Builders Outlook 2017 Issue6 by Ted Escobedo

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EL PASO

National, State & Local Building Industry News 2017: Issue 6

BUILDERS A S S O C I AT I O N O F

Builders Discuss Housing Issues in Hill Visits More Than 800 Industry Professionals Attend Conference

In more than 250 individual meetings with their representatives and senators, builders asked lawmakers to make progress on several key housing issues, including:

More than 800 builders from across the nation marched on Capitol Hill June 14 for the annual National Association of Home Builders (NAHB) Legislative Conference to call on Congress to make housing and homeownership a national priority and to support policies that will keep the housing recovery moving forward. “Today, builders from coast-to-coast are

Homeownership Remains Key Part of American Dream; Obstacles Persist for Many

As the National Association of Home Builders (NAHB) celebrates National Homeownership Month in June, more than two-thirds of Americans believe that owning a home is an essential part of the American Dream. “Americans continue to place a high priority on homeownership and work hard to achieve this goal for their families,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas. “Our members are committed to providing high-

sending a loud and clear message to members of Congress that a strong housing market is critical to spur job growth and create a vibrant, dynamic economy,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas.

quality homes that meet the diverse needs of Americans across the country.” A key component in the ability of families of all income levels to become home owners is the mortgage interest deduction, which has been a cornerstone of American housing policy since the inception of the tax code more than 100 years ago. The deduction primarily benefits middle-class taxpayers, according to data from the Congressional Joint Committee on Taxation. NAHB supports this tax incentive, as well as provisions that encourage development of affordable housing. Yet, with the national homeownership rate stalled near 64 percent,

• Creating a national flood insurance program that is predictable and affordable. • Reducing regulations that harm small business. • Protecting middle class tax breaks that promote homeownership. • Improving the Low Income Housing Tax Credit to help meet the nation’s acute need for affordable rental home options. • Reforming the nation’s housing finance system by transitioning Fannie Mae and Freddie Mac into a private-sector-oriented system, with the federal government acting as a backstop in times of crisis. • Promoting sensible and cost-effective energy codes. • Securing a supply of softwood lumber sufficient to meet demand. Rep. Peter Roskam (R-Ill.), who sits on the House Ways and Means Committee, spoke to builders before they met with their lawmakers and said that this year there is “a real opportunity to do something about tax reform.” Roskam added that House Republicans are working on a tax reform blueprint that would generate economic growth, simplify the tax code, stop erosion of the U.S. tax base so that it is no longer more attractive for U.S. corporations to go overseas, and provide permanency to the tax code to deliver certainty to the business community. This marks the first year since 2013 that NAHB has held its annual Legislative Conference in Washington, D.C. During the past three years, as part of a nationwide effort to “bring housing home,” builders across the country met with their federal lawmakers in their home districts.

NAHB must continue working to address the obstacles for many potential home buyers. “We have long fought for sensible reforms to burdensome regulations that needlessly increase the cost of homes for low- and middle-income families,” said MacDonald, noting NAHB research that shows government regulations add about 24 percent to the cost of housing. During National Homeownership Month and throughout the year, NAHB and its 700 state and local affiliates work hard to make affordable housing a reality and that it continues to be a priority to our nation’s leadership.

Builders Outlook

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2017 Issue 6

Presidentâ&#x20AC;&#x2122;s Message

Conditions are good for home builders.

Builders Outlook Don Rassette

President, El Paso Association of Builders

As we near the mid-point of 2017, I hope this finds everyone doing well and staying cool. According to the national scene, our industry does not have a lot of health concerns. This is measured across the nation, with focus on four indicators; housing prices, housing demand, housing supply and the mortgage market. These four indicators are showing upward spirals since the housing bust. Prices nationwide have appreciated at about 5% annually for the past five years. Prices nationwide are close to their peak, in 2006-2007. Traffic of prospective buyers is back to peak levels. There is no glut of unsold houses. So, builders don't need to worry about over-building. Home-ownership rates are inching back up, this contrasts with falling 7% over the last 15 years. Housing affordability is goodn In 2007, 25% of income was committed to mortgage payments, it's only 15% today. Mortgage rates are still historically low. Which buyer groups are driving and

will keep driving home sales? Most builders see families driving home sales, and the major markets in Texas attest to this and are dominated by family buyers. Switching to our backyard, local members have been busy. The leaders of EPAB, through our monthly breakfasts, have been told by the City of El Paso Building Department leaders, they do not foresee having to implement any code changes until 2021. We know forces outside our industry and other factors can orchestrate changes, but another four years of current codes, without updates, is very welcome. The Young Designers had numerous entries again and three well deserving entries were awarded scholarships. These very well could be the future leaders in our industry. Many thanks to all who volunteered their time and effort. Kudos to John Cheney for overseeing this venture. The First Home Buyers Saturday was held on June 10th, at Bassett Place. It was received and attended very well. Thanks to all who had sponsored, supported, volunteered

and helped in this successful event. Kudos to Ted Escobedo, for bringing another valuable opportunity to our members, This past week, education and information on our EPAB associated retirement program was dvailable, with Ruth Rivera. Please be prepared and safe-guarded for your future. Sam Shallenberger and myself were asked to be judges for the WTHBA's Parade of Homes. They had 31 homes entered, encompassing three different developments. We made some new friends, were treated well and had a good time. A reminder that our Sunbelt Show is right around the corner. Darren Woodson, (yes, that Dallas Cowboy's Ring of Honor inductee Darren Woodson) will be the opening speaker on August 2. Hope to see you at the Anatole Hilton in Dallas Until then, BE PREPARED TO SUCCEED!

Executive’s Message

Builders Outlook

2017 Issue 6

As the mercury rises, so do the challenges in our industry

Ray Adauto, Executive Vice President EPAB June is a very busy month at most associations and that is true for ours. With our renewed First Home Buyers Saturday the month started with a great consumer show and opportunity to network. From all angles the event was positive and productive. We hope to continue doing this event next year. June is also when the weather begins to play havoc with builders and suppliers. From extreme heat to large thunderstorms the weather

is challenging in June. The high temperature this June reached 112 degrees but happened afterward was the moisture that came into the area created a very sticky and dangerous situation. Heat is a killer but heat and humidity kill twice as fast. This office sent out several “heat advisories” to the membership to ensure that everyone take care with the heat. June showed us once again that we live in a desert and the desert is hot and dangerous. Preparations are going well on the upcoming el Paseo de Casas affordable Parade of Homes. This is the first time we’ve done an event featuring more affordable houses in a very strong

marketplace like Horizon Hills Estates. Several partnership opportunities will be available in your email box. Take a look at how your business could benefit from partnering with us. Our thanks to Franklin Building Materials for the presenting partnership. Plans are already in the works for the 2018 Parade of Homes. Yes we have the site and yes we have builders ready. Watch your emails for information. Finally we want to take time to thank our members for entrusting their businesses with us. As we work with the new Mayor and council people know that the association will be working on your behalf as hard as ever. We have a

good thing in that even with new politicians in the mix the consistency of the City Manager Tommy Gonzalez works in our favor. The political chairs may change but we have a good working relationship with Gonzalez and his staff. Make sure to plan for the TAB Sunbelt show coming in August to the Anatole Hotel in Dallas. It’s a water park and conference center tied in with Hilton so you can make it a vacation if you’d like. For more information see Sunbeltbuildersshow.com. The association offices will be closed July 1-9 for vacation. Hope you enjoy yours as we will enjoy ours.

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National Builder News

2017 Issue 6

Multifamily Decline Brings Overall Housing Starts Down 5.5 Percent in May

n Led by a decline in multifamily production, nationwide housing starts fell 5.5 percent in May to a seasonally adjusted annual rate of 1.09 million units, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department. Multifamily starts fell 9.7 percent to a seasonally adjusted annual rate of 289,000 units while single-family production edged down 3.9 percent to 794,000. “Today’s report is consistent with builder sentiment in the housing market, indicating some weakness after a strong start to the year,” said Granger MacDonald, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Kerrville, Texas. “Ongoing job growth, rising demand and low mortgage rates should keep the single-family sector moving forward this year, even as builders deal with ongoing shortages of lots and labor.” “After a strong start for single-family building this year, recent months have recorded softer readings,” said NAHB Chief Economist Robert Dietz. “However, on a year-to-date basis, single-family starts are up 7.2 percent as builders add inventory to the market.” Regionally in May, combined single- and multifamily housing production rose 1.3 percent in the West and remained unchanged in the Northeast. Starts fell by 9.2 percent in the Midwest and 8.8 percent in the South. Overall permit issuance in May was down 4.9 percent to a seasonally adjusted annual rate of 1.17 million units. Single-family permits inched down 1.9 percent to 779,000 units while multifamily permits fell 10.4 percent to 389,000. Regionally, overall permits rose 3.3 percent

Builders Outlook

in the Northeast. Permits fell 9.4 percent in the Midwest, 0.3 percent in the South and 13.1 percent in the West.

Proposed Forestry Bill a “Win-Win-Win”

n A draft legislative proposal by Rep. Bruce Westerman (R-Ark.) would encourage better management of the nation’s federal forest natural resources while also ensuring the continued recovery of the housing industry, the National Association of Home Builders (NAHB) told Congress today. “The nation’s home builders believe that increasing domestic lumber production from federal lands, both as a means to improve housing affordability and address the resiliency of our national forests, must be a top priority of Congress and the Trump administration, said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas. Testifying before the House Natural Resources Committee’s Subcommittee on Federal Lands, MacDonald added that Westerman’s legislative draft, the Resilient

BUILDING

Federal Forests Act of 2017, would “significantly reduce red tape that prevents the U.S. Forest Service from better managing its timber lands and increase the delivery of domestic timber products into the market.” America cannot meet the nation’s demand for lumber, which accounts for the largest share of the cost of a home among all other building materials. Lumber accounts for approximately $18,000 of the cost of constructing a singlefamily home and lumber price hikes can have a detrimental effect on our nation’s housing market. For decades, timber harvests from the National Forest System averaged between 10 and 12 billion board feet per year. That number plummeted to an average of between 1.5 and 3.3 billion board feet in the mid-1990s and has remained artificially low ever since. Poor land management marked by bureaucratic mismanagement and litigation during the past 30 years has led to declining health of our national forests. The result of this decline is fewer jobs and productivity in the forestry sector, fewer board feet of domestically produced lumber entering the market, and a marked increase in acreage ravaged by insects, disease and fire. Westerman’s legislative proposal would strike a balanced approach in how the nation manages its national forests system by making more federal forest lands available for logging in an environmentally sustainable way. “This will not only restore the health of one our great natural resources, our forests, but also offer the potential to reinvigorate the forestry industry while improving housing affordability. That’s the definition of a win-winwin,” said MacDonald.the lowest end of the affordability scale included Santa CruzWatsonville; Napa; San Luis Obispo-Paso Robles-Arroyo Grande; and San Rafael.

El Pa aso

New Home Sales Rise 2.9 Percent in May ”

n Sales of newly built, single-family homes in May rose 2.9 percent to a seasonally adjusted annual rate of 610,000 units after an upwardly revised April reading, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. “We are seeing solid overall growth in new home sales this year,” said Granger MacDonald, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Kerrville, Texas. “Sales are up more than 12 percent from this time last year, and we expect continued gains throughout 2017.” “This month’s report is in line with our forecast, and consistent with solid builder confidence readings,” said NAHB Chief Economist Robert Dietz. “With more consumers entering the market, further job growth and tight existing home inventory, the new home sector should continue to expand.” The inventory of new home sales for sale was 268,000 in May, which is a 5.3-month supply at the current sales pace. Regionally, new home sales increased 13.3 percent in the West and 6.2 percent in the South. Sales fell 10.8 percent in the Northeast and 25.7 percent in the Midwest.

SINCE 1950

Builders Outlook

Economic Forescast

Retail Sales Growth Slows Kiplinger's latest forecast on retail sales and consumer spending By David Payne, Staff Economist

Sales paused in May, washing out Aprilâ&#x20AC;&#x2122;s momentum. As a result, growth in sales, excluding gasoline, is likely to rise by 3.5%, falling below its 3.8% pace in 2016. Strong e-commerce and building materials sales will not be enough to compensate for the slowdown in motor vehicle and restaurant sales. Auto sales peaked in December, while restaurant receipts appear to have plateaued this spring. E-commerce continues to gobble up the retail gains. E-commerce sales will grow 15% this year, compared with 13% in 2016. The flip side of strong e-

commerce gains is that in-store sales will pick up only gradually, at about a 2% rate. However, a strong headwind is that department store sales are sliding again, possibly linked to announced store closures by various chains. Building materials are having a strong year, mirroring the strength in housing construction in general. They are expected to grow 7.3% in 2017. Food service sales are slowing to a more sustainable growth pace this year: 2.7%, down from 5.5% in 2016. Labor shortages will make expansion difficult for some chains, and higher minimum wage laws will boost menu prices.

2017 Issue 6

Builders Outlook

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Builders Outlook: On the Scene Homebuyer Fair First Home Saturday welcomed at Bassett Place

First Home Saturday, presented by the El Paso Association of Builders was held on Saturday June 10 at Bassett Place. The vendors at the event showcased their businesses to hundreds of visitors who came to see how to buy a home, refinance a home, or to win a chance for $25,000. The throngs of people were entertained by some of the vendors including getting a face paint done or taking a fantasy photo at the photo booths. In addition to those items the display area was decorated with dozens of balloons that were handed out to kids. Ted Escobedo, who originally started the event in 2005, organized this year’s fair and was happy with the turnout. “I think we hit the sweet spot by bringing the event to Bassett Place, the mall where our target market uses,” he told the Outlook. “All of our visitors had a chance to win a big prize and to visit with the experts,” he continued. What was evidenced at the event was that business was being done as mortgage companies and financial institutions offered their services. “We’re really happy to have partnered in this, great turnout, really good event for us,” said Angelique Roman of Sierra Title. Sierra Title along with GECU were the title sponsors for the event. “GECU really enjoyed today,” said Brenda Aguirre of GECU. Plans are in the works for next year.

Monthly Meeting

Board meets in place of cancelled general meeting The Board of Directors met after the Marriott Hotel experienced problems in the ballroom that normally hosts the general meeting. Our scheduled presenter John Balliew from the PSB Water utility gave and update to the board on the status of construction projects underway in El Paso. Mr. Balliew told the board that delays from six years ago are just now being constructed and that those new services will greatly enhance the service expected by the population. “We continue to provide clean affordable water to the area, but as with all things as cost go up so will water rates,” he told the group. “We are making significant investments now for the future,” he concluded. ”

2017 Issue 6 Lunch & Learn Smith talks taxes and potential pitfalls for business

Randall Smith brought the information many were looking for. He talked about what we don’t like to think about, taxes. That subject brought out a good crowd for our June Lunch and Learn on Wednesday June 28. Smith, a CPA and longtime member told the audience that taxes are just one of things a business person needs to be sure of and if not then they need to get the expertise to ensure they are doing the right thing. “I think that most of us honestly want to do the right thing but the rules change and you need to have the best advice available, and so that’s what I do,” Smith told the Outlook. “It’s not just taxes but now it’s the I-9 and 1099’s that the federal agencies are focusing in,” he continued. Smith told the group that over his three decade professional career the biggest change in the IRS is that they have been required to do more with less people, causing headaches for them

as much as for the public. “What I’m most concerned with is that other agencies are now looking into things like 1099’s that most companies don’t pay attention to. “What I’m seeing is an increase of cross agency partnerships, where one agency tips off another and then the business is visited by two or more agencies based on a one time visit,” Randall said. “I want our members to know that they need to make sure they are in compliance with both the I-9’s and 1099’s.” “No doubt if there’s one thing I’m stressing today is that these two items can keep you in good shape or cause you problems including huge fines.” Randall has a private practice CPA accounting business in El Paso. He will present another in his series of presentations later this year on topics about business. He can be reached at 915-225-5200. Patrick Tuttle got Randall to come out. “I think we had a great group interested in our lunch and learn and I look to having Randall back,” he said.

Mortgage Market

Builders Outlook

Fannie Mae survey:

U.S. home lenders see leaner times ahead

U.S. mortgage lenders are bracing for rockier times as consumers demand for home loans slows and competition in the mortgage industry intensifies, Fannie Mae's latest quarterly survey released on Monday showed. Some lenders are worried about a squeeze on their profit margin, but the number of them has fallen since the fourth quarter of 2016, according to the 184 mortgage executives who responded to the survey. In a response to a tougher climate, more lenders said they plan to relax their lending standards, which could attract more borrowers, survey data showed. “Expectations to ease credit standards climbed to survey highpoints in the second quarter as more lenders reported slowing mortgage demand and increasing concerns about competition from other lenders,” Doug Duncan, Fannie Mae's chief economist at Washington-based

mortgage finance agency, said in a statement. The margin on the share of lenders who saw a drop in consumer demand for a loan to buy a home in the past three months over the share of lenders who saw a rise in purchase loan demand fell to about 30 percent, the lowest in two years on a year-over-year basis, Fannie Mae said. The net percentage of lenders which anticipate lower profit margin in the next three months stood at 6 points, down from 12 points in the first quarter and from 31 points in the fourth quarter of 2016. The net share of lenders which expect to ease credit standards rose to 15 points in the second quarter, up from about 3.5 points a year earlier. Fannie Mae's quarterly lender sentiment survey was launched in March 2014.

2017 Issue 6

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2017 Issue 6

Builders Outlook

Expert Advice

401(k)s and HSAs:

Two Great Benefits that Work Even Better Together by Ruth Rivera, VP Bukaty Financial

Currently, 401(k)s and health savings accounts (HSAs) are treated as two siloed employee benefits. As I continue to be a student in the industry, I have come to the realization that employers need to provide a more conceptual strategy that ties the two most important benefits. Currently, they are perceived as totally different benefits: HSAs for healthcare savings, 401(k)s for retirement savings. Because they are looked at as “separate benefits”, employees aren’t maximizing either one to help save for retirement, and it’s costing employers money. As medical healthcare costs keep rising, the less the employee saves for retirement. As I work in the El Paso community, one predominant issue for the employee is medical cost. As a matter of fact, many will go to Mexico for medical treatment that costs less. It’s because of this, that 401(k)s and HSAs will work to an employer’s advantage in your community.

Let’s understand what I mean by that: 1.A major issue with retirement plans is the ability to withdraw or obtain a loan. Based on last year alone, the reason was due to medical bills. 2. The younger workforce doesn’t realize they can use HSAs as a supplemental retirement account. Many also don’t know they can invest in mutual funds in an HSA to help grow their money over time, just like in a 401(k).

HSA’s have triple tax advantage. Contributions go in income-tax free, earnings are income-tax free, and distributions are taxfree for medical costs. HSA funds are exempt from FICA and FUTA payroll taxes, too. HSAs can be a viable way to fund expenses beyond healthcare in retirement. Workers have the option to let HSA funds build up instead of using them for today’s healthcare expenses. And those who save receipts related to those expenses can withdraw their HSA funds taxfree in retirement against those receipts, even though they may be many years old. With such benefits, it may make sense for employees — especially younger ones — to max out their HSA up to the annual limits before contributing to a 401(k). So, how do we help the employee leverage both great tools? So, during your next health open enrollment, consider presenting your HSA and 401(k) as complementary benefits. Your retirement specialist needs to show the employees how to determine where they need to set aside more money for retirement today, so they can afford to stop working when they choose. In the end, it’ll help improve workers’ retirement readiness

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Builders Outlook

EPAB Membership Builder members as of June 1, 2017

AT Architectural Designs Elsa Taracena Accent Homes Mark Dyer Bain Construction Scott Bain Bella Homes Leti Navarrete Bella Vista Custom Homes, Inc. Edgar Garcia BIC Homes Antonio Cervantes

Blue Star Construction, LLC. Carlos Villasana Carefree Homes Richard Aguilar Casas De Leon, LLC Nick Bombach Classic American Homes Priscilla Hernandez Crown Heritage Homes Lydia Mlouhi Cullers & Caldwell Builders John Cullers Cullers Homes Jason R. Cullers Custom Dream Homes Leti & Javier Navarrete D. R. Horton Homes Jaime Gonzalez Dawco Home Builders Walter O. Lujan Deal-2-Deal Homes dba Deal-2-Deal,LLC Delton Deal Del Rio Engineering, Inc. Sal Masoud Diamond Homes, LLC Valerie Baquera Donald Ward Builder, Inc. Donald Ward E. Valencia Land Development LLC Eddie Valencia Edward's Homes, Inc. Eduardo Fernandez EPT Land Communities David Bogas Everest Homes Edmundo Dena, Jr. Fortune Custom Homes Javier Andrade Gaddy Construction Charles Gaddy GMF Custom Homes, LP Frank Torres Guel Construction Rudy Guel Hakes Brothers LLC Chris Hakes Hanson Asset Management, LP Russell Hanson Homes by Design Leslie Driggers Hoard Hunt Communities, LLC Kathy Parry Icon Custom Home Builder, LLC. Carlos Garcia Industrial Realty Group Incorporated Brent D. Harris JER Custom Homes, LLC Jorge E. Rodriguez Kayton Lee Residential, Inc. Brianna Barnes LMJ Construction Co., LLC Mike Lopez Loyalty Homes Gustavo Loy M A Builders & Design, LLC Mustafa Ali Metro Homes, Inc. Fernando Torres, Judith Arrunada, Millennium Homes Dan Ruth New Horizon Builders Georgiana Garcia Pacifica Homes, Inc. Juan Jose Vasquez Palace Homes, Inc. Robert Diaz Palo Verde Homes Edgar Montiel Pointe Homes Carlos Villalobos Porter Homes Albert Porter R.C. Baeza & Associates Robert C. Baeza

2017 Issue 6

Updated every month, here is a list of the 2017 EPAB Membership. Remember to please do buinsess with fellow members.

R.E. Welch Contractor Gordon Welch Rassette Homes, Inc. Donald Rassette Santana Custom Homes Fernando Santana Southwest Land Development Serv. Doug Schwartz The Heritage Group David Bingham Trejo Construction Co. Juan Trejo Tropicana Building Corp. Bobby Bowling IV Tropicana Development Greg Bowling Tropicana Homes Randy Bowling Tropicana Properties Demetrio Jimenez Villagi Homes, LLC Kristi Eddings Will Harvey Development Will S. Harvey Winton/Flair Homes Herschel Stringfield Associate Members as of June 1, 2017

2-10 Home Buyers Warranty Michael Elman 84 Lumber Ernie Chavez ABC Supply Co., Inc. Larry Eck Acme Brick Company Vanessa Rocha; Steve Bush Adams Moulding & Lumber Tom Swahlen Area Iron & Steel Works, Inc. Fred L. Edmonston Jr. Atrium Homes Ricardo Bocardo Jr. Bank of Texas Ray Owen Barnett & Bennett Construction Ben Trzyna Baron Supply David Trammell Barragan & Associates Benito Barragan Barrett Airworks Alexandro Castro Beasley, Mitchell & Co., LLP Brad Beasley BMC Select Jaeson Iovinella Boise Cascade Mike Flores Bonded Builders Home Warranty Grp. Bill Deal Border Solar Javier Ruiz Builders Source Appliance Gallery Kathy Rose, Sandra Lucero C. D. Lee/Britton Insurance & Bonding Anthony Landavazo; Lisa Daniels Cabinet Masters Mike Robles Capital Bank, SSB David Ortwein Cardel Design Group Lorraine Huit Casa Ford & Casa Nissan Luke Lowenfield CEA Engineering Group Jorge L. Azcarate Central Texas Metal Roofing Supply Co.,Inc. Ben Garza, III Chaparral Materials, Inc. Kevin Fortin City Bank Texas Bob Kotarski City Lights Thomas Brown Cognent, Inc. Martin Paredes Commercial Insurance Brokers, Inc. Ken Foster Conde, Inc. Conrad Conde CQC Testing and Engineering, LLC Jaime Rojas Dal-Tile Joseph Cepeda Demcon Disposal Management, LLC Maria Elena (Nena) Gomez Dempsey, Cooper & Lane, Llc Richard T. Dempsey

Desert Quest Plumbing Hector Gonzalez Dunn Edwards Paints Nathan Gordon Dorney Security John Dorney DWS Building Supply Sabrina Voorhies E.F. Building Materials, Inc. Efren Fraire Eagle Roofing Products Scott Aguilar El Paso Building Materials Ken Wade El Paso Disposal Irma Parsons El Paso Mortgage Bankers Association Randi Cabrera El Paso Star Ready-Mix Concrete Inc. David Armendariz El Paso Times Jose Molina El Paso Truss Luis Mendiola El Paso Winnelson Rene Goldfien Ferguson Enterprises Inc. Albert Holguin First American Bank Luis Sauceda,

First Light Federal Credit Union Lorenzo Revelez Firth, Johnston, Bunn & Kerr Jay Kerr Foxworth Galbraith Lumber Dan Villarreal Franklin Building Materials Ricardo Aguilar; Cristina Sheldon GCC Sun City Materials, LLC Victor Tito Marquez GECU- Greater El Paso Credit Union Brenda Aguirre Greater El Paso Chamber of Commerce Richard Dayoub GEPAR-Greater El Paso Assoc. of Realtors Sharron Ramirez Hardware Specialties Jeff R. Paxton Harris Real Estate Group Lane Harris Haskins Electric Charles B. Haskins, Jr. Home of Texas Mark Smiley Home Performance Testing Fernando Garcia/Ray Gonzales HUB International Luis Rosas Insight Mortgage Company Shawn Weeks Interceramic Tile & Stone Gallery David Holguin Inter National Bank Natalie Ojeda J & H Concrete & Post Tension Jorge Herrera James L. Ellis, CPA, PC Jim Ellis Jobe Materials, LP Charlie Tellez Joe Bernal Insurance & Financial Services, Inc. Joe M. Bernal L & P Building Supply Denise McConnell Legacy Real Estate Services /TTi Prop. Management. Patrick Tuttle Lennox Industrie Sharon Horton Lone Star Title Co. of El Paso Sam Trimble Love Engineering, Inc. Montez Love Majestic Realtors Patti Musshorn MAK Roofing & Construction Felix Vizarreta Masco Contract Services dba Gale Insulation Tom Harmon McCoy's Building Supplies Julie Reyes Mechanical Technologies Jaime Zubiate Mingoâ&#x20AC;&#x2122;s Painting & Remodeling Erik Chavarria

Morrison Supply Sam Shallenberger

MTI Ready Mix, Inc. Tony Mullen Neeuhome.com LLC Walter Pichardo New American Funding Brenda Trillo New Era Foam George Tollen Passage Supply John Chaney Patriot Mortgage Randy Bowling Pella Windows Jason Bates Performance Glass & Aluminum Hector Hernandez Pioneer Bank Kathy Carrillo Prewire of El Paso, Inc. Steven Drury Post Tension Dennis Moore Powerfoam Insulation: Metlspan NCI Group, Inc. Arnie Pederson RAC Doors Unlimited, Inc. Charles Foxx Randall Smith, CPA Randall Smith Real Estate Weekly Newspaper Riley Stephens Rebath of El Paso/Las Cruces Lisa Walling Remcon Self Storage Will Harvey

Richman Group Affordable Housing Corp. Kevin Hoffman Rocky Mountain Mortgage Company Dean Inniss Roe, Brad Bradley Roe Rudolph Chevrolet Art Smith Saldivar Electric, Inc. Martin A. Saldivar

Sarabias Blue Sanitation Monica Brown Saguaro Corporation dba EP C & D Recycling Sean Gillespie Senercon Javier Ruiz Sherwin Williams Paint Cruz Lopez Sierra Title Company/Lawyers Title Angelique Roman Simpson Strong-Tie Company, Inc. Ken Donham Snappy Publishing, LLC Ted Escobedo Solar Smart Living Larry Perea Southwest DĂŠcor El Paso Corporation Chris Matthews Spectrum Technologies Miled Daou Stewart Title of El Paso Cindy Bilbe StrucSure Home Warranty Scott Whisenant Su Casa Magazine Bob Skolnick Sun City Winnelson Dean Moore Texas Gas Services Mica Short Texas Title Company Steve Raney TFCU Yolie Melendez-Estrada The Dorian Group/Ocean Gallery USA Miguel Angel Mercado Trane Residential Solutions Robert Meske/ Kathleen Chacon TRE & Associates Linda Troncoso Trim Team Juan & Kris Hernandez USA General Contractors Javier Olmos Vision Consultants, Inc. Kelly Sorenson WestStar Home Loans Cinco Houghtoni WestStar Bank David Osborn WestStar Title Janette Coon

Association News & Events

2017 Issue 6

UPCOMING EVENTS AUGUST 2-3 SUNBELT SHOW HILTON ANATOLE DALLAS, TEXAS

AUGUST 9 BOARD MEETING 11:00 GENERAL MEETING 12:00 EL PASO CLUB TOP FLOOR CHASE BANK BLDG. DOWNTOWN AUGUST 26 â&#x20AC;&#x201C; SEPTEMBER 10 EL PASEO DE CASAS HORIZON HILLS

If you have an event or meeting that you would like to share with EPAB members, please submit your information to: margaret1@elpasobuilders.com

NEW MEMBERS RAC DOORS UNLIMITED, INC. CONTACT: CHARLES FOXX 8001 N. MESA, STE. E-224 EL PASO, TEXAS 79932 915-259-8795

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SALDIVAR ELECTRIC, INC. CONTACT: MARTIN A. SALDIVAR 508 JAMES ST. EL PASO, TEXAS 79915 915-778-7085

MINGOâ&#x20AC;&#x2122;S PAINTING & REMODELING CONTACT: ERIK CHAVARRIA 220 TRINIDAD SUNLAND PARK, NM 88063 915-8672034

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Builders Outlook

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Expert Advice

As a home builder, your top priority is satisfying your customers. Creating a custom home suited to their exact needs and specifications can be a challenge, but you enjoy the hard work—and if they’re not happy, you’re not happy. When it comes to marketing, however, you’ve found that reaching new customers can be a bigger struggle than building a home. New home builder marketing strategies are home to come by, and you may be having difficulty putting together a cohesive, effective plan that allows you to reach your target audience without spending a fortune. How can you reach more potential customers? Online marketing is the answer. The Importance of Online Marketing Strategies for Home Builders As time goes on, consumers begin to respond differently to marketing. Strategies that were once effective are no longer able to have the same kind of impact. In this day and age, marketing methods like direct mail, billboards, and commercials no longer get through to consumers in the same way that they once did. Today’s consumers see these advertisements as interruptions to their daily lives – and they aren’t wrong. Instead of taking them into consideration, they simply tune them out and go about their days. hen, when they’re in need of a specific service or product, they research their options on their own. They go online and use search engines like Google to find businesses that provide what they’re looking for. In most cases, they’ll visit several sites and compare their options before contacting one or making a purchase. If you want to be part of this process for your potential customers, you need to be able to effectively reach and connect with people who are interested in buying a custom built home. Internet marketing makes this possible. And not only is marketing online more effective than traditional methods, but in most cases, it’s also more affordable. Five Effective Home Builder Marketing Methods Let’s explore five marketing strategies for custom home builders that will allow you to reach more customers, communicate with them, and convince them to become a lead at a lower price than the conventional marketing methods you may be using right now. We’ll start with search engine optimization, or SEO, one of the methods with the highest ROI and the lowest cost. Idea #1: Optimize Your Company’s Website for Search When you type a word or phrase into a search engine like Google, dozens (if not hundreds or thousands) of calculations take place behind the scenes to determine which websites show up in the results. Search engine optimization, or SEO, is all about improving your website so you have a better chance at showing up in those results when you should. Let’s say you think your company’s website should be #1 when someone searches for “custom home builder in Michigan” (because you build custom homes in Michigan). If you don’t already rank #1 for that phrase, you might use SEO to get there by doing the following: • Putting that phrase in the titles of your pages • Putting that phrase in the copy on your homepage • Writing content about the custom homes you build in Michigan These steps show search engines like Google that your site provides content relevant to users who search that particular phrase. That being said, you can’t just “stuff” your site with a specific keyword and hope to rank well. In order to earn the rankings you want, you also need to provide the information that customers are

Successful Marketing Ideas for Home Builders Builders Outlook

looking for when they perform that search. There are also several “off-page” signals that play into your site’s ability to rank well. The most important is links from other authoritative sites. Search engines look at links from reputable websites as proof of your credibility, and sites with lots of links have a better chance of ranking highly in search engine results. That’s why in addition to optimizing your own site, a comprehensive SEO strategy for home builders also involves earning links from other sites. Of course, these aren’t the only steps you need to take in order to rank well – but they’re a great start towards achieving the rankings you want. It’s no longer acceptable to simply have a website and hope that Google connects the dots and decides to rank you for specific keywords. And the higher you rank, the more traffic you’ll get from potential customers, so it is definitely beneficial to do everything you can to take that top spot. Idea #2: Create Customer Case Studies and Photo Galleries Custom homes are a very personal and visual item requiring a large investment of time and money. It can be difficult to capture the interest of a potential customer without showing them the work you’re capable of— but the best way is to include case studies and galleries of your previous work. By utilizing a “case study” or “customer stories” section, you can harness the power of your previous customers to gain new ones. Collect photos, quotes, videos, or testimonials from previous customers who were happy with the custom homes you built for them, and put them together in compelling pages to tell stories from start to finish. You could show a before and after, or simply show a photo gallery with a quote or video from a customer talking about how happy they are. Seeing is believing, and this is especially true with custom homes. Photo galleries are another great way to accomplish this—just ensure that website visitors can enlarge the photos and look at small details, and that there are accompanying quotes or testimonials to see, because the customer feedback is just as important as the photos! This will not only show your potential customers the quality of work you’re capable of, but can also help you accomplish your SEO goals. If you optimize these pages for keywords like “custom home gallery,” you can attract traffic from search engine users looking for inspiration and ideas. And if they’re impressed with your work, they may even choose you as their builder. Idea #3: Set Up an Email Newsletter Sometimes potential customers are interested in your company or what you have to say, but aren’t quite ready to make a purchase. In this case, it’s a good idea to have an option to keep in touch with them—and stay in the back of their mind—for that future opportunity. Email marketing is one of those options. By creating an email newsletter that potential customers can sign up for on your website, you have a great opportunity to talk about new homes your company has built, discuss innovations in the home construction industry, and even mention trade shows or local events you’ll be attending. You can communicate with your subscribers as often as you wish, and even address your emails as if you’re speaking to them personally, which can help make them more effective. Idea #4: Be Present on Social Media Social media for home builders may sound difficult, but it can be one of the best ways to communicate with potential leads and strengthen your relationships with customers online. Platforms like Facebook, Twitter, and Pinterest allow

2017 Issue 6

may discuss local brands or companies without directly mentioning them. Being aware of these conversations, and the sentiment behind them, can be very advantageous for your business.

eyou to reach new audiences and grow closer to your target audience in new ways, and offer a whole new level of customer service as well. Home builders using Facebook usually find that it is the best place to answer questions that potential buyers have about homes. Facebook also makes it easy to quickly share photos of new homes or construction, and have conversations with fans of your company. Twitter is great for curating related content, like articles about new construction or businesses in the same area of your company. Pinterest is also a great way to extend your reach by creating boards for interior design, paint colors, or home details, which others many find and explore, ultimately leading them to your business. Social media also allows you to find conversations that are already happening about your company and respond to them—for example, on Twitter, where some

Idea #5: Write Compelling, Informative Content for Buyers Finally, one great online marketing strategy for home builders involves the creation of compelling content. This content may take the form of blog posts, articles, videos, infographics, or something else, but its end goal is always to inform and educate. Content helps you educate your potential customers about specific topics. For example, someone may come to your site wondering how long it takes to build a custom home, assuming you’ve written a very detailed page to answer that question that ranks highly in searches. If you answer the question well, the consumer may stay on your site for a while, become interested in your company, subscribe to your email, and later choose you as their home builder. On its own, content does not usually result in a sale. However, it can help lead to awareness of your company, improve your SEO, and lead to future conversions. That’s why it’s so important to create this content, and why content marketing is becoming an important part of nearly every online marketing plan! -www.webpagefx.com/

Builders Outlook

2017 Issue 6

6046 Surety Dr. El Paso, TX 79905 915-778-5387 â&#x20AC;˘ Fax: 915-772-3038

â&#x2013; ExECuTiVE OFFiCERS PRESiDENT Don Rassette ViCE PRESiDENT Edmundoâ&#x20AC;&#x2C6;Dena SECRETARY/TREASuRER Sergioâ&#x20AC;&#x2C6;Cuartas ASSOCiATES ViCEâ&#x20AC;&#x2C6;PRESiDENT Samâ&#x20AC;&#x2C6;Shallenberger ExECuTiVE ViCE PRESiDENT Ray Adauto PAST PRESiDENT Carlos Villalobos

â&#x2013; TABâ&#x20AC;&#x2C6;STATE DiRECTORS Randy Bowling - Life Director Sam Shallenberger Edmundo Dena

Honorary Life Members Mark Dyer Wayne Grinnell Don Henderson Anna Gill Brad Roe Rudy Guel

Finance Committee Kathy Carrillo Henry Tinajero

Past Presidents Committed to Serve Edmundo Dena Edgar Montiel Frank Torres Frank Arroyos Greg Bowling Randy Bowling Bobby Bowling Iv Doug Schwartz John Cullers Robert Baeza Mark Dyer Kelly Sorenson Rudy Guel Brad Roe Herschel Stringfield Bob Bowling Iii Pat Woods

â&#x2013; ADViSORYâ&#x20AC;&#x2C6;TOâ&#x20AC;&#x2C6;THEâ&#x20AC;&#x2C6;BOARD Jay Kerr, Firth, Johnston, Bunn & Kerr â&#x2013; BOARDâ&#x20AC;&#x2C6;OFâ&#x20AC;&#x2C6;DiRECTORS

Metro Homes West Star Bank Firth, Johnston,Bunn & Kerr Employer Benefits Ep Passage Supply Dorney Security Pioneer Bank Hunt Companies Bella Homes/Custom Dream TRE & Associates Homes By Design Southwest Land Dev. Services Dawco Builders Bella Vista Custom Homes Cullers Homes Icon Custom Homes DRE Development Snappy Publishing Legacy Real Estate Services Lone Star Title Hub International Deal -2-Deal Homes Pacifica Homes

2016 Builder Member Of The Year Carlos Villalobos Pointe Homes â&#x20AC;&#x2C6;

â&#x20AC;&#x2C6;

772-7495

â&#x2013; NATiONAL DiRECTORS Bobby Bowling, IV Demetrio Jimenez Leslie Driggers Hoard -Alternate Antonio Cervantes - Alternate

â&#x2013; COMMiTTEE CHAiRS Membership Ted Escobedo Patrick Tuttle

Fernando Torres Henry Tinajero Jay Kerr Joe Bernal John Chaney John Dorney Kathy Carrillo Kathy Parry Leti Navarette Linda Troncoso Leslie Driggers-Hoard Robert Foster Walter Lujan Edgar Garcia Jason Cullers Samira Gonzaelz Sal Masoud Ted Escobedo Patrick Tuttle Sam Trimble Luis Rosas Delton Deal J. J. Vasquez

El Paso Disposal

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EPAB Mission Statement: The El Paso Association of Builders is a federated professional organization representing the home building industry, committed to enhancing the quality of life in our community by providing affordable homes of excellence and value. The El Paso Association of Builders is a 501C(6) trade organization. ÂŠ 2017 Builderâ&#x20AC;&#x2122;s Outlook is published and distributed for the El Paso Association of Builders by Ted Escobedo, Snappy Publishing, LLC ted@snappypublishing.com El Paso â&#x20AC;˘ Texas â&#x20AC;˘ 915-820-2800

2016 Associate Of The Year StrucSure Home Warranty â&#x20AC;&#x2C6;

Residential Specialists Tract Homes â&#x20AC;˘ Custom Homes Total Customer Satisfaction

Now more than ever, Elâ&#x20AC;&#x2C6;Paso home buyers are planning for the future.

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