Hour
Learning!
REAL BUILDERS, INC. General Contractor 1121 South Broadway
Minot 852-1200
Residential • Commercial Multiple • Panelization
dacotahbank. com852-1200 1121 South Broadway Minot
dacotahbank. com
PO Box 3092 • Minot, ND 58702 Phone: 701-839-4328 • Fax: 701-852-1185 email: realbuilders@srt.com
Specializing In All Types of Real Estate 701-852-3505
2219 Elk Dr. Minot, ND 58701 701-858-8061
1541 South Broadway*Minot 800-735-4065 NATHAN ROESLER signal@srt.com 7 2 0 W e s t e r n A v e . M i n o t , N D 5 8 7 0 1
www.minothomesearch.com
P h o n e ( 7 0 1 ) 8 5 2 - 4 8 5 0 F a x ( 7 0 1 ) 8 5 2 - 4 8 7 7
701.373.5361
114 5th Ave SE Surrey, ND 58785 www.legacyfencellc.com rdomres@legacyfencellc.com
/
/
/ TV
701.858.1200 / SRT.COM / This institution is an equal opportunity provider and employer.
In the Market to Buy or Sell? Call Aisha Vadell 833-1136 1820 Highway 2 & 52 West Minot, ND 58701
1 s t M i n o t R e a l t y & M a n a g e m e n t , I n c .
8 5 2 - 0 1 3 6
1-800-UR-RENTS 839-6329
219 S. Main St. • Minot, ND a i s h a @ c o l d w e l l b a n k e r . c o m
OFFICE: 852-3744 FAX: 852-8693
General Cleaning & Restoration Services Water
Fire/Smoke
Sewer
Kipp Jenson
#10 21 Ave. SE
24 HOUR EMERGENCY RESPONSE
701-839-8811 cleantechllc.us
® ST
EEL
INC.
st
838-8825 Licensed & Insured kipps@srt.com
Extreme Weather Disaster & Construction Services
STAR
TH NOR
P.O. BOX 635 MINOT, ND 58702
• General Construction • Concrete • Metal Roofing • Ag Shops
• Crane Rental • Steel Erection • Building Retrofit • Ag Storage
Truly 1 # Your tted Real i Comm e Agent! Estat Dawn Rasmussen C e l l : ( 7 0 1 ) 8 3 3 - 1 7 7 0 H o m e : ( 7 0 1 ) 8 3 0 - 2 8 1 2 F a x : ( 7 0 1 ) 8 3 9 - 0 1 9 1 E - m a i l : g d a a r @ s r t . c o m w w w . m i n o t s e l l s . c o m
REALTOR
PROTECT IT WITH OWNER’S TITLE INSURANCE For more information, ask an ALTA member or visit homeclosing101.org.
1 3 7 0 2 0 t h A v e . S W M i n o t , N D 5 8 7 0 1
Blake Krabseth Broker/REALTOR®
701-720-1786
blake@minothomes.com
DO YOUR BEST WORK TM
Tools and Equipment Superstore MINOT • 700 20th Ave. SE, 701-839-2263 • 800-247-0673 Mon. - Fri. 7:00 - 5:30 • Sat. 8:00 - 5:50
408 N Broadway, Minot, ND 58703 701-852-1156
Buying, Building, or Refinancing... First International Bank & Trust offers a wide variety of mortgage programs, local decision making and the heritage of a trusted banker.
Amanda Geinert
Carissa Visocsky
Karen Engle
Mortgage Loan Originator
Mortgage Loan Officer
VP, Mortgage Loan Officer
NMLS #1439579
NMLS #1332228
NMLS #629510
701-837-2201 ageinert@firstintlbank.com
701-837-2223 cvisocsky@firstintlbank.com
701-837-2222 kengle@firstintlbank.com
www.FIBTmortgage.com
701.837.8737
701.838.0786
www.ackerman-estvold.com
www.ackermansurveying.com
Land Planning & Development Architecture Construction Engineering Environmental & Cultural Services
Lot Surveys Subdivisions Land Boundaries Land Planning Topographic & Construction Surveys GPS Services Minot, ND / Williston, ND
2017 Board of Directors
The MAB
Homefront
EXECUTIVE COMMITTEE President: Christopher Dahl
United Rentals Vice President: Melissa Francisco
Dakota Stone and Granite
The MAB Homefront is a publication of the Minot Association of Builders.
Secretary/Treasurer: Robb Rotramel
Real Builders
606 Burdick Expressway West Suite B Minot, ND 58701 Phone: 701.852.0496
Imm. Past President: Phil Risbrudt
K & R Contracting
DIRECTORS
Like us! www.facebook.com/minotab Follow us! www.twitter.com/minotbuilders Pinterest with us! www.pinterest.com/minotab
Mitch Kraft (’15-’17)
Prairie Supply Rob Orts (’16-’18)
Verendrye Electric Bill Huber (’16-’18)
Minot Lumber Al Schall (’16-’18)
“
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May 2017
Northstar Steel Kal Larson (‘16-’18)
Concrete Mobile Dawn Rasmussen (’16-’18)
Century 21 Action Realtors
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Eric Wanner (’15-’17)
Future Builders Stephen Worlund (‘16-’19)
Anasazi Builders Senior Life Director: Bruce Walker
Coldwell Banker Life Director: Joe Stenvold
We Integrate
STAFF Executive Officer: Elysha Head
Your membership with MAB automatically enrolls you in:
Minot Association of Builders North Dakota Association of Builders National Association of Home Builders
May 8th - Minot City Council Meeting - 6:30 PM May 11th - MAB Board Meeting - 11:30 PM May 23rd - Tool Belt Barbecue - MAB Office - 11 AM to 1 PM May 25th - Lunch Hour Learning - MAB Office - 12 PM
2017 Committees Governmental Affairs: Kal Larson and Chris Dahl PAC: Kal Larson and Joe Stenvold Finance: Robb Rotramel Home & Garden Show: Kasper Ziegler, Loren Vannett, Sheila Melaas, Rob Orts, Melissa Francisco, Carissa Visoscky, Mitch Kraft, Minda Stockdill, Mike Frank Membership: Rob Orts, Dawn Rasmussen, Melissa Francisco, Chris Dahl, Stephen Worlund Nominating: Phil Risbrudt, Al Schall Events: Rob Orts, Phil Risbrudt, Dawn Rasmussen, Robb Rotramel, Amanda Geinert, Joe Stenvold, Carissa Visocsky, Chris Dahl Parade of Homes: DelRae Zimmerman, Brittany Dahl, Mataya Lafontaine, Jo Bahl, Kimberly Keller Steering: Eric Wanner, Bill Huber
The MAB Homefront | 3 | May 2017
The MAB Homefront
Minot Association of Builders 606 Burdick Expressway West Suite B Minot, ND 58701
Your monthly news update from the Minot Association of Builders - May 2017
PRESIDENT’S MESSAGE Welcome to May, MAB members! Here’s hoping your construction season is off to a strong start. Things appear to be picking up in the oil field so I hope it trickles over into the building industry in our area. Join us for the Tool Belt Barbecue on May 23rd! It’s our first time doing it and we’re really excited for the new event. We’re cooking up some good stuff and hope to see you there! I’m very excited for this year’s 2017 Birdie with the Builders golf tournament. The Minot Country Club is a fantastic golf course and we’re excited to bring our members to a course of its stature. We’re also really excited that our generous sponsors will be more involved this year with most of them planning to be at the course at their sponsored hole handing out goodies! We’re also planning our annual trap shoot for late August this year. We’ll announce more details soon! Chris Dahl 2017 MAB President
RENEWALS
We would like to extend a big THANK YOU to our members who renewed their membership or newsletter advertisement this month! Your continued support of the Minot Association of Builders helps us continue to work for you at a local, state and national level. Ackerman-Estvold | Dusty Zimmerman www.ackerman-estvold.com
Acme Tools | Rick Quinn www.acmetools.com
Affinity First Federal Credit Union | Karla Lonning www.affinityfcund.com
Aisha Vadell www.coldwellbanker.com/agents/Aisha-Vadell-58701
All-State Contracting | Warren Anderson
Allied Building Products | Ken Salwey www.alliedbuilding.com
Anderson,Wade & Whitty | Wayne Whitty www.andersonwadewhitty.com
Bremer Bank | Jason Bentley www.bremer.com
Birdy’s Hydromulching | Levi Bjertness www.birdysmulching.com
Clean Tech | Chelsea Kirkhammer www.cleantechllc.us
Coldwell Banker 1st Minot Realty | Bruce Walker www.coldwellbankerrealestate.com
Commercial Concrete Solutions | Gary Wood www.concretesolutionsus.com
Connole & Sommerville | Julie Drady www.connolesomervilleheating.com
Creative Cabinetry | Darla Ziegler www.creativecabinetryminot.com
Coughlin Construction | Cindy Snay www.coughlininc.com
Culligan | Ed Nush www.culligan.com
Dacotah Bank | Lauri Hopwood www.dacotahbank.com
Dawn Rasmussen www.minotsells.com
Dig It Up Backhoe Service | Travis Bohl www.facebook.com/Dig-It-Up-Backhoe-Service-Inc
Double J Construction | Josh Jeffreys www.doublejconstructionnd.com
Edwards Gravel | Robbie Edwards www.edwardsgravel.com
Farroh Roof Truss | Wayne Aberle www.trussmasters.com
Ferguson Enterprises, Inc. | Khris Walz www.ferguson.com
First Western Bank | Pam Degele www.bankfirstwestern.com
Front Street Lighting | Shelley Werner www.frontstreetlighting.com
Future Builders | Matt Geinert www.futurebuildersinc.com
Grand Hotel | Nicole Gebeck www.grandhotelminot.com
Integrity Outdoor Living | Dustin Mayer www.integrityoutdoors.net
IBEW | Robert Wolf www.ibew.org
Kipp’s Heating and Air Conditioning | Kipp Jensen www.kippsheatingandair.com
Landsiedel’s Heating & Air Conditioning | Larry Landsiedel
Lite-Form of Minot | Robert Ebert
Lowe’s Garden Center | Paul Beck www.lowesfloral.com
Menards | Phil Graef www.menards.com
Minot Sash & Door | Myron Feist www.minotsash.com
ND Guaranty & Title | Paula Bachmeier www.thetitleteam.com
NextHome Legendary Properties | Scott Louser www.nexthomelegendary.com
Niess Impressions | Leonard Niess www.niessimpressions.com
North Star Steel | Al Schall
Norstegaard Electric Inc. | Brad Luck
Northern Tier Federal Credit Union | Darrell Roos www.ntiernd.org
Northwestern Electric, Inc. | Paul Bretheim
Peoples State Bank | Rick Beall www.psbvelva.com
Prairie Federal Credit Union | Steve Tonneson www.prairiefcu.com
Quality Concrete, Inc. | Nathan Roesler www.qualityconcretefargo.com
Ralph’s Plumbing and Heating | Kevin Martin
Real Builders | Joel Feist www.realbuilders-nd.com
Rolac Contracting | Jason Sanders www.rolac-nd.com
Souris River Designs | Dave Lebrun www.sourisriverdesigns.com
Souris Valley Ready Mix | Sue Stewart www.svrconcrete.com
SRT | Casey Sidener www.srt.com
Steen Construction Co. | Eric Wanner
Stone Crafters | Jason Schnaible www.ndstonecrafters.com
Tolberg Homes | Wade Tollefson www.tollberghomes.com
Verendrye Electric | Rob Orts www.verendrye.com
WEintegrate | Joe Stenvold www.weintegrate-nd.com Xcel Energy | Kathy Aas www.xcelenergy.com
The MAB Homefront | 4 | May 2017
MEMO FROM THE EO Happy May! I can’t believe how fast the year is flying by. I’m excited for our first summer of our son running around our backyard and a summer full of fun events at MAB! This month, our first Tool Belt Barbecue is coming up. We’re ready to battle it out at the Battle of the Board to see which board member’s BBQ ribs are the best! I would also like to thank Future Builders for donating beef for our meat raffle! In June, we’re having a board exclusive picnic at my house! It’ll be a great chance to get to know each other better and become closer as a board while enjoying good food.
We’re so excited for July’s Birdie with the Builders Golf Tournament! Between a change in venue and new additions to the tourney in general, we’re looking forward to our best tournament yet! Rounding out the summer is our Guns ‘n’ Roses Trap Shoot! It’s a reload of an old favorite! We’ll announce more details on that later!
NEW MEMBER THIS MONTH MINOT AUTOMOTIVE CENTER Please help us in welcoming Minot Automotive Center to MAB!
Minot Automotive Center was founded in 1989 by the Rydell’s Group. They offer Chrysler, Dodge, Jeep, RAM, Fiat, Toyota vehicles and includes the Cartiva Team. The goal of Minot Automotive and Cartiva of Minot is to be an industry leader in providing unmatched quality automotive products and services. We will constantly strive to meet the changing needs of our customers. Our aim is to provide an atmosphere that encourages employee teamwork, integrity and excellence. Together we will set and continually improve sales, service and operational standards to ensure long term market leadership and profitability. It is our mission to exceed our customers' and employees' expectations and maintain their loyalty for a lifetime. Give Minot Automotive a call for your vehicle needs at 701-852-0151 and visit their website at www.minotautomotive.com
The MAB Homefront
Minot Association of Builders 606 Burdick Expressway West Suite B Minot, ND 58701
Your monthly news update from the Minot Association of Builders - May 2017
MINOT PERMIT REPORTS THROUGH March 2, 2017 Ward County Building Permits
Minot Building Permits
1500 1000
840
500
1056
598
209
60 0 2 5 95 2011 2012 2013 2014 2015 2016 2017 292
0
363
1133 191
181
50 40 30 20 10 0
43
33
5
4
2012
Single Family Multi-Family
2013
18 5
17 2 2015
2014
9
2
2016
Single Family Commercial
March Building Permits - Minot $1,000,000.00
$891,000.00
Single Family Dwelling
$800,000.00
Five or More Family Dwelling Residential Remodel
$600,000.00
$400,000.00
Residential Addition Detached Garages & Carports
$393,000.00
Accessory Buildings (Sheds) Commercial Remodel
$203,000.00
$6,350.00
$200,000.00
$200,000.00
$0.00
$2,000.00
Commercial Demolition
$30,000.00
$0.00
Building Permit Type
$430 $410 $390 $370 $350 $330 $310 $290 $270 $250
20 15-2017 Lumber P rices Builder confidence in the market for newly-built singlefamily homes remained solid in April, falling three points to a level of 68 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) after an unusually high March reading. “Even with this month’s modest drop, builder confidence is on very firm ground, and builders are reporting strong interest among potential home buyers,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas.
2015
2016
2017
The Lumber market remains very strong and is up 20 – 30 dollars per M form 5 weeks ago. The plywood sheeting market is up about 35 dollars per M from 5 weeks ago. The OSB sheeting market is up 50 – 60 dollars per thousand from five weeks ago.
The prices listed below provide an overview of the behaviors within the U.S. framing lumber pricing market. The information is sourced each week using the Random Lengths Framing Lumber Composite, which is comprised using prices from the highest volume-producing regions of the U.S. and Canada. Information provided by Random Lengths.
The MAB Homefront | 5 | May 2017
Submitted by Bill Huber MAB Board Member Minot Lumber and Hardware
The MAB Homefront
Minot Association of Builders 606 Burdick Expressway West Suite B Minot, ND 58701
Your monthly news update from the Minot Association of Builders - May 2017
(Reported thru 04/26/2017 from NAHB)
Americans Are Taking Out The Largest Mortgages On Record For the past few years, the housing market has been unbalanced. Strong demand and lean supply keep pushing prices higher and higher. The Mortgage Bankers Association’s weekly purchase loan data showed that the average size of a home loan was the largest in the history of its survey, which goes back to 1990. Higher prices have a few different effects on the market. Buyers have to make tradeoffs on the kinds of homes they can afford, or may be shut out of ownership altogether. They may also adjust their borrowing. Larger mortgage sizes may reflect not just more expensive properties, but also more leveraged ones. The 20% down payment is a relic: the median down payment in 2016 was 10%. For first-time buyers, it was 6%. First-timers and other buyers of less-expensive homes are more leveraged now than they were at the height of the housing bubble a decade ago.
Home loan sizes aren’t the only things that have changed in the years since MBA started its survey. Back at the start of the survey, the median mortgage size was only about 3.3 times the median annual income. It’s now over five times as big - though buyers get bigger homes and lower interest rates. Here’s a look at some housing market characteristics for select years.
NOW OFFERING:
SUPER SPIKES: (250-499 Credits) John Coughlin (490) Bruce Walker (340.5) Todd Brady (340.5) Joe Stenvold (305.5) ROYAL SPIKES: (150-249 Credits) Gary Kramlich (203) Joel Feist (179.5) RED SPIKES: (100-149 Credits) Greg Aasmundstad (111) GREEN SPIKES: (50-99 Credits) Rob Orts (93.5) Jim Montgomery (75) Bill Huber (68) John Lund (64) Dave Lebrun (60) Karen Engle (53.5) Cindy Snay (52) LIFE SPIKES: (25-49 Credits) Kal Larson (47.5) Joe Kraft (40) Pam Karpenko (31.5) Mitch Kraft (28) BLUE SPIKES: (6-24 Credits) Eric Wanner (16.5) Clyde Thorne (16) Lauri Hopwood (14.5) Matt Geinert (10.5) Leonard Niess (8.5) Dwight Flygare (8) Kevin Connole (6.5) Stacey Abel (6) CANDIDATES: (1-5 Credits) Phil Risbrudt (5) Todd VanDusen (3.5) Rich Priesing (3.5) Jim Christ (3) Pat Bailey (3) Christopher Dahl (3) Sheila Melaas (2) Elysha Head (2) Dale Zarr (1) Steve Siemieniewski (1) Reid Kubeseh (1) Al Schall (0.5)
UPDATE OUR MAILING ADDRESS!
CLEANUP/MOWING OF VACANT LOTS
CALL FOR RATES/SCHEDULING 701-852-3401 The MAB Homefront | 6 | May 2017
Minot Assoc. of Builders 606 Burdick Expy Suite B Minot, ND 58701
The MAB Homefront
Minot Association of Builders 606 Burdick Expressway West Suite B Minot, ND 58701
Your monthly news update from the Minot Association of Builders - May 2017
REALTORS IN THE NEWS BROKERS 12 Kausha Bakk — Now a Broker Associate Kausha Bakk, a Realtor at Brokers 12 Inc, in Minot was issued a Real Estate Broker license thru the North Dakota Real Estate Commission. Kausha had completed the requirements needed including extensive education and passed the Broker’s examination to obtain this upper level license. Over 10 years ago Kausha began her career in Real Estate. Since then she has sold 100s of properties, she has been a top producing agent, and she has continued to grow her career by branching into Commercial as well as Residential Real Estate. She is a member of the Minot Multiple Listing Service, the North Dakota Association of REALTORS, the Minot Board of REALTORS, and a Honorary Commander for the Minot Air Force Base.
REALTORS IN THE NEWS COLDWELL BANKER Realtor of the Month Lorell Seibold was Agent of the Month for March at Coldwellst Banker 1 Minot Realty. Lorell can be reached at 701-7214996 or 701-852-0136 or emailed at seibold.60@gmail.com.
Agent of the Month
Meet Your Realtor Jerry Thomas
Clyde Thorne was the Agent of the Month for March at Coldwell Banker 1st Minot Realty. Clyde can be reached at 701-240-8594 or 701-852-0136 or emailed at cthorne@srt.com.
It’s been my pleasure serving as a full time Realtor since 2006. My family and I live outside of Minot. I’m married to Bonny who teaches at Head Start. We’ve been married for 22 years. We have two children Justin and Brianna. Justin attends Minot State University and Brianna attends DLB High School. Our favorite things to do are golf in the summer and snowmobile and ski in the winter. Call me for any of your real estate needs! Jerry Thomas 701-833-7578.
Would your business like to advertise on a page with content similar to below? Contact Elysha at elysha@minotab.com!
701-839-1624
11 54th Ave SE, Minot, ND • Custom Homes • Home Improvement • Steel & Vinyl Siding • Windows • Shingling • Garages • Additions • Concrete • Cabinetry
701-852-3711
900 South Broadway www.bankfirstwestern.com FDIC • Equal Housing Lender
The MAB Homefront | 7 | May 2017
The MAB Homefront
Minot Association of Builders 606 Burdick Expressway West Suite B Minot, ND 58701
Your monthly news update from the Minot Association of Builders - May 2017
NAHB NOTES NAHB achieved a major victory in late February when President Donald Trump signed an executive order directing the EPA and the Army Corps of Engineers to begin the process of rescinding or revising the overly burdensome “waters of the United States” (WOTUS) rule. With this action, Trump honored a campaign promise he made to home builders at NAHB’s board of directors meeting in August, when he vowed to cut WOTUS and other excessive regulations that raise the cost of homes. This executive order is a critical first step toward reworking the flawed regulation. It gives direction to EPA and the Corps to reconsider the rulemaking that would have greatly Granger MacDonald extended the areas in which home builders are required to get permits, usurping state and local regulatory authority. The rule was so vague that almost any site could come under federal jurisdiction. I was privileged to attend the White House ceremony during which Trump signed this executive order. I even had the opportunity to personally thank him for fighting a clear case of regulatory overreach. His response: “We’re going to make home building great again.” I also had productive conversations with Vice President Mike Pence and EPA Administrator Scott Pruitt at the ceremony. This victory was years in the making. Ever since the WOTUS rule was first proposed in 2014, NAHB aggressively opposed it in numerous ways at all levels of the federation. The association voiced its concerns to policymakers, supported legislation to rescind the regulation, and filed lawsuits against it in federal court. I want to thank all of the NAHB members who were involved in these activities, as it definitely was a team effort. Moving forward, NAHB plans to work with the administration as well as EPA and Corps officials to find a way to protect our waterways that also preserves the interests of small businesses and communities. The fact that Trump addressed one of our major issues so quickly after taking office demonstrates the political clout NAHB has in Washington. The association has certainly earned a seat at the table. The nation’s chief executive has listened to us and has acted with our concerns in mind. Regardless of whether NAHB members support Trump, the association is right in the middle of the action, where it needs to be.
The MAB Homefront | 8 | May 2017
2017 BIRDIE WITH THE BUILDERS
DATE
Monday, July 31, 2017
TIME 11:00 AM
PLACE
Minot Country Club
COST
$130 per player
Green fees, cart, dinner, drink voucher and an entry to the Builder Ball Drop included
FORMAT
Best Ball, 4 Person Scramble
EARLY BIRD SPECIAL Pay only $500 if registered before July 1st, 2017!
RETURN FORM AND PAYMENT TO:
WELCOME TO THE MAB 2017 BIRDIE WITH THE BUILDERS GOLF TOURNAMENT ! MAB’s biggest summer event is back! The 2017 tournament begins at 11 AM on July 31st and features an 18 hole round of golf at the picturesque Minot Country Club with lunch served as golfers make their way around the course followed by an evening of cold drinks and great food. Activities this year include the Builder Ball Drop, Putt for PAC, Dress Up Debacle, Golf Tee Guess, Jello Shots, Chipping Contest, Wheelbarrow of Wine, Marshmallow Longest Drive, Guess Your Golfing Name, Best Team Theme Award (Dress Up with Your Team), Door Prizes, Longest Drive Contest and much more! Individual and team registrations are encouraged. Teams may register on one form or if you don’t have a full team, we will select one for you.
NAME
COMPANY
Minot Assoc. of Builders 606 Burdick Expy W. Suite B Minot, ND 58701
OR REGISTER ONLINE AT:
www.minotab.com/ mab-golf-tournament
BIRDIE BACKER - $1,500
Would you like your company to be the prime time sponsor for the Birdie with the Builders golf tournament? Good! We’ve been waiting for you! Your company name and logo will be prominently displayed at the event and have exclusive banner publicity and recognition in all pre-tournament and day-of-event promotion. Your company will also receive a team entry in the tournament! Contact MAB to get involved!
CARRYOUT COLLABORATOR
Since our tournament is starting earlier in the day, we’re looking for someone to sponsor lunch! Bring your grill and contact MAB to come up with a plan!
TEE BOX PARTNER - $125
Fore! We’re searching for tee box partners who love golf and our association as much as we do! Set up a table at the tee box and network with the golfers as they come by. Hand out items like popsicles, shrimp, koozies, mini margaritas or whatever else you think would make your hole the most fun! Contact MAB to sign up!
Sponsors will be recognized before, during and after the tournament online, in print and on location. Contact Elysha at 852-0496 or contact@minotab.com to become a sponsor!
The MAB Homefront
Minot Association of Builders 606 Burdick Expressway West Suite B Minot, ND 58701
Your monthly news update from the Minot Association of Builders - May 2017
DESIGN STUDIOS TAKE CENTER STAGE
imes have changed since McDonald’s chairman Ray Kroc introduced upselling to the masses by directing his employees to ask customers if they wanted fries with their sandwiches. Even 60 years ago, Kroc knew that consumers spend more when they’re already in buying mode, and his directive nearly doubled the company’s sales of french fries. Home builders long profited from the same approach, selling bare-bones houses standard while pushing a variety of higher-end products as upgrades or options. But 21st-century home buyers are turned off by hard line tactics, say industry experts. In fact, among home buyers and builders, upselling is now practically a dirty word. “We don’t upsell. The term itself is inappropriate,” says Kira Sterling, chief marketing officer for national home builder Toll Brothers. “The implication is that that’s against customers’ best interests, and this is not what we are doing.”
and if they see the value and decide to invest, they end up with homes more closely aligned with their wants and needs, reflecting their unique personalities.” Seattle-area builder Quadrant Homes takes this approach in selling its high-end houses in Seattle’s tech corridor. Buyers spend anywhere from half a million dollars to upward of $1 million to live in one of the builder’s communities in award-winning school districts east of the city. Seeking to enhance its customers’ product selection experience, Quadrant in 2013 built a design studio in Bellevue, Wash., where home buyers could work with design associates to choose finishes and upgrades. The center was beautiful and won awards, but it wasn’t unique enough, says president Ken Krivanec.
So this year, company executives replaced the original design studio with a state-of-the-art 4,200Instead, associates at Toll Brothers’ 25 design centers square-foot concierge-level facility that is “a haven throughout the country take a custom approach for for today’s buyers, offering products and services just every client, Sterling says, getting to know each ahead of what they expect,” Krivanec says. “One buyer’s lifestyle and how they intend to live in their station after another inspires them to think homes so presentations and offerings can be tailored differently.” to their needs. A “tech wall” highlights the latest in home It’s all about building trust, says design consultant automation. Kitchen and bathroom vignettes show Suzanne Felber, founder of Lifestylist Brands. off the newest premium products, from heated “People don’t want to be sold—they want to be marble floors to floating mirrors with vanishing TVs. educated,” she explains, noting that model homes Buyers can see how different finishes work together and sales centers need to focus on education instead using interactive displays, make lattes using the of sales. “When they trust you, they will buy from automated system, control windows and lighting you.” with their smartphones, and play with robot vacuums while enjoying a catered lunch from the Jane Meagher, president of design studio consulting demonstration kitchen. The studio showcases firm Success Strategies, calls the process of products from many premium brands including informing and educating home buyers upserving. Savant, Lutron, KitchenAid, Whirlpool, Cambria, and “When you upsell, you’re focused on driving more Delta. revenue at any cost,” she says. “When you upserve, you educate customers about higher-value products,
The MAB Homefront | 10 | May 2017
The MAB Homefront
Minot Association of Builders 606 Burdick Expressway West Suite B Minot, ND 58701
Your monthly news update from the Minot Association of Builders - May 2017 Quadrant’s investment is paying off. Though the firm wouldn’t share sales numbers, vice president of operations and purchasing Chris Pallemaerts says that year over year, buyers across all price levels are spending more on finishes and going for products they connect with emotionally. “Costs and budget have become a kind of secondary concern, which shows how much the space and products inspire them,” he adds. In markets across the country, home builders of all sizes are upping their design studio game. Earlier this year, Louisville, Ky.– based Cook Brothers Homes opened what it claims is the most comprehensive design studio in greater Knoxville.
client. “There’s always been this mystery before going into a design studio, and you couldn’t really prepare for the appointment before you got there,” Stahl says. “Now you can preview selections and shop around at your leisure. This is the way of the future.” California’s BlackPine Communities also uses the Envision portal to help prepare clients for visiting its 1,200-square-foot design gallery in Sacramento, says president Michael E. Paris. He has seen that “the more prepared folks are and the more ability they have to see and feel things in our design center, the more exponentially their tendency to spend, so to speak, increases,” he says.
Home builders looking to profit on products are wise to target affluent empty nesters who are often trading down in square In Charlottesville, Va., buyers can preview and select fixtures, footage, have discretionary dollars, and “feel like it’s their time to appliances, cabinets, and countertops at Southern Development shine,” says Meagher. She points out that millennials also tend to Homes’ new design center. In Southern California, The New Home feel no less entitled to superior products and upgrades than their Co. converts model home garages into customized on-site design boomer parents. Raised in a world full of hyper-segmented centers and highlights all available upgrades, from lighting to choices, millennials don’t want to live in a box that looks like the landscaping, in its models. In February, McLean, Va.–based Miller & neighbors’ house, Felber says, and they expect the latest, greatest Smith opened a “sales experience center” at its new community technology. One Loudoun in Ashburn, Va., a 1,300-square-foot retail space that allows home buyers to feel and see products. Scott Manthey Homes Design Center Jerry Gloss, a senior partner at Louisville, Colo.–based architectural firm KGA Studio Architects, Courtesy Cook BrothersCook Brothers Homes Design Center says baby boomers are especially ripe for upselling—without the Similar efforts are underway at the Victor, N.Y.–based design studio high-pressure tactics. “They figure they’ve worked their whole life for developer and home builder Riedman. President David for this house, and with lower interest rates, their dollar goes a little Riedman says buyers are making more “additional bit farther,” he says. investments” (the PC term for spending more money), thanks to the company’s design center that differentiates his firm from Builders Design regional vice president Lesley McCarthy says competitors. “Customers walk away from the experience with the curation is key to reaching all buyers, many of whom feel an home they want as opposed to feeling like they were sold as much immediate sense of trust when design centers feature trendcabinetry as possible,” he says. forward products they’ve seen on Houzz and HGTV. In fact, builders who offer customizable design features in their homes are The process of selecting the hundreds of products that go into a viewed more favorably by buyers than those who do not, house can be daunting for even the most design-savvy buyer, according to a new study, even when buyers choose not to opt for notes Cliff Stahl, national vice president of sales training for the upgrade. Meritage Homes. “They want to be reassured that they’re making coordinated, tasteful selections,” he says. The survey of potential home buyers commissioned by fireplace manufacturer Napoleon found that 52% of potential homeowners To that end, sales associates at Meritage’s 19 design centers had a more positive impression of builders that offer upgrades, nationwide take the role of trusted advisers who get to know each says Stephen Schroeter, Napoleon’s senior vice president of sales. buyer, reassure them when necessary, and nudge them toward making choices when time is running out. Meritage recently began “We learned from the study that success isn’t just about upselling to offer Envision, an online application from Austin, Texas–based products,” Schroeter says, “but more about designing spaces and consulting firm BDX that lets buyers see and research options as incorporating amenities that increase the emotional appeal of a they prepare for design center appointments. room.” The digital portal eventually will be available to every Meritage
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NDAB NEWS Monthly News from the North Dakota Association of Builders
❖ May 2017
State and National Capitol Visits
Presidents Message Now that the legislative session has ended, we have time to breathe a little bit and then turn our focus toward other important items for our members. One thing that we discussed at our board meeting in March was to get our education committee reNDAB President energized. The association has Eric Brenden struggled the past couple of years in coming up with education opportunities for our members. We would like a member from each of the local associations involved in this committee, so that we can make sure to represent everyone’s interests. It was decided that the 1st Vice President of the association will chair the committee each year. For those of you who don’t know, our 1st Vice President this year is Dan Lindquist from Fargo. These days there are so many online training and educational opportunities, but I believe there is still the need for in class education and hands-on training. Once we have all of the members of the committee in place, the first goal of the committee will be to brainstorm different topics that are important for our members to get trained on. If anyone has any ideas or suggestions, please let us know, and we can pass it on to the committee members. Once we have a list of potential topics together, we can then do the research to see how we can best facilitate the training. Again, there is a great deal of knowledge on a variety of topics within our membership, so any input, ideas and suggestions is appreciated. We are looking forward to having a busy and productive month of June as well. As I mentioned a couple of months ago, the NAHB midyear meeting is in Washington, D.C. from June 13-17. We also have our next NDAB board meeting and PAC legislative social in Williston June 27-28. We will be taking a tour of a drilling rig while we are out there as well, so I look forward to seeing everyone from across the state at those two events!
May is here and that means flowers, warmer days, and the final day of the 65th Legislative Session! May 1st is the 80th day of the legislative session and per law, the legislators are limited to 80 days during the regular session. On behalf of NDAB, a heartfelt thank you to all our members that participated in NDAB sponsored events at the state capitol, that connected with your representatives, those who testified in front of committees, and everyone who donated to NDABKim Schneider PAC or BUILD-PAC. Your continued dedication NDAB Executive and support is greatly appreciated and noted by Officer the legislators! We encourage you to watch your local associations calendar of events for more opportunities to meet with your legislators while they are back in their home districts. Our elected officials are working year-round and we always encourage the communication to continue. April brought us the official opening for registration for the National Association of Home Builders (NAHB) midyear board meeting. Being held June 13-17 at Marriott Wardman Park hotel, all members are invited to join in education, networking, and the celebration of NAHB’s 75th anniversary! Washington DC is full of history and a fantastic summer vacation destination if interested in bringing your family and extending your stay. NAHB and NDAB members will meet with their congressional delegations on Capitol Hill to discuss issues of vital interest to the home building industry. NDAB members from ND will be visiting with Senator Heitkamp, Senator Hoeven and Congressman Cramer and our MN members will be making additional visits with their representatives. We invite all of you to join us! If you have never had the opportunity to attend NAHB meetings, we have plenty of members that have regularly attended and would invite you to join them at their committee meetings and to watch the board of directors meeting. If you have any questions regarding the upcoming meetings or are interested in a possible White House Tour, US Bureau of Engraving, and Printing or of the National Capitol while in DC, we can do our best to help you out! Just call us at 701-222-2401. “You are as welcome as the flowers in May.” – Charles Macklin If planning to join us in DC, I want to take this opportunity to share some fun facts:
DC Residents drink more wine per capita than residents of any of the 50 states. There is an empty crypt beneath the Capitol building. George Washington was supposed to be buried there, but he wanted to be buried at Mount Vernon, so the crypt is empty. Beneath that crypt, you will find a nuclear fallout shelter. Washington DC residents could not vote for the President until 1961 and DC still has no representation in the Senate. Washington DC was built on mosquito-infested swamp and 20% of DC is park land. If you should visit the Library of Congress, the biggest library in the world, you can read a top-secret FBI interrogation manual which is one item among the more than 162 million objects in the library’s collection. DC averages 39 inches of rain every year, which is more than Seattle. Pack your umbrella! The Washington Monument will sway about .125th of an inch if the wind is at least 30 mph. Washington DC is technically named for George Washington, but it is also named for Christopher Columbus (The District of Columbia).
Take care, Kim Schneider
Back your PAC … your PAC backs you!
NDAB-PAC is the North Dakota Association of Builders’ Political Action Committee. It is a non-partisan political action committee that provides support for candidates who are friends of the building industry. Contact NDAB at (800) 326-4746, (701) 222-2401 or info@ndbuild.com to contribute or learn more! North Dakota Association of Builders ❖1701 Burnt Boat Drive, Suite 201, Bismarck, ND 58503-0801 ❖701/222-2401 or 800/326-4746 ❖www.ndbuild.com
Around the State Dot Frank, Executive Officer 701-222-2400 bmhba.com
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The 2017 Home Show was hosted in February attracting more than 219 vendors filling 100,000 sq. ft. of exhibit space. The Spring Parade of Homes will be hosted in early May to accommodate Builder member needs due to extreme winter weather. Box Lunch with a Builder debuted in March. The event pairs a roomful of Associate members with two Builder members to share industry insight. Fun Night at Jerome Distributing was in March. Board members will battle to win the 2017 Chili Champ ladle. Dickinson Area Builders Assoc. Tiffaney Dolechek, Executive Officer 701-483-0044 dickinsonareabuilders.com
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The Dickinson Area Builders hosted the Home Show April 1st and 2nd! There were over 90 different vendors exhibited with over 140 booth spaces. On Saturday April 1st we hosted our annual Home Show Social at the Eagles for the vendors, committee members, and volunteers to network and relax after the stressful day. Thank you to our Platinum sponsors Builder First Source Montana Dakota Utilities and Bosch Lumber, Gold sponsors Dakota Community Bank & Heartland Homes, Silver sponsors Benchmark Engineering & Midwest Doors, and bronze sponsors Jay R’s Spray Foam, Seacrest Homes, Kahm Construction, Allan's Decorating Center, Jerome’s Distributing, & Quality Quick Print! March 29th was our PAC event & general membership meeting at the Elks lodge. We have invited all the local legislators and city officials to speak to our members at this event. Our goal is to get 5 more members signed up at the 365 level. We are hoping for a great turnout again this year and a fun night! The Dickinson Area Chamber of Commerce made us their Business of the Week the first week of March! From left to right Vice President Mike Jangula, Director Gene Kruger, EO Tiffaney Dolechek, and Past President Lance Kilwein. (See photo)
www.ndbuild.com
students from the Northland Community & Technical College will graduate May 12th. After graduation the carpentry students invite their relatives and friends to a reception at the house to show what they have been working on all year.
Bryce Johnson, Chief Executive Officer 701-232-5846 hbafm.com
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Home Builders Care of FargoMoorhead Foundation, HBA of FM's charity, held its Fish Fry April 7. 572 attended this event, which is open to the public and over $6,000 was raised for Home Builders Care. Thank you to our sponsors and member volunteers for helping make this event successful! In celebration of National Remodeling Month, the HBA of FM is holding its annual Remodelers Council Picnic May 12. The Spring Parade of Homes Celebration is May 18. This event concludes the Spring Parade of Homes, and congratulates Builder and Associate Members for their hard work. The HBA of F-M is excited to Welcome Ali Froslie as a communications intern for the summer. In addition, Public Affairs Intern Liza Thompson will extend her internship and expand her focus to include communications. Forx Builders Association Betty McDonald, Executive Officer 701-746-4536 forxbuilders.com
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The PS Garage Doors team did a great job as hosts for the last Builders after Hours. Hats off to them.
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Our Annual Sporting Clay Shoot will be held at the Dakota Hunting Club May 23rd. Fargo Glass & Paint is the event sponsor. Italian Moon will provide the burger and brat meal after the shoot. Thanks go out to Loren Abel, Abel Construction, and Andy Hendrickson, Insure Forward, for co-chairing this fun event.
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The 2017 Project House is near completion and it is a very nice house. Thank you to the Project House Committee for all their help on this house. The Committee, Board of Directors and students meet at the house for a tour and pizza the first part of May. The
Minot Association of Builders Elysha Head, Executive Officer 701-852-0496 minotab.com
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The Minot Association of Builders presented Hard Hat Happy Hour on April 25th. This is a new event for our Association which will also include the Bags for Builders Cornhole Tournament and a visit from the North Dakota Association of Builders Executive Officer, Kim Schneider. Join us at the Minot Country Club at 5 PM on April 25th to learn more about MAB, how our Association can help grow your business and how you can get involved in state activities. The Tool Belt Barbecue is headed our way on May 23rd at the MAB parking lot from 11AM to 1 PM. It’s a party in the back…of our parking lot! We invite our members to take part in our mullet themed lunch barbecue! The Birdie with the Builders golf tournament is coming up on July 31st at 11 AM at the Minot Country Club. This year’s tournament brings a new venue, new games and much more! Spots are sure to fill up this year! Planning has started for the 2017 Parade of Homes. This year’s Parade will take place on September 16th from 10 AM to 4 PM. We have several builders interested in showing their homes already and hope match the same amount of homes we had last year! Be on the lookout for more details coming soon.
Williston Area Builders Association Ann Kvande, Executive Officer 701-572-5744 willistonbuilders.com • •
❖North Dakota Association of Builders
2017 Home and Garden Show Scheduled for April 7-8, 2017 The Williston Area Builders Association (WABA) is excited to announce that the date for 7th Annual Home and Garden Show has been set for April 7-8, 2017 at the Raymond Family Community Center in Williston. The Home and Garden Show is the largest public event WABA hosts each year with over a 100 vendors and thousands of participants.
❖ May 2017
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