Tidewater Builder - June Edition by Tidewater Builders Association

T h e Ti d e w a t e r

The official magazine of Tidewater Builders Association

June 2009 Vol. 56, Number 5

Making a Splash

Spring 2010 Homearama at Founders Pointe

Who is renting in today’s market? Members swing it out

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The Tidewater

June 2009 Vol. 56, Number 5 The mission of Tidewater Builders Association is to improve the climate for affordable housing; promote the growth and development of the shelter industry; promote excellence and professionalism among members through education and networking opportunities; and support and enhance the community through charitable projects. OFFICERS: Pete A. Kotarides, president; William H. Halprin, vice president; James E. Jackson, associate vice president; Charles J. Miller II, treasurer; S.L. “Sam” Cohen, secretary; Steven E. Lawson, appointee; Edward R. Sadler, immediate past president BUILDER DIRECTORS: Richard L. “Tuck” Bowie, Scott G. Brooker, Christopher J. Ettel, Dennis M. Graf, Pete O. Kotarides, Steven E. Lawson, Lucky C. Peterson, Stephen B. Quick IV ASSOCIATE DIRECTORS: G. Robert Aston Jr., J. Gregory Dodd, Thomas W. Dye, Scott M. Gandy, Brenda K. Reid, Samuel G. Scott, H. Mac Weaver II, Edward O. Yoder

Joel Backstrom tees off as SENCON teammates, from left to right, Guy Sorensen, Jason Hawks and Brendon Roark watch on.

p. 14

Features 4

DIRECTORS EMERITI: Edward P. Brogan, William J. Fanney, Richard D. Guy, Doyle E. Hull, Frederick J. Napolitano, Richard E. Olivieri, John H. Peterson Jr., The Honorable Owen B. Pickett, Julian Rashkind, Stanley Waranch, Howard M. Weisberg, Wendell A. White CHIEF EXECUTIVE OFFICER: Channing A. Pfeiffer

TBA is looking for builders to showcase their work in Isle of Wight’s Founders Pointe, tentatively scheduled for April 17-May 2, 2010.

Editor.......................................................Sara Steil Production coordinator........................ Stella Council

11 Education is the key to survival Combating hesitant buyers starts with curbing their fears through education, former TBA president Larry A. Sancilio tells builders.

Adviser............................................ Sandra Amidon Graphic Artist.................................... Diane Trumbull Copyright: 2009; all rights reserved. No permission to reprint unless expressly given by Tidewater Builders Association. The Tidewater Builder is published for all TBA member firms through the $15 subscription price, which is included in the annual membership fee. Opinions expressed by contributing columnist are not necessarily those of this publication.

The Tidewater Builder is published monthly, January through December, by Tidewater Builders Association, located at 2117 Smith Ave., Chesapeake, VA 23320. Editorial deadline is 5 p.m. on the 1st of the month preceding publication. Advertising deadline for copy and insertion order is p.m. on the 10th and for camera-ready ads, 5 p.m. on the 15th of the month preceding publication. All advertising is subject to current rates, copies of which can be obtained from the Special Events/Membership/Marketing Division, 420-2434. The newspaper reserves the right to determine the suitability of any advertising or editorial copy, and all real estate advertising is subject to the Federal Fair Housing Act of 1968, which makes it illegal to advertise and preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin, or an intention to make any such preference, limitation or discrimination.

It’s getting competitive out there The multi-family housing community is getting back to basics in today’s renter- driven market – and it appears to be working.

Managing editor............................... Mary Prier, APR Advertising sales....................................Kim Powers

Reserve your spot for TBA’s first spring Homearama

Departments 2

President’s Pen

Advertiser’s Index

Headliners

Shop Talk

Builder Services Success Story

Big Pic

Spike

Counsel’s Insights

Events Calendar

Shades of Green

Membership Update

About the cover: Founders Pointe, which will host TBA’s first spring Homearama in 2010, already boasts a $2 million resort-style clubhouse with swimming pool, waterslide, volleyball court and children’s playground. June 2009

President’s Pen

Builders “Stayin’ Alive” in 2009

attached products under $300,000, where absorption is still n May 14, 2009, we celebrated the end of the in the 10 to 20-month range. This group and the detached recession at the Builder Breakfast in the TBA resales under $350,000 are where most of the increased foreboardroom. If it took the government more closure activity is occurring. than one year to announce the beginning of Conversely, attached new construction under $300,000 the recession, you can’t blame us for wanting to declare the reflects a seller’s market, with a 1.6 to four-month supply. end of it as soon as possible. And, as you might expect, The theme of the morning higher-end homes are still was “Stayin’ Alive,” a song taking longer to sell. representing the ’70s, a deVan also reported that one cade that up until now, many year ago, we could expect believe had the worst econone contract for every 33 site omy since the Depression. visitors — a ratio that is now If our economy survived the one to 15. This means our ’70s, we can get through this, lookers are twice as likely to right? become a buyer this year. The goal was to present Our other panelists adbuilders with strategies and dressed ongoing realities of encouragement to keep going the market and offered this until we see better days. Builder Breakfast panelist are, from left, Jeff Ainslie, Ainslie Group; Van Those days may be sooner Rose, Rose and Womble Enterprises; Nathan Olansen, Williams Mullen; advice: rather than later, according Grigsby Scifres, Williams Mullen; and Larry Hill of L.R. Hill Custom Homes. • Negotiate alternatives with lenders in person. Come to the data presented by Van with a written plan. If you Rose, president of Rose and come forward and deal with issues head-on, you’ll emerge Womble Enterprises. Van was one of five panelists offering with your credibility and integrity intact. their insights and advice. • Take someone with you to banker meetings. Their job is to Van reported that the local housing market is a lot better listen and take notes. off than it was a year ago in many respects. • Be prepared to sell at cost or less to get your debt off the First, new home inventory has dropped from 2,460 units books. to 1,640. This number represents a 7.6-month inventory, One of the panelists, a tax attorney, presented changes compared to an 11-month inventory. in the tax law that means good news for the bottom line of Vans says a five-month inventory is considered “the magic many of our members (see highlights of his presentation on number” for a healthy housing market – and we are already page 19 or visit www.tbaonline.org and go to Builder Services achieving that number in some products and price ranges. and click on “Other points of interest” for more details, as For instance, activity has picked up significantly for dewell as Jeff Ainslie’s presentation, “Negotiating with your tached resale products under $300,000 and detached new lender.”). home products under $400,000. Even more than the valuable information at this breakfast The absorption rate of four to six months for the new was the knowledge that we’re all facing the same challenges home products puts us on the verge of a return to a seller’s in this tough economy. Even though we may sometimes commarket, according to Van. The resale products aren’t far bepete for customers, we want all of our members to feel like we hind with 6.4 to 9 months of inventory on the market. are all in this together, working and hoping for better days for Remember, these buyers can get comforming loans with everyone in the industry. attractive interest rates. And now, the first-time home buyer tax credit of up to $8,000 can be applied at closing, thanks to extensive lobbying by NAHB, and state and local HBAs across the country. Unfortunately, we still have a hard resale market in the Pete A. Kotarides

June 2009

2009

Cornerstone Foundation Members Thank you to the following companies for their support of the shelter industry: Diamond

$10,000

Platinum $5,000

Virginia Natural Gas Dominion Virginia Power Fulton Bank/Fulton Mortgage TowneBank

Wells Fargo Monarch Bank/Monarch Mortgage Superior Equipment Sales Inc. Cox Communications Columbia Gas of Virginia

Gold $2,500 The Ainslie Group SunTrust Real Estate Finance Group Bank of America Tidewater Home Funding Beach Ford Inc. The Virginian-Pilot Sykes, Bourdon, Ahern & Levy P.C. Bank of Hampton Roads Williams Mullen William E. Wood & Assoc. Kotarides Builders Napolitano Homes Clark Whitehill Enterprises Inc. Area Builders of Tidewater Inc.

Terry/Peterson Cos. Hearndon Construction Corp. Ashdon Builders Inc. L.R. Hill Custom Builders Inc. Miller Custom Homes Joey Corp. Greenbrier Lighting Associated Development Real Estate Information Network Inc. Gateway Bank & Trust Co. Reese Smith Construction iLevel by Weyerhaeuser The Closet Factory

June 2009

TBA announces spring 2010 Homearama Event will showcase Founders Pointe in Isle of Wight County

By Mary Prier, APR

ext year’s spring selling season will get a boost from Spring Homearama at Founders Pointe, an established custom home community overlooking Batten Bay, the James River and its creeks and tributaries in Isle of Wight County. Tidewater Builders Association is seeking builders to participate in this showcase event, tentatively scheduled for April 17-May 2. The neighborhood is being developed by East West Partners, developers of the world-class communities of Gatling Pointe in Smithfield, Eagle Harbor in Isle of Wight County and The Riverfront in northern Suffolk. The site is located off Route 17, just three miles south of the James River Bridge, or 10 miles north of I-664. It’s 15 minutes from Hampton and 25 minutes from downtown Norfolk. There are 15 home sites available to custom home builders who would like to participate in the showcase event. Lot prices range from $112,500 for wooded views to more than $300,000 for waterfront views. “Homearama builders will be joining an established first-class community, where homes are currently selling for $470,000 to over $900,000,” said Branch Lawson, president of East West Partners. “We welcome their talent and creativity into what is already an award-winning showcase community.” “This waterfront community, with 320 home sites, is now home to 150 families. It has appeal for both the Peninsula and the Southside market, and residents appreciate the county’s tax rate of .52 per $100 assessed value.” Builders who are interested in participating must contact Teresa Howell to receive an informational package before the lot drawing scheduled for June 18. She can be reached at 305-9062 or thowell@ tbaonline.org For more information about the community, visit www.founderspointe.com. 4

June 2009

Community amenities

• Home sites from ¼ to more than one acre with marsh, creek and wooded views • $2 million resort-style clubhouse with swimming pool, waterslide, volleyball court and children’s playground • Full-time activities director for Resident’s Club • Almost 3 miles of leisure trails • Waterfront observation pier on Batten Bay • Residents’ Club available for social events • Design review process to protect architectural integrity

Lot drawing

2 p.m. June 18, 2009

Founders Pointe Clubhouse

266 Founders Pointe Trail Carrollton, VA 23314

Headliners Builders, brace yourselves — and your walls

iLevel by Weyerhaeuser is offering a three-hour seminar focusing on the practical application of 2006 VA 602.10 Wall Bracing Code. The FREE seminar will be held from 9 a.m. to noon on Thursday, June 11, in the TBA boardroom. Open to all builder and designer members, the workshop will give participants the knowledge and tools to apply for a residential building permit, as well as learn how to develop bracing solutions based on what they have learned. Builders are welcome to bring their own plan to review. To register, contact Patrice Kyle at 305-9015 or pkyle@tbaonline.org.

Do you still not have your picnic tickets?

Don’t worry. You can still set sail with TBA at this year’s Festival in the Park (formerly the TBA Annual Picnic). The rain or shine event is scheduled for 4 to 8 p.m. on Friday, June 12, at Chesapeake City Park. Enjoy mouthwatering food, refreshing beverages, exciting activities/contests and fabulous entertainment. Remember, this is an adults only event and a great networking opportunity. To order tickets for pick-up at TBA or the gate, contact Stella Council at 305-9065 or scouncil@tbaonline.org. Ticket prices are online at www.tbaonline.org.

Mark your calendars for TMHC gala!

Celebrate under the big top at the 25th annual TMHC awards ceremony on Thursday, July 23, at the Virginia Beach Convention Center. The festivities begin at 5 p.m. with the annual Associates’ Showcase in the lobby. Dinner and the awards program will follow at 7 p.m., and also includes the RAM graduation and presentation of the Community Awards of Excellence and the Merit Awards for Professional Excellence. The cost of the banquet is $60 for TMHC members and $70 for nonmembers. TMHC’s Associate Showcase registration is also under way. Reserve your booth early and receive a $25 discount! For more information, contact Maggie Rickard at 305-9053 or mrickard@tbaonline.org.

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June 2009

Getting back to basics Rental properties are changing their strategies as competition increases

Kotarides Builders is developing a transit oriented apartment community in downtown Norfolk, the Belmont at Freemason, near the city's light rail.

By Sara Steil

espite a slower housing market and a recession, the apartment industry is booming. Across Hampton Roads, developers are constructing about 1,700 apartment units, with 2,000 more planned, according to the 2009 Hampton Roads Real Estate Review, by Charles Daton. This doesn’t mean that the market hasn’t been affected by the economy and higher-than-desired vacancy rates. “We all have challenges today,” said Bill Halprin of S.L. Nusbaum. “We just have to be on top of our game.” So, the multifamily housing community is getting back to basics to attract and retain tenants.

Where are the renters?

According to the 2009 Hampton Roads Real Estate Market Review, “the occupancy rate in the Hampton Roads region is consistently one of the highest in the southeast, but it has been falling the last several years. As of October 2008, the average rate was 93.1 percent.” As with tough economic times, job loss and tighter bank accounts, demand for housing slows. “We’ve seen the downward trend in traffic that started a year and a half ago,” said Chris Dembitz of Clark-Whitehill Enterprises Inc., “but the number of people looking haven’t been the numbers that they were before the downturn.” According to Dembitz, the luxury properties were the first to feel the pinch of the economy because those renters “were always the renters by choice, so when money gets tight, they go somewhere cheaper or they buy homes.” According to Debbie Gordon, chairwoman of TBA’s Multifamily Housing Council, “it seems to be fewer military, and the renters seem to be shuffling from property to property.” 6

June 2009

Shadow market competition

There is no way to gauge if unsold condos or homes now being rented are hurting apartment communities. “We’re not seeing so much of that,” said Halprin. “A lot of that is more higher-end properties with a lot of condos,” and even then, associations limit the number of condos that can be rented. “We don’t see that much because a lot of times they are much higher than our rent.” One benefit, Dembitz added, is that “a lot of apartment renters are not interested in renting homes because they don’t want to deal with the yard maintenance.”

Negotiating a renter-driven market

“The problem is that renters are getting savvier and they’re looking more to negotiate,” said Dembitz. “Right now, the renters are driving,” which is forcing properties to get back to basics. “A few years ago, when the market was strong, you didn’t have to worry about closing a deal because someone would be in right behind them. Now, that’s not the case.”

How are properties attracting tenants?

Some properties are offering concessions, though most are avoiding free rent, and instead increasing their curb appeal. “It’s basically the perfect storm of things happening for us right now,” said Dembitz. “Concessions are up, rents are down, and collections are up — though they have stabilized lately. Even people applying have lower credit.” As a result, rental properties have had to adjust their credit standards, as well as renew renters at the same rates. They’re also reassessing their customer service, and training their staff to use technology. “We’ve really bolstered our Internet presence because every

Does the military affect occupancy rates?

year, more and more of our traffic starts Rental prices for Hampton Roads on the Internet, and we want to make The average quoted rental rate is $871 for Hampton Roads, with the rental rates from sure we have exposure,” Dembitz said. The results are mixed. existing inventory increasing by $6.70 in the His company is also making sure its last 12 months. Here are how the numbers “We’ve been very fortunate because staff is e-mail savvy and is incorporating breakdown: we have more diversified industries here,” texting and other new media into the rou- No. of bedrooms Cost said Halprin. “I think we were more tine. “For the younger generation, they One bedroom $779 adversely affected years ago than we are Two bedrooms $876 want to be able to do everything online, today.” Three bedrooms $1,031 interactive and immediate.” Source: 2009 Hampton Roads Real Estate Market Review “I think we’ve struggled with that Others are turning to online sites to more in the last two years,” said Gordon, list their properties. Many properties are now advertising for whose military tenants have shrunk by 25 to 50 percent “befree on Craigslist, MySpace and Facebook, all online networkcause of the carrier groups that we have lost in the region.” ing sites. Instead, “we’re trying to get more of the professionals in the “The largest source of new prospects is Craigslist,” said 20 to 28-year-old range.” Gordon. “It has worked so well that we have added an emHowever, Dembitz has definitely seen the effect military ployee who does nothing but update Internet and create vidhas on his properties. eos on YouTube, MySpace, Twitter and more.” “We’ll see some traffic bumps when the carriers move in,” he said. “And when there is a deployment, it’s bad and it hurts us, but that’s because we rely so much on the military. So we “It starts with retention,” said Dembitz, whose company work really hard to attract and retain the military personnel. is starting the renewal process earlier than ever and offering We like to take the extra steps to help them if they show inmore incentives, such as repainting apartments, carpet cleanterest in staying in the apartment when they’re deployed. ing, upgrading kitchens and reducing rents.

What about retaining tenants?

“The cost of turning over an apartment can cost $3,000 to $5,000,” he said. “So, if you give someone a few hundred dollars to keep them in there, then you’re way ahead of the game.” Though rehabbing units is one way to retain tenants, “residents are more interested in the price point than newer things in the apartment,” said Gordon, who believes that the No. 1 focus should be customer service. Though “renewing residents with little to no increases” is also a way to retain them, she said. “You want to stay away from a concession-driven market, but in some places, we have to offer some concessions, such as offering anywhere from $500 off first month to first month free, because our competition is doing so,” Dembitz said. Halprin agrees, though he tries to limit rent increases. In the end, renters are really looking for value, which “includes price, features/amenities and, most importantly, customer service,” Gordon said. “They want to feel that they are getting the best value for their money, and they will move to another community if they do not feel that they’re getting the best customer service for the rent that they’re paying.”

Is the future of multifamily communities bright?

It’s uncertain whether the new units under construction will be competing with the market’s aging units. According to Gordon, the new units will be directly competing with existing properties, but “I think if we can renew at no increases, then we can slowly stabilize and increase rents over time.” But the future of the multifamily housing community does look promising. “Our collections have been really strong, occupancy has gradually improved — it’s at 3 percent vacancy,” said Dembitz. “Though we haven’t seen any rent growth, our traffic numbers have been a little bit better.” “I’m cautiously optimistic,” he continued. “We’re seeing signs of improvement. Because of the military presence in this area and the government spending, hopefully this will be one of the first areas to crawl out of the funk that the country is in.” Virginia Beach’s The Crossings at Red Mill and Chesapeake’s Holly Point won first-place honors in 2008 Award of Excellence for their properties.To attract new tenants, many multifamily housing communities are emphasizing the amenities that come with apartment living, such as pools and manicured landscaping. In today’s economy, property managers are getting back to basics, which includes increasing their curb appeal, to attract tenants. June 2009

What to do instead of free rent Multifamily marketing tips from a pro

I’m not against wooing and pursuing every customer in the market. I just don’t believe in messing with the rent check. So, here are some ways to stay away from free rent concessions.

Why do communities offer free rent?

It’s easy! It doesn’t take a plan, an idea, nor require creativity and owners let you. But just because people do it, doesn’t make it the right answer. Great American Business Products hired a team of marketing experts, including myself, to plan and create dynamic amenities signs that will get you noticed. If you are willing to have a plan, an idea and be creative, you don’t have to give away rent.

The market doesn’t decide — you do

I asked my colleague Jennifer Nevitt, the renowned guru on multifamily industry pricing, to share her ideas. Here’s what she had to say: Nevitt: Toni, our current thinking is sad. Actually hearing someone tell me “it’s the market” makes me cringe. In a conversation with a property manager, we discussed (her)

By Toni Blake, Guest columnist

market’s condition of 83 percent occupancy. Her perception was that the two-months FREE rent would help her gain ground against competitors. The reality is if the market is 83 percent occupied; two-months FREE rent isn’t going to fix the insufficient demand. It’s dangerous to match the lowest concession. If you give a week free as my competitor, I will match you. If you give two weeks free, I will match you

again. We are still renting the same number of apartments based on available market share just at much lower rents. Toni: Your entire existence in real estate is to increase the value of the asset. When you lower the rent, it does not just change your bank balance, it changes the perceived value of your product. My reaction to a soft market is not to decrease my value, but increase it. I need the customer to see me as the best choice and not the cheapest. I will win with a simple, yet very clever value-marketing plan, which includes some of the following:

Games

You can play who wants to be a millionaire by having a balloon with lottery tickets inside. Everyone who looks at an apartment gets a balloon and the chance to win millions. Spin the wheel for incentives, such as vacuum cleaners and blenders. People love “custom features,” so give them a chance to decorate with a free accent wall painted from a section predetermined by your company. Add chair rail in the dinning room to match their furniture ($15). Add color and style with removable wallpaper borders ($17.50 per room). Let them take a chance and spin a wheel with $300-$800 to spend in the design center. This money is re-invested back into your real estate asset.

Contest

Before you give in to temptation to give away free rent, try a contest with an exciting (non-rent) giveaway. Remember that everyone who visits your community must be allowed to enter a contest in order to make it legal.

Build confidence in the property

Create a poster that lists 25 reasons why a prospect should become a resident. Reinforce the message to your team with spot checks where regionals call or personally ask a team member to state five of the reasons to rent, and if they can, they give them $5 on the spot. (Continued on page 17)

June 2009

Builder Services Success Story

Builder touts the value of TBA By Sara Steil

• National Association of Home BuildParties impacted: TBA builders ers “I love the affiliation with the National Advocate: Eva Dailey Builders’ Association and the information Despite today’s economic challenges, many members, including that they put out combined with the inEva Dailey, are reaffirming the value that their membership in TBA formation that TBA puts out,” said Dailey, provides. who has also used her affiliation with other “Being a small builder and the economy being the way it has programs to earn her graduate builder cerEva Dailey been, the membership fees are large enough that you have to baltificate. ance where you spend your money,” Dailey said. “Staying with TBA • Education “They (TBA) are doing a great service to the is one of the places that I wanted to spend my money because I builders by keeping us informed and being on our side need to know what’s going on.” and being there for us,” said Dailey. “The lobbying is also Value of TBA membership • Homearama Trying to build a reputation as a female builder, Dailey joined forces with another female builder in 2000 and 2001 to showcase her work. • Stanley Awards “It gave us a good reputation for being a reputable builder,” said Dailey, who uses her award in advertising campaigns. “I can advertise my award that I won and that, ‘Yes, I’m a good builder.’”

fantastic and the education is great.” • Most valuable For Dailey, it’s “being informed of what is going on, not only locally, but also nationally,” she said.

Learn more about the benefits of being a TBA member at the member orientation at 9 a.m. on Thursday, July 14. For more information on TBA membership, contact Stacey Turner at 305-9042 or sturner@tbaonline.org.

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Take advantage of this NEW resource for filling your next position. JOB SEEKERS! Post your resume CONTRACTORS! Post a project and see who bids on it. This site has been specifically designed for employers offering positions in the construction and housing industry, whether you're looking for trades people for the job site or sales/customer service and administrative staff for the office. It was made possible by a grant from the National Home Builders Institute.

June 2009

Builders are not insurance professionals Savvy builders caught off-guard by insurance exclusions Even the most savvy business owners can find themselves caught unaware of endorsements (exclusions) added to their insurance policies that leave them exposed to risk they thought was covered. Veteran builder Jeff Ainslie, a long-time By Patty BIIA Workers’ Comp Letchworth customer, offers a case Guest columnist in point, having found unexpected exclusions in another company’s GL policy. “Having gone back and read cover-to-cover every policy issued for the past 10 years, we now recognize that each year, numerous endorsements have been added to the policies,” said Ainslie. “Some of these are simply clarifying policy language while others significantly reduced the primary coverage areas.” These exclusions prompted partner John Ainslie to ask: “What do these policies actually still cover?” Here are some examples of what to look out for:

Example 1: Exclusion “L” damage to your work

“Property damage” to “your work” arising out of it or any part of it and included in the “products-completed operation hazard.”This exclusion does not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor. Endorsement CG 22 94 10 01 modifies this exclusion to eliminate the second paragraph of this exclusion leaving “your work” or any property damage arising out of it.

What it means to you:

As a builder, “your work” is the house. So any property damage to the 10

June 2009

house or any property damage arising out of it is excluded. These 25 words in what may be a 500-page document leaves you exposed. Unfortunately, the reduction in coverage doesn’t correspond to a reduction in premiums.

Example 2: Policies issued on an “Occurrence basis with a Sunset Clause”

An occurrence policy normally means the policy will respond based on when the occurrence (event) takes place. The alternative policy language changes the trigger from the occurrence to the policy term. It usually reads something like this: “This policy will not provide any coverage, regardless of the other terms and conditions of the policy, including the definition of “occurrence,” for any claim or “suit” made against an insured unless the claim or “suit” is reported in writing to the insurance carrier within two years after the expiration date of the policy period.

What it means to you:

Since every policy has a one-year term, this language dramatically reduces your claims coverage. BIIA insurance policies issued by TBA do not contain these exclusions. Our program was designed for and by the building community to offer a policy that is among the broadest in the industry. Yes, we have exclusions but you will

not be surprised by hidden exclusions. BIIA not only depends on our professional insurance agents to review the policy terms with you, we send our loss control specialist to meet with every purchaser of our general liability policy to ensure our clients understand the requirements of our policy and have tools in place to assist them when that unexpected event occurs. No insurance policy covers everything, but you should be aware if an exclusion exposes your business so you can decide whether to accept the risk or find another means to transfer the risk through a different insurance product or through contractual risk transfer. To hear directly from a local builder who experienced the benefits of BIIA’s general liability policy and the loss control services free to our clients, listen to David DeBord’s story by visiting our Web site at www.vabuildersinsurance. com. Please ask your insurance agent, “Does my general liability policy contain exclusions that reduce my coverage?” Spend an hour with your agent to review the endorsements contained in your policy. A good agent will welcome the opportunity to provide this valuable service. Patty Letchworth is the staff vice present of Building Industry Insurance Association and can be reached at 420-3022 or pletchworth@tbaonline.org.

We’re reducing our carbon footprint. TBA has trimmed the number of Tidewater Builders being sent to member firms. If you are getting more Builders than needed, contact Stacey Turner at 305-9042 or sturner@tbaonline.org and tell her who should be removed from the list.

Surviving the times: Part 4 of an ongoing series

Advice for builders • Consider your price point. Houses below $300,000 are always selling.

The late Horace Cistola, 1966 TBA president, gives Larry A. Sancilio, left, his scrapbook, which highlights his role as TBA president during 1967.

Staying afloat starts with consumer education By Sara Steil

hen Larry A. Sancilio took the reins as TBA president in 1967, home buyers were wary of purchasing homes and builders couldn’t finance them. Despite 40 years passing since his presidency, Sancilio understands the problems today’s builders are facing. “Some builders have been experiencing such a tough time, but to me, so much of it’s psychological,” Sancilio said. “So many people are hesitant because of all of the negative media.” Builders, according to Sancilio, need to realize that consumers are taking media reports as gospel, and are therefore hesitant to leap into home ownership. Couple that with the difficulties builders and buyers are having obtaining financing, and it will create “a psychological impact to keep people from buying houses,” he said. To reverse the trend, TBA, then the Tidewater Association of Home Builders, formed the Home Ownership Education Inc., a nonprofit organization

that strived to educate the public about the benefits of buying a home. The result, according to an article in the Sun in 1967, was an increase of 12 to 13 percent the first four months in multiple listing services sales. With funding from builders, TBA developed a “Buy A Home Now” campaign, an educational home ownership program to combat what was going on in the marketplace. “People start to hear so many things about the economy, and they are affected by that,” Sancilio said. “It’s embedded in their minds, and they fear doing anything. Therefore, they cut down on expenditures and sit still.” “In my 54 years, up until the housing boom beginning in 2004, we’re always cyclical in the industry,” Sancilio said. “Things would be going along at a 3 percent a year increase in value. Then, we jumped up to 50 percent during the heyday in the early 2000s. And now that’s changed and gone the complete opposite.” But it’s a natural cycle that corrects

• Make sure your staff is Sancilio educated. For example, have regular meetings with them and make sure they know what’s really going on in your business and the industry. • You have to offset and counteract the negativism in the media. • Make sure the general public is educated about how our local economy, with strong military and low unemployment, is different from the markets on the national news. • Try to educate potential homebuyers through your sales personnel that this is the best time to buy a home. • Discuss developing a local “Buy A Home Now” campaign by letting potential homebuyers know that now is the greatest time to buy. Interest rates are low and buyers have the most inventories from which to select. The economy will bounce back, which means that inflation will also be an issue in the future, so buy now. • Remember, this is just a cycle. You will bounce back.

the situation, and today’s builder will emerge from it, just as they did back in the 1960s, Sancilio said. June 2009

Counsel ’s Insights

By C. Grigsby Scifres

Getting out of contracts

common contingency found in (or as a rider to) real estate purchase contracts is the attorney approval clause, which provides purchaser and seller with a brief period, usually a matter of days after offer’s acceptance, to permit their respective attorneys to review the contract. If any term is unacceptable to counsel, a party may seek to modify or cancel the contract without liability. If the approval period lapses without objection, then the provision expires and is rendered inoperative. Two recent court cases resolved disputes turning on the interpretation of attorney approval clauses.

An example from Wisconsin

In a case from Wisconsin, an offer was made and accepted to purchase

residential real estate property under a contract that included a five-day attorney approval period. A closing date was set and both parties fulfilled their respective obligations in connection with the offer. Neither party objected during the five-day review period. Shortly before closing, the sellers notified the purchaser that they would not proceed with the sale contending that the attorney approval clause rendered the entire contract illusory and therefore unenforceable. An illusory promise is one that can be kept without any detriment or restriction. In other words, the promisor has given no consideration so there can be no binding contract. The court noted that a contract is not illusory if it contains alternatives for

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a party so long as at least one alternative would constitute valid consideration. The court said the clause essentially presented the parties with two options: proceed with the contract or consult with an attorney who may object during the approval period. Because the clause did not render the contract illusory and no objection was made during the five-day period, the appellate court affirmed the lower court’s decision in favor of the purchaser.

An example from New York

In a New York case, purchasers developed doubts about their decision (buyer’s remorse) after having signed a real estate contract to purchase property in upstate New York. They instructed their lawyer to disapprove the contract during a three-day attorney approval period effective under a rider to the contract. The rider explicitly stated that if either party’s attorney disapproved during the review period then the contract was void. Three years later, the sellers sold the property for $120,000 less than the original contract price. The sellers then sued the original purchasers for breach of contract and the “covenant of good faith and fair dealing” and sought to recover as damages the difference in price, as well as other costs incurred over that three-year span. The trial court agreed with the sellers’ argument that the purchasers acted in bad faith by instructing their attorney to disapprove the contract and decided that the attorney approval condition was therefore waived and ineffectual. The Court of Appeals, New York’s highest court, disagreed with the trial court and upheld the purchasers’ use of the attorney approval period to cancel the contract. Because the contract clearly stated that it was “contingent upon” the approval of each party’s attorney, the appellate court found that the contract had indeed been voided by objection before expiration of the review period. Further,

the court was unwilling to read any implied limitation into the otherwise clearly worded contract language. The court explained that the implied covenant of good faith and fair dealing between contracting parties enforces the notion that neither party will do anything to disrupt the others right to the benefit or “fruits” of the bargain. In this case, however, any benefits were expressly contingent on attorney approval. Essentially, an attorney may disapprove a real estate contract for any or no reason if the contract is “subject to” or “contingent on” attorney approval with no further limitations. The court also emphasized that any inquiry into whether an attorney’s disapproval was motivated by bad faith would necessitate review of attorney-client communications. Because this conflicted with preservation of the attorney-client confidentiality privilege, the court would not start down that slippery slope.

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What is the point?

Although courts in Virginia have not analyzed attorney approval clauses in the same light as these recent cases, there are lessons to heed. These clauses should be enforced by Virginia courts. If there are no criteria for an attorney objection, then it is likely that the approval clause can provide an opportunity to rethink the deal as was done in the New York case. If a party wants to avoid giving the other party a chance to reconsider, then adding specific bases for an attorney objection makes sense. For instance, in addition to the length of time parties may specify that the attorney review/objection be limited solely to specifically identified provisions (e.g., particular representations and warranties, conditions precedent or indemnities). Obtaining competent advice before putting pen to paper on a real estate contract may help to avoid these types of disagreements. C. Grigsby Scifres, a partner in the Virginia Beach office of the law firm of Williams Mullen, is Tidewater Builders Association’s general counsel. For further information, contact Scifres at (757) 4735370 or gscifres@williamsmullen.com. June 2009

TBA tees off

fter a week of nonstop rain, the weather cleared just in time for this year’s Charity Golf Tournament on Wednesday, May 20, at Sewells Point Golf Course in Norfolk. About 100 golfers enjoyed 18 holes in support of TBA’s Building Trades Academy, which offers an education and trade skills to economically disadvantaged participants. This year’s tournament, chaired by Dennis Graf of Graf Construction, included only one round of Florida Best Ball.

The winners are: FIRST FLIGHT First place, with a score of 56: BB&T (Don Parnell and Joe Dreps) Second place, with a score of 57: Clark-Whitehill Enterprises Inc. (Mark Arnold, Kyle Adams and Sean Stegina) SECOND FLIGHT First place, with a score of 65: Kotarides Builders (Pete O. Kotarides, Basil Kotarides, Lucky Peterson and Hunter Frischkorn)

Walter Rein, of the Bank of America team, tees off at the hole sponsored by the Ainslie Group.

Second place, with a score of 66: Xteriors (Diane Shirley, Dave Chirico, Chris Rupp and Clay Massey) Longest drive – Lady’s Kelly Beck

Despite being without two players, Don Parnell and Joe Dreps, of BB&T, took home the trophies to this year’s tournament with a score of 56.

Long Drive – Men’s Bob Berlucchi Closest-to-the-pin David Via

Dominion Virginia Power teammates Steve Sanders, far left, and Alan Bradshaw enter to win a free pressure washing from Christina Mickes, front right, and Amanda Cook of McKown Pressure Washing. 14

June 2009

John Madson, right, of James Hardie Siding watches closely as his ball approaches the hole, while teammate Grant Hancock looks on.

Bill Williams, AmerAssist; Tom Gallagher, Gallagher Homes; Kevin Jones, ODU Off-Campus Housing Listing Service; and Chris Russi of Smith Barney joined forces for a day of friendly competition.

Diane Shirley, showed her Xteriors teammates she could hold her own among the guys. She even went home with a handful of prizes from the raffle.

Thanks to our sponsors! Heritage Title Moose Lodge Prosource Wholesale Floorcoverings Towne Bank Mortgage Ainslie Group Clark-Whitehill Enterprises Inc. Dow Building Solutions The Kotarides Builders team, from left to right, took home first place in the second flight. Pete O. Kotarides, Basil Kotarides, Lucky Peterson and Hunter Frischkorn.

ESI Electronic Systems Ferguson Enterprises Igor’s Graphics James Hardie Siding Kotarides Builders McKown Pressure Wash & Painting Mid-Atlantic Coca-Cola Monarch Mortgage Pacific Income Advisors Robinson Development Group

Megan Tolson receives some friendly advice from co-worker Lee Ward, both of whom were on one of Clark-Whitehill Enterprises Inc. teams.

Sprint Wells Fargo Real Estate Group Xteriors June 2009

Shades of Green

Solar energy does pay off By Richard Good, Green Building Council

jokingly say solar systems installed in the ’70 s and ’80s consisted of the good, the bad and the ugly. Most systems then were used for hot water and house heating. Though many of the “good” systems are still in use, the vast majority of the bad and ugly systems have been removed. Many of our customers have seen savings totaling $15,000 and according to the American Appraisal The solar hot Institute, their systems are now worth four times water, left, and what they initially paid. photovoltaic unit, right, will Today, solar systems generating electricity garner the most attention, though solar pool and hot save the homeowners money water heating are the most efficient uses of solar on electric bills. energy. Inverter technology has been perfected, so we now have “grid-tied” inverters that allow electric meters the scope of the cost to American society. to turn backwards, thus giving the homeowner a credit against Plugging in has been great — as long as the mess wasn’t in their bill. our backyard! For good measure, lets throw in the medical and Go solar and save air pollution costs, of which we are all exposed. Recent legislation changes have made available a 30 percent As a child I was taught that it was always cheaper to prevent a tax credit for using solar energy, as well as the ability for the homproblem than to clean it up. Almost everyone I meet learned the eowner to make extra money by selling Solar Renewable Energy same lesson. Yet somewhere on the way to adulthood we’ve selecCredits, or SRECs. One SREC equals one megawatt of energy. tively forgotten the lesson, even though we teach it to our children! By selling SRECs associated with the system’s energy production, be it thermal or electric, income totaling several times the annual Virginians not so fortunate energy savings can be generated. Sadly, Virginia is one of a growing minority of states where So now, your home not only provides you with shelter, but it’s against the law for many homeowners to avail themselves with the right solar system it can also generate income. One of of all these financial incentives. Times change, but many homour customers recently received a check for more than $4,000 eowners are prevented from enjoying the benefits of clean solar for last year’s production of SRECs. This, of course, is a big wow factor. Energy savings, which in energy due to restrictive covenants aimed originally at the bad and ugly solar systems of the ’70s and ’80s. These covenants new construction can be more than twice the mortgage cost, have, in many cases, become a standard provision when a new are now sweetened by a check from the IRS at the end of the subdivision has been developed. year for 30 percent of the cost, and there is the prospect of a Whatever their original intent, the net result now prevents check every quarter for the sale of the SRECs generated by the homeowners from boosting income, savings and enhancing the system. value of their homes. For the last four years, Republican and Democrat legislators Why all this money? alike have tried to address this subject in the state legislature Americans and the government finally are waking up to the but have been thwarted by their colleagues or met with equivolong-term unaccounted costs of generating power and energy cal results at best. the old way. Wake up Virginia. It’s time to join the 21st century. There’s a For example, the implications of such have been brought brave new world out there and we need to be part of it! to our own backyard with the 1.6 million tons of fly ash off Centerville Turnpike in Chesapeake. Richard Good is owner of Solar Services, which specializes in In West Virginia, in some places, vistas of removed mounsolar technologies and a member of TBA’s Green Building Council. taintops and polluted streams march to the horizon. Multiply He can be reached at 427-6300 or solarserv@solarservices.com. these by thousands across the country and you’ll have an idea of 16

June 2009

Free rent

(Continued from page 8)

Create your own lease up team!

Take your best leasing people and let them travel from property to property as your top guns. Inspire your on-site team with a pool comprised of a percentage of the first month’s rent per apartment divided by the appropriate percentages for each team member. What else can you give? • Cover some moving expenses • Pay for the van • Groceries • Trips (cost you less) • Upgrades (that remain with the home) • Selection from a gift table

The difference between a negotiation tool and a “giveaway”

When you print the words “free rent” in your ad, it is a giveaway. You have no ability to establish any kind of requirement or negotiations in return for that gift. If you have anything printed with your special, take it off ! The special or incentive you give should be changed per unit type, view and other specifics and not across the board. However, it must have conditions, such as meeting criteria or leaving a deposit. Toni Blake is a nationally recognized speaker and author who has been selected by the National Apartment Association as one of the industry’s “Marketing Gurus.” She can be contacted at (866) 8896600 or e-mail info@totallytoni.com.

Get involved in Homearama 2009 TBA sales representatives are reserving exhibit booths for Homearama 2009. The event is scheduled for Oct. 3-18 at Culpepper Landing. Sponsorship opportunities and Plan Book ads are also available. Contact your sales rep at 420-2434.

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Hip, hip, hurray for TBA recruiters Builders, associates surpass rivals, other associations, in drive By Sara Steil

t doesn’t take an action hero to know that Tidewater Builders Association would come out on top, and that’s exactly what happened at the reporting party for the annual membership drive. Though challenged by the Home Builders Association of Virginia, in conjunction with the National Association of Home Builders’ National Membership Day, to increase membership by 11 percent, TBA went one step further. Asked to recruit 88 new members, TBA managed to bring in 100 as of the state-reporting deadline on May 14 at 5 p.m. TBA brought in 24.5 percent of all new members for the state. Richmond placed second in the category with 49 new members, while Northern Virginia came in third place with 44 new members. Chuck Miller and The Green Team took first place with 26 new members, while Lucky Peterson and The Board Team and John Ainslie and The Past Presidents team tied for second place with 16 new members each. Recruitment prizes were thrown in to sweeten the pot. The winners included:

John Ainslie of the Past Presidents Team puts last-minute pressure on Chuck Miller of the Green Team to recruit new members.

Six VIP tickets to the Coldplay concert Michael Newsome, Clark-Whitehill Enterprises Inc.

Top recruiter, Chuck Miller, Miller Custom Homes Prize: Lunch with Fred Napolitano

Dinner at Sonoma Wine Bar Ted Yoder, Monarch Mortgage

Cruise valued at $1,600, Chuck Miller, Miller Custom Homes

Dinner at 456 Fish Pete O. Kotarides, Kotarides Builders L.L.C.

$400 gift certificate for use at the Sanderling Resort & Spa, Chuck Miller, Miller Custom Homes

Dinner at One Fish-Two Fish Tom Dye, Ferguson Enterprises Inc.

A big thanks!

To the 10 brave teams that stepped forward and accepted the challenge of recruiting the most new members. They are:

Associators (associate members) Jim Jackson, captain Julie Williams Mary Kantmann Tom Dye Deb Carson Robbie Bell Scott Gandy Jesse James Green Team (Green Building Council) Chuck Miller, captain Allen Loree April Litton Guy Sorensen Janie Benko Kathy Browning Matt Froehler Richard Good Suzanne Waterfield 18

June 2009

Homearama Committee Herb Watson, captain Bill Brice Erin Widener Speckhart Jamie Iuliano Sam Cohen J.R. Reddecliff Mary-Dolph Simpson Scott Brooker Stephen Quick T.E. Jones IronMen (past presidents) John Ainslie, captain Bob Widener Chip Iuliano Ed Sadler Jeff Wermers Larry Hill Michael Newsome

Membership Committee Bill Halprin, captain Trent Dudley Skip Ferebee Tom Huxtable Chris Schwab Doug Smith Mighty Mouseketeers (TMHC) Debbie Gordon, captain Chris Dembitz Mike Devine Diane Tyler Doug Taylor Mortgage Bankers, Part I Toby Harris, captain Angela Knight Darlene Kemp Karen Rayfield Kay Hamilton Naoma Doriquzzi Paul Murdock

Mortgage Bankers, Part II Ted Yoder, captain Bill Lane Chaytor Midgett George Cooper Jack Lane John Frankos Laura Beck Ray Gunter Steve Sager Remodeling Team Frank Sgromolo, captain Ed Cape TBA Board Members Lucky Peterson, captain Andy Herr Pete A. Kotarides Pete O. Kotarides

Getting money from new tax law By Mary Prier, APR

athan Olansen, tax attorney with Williams Mullen, presented tax benefits from the American Recovery and Reinvestment Act of 2009 to TBA builder members at a recent Builder Breakfast. The following are highlights from his presentation:

municipality to exempt or partially exempt property from taxation if the building meets established guidelines for conserving energy and natural resources. • Effective July 1, 2009, the personal income tax credit on retrofitting a

home for disabled access increases from $500 to $2,000. For more details about the tax law changes, see Olansen’s handout in the Builder Services section of tbaonline.org and click on “Other points of interest,” or consult your tax accountant.

Net operating loss deductions

Operating losses from 2008 can be carried back and used against tax returns from the past six years, allowing small businesses to recoup taxes paid when profits were higher. The change applies to any trade or business whose average annual gross receipts for the previous three-year-taxperiod are $15 million or less.

Green tax credits

Home buyers can get up to a 30 percent credit with no limit for energy efficient measures in homes built through 2017. It applies to solar electric, solar water heating, fuel cells, wind energy and geothermal heat pump systems. In condominium associations, each unit owner is entitled to a proportionate share of the credit. For 2009 and 2010, homeowners are eligible for 30 percent of the cost of qualifying insulation, exterior windows, doors and skylights, metal and asphalt roofs that reduce heat gain, natural gas, propane, and oil water heaters, furnaces and hot water boilers, as well as electric heat pumps and central heating and air conditioning systems. The maximum credit limit is $1,500.

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TBA facelift

After

Before

Mike Cohen of Renaissance Landscaping works with his crew to finish the installation of landscaping pavers at TBA’s entrance. Cohen’s crew then updated the landscaping with new flowers and trees. 20

June 2009

Spearheaded by past TBA President Bob Widener of The Widener Corp., the exterior and interior of TBA has undergone a transformation. The aging and broken siding was removed and replaced with Hardie plank, courtesy of James Hardie Siding Products, on the main building, the Building Trades Academy and the other outlying buildings. The building was then pressure washed and the awning removed. A black canvas awning shadows over a paved entranceway, instead of the former concrete walkway. To top off the project, a new sign was installed and new letters and updated landscaping complete the project.

Bob Widener, center, of The Widener Corp., discusses the landscaping plans with Robert Nye, left, and Mike Cohen, right, of Renaissance Landscaping. Widener was the force behind TBA’s makeover.

A big thanks! To the following companies and individuals for their contributions: James Hardie Siding Products John Madson, supplied Hardie plank siding

Custom Stone Steve Sims, cutting marble sink tops to fit

Lowe’s Home Center John Williams, architectural shingles

A&A International Awnings & Rollshutters Mike McDonald, awning for front door

International Tile & Marble Carl Pope Sr., tile, grout, thin set, crack suppression

Vico Construction Emil Viola, parking lot repair & resurfacing

First Cut Tile Tom Dubois, installation of tile (labor)

Sherwin Williams Phil Miller, paint and caulking

Ted Lansing Building Supplies Chuck Apperson, delivery of siding

Sign Works Inc. Lisa Terry, signage

Renaissance Landscaping Robert Nye, landscaping and paving

SunBelt Erik McCarroll, rental lift equipment

B&T Kitchens Kevin Riley, bathroom cabinets

McKown Power Wash & Painting Bob McKown, power wash the building

Ferguson Tom Dye, marble sink tops and bathroom fixtures

Building Trades Academy Tony Davis, Billy Vick, Franklin Cobb and students

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Practice, don’t just preach, safety on the job

afety is freedom from danger or harm. Howglasses, goggles or face-shields) when operating ever, we all know that it’s impossible to be power tools, working in the shop or in heavy dust completely free from danger. So it’s essential conditions. that everyone know how to act safely in dan• Protect your hearing with earmuffs or plugs gerous situations, especially in our workplace and on our when operating noisy equipment, such as chain job sites. Safety should be our first consideration, and saws, power tools or other heavy equipment. since June is National Safety Month, now is a great time • Protect your lungs with the correct respiratory to brush up on your safety procedures. By Jackie Atkins equipment (dust masks or cartridge respirators) Guest columnist when working in dusty or moldy conditions, spray Safety starts with education painting or applying chemicals. All employees should receive basic and advanced safety • Protect your hands from everyday abuse with job-matched training based on their job tasks. Each employee should be gloves. instructed on and receive regular safety reviews for safe opera• Protect your feet with safety shoes or boots with non-slip soles tion of all power tools. Personal protective equipment also and heels. should be provided and its use should be mandatory on the • Protect your skin against toxic or irritating chemicals, as well job site. as from the sun’s harmful rays by using sunscreen. When starting a new activity or a new job type, all employees and supervisory personnel should discuss and review particular hazards and safety should be implemented at the site.

Prevention is an important element of safety

Remember, using personal protective equipment, PPE, can reduce the number and severity of accidents and injuries. It not only helps protect people, but also it improves productivity and profits. Everyone can share in these benefits by using the appropriate protective equipment when on the job. Its potential hazards call for it. When on the job, the guidelines below should be exercised to help prevent accidents. • Protect your head with a hard hat when performing construction work, trimming trees, repairing machinery and performing other jobs where your head is exposed to injury. • Protect your vision with appropriate safety eyewear (safety

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Don’t forget to inspect first:

Before heading into the field, make sure you inspect yourself and your equipment. Below is a short checklist of what to look for before heading to the job. • Are appropriate PPE available in work areas? • Are PPE kept clean and functional? • Are shoes or boots equipped with safety toes, insteps or shanks? • Is sunscreen available for workers who are outside and exposed? Remember, safety is not only our goal, but it’s a lifesaving necessity. Jackie Adkins is a loss control consultant with Building Industry Insurance Association. She can be reached at 615-9819 or by e-mail at jadkins@tbaonline.org.

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Shop Talk

TBA members inducted into hall of fame

Nationwide Custom TBA members Fred and Donna Belka, owners of Homes’ President Andy Tidewater Modular Homes, were inducted into NationMiller, center, inducted wide Custom Homes’ Builder Hall of Fame on April Donna and Fred Belka, 24. The hall of fame honors builders who have been apowners of Tidewater proved independent builders with Nationwide for 12 Modular Homes, into years or longer. the Nationwide Custom Homes Hall of Fame. In addition to the 12 years as a Nationwide approved independent builder, inductees had to attain $4 million in sales and demonstrate support and involveFULTON MORTGAGE COMPANY ment in the modular industry. The Belkas have delivered more than $5.5 million of housing products during the time they have worked with Nationwide. Serving YOUR CLIENT’S HOME IS the Eastern Shore of Virginia and SouthTHEIR BIGGEST INVESTMENT. eastern Virginia/Hampton Road, the business recently expanded to open a new THEY DESERVE AN EXPERT. model home on the Eastern Shore. “These builders have been consistently strong, successful partners to Nationwide and share in our vision to provide home At Fulton Mortgage Company, A Division of buyers with the home they want, built the Fulton Bank, we offer competitive rates and modular way,” said Nationwide President specialized programs that fit the needs of home Andy Miller.

Real estate firms join forces

Rose & Womble recently acquired Leading Edge Realty, Rose & Womble CEO Jim Rose announced. “During these tough economic times, Scott Ayers, principal owner and broker of Leading Edge Realty, and I thought it was important to combine companies to become stronger through cost saving, consolidation and at the same time gain market share,” Rose said. The combination of the firms, which specialize in new homes sales, will now offer even more services to builders, as well as make Rose & Womble the largest new homes division in the Southeast. Ayers will continue serving his builder and developer clients as the regional vice president of sales with Rose & Womble. Rose & Womble is headquartered in Virginia Beach. For more information, visit www.roseandwomble.com.

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June 2009

Realtors tackle green marketing The TBA Green Building Council recently asked me to address, “How do Realtors find out about and market green building and the related products?” The reality is the agent base needs to be more educated about the immediate benefits of a green home. To that end, The National Association of Realtors recently created a Green Designation to provide Realtors with knowledge and awareness of green building principles applied in residences, By Brenda Reid Guest columnist developments and communities to help consumers in purchasing, retrofitting and operating green properties. It further encourages VA LIC. 035926A NC LIC. 13521-U

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Realtors to be an advocate for green principals in the design. Some of the Realtors who earned this designation told me the biggest challenge marketing a green home is the perception is that although green may mean saving the Earth — it’s more expensive. A profile of buyers by the National Association of Realtors found some green features are important to buyers: Heating and cooling costs were considered very important by buyers across all regions polled — 43 percent of buyers in the south and 47 percent in the northeast. Other features including energyefficient appliances, lighting, landscaping and environmentally friendly community features were cited as “very important” to buyers in the south.

Here’s how you can help:

• Support education with local Realtor boards. If you’ve had an agent sell your homes, consider sponsoring him for his Green Designation, which costs $295. • Work with suppliers to offer third-party education seminars for consumers and Realtors. • In your homes, provide a flyer demonstrating the return on investment by showing real utility bill savings in dollar amounts, as well as showing as many benefits and savings as possible. Meanwhile, Realtors are lobbying REIN to include a field in the search criteria that will identify EarthCraft and Energy Star homes or other green certifications. You can add your voice to this effort. Remember, consumers are motivated by what will help them and their family first … then their community …and then the world. We have to bring it home for them. Focus on how we’re making someone’s life better and remove the myth that green building is more expensive. Let buyers know everyone deserves a better quality of life. Brenda Reid is director of New Homes at William E. Wood & Associates Realtors. She also serves as an associate member of the TBA Board of Directors.

June 2009

Use the new tax credit to help spur home sales. First-time home buyers who buy between Jan. 1 and Nov. 30, 2009, may qualify for up to an $8,000 tax credit — and even better, unlike last year’s credit, they don’t have to pay it back. Find the resources you need to get the word out to consumers and your sales team at: www.nahb.org/taxcreditmaterials

Learn more about the credit at:

www.FederalHousingTaxCredit.com

June 2009

Big Picture

TBA President Pete A. Kotarides, far left, witnesses the proclamation of Safety Week in the City of Norfolk with building official Lynn Underwood, at the podium. June is National Safety Month, and a perfect time to review your company’s safety procedures.

Virginia Beach Mayor Will Sessoms speaks at the TBA Board of Directors May meeting about the opportunities for development that would accompany a light rail in Virginia Beach.

Builder Breakfast sponsor American Insulation Service pose with TBA President Pete A. Kotarides, front right, after presenting a builder rebate plan to the group. Pictured are, front, from left, John Del Corso, Richard Johnson, Corinna Escalet; back row, Andy Momper, Chad Momper, Mike Momper and Ray Rieve. 26

June 2009

(top) Homearama builders spent the afternoon of April 23 in the TBA boardroom with associate members. The associates were given 3 minutes with each builder to discuss their services and how they can be of help with the Homearama houses. (below) Mary Dolph-Simpson discusses faux finishes with Igor Tupoyskiy during Let’s Make a Deal in the TBA boardroom.

Show consumers you’re serious about being green By Sara Steil

t’s easy to be torn when it comes to knowing what’s really green and what’s been greenwashed these days. So imagine how difficult it can be for consumers. To help consumers become more educated, TBA is launching GreenHomeOnline.org, an online, ongoing trade show for industry professionals that will feature green products and services. Members of the Tidewater Builders Association’s Green Building Council championed the site to serve as a consumer resource for learning how to live green, as well as locate green companies throughout Hampton Roads that can help consumers build, remodel or decorate to save energy, the environment — and the consumer’s budget.

So what’s in it for your business?

For a flat fee, you can make sure your business is featured in this one-stop-shop for everything green for consumers. When consumers visit the site, they will have an opportunity to enter the show as if they were at a live show. Just walk

through the tent and experts from Tidewater Builders Association will be at their disposal. In addition to meeting the experts, consumers will be able to obtain information they need on anything green— from how the tax credits will affect them, to what they can do in several areas to be more environmentally friendly, from installing a geothermal heat pump and solar panels to reducing their energy bills with proper insulation and landscaping. Your business will be able to have a landing page for consumers with interactive blogs and videos, as well as links to your company’s Web site and e-mail address for follow-up questions. It will also feature the latest in green information. If you’re interested in being featured on this site or for more information, please contact JoAnn Lucero at 305-9024 or jlucero@tbaonline.org.

What is a Spike?

Spike members are Association members who have recruited six new members in a two-year period. There are different levels of Spike status that offer members many levels of recognition at local and national events. As a Spike you can expect an invitation to the biggest party of the year – the Spike Party/Directors Reception at the International Builders’ Show. You’ll also receive unique and valuable rewards for each level of achievement. These include lapel pins, plaques, trophies and more! Locally, Spikes are recognized at TBA golf-outings, the TBA picnic and other events throughout the year.

Highest Total Credits: Accumulation

1. Chuck Miller, Miller Custom Homes 720.50 2. John Scanelli, S&S Real Estate 577.50 3. Tom Huxtable, East Coast Appliance Inc. 514.50 4. Jeff Wermers, Wermers Development Inc. 302.50 5. Jeff Ainslie, The Ainslie Group 263.50 6. Chip Iuliano, Area Builders of Tidewater 247.00 8. Ted Yoder, Monarch Bank 231.50 9. Cathy Lockwood, Monarch Bank 223.00 10. Joe Rover, East Coast Appliance 209.50

2009 Highest Total Credits

1. Chuck Miller, Miller Custom Homes 29.50 2. Tom Dye, Ferguson Enterprises Inc. 19.00 3. Pete. A Kotarides, Kotarides Builders LLC 13.00 4. John Scanelli, S&S Real Estate 12.50 5. Ted Yoder, Monarch Mortgage 09.00 6. Chip Iuliano, Area Builders of Tidewater 08.50 7. Tom Huxtable, East Coast Appliance Inc. 08.00 8. Suzanne Waterfield, BB&T of Virginia 07.00 9. Skip Ferebee, Beskin & Associates 06.50 10. John Ainslie, The Ainslie Group 06.00

2009 Highest New Member Credits

1. Tom Dye, Ferguson Enterprises Inc. 16.00 2. Pete A. Kotarides, Kotarides Builders LLC 12.00 3. Reid Pocock, Dominion Building Group 06.00 4. Allen Loree, Allen Loree Homes 05.00 5. Bill Halprin, S.L. Nusbaum Realty Co. 04.00 6. Mike Newsome, Clark Whitehill Enterprises 04.00 7. Chip Iuliano, Area Builders of Tidewater 02.00 8. John Brogan, Floorcrafters 02.00 9. Brian Kelly, Automatic Leasing Service 02.00 10. Chuck Miller, Miller Custom Homes 02.00

2008 Highest Retention Credits

1. Chuck Miller, Miller Custom Homes 27.50 2. John Scanelli, S&S Real Estate 12.50 3. Ted Yoder, Monarch Mortgage 09.00 4. Tom Huxtable, East Coast Appliance 08.00 5. Suzanne Waterfield, BB&T of Virginia 07.00 6. Skip Ferebee, Beskin & Associates 06.50 7. Chip Iuliano, Area Builders of Tidewater 06.50 8. John Ainslie, The Ainslie Group 06.00 9. Stephen Quick, Stephen Alexander Homes 05.50 10. Jeff Wermers, Wermers Development Inc. 05.50

If you’re interested in learning more, contact Stacey Turner at 757-305-9042, to start down the path to becoming a Spike! Visit www.tbaonline.org to view a full listing of TBA Spike Members. June 2009

TBA Calendar june 8

TBA Executive Committee meeting TBA Board of Directors/Cornerstone Foundation Mid-Year Reception Steinhilber’s Thalia Acres Inn

Remodelers Council

12 TBA Festival in the Park, Chesapeake City Park 16 TMHC Associates meeting 17 TMHC Committee meeting 18 Developers Council meeting 21-24

HBAV Annual Convention

22 HBAV Board of Directors meeting

juLY 2

Green Building Council meeting

14 New member orientation Remodelers Council meeting 15 TMHC Executive Committee meeting

New Members Builders Equity Builders of Tidewater Inc. Builders/developers; remodeling/restoration/ building repair Karyn H. Bryan..................... (757) 410-3067 www.tidewater.equitybuilders.com

Associates Ameriprise Financial Services Inc. Financial planning/investment management; insurance (employee benefits) Don Meredith........................ (757) 552-8429 www.ameripriseadvisors.com

Wood & Associates, William B. Magnolia Run Apartments Property/condominium management; real estate Shauna Firman..................... (757) 479-0549

Here To Stay Builders Ashley Associates Inc. Crace-Johnson Construction Corp. Dailey Nestor Homes LLC

Archimages Advertising/public relations; other services Architectural illustration/marketing graphics Jenny Darden....................... (757) 567-4587 www.dardenarchimages.com

Gallagher Associates

Burton Enterprises II Inc. Roofing; siding Steve Evans......................... (757) 427-3344

S.B. Ballard Construction Co.

Carousel Signs & Designs Inc. Masonry & brick subcontractors; signage Jay Foley.............................. (804) 620-3200

J.M. Froehler Construction Legacy East LLC Powell Development LLC TCI Inc. The Lawson Cos.

Associates Artcraft Management Inc.

Excel Paving Corp. Paving Preston Thomas................... (757) 466-1855

B&T Kitchens Cabinets & Countertops

23 TMHC Associates Showcase/awards banquet/RAM graduation, Virginia Beach Convention Center

Kelly Karpets Inc. Carpeting; flooring Mark Blythe.......................... (757) 497-8884

Carpet World of Virginia Inc.

Advertisers’ Index

Kempsville Countertops & Cabinets Baths; closets/storage systems; counter tops; kitchens; marble (cultured & imported), stone, granite John Wheary........................ (757) 466-1202 www.kempsvillecountertops.com

Decked Out Inc.

Mini Price Self Storage Moving and storage Dana Hicks........................... (757) 468-7509

Jerry’s Heating & Cooling Inc.

Shaw Industries Inc. Flooring Mark Lusk............................ (757) 650-7713 www.shawfloors.com

Kitrells Floor Service

16 Developers Council meeting 21 TMHC Associates meeting

Ainslie Group.......................................... 13 BIIA....................................................... IBC East Coast Appliance............................. 17 Ferguson Enterprises............................ FC Fulton Mortgage..................................... 23 H&P Electric........................................... 24 Hill, L. R.................................................. 21 International Jet Charter . ...................... 24 Jobsite Online........................................... 9 Marketplace............................................ 22 McKown Pressure Washing................... 12 Miss Utility................................................ 5 ProSource............................................... 13 RSVP...................................................... 17 Sprint...................................................... 18 Superior Equipment Sales ....................... BC Sykes, Bourdon, Ahern & Levy P.C............ 17 Tidewater Home Funding........................... 24 TowneBank.................................................. 19 28

June 2009

Basnight Land & Lawn Inc. Beach Ford Cleghorn Design Service Coastal Hardware G&G Service & Contracting Inc. Hometown Remodeling House Details iLevel by Weyerhaeuser Johns Brothers Kitchen Design Inc. Premier Plumbing Ready Enterprises Inc. Reliance Contractory Supply LLC

Superior Fitness Systems Other services Fitness equipment Jed Sherman........................ (757) 483-8347 Verizon Wireless Virginia Beach Amphitheater Other services; recreational/leisure Concert venue/entertainment Karen Vaiden.......................(757) 368-3017} www.vwvba.com

Riverside Brick & Supply Co. SMI Mechanical The Pool Guyz The Virginian-Pilot Tile Essentials Virginia Beach Marble Co. Inc. Walsh Tops Inc. Wolcott Rivers Gates

Is it time for a CHANGE?

Does your policy provide the coverage you really need? Before you renew your General Liability or Workers’ Compensation policies, have your agent call Building Industry Insurance Association, Inc., to compare coverage & costs. Building Industry Insurance Association, Inc. (BIIA) offers our members more value for their money. The company is endorsed by Home Builders Association of Virginia, and is a wholly owned subsidiary of Tidewater Builders Association. We understand the difficulties facing the building industry & are dedicated to supporting your business. BIIA offers flexible payment options that allow you to track your payments with your work flow on a monthly basis.

B u i l d i n g I n du st ry In su ran ce A sso ciat io n , In c. w w w. v a b u i l d ersin su ran ce.co m • 757- 420- 3022

June 2009

PRSRT STD US Postage PAID Norfolk, VA Permit No. 2

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