Building Savvy August 2020

TAKE YOUR “NEW NORMAL” TO NEW HEIGHTS

SAN ANTONIO REAL ESTATE ENDURES COVID-19

San Antonio | August 2020

Steve Davis Stands Tall in Lincoln Heights

A Homebuilding Industry Publication

BLOCKING AND TACKLING

Building Savvy

Building Savvy

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Building Savvy

Building Savvy

SAVVY’S A-LIST Air Conditioning Classic Services AC 830.358.1499 www.classicairconditioningandheating.com Architectural Photographer Jason Roberts and Associates 210.789.2033 www.jasonroberts.biz Building Materials BMC 512.977.7400 www.buildwithbmc.com Guido Companies 210.344.8321 www.guidoconstruction.com

Doors The Front Door Company 210.340.3141 www.thefrontdoorco.com

Flooring Sunn Carpets and Flooring 210.349.7866 www.sunncarpets.com

Mortgage Company Aligned Mortgage 210.874.1630 www.alignedmortgage.com

Electrician JPI Electric 210.233.6638 www.jpielectric.com

Garage Doors Hollywood-Crawford 210.494.3434 www.hollywoodcrawford.com

Pest Control Accurate Pest Control 210.495.0499 www.accuratepest.net

Elevators Home Elevator of Texas 210.340.5702 www.homeelevator.com

Home Warranties Centricity 727.385.7599

Plumbing Diamond Plumbing 210.967.6100 www.dptexas.com

StrucSure 830-624-4450 www.strucsure.com

Fireplace Installations Integrity Fireplace Installations 210.294.1383

Insulation Klar Insulation 210.296.5499 Insurance Hotchkiss Insurance 210.581.0420 www.hiallc.com 210.248.2556

Lumber and Millwork Roddis Lumber 210.226.1426 www.roddislumber.com Luxury Iron Doors and Interiors AMS Group 210.366.0490

Roofer Kendall County Roofing 830.331.2650 www.kendallcountyroofing.com Specialty Electronics and Appliances HomeWerks 210.499.5760 www.sanantoniocentralvac.com

Client: AMS Group Size: Full Location: Standard

Specialty Glass and Mirror B&T Glass 210.656.8507 www.btglassandmirror.com Title Company First American Title 817.918.2323 www.firstam.com

DISCLAIMER: Any articles included in this publication and/or opinions expressed therein do not necessarily re ect the views of N2 Publishing but remain solely those of the author(s). The paid advertisements contained within the Building Savvy magazine are not endorsed or recommended by N2 Publishing or the publisher. Therefore, neither N2 Publishing nor the publisher may be held liable or responsible for business practices of these companies. NOTE: When community events take place, photographers may be present to take photos for that event and they may be used in this publication.

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Building Savvy

Building Savvy

[from the publisher]

Client: Texas Allied Landscape Size: 1/2 Location: Standard

Take Your “New Normal” to New Heights Summer sales indicate that we as an industry are rebounding faster that anyone thought.

Some builders in the state are reporting sales numbers back in pace with the great year most of them enjoyed in 2019, anticipating to finish 2020 only slightly below their original projections.

to rethink your marketing strategy? Is it time to add one of those millennial minds to your staff that can boost your brand and do all that social interacting now required? Should you reinvest some of that SBA funding into building a better, more interactive website?

Indeed, savvy builders will rise to the challenge of the new normal, adapting and making necessary changes while holding steady in their focus on customer service and best practices.

Terry Kemmy | Publisher | 210.844.1542

Will the virus let up or come back? How will that affect us long-term? With change lies opportunity for those that seize it and choose to persevere in spite of challenges.

Client: Klar Insulation Size: 1/2 Location: Standard

In some cases, being the hold-out in an area can be beneficial (study Toyota’s approach).

But, on the other hand, most of us aren’t Toyota with the ability to hold out for followers in one segment while also having a portfolio of offerings that illustrate our brand’s forward-thinking and cutting-edge approach in other segments.

When it comes to some things, we expect change and would be disappointed if there was nothing new to observe. Our Focus Section explores your clients’ expectations of a dream kitchen — one essential room in any home where style and technology changes are constant.

While you may embrace style changes, are there other types of change that you find less exciting, or resist trying to stay current? Is it time

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Building Savvy

Building Savvy

[industry news]

State Laws and Local Laws Not Always on the Same Page Regarding

CORONAVIRUS T

By Jim Leonard

The novel coronavirus is entering its fourth month in our state, and there has been a great deal of conflict between our local government and that of the governor, Greg Abbott. Texans have been confused about which rules to follow which has led to the conflict.

orders, only local governments could do that. The mayor is authorized to declare a local state of disaster if a disaster has occurred or is imminent to occur under Texas Government Code Section 418.108 (a). The declaration of a local disaster activates applicable provisions of local emergency management plans and authorizes the furnishing of aid and assistance under the declaration.

Originally Governor Abbott declared a state of emergency back in early April however he did not have the authority to issue stay at home

By giving authority to local governments, Abbott has created a confusing overlay of what citizens can expect. In my own work, I can be in as many as four counties in one day and the rules differ in all of them. I had been getting used to wearing a mask when going out, but in Comal county, almost no one wears one in public places. In Corpus Christi, that has also been the case. It seems strange now to walk into a business and see people who do not wear masks.

mandate allowed local authorities to fine a business up to $1,000 if their employees or customers were not wearing masks. This is placing a level of enforcement on businesses that they may not be prepared or are equipped enough to handle.

As if local government has not had enough issues with the governor’s office over the years, the pandemic has raised the awareness of the disconnect between local and state authority. It’s almost as if the governor is challenging local governments to act as the bad guys in this while not setting a policy for the entire state to follow. I have to constantly remind myself of what county I am in and what am I required to do in public there.

Much of that has changed in the past few days as other cities have joined with Mayor Nirenberg to require masks be worn in public. Cities across the state have seen a dramatic rise in the number of people who have tested positive for the virus, as a feeling of relaxation has taken over everyone. As soon as the state began to reopen, more people were testing positive because they had let down their guard and were not wearing masks or practicing social distancing. As the number of cases spiked and more people were being admitted to hospitals, the requirement to wear a mask was reissued. This time however, the

This surely will be a topic of conversation during the coming year when the legislature convenes. Local government will be wanting more powers to control their cities and the state office will want to set more policy during emergency declarations such as what we are experiencing today.

The same section also states that if there is a conflict between the mayor’s orders and that of the local county judge, then the decision of the county judge rules.

With so many authority figures telling everyone what to do it is no wonder that confusion and conflict are the order of the day.

Governor Abbott recently declared that local governments can require businesses to require customers to wear masks and doing so is consistent with Executive Order GA-26. The governor, after Judge Wolff ruled that citizens must wear masks when entering a business or the business could be fined, stated “I guess the mayor and judge in San Antonio finally read the executive order and figured it out.”

HOW THE NATION’S BEST BUILDERS PROTECT THEIR BUYERS

That statement leads one to believe that the governor is leaving it to cities to figure out on their own what to do, but traditionally the position of governor of Texas is one of the weakest governorships in the country. Law in the state is mostly controlled by the legislature who approves and passes laws. But the Governor does have veto power which gives him some authority but state law dictates much of what he can and cannot do.

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THE BEST HOMES IN AMERICA ARE PROTECTED BY STRUCSURE HOME WARRANTY

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Building Savvy

Building Savvy

[focus section]

By Beverly Smirnis

A Dream Kitchen Is A

Smart Kitchen

Personalize your Verona range by choosing your base color, knob color, and burner type.

metals. (Photo courtesy of Elena Eskandari and Elle Hunter Designers)

It’s Smartly Designed Look for products with secure warranties that address and solve problems.

Faucets and appliances activated by the wave of a hand and ovens that make anyone an at-home gourmet chef are what influencers are buzzing about.

It Makes Smart Use of Space With the kitchen typically front and center, there must be clutter control: Build in the appliances, and hide everything behind a cabinet door for a clean and organized look. The growing trend toward more efficient living spaces has also opened up new opportunities for high-quality, fully functional appliances that fit a smaller footprint.

It’s IAQ-Smart Those highly desired in-home, commercial-style cooking appliances produce more heat and higher flames than their lower-power counterparts.

It’s critical to choose a kitchen ventilation hood that can keep up while also offering whisper-quiet operation.

It’s Tech-Smart Technology is an expectation in every kitchen, no matter the home’s price point. GE was the first to offer Wi-Ficonnected, voice-controlled wall ovens with Amazon Alexa and Apple HomeKit,

Every BlueStar kitchen hood can be painted in over 1,000 colors and finishes or built with 13 different

It’s Smart-Looking Millennials (the most promising buyers in the market today) love customization. Products designed to let them do their own thing will take center stage.

Use fully customizable presets to dial in exact

KOVA compact appliances offer maximum power and energy-efficient solutions for smaller spaces with a suite of cohesively

measurements and temperatures with The U by

designed products, including wall ovens, refrigerators, and vent hoods.

Moen Smart Faucet™.

Every cabinet, knob, door handle, pull, hook, or fixture by Top Knobs offers a completely sealed finish that lasts for years.

GE’s hot air fry mode directs intense heat and

the first to offer a complete suite of connected appliances, and the first to deliver an over-the-range hood that doubles as a smart home command center. 2020 product introductions include an in-oven camera, guided cooking for induction cooktops, and a connected precision cooking probe.

Beverly Smirnis is the co-founder of Building SAVVY magazine and publishes its flagship Dallas / Fort Worth edition. She and her business partner and husband, Steve Smirnis, have served as judges for the International Builders’ Show Best of IBS Awards and judged numerous homes for builders’ association parade events across the country.

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high-speed air around food during the multi-stage cooking cycle; a camera in the oven allows the cook to take a peek remotely.

Intelligent sensors with precision spray arms on Bosch dishwashers

Miele’s MasterCool refrigerators and freezers have dual air condensers and patented AirClean technology and allow for

The Sharp® SMD2489ES opens and closes with a

target every item in the load, while CrystalDry™ delivers 60% drier

handleless operation.

wave of your hand and is the first built-in Microwave Drawer™ oven with Wi-Fi connectivity.

dishes, even plastics.

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Building Savvy

Your customer wants a home built for the world of today – and tomorrow.

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Building Savvy

Building Savvy

[savvy builder]

Davis believes in creating a close working relationship with his clients so that he truly understands and meets

And this is where Steve Davis became a residential builder in San or exceeds their goals Antonio and eventually completed and expectations. over 300 garden homes in Lincoln Heights. Ironically, he’s back in here now where he started over 30 years ago – building town homes that overlook the back nine of the Quarry Golf Course and nestle up to the green on the 12th hole.

Steve Davis Comes Full Circle Winding Down His Successful Building Career, Where it all Started … Lincoln Heights

S

Steve Davis walks softly but carries a big stick.

His impeccable reputation of integrity and service commands respect throughout the San Antonio building community and virtually all the seasoned builders in town know him well.

His venture into residential construction, however, almost never happened.

Davis left the restaurant business in the early ‘80s and jumped into commercial development with a builder friend Mike Espensen.

Espensen discovered an opportunity to build several apartment complexes in North Carolina and South Carolina and needed a right-hand man to secure sites and oversee the projects. Steve fit the bill perfectly. The two started out with great energy and enthusiasm, but tax law changes in 1986 put a screeching halt to multi-family development.

So, back in San Antonio in the late ‘80s, as the real estate crash was taking shape, they approached Laddie Denton, of Denton Communities, about a potential 14

Steve’s had a longstanding relationship with Denton his entire career. Laddie’s parents, Lloyd and Bernice Denton, formed the Denton Development Company in 1946. Today it is known as Bitterblue, Inc. and they’ve been in land development more than 70 years, longer than any other company founded in San Antonio.

Many popular San Antonio landmarks and destinations were once quarries, including the San Antonio Zoo, Six Flags Fiesta Texas, The Shops at La Cantera, The Rim Shopping Center and Trinity University. Bitterblue was

garden home development that dotted a cliff overlooking a quarry site formerly occupied by Alamo Cement. While most lenders at the time were very skeptical amount funding any new real estate developments (given the unfolding recession), it looked as though the deal would fall through. Denton however was instrumental in securing the financing needed (through the old NBC Bank) for the first phase of the Lincoln heights masterplan called The Park at Lincoln Heights.

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instrumental in the development of former quarry sites such as the Alamo Quarry Market and nearby Lincoln Heights Communities.

“Laddie’s land planner, Dixie Watkins, had a vision for this project long before there was ever a golf course here, or any announcement of it,” said Davis.

“We still have the old rendering, from Dixie, of town homes sitting on a cliff overlooking a golf course that is 26 years old! Today I’m building that vision, and we call it the Quarry Heights Luxury Townhomes.

“From the beginning Laddie saw Lincoln Heights as a very special, unique mixed-use development. To reclaim a rock quarry that would feature single- and multi-family residences

Building Savvy

Building Savvy

Many of Steve’s partners, as previously mentioned, have been with him for years. Here’s what some of them have said: “Steve is very knowledgeable, honorable and responsive. He has been very respectful of our expertise. He’s always asking us for input and recommendations on projects.”

– Ray Wilkinson, Texas Allied Landscape “I see a long-term commitment from Steve to his clients. He’s very loyal to them, and passes that same loyalty and high expectations on to his subs and partners.”

– Jo Ann Boyuls, Plumb Star Plumbing

and luxury garden homes – and integrate this with the right mix of retail shopping, restaurants, a big movie theater – takes a man with a broad vision.

This area today is one of the crown jewels of San Antonio real estate, and it receives interest and accolades from people all over the U.S. and from other countries.”

Davis believes in creating a close working relationship with his clients so that he truly understands and meets or exceeds their goals and expectations. His expertise and experience over decades as one of the leading luxury home builders in San Antonio is a tremendous asset not only to clients but to all of those involved in the process. Other areas you’ll find his homes include Bentley Manor, Willow Woods, Elm Creek, Sunset Villas, Oakwell Farms, Terrell Hills and Alamo Heights.

Davis cites a few key components to his longevity and success in the business: understanding and getting along with people, and always maintaining high integrity. “I enjoy this business because I enjoy working with people and making them happy or

seeing their dreams come true when they move into one of my homes. And there’s also my partners and subcontractors and tradesmen.

I treat them fairly and honestly, like I like to be treated, and it’s worked out well for me. I have a very loyal team.”

The constant changes in rules and regulations has hurt the building industry, according to Davis. “Regulations, of course, are necessary, but there’s a lot of overkill in my opinion, and much of this has added unnecessarily to the cost of building a home.”

The one thing that has remained constant with Davis are his ethics, standards and integrity.

“I’ve had countless times I could have made more money doing things differently, but I chose not to because it wouldn’t have been ethical. I don’t think I would have made it this long in this business had I not always been looking out for the customers best interest, as I would for a family member.”

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“They are all easy to work with; they’re intelligent; very professional the contractors who work with Steve have the same humble, service-oriented demeanor.”

– Pam Felton, Guido Materials

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“When we think of Steve Davis Homes we think of his great reputation and credibility. He has left a legendary mark – a huge impact – on residential construction in San Antonio.”

– Danielle Conques, Keith Zars Pools “The know their stuff. They are very thorough and respectful of our time. If they schedule you for work, but then aren’t ready for some reason when we’re supposed to show up, they’ll call and give you a heads up so you’re not wasting time.”

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Building Savvy

Building Savvy

[savvy finance]

TAX CHANGES for Property Improvements and Business Losses

By Steven Bankler, CPA

Some long-awaited great news for commercial property and business owners: The CARES Act that was passed in response to the COVID-19 pandemic includes technical corrections and additional modifications to the 2017 Tax Cuts and Jobs Act. If you’ve made commercial property improvements or have experienced passive activity losses or net operating losses, take a close look at how it affects your taxes. Some of these changes are retroactive to previous tax years as well.

One-Hundred Percent Bonus Depreciation Is Back Yes, the federal government makes mistakes. And it made a glaring one in 2017 when qualified improvement property (QIP) was unintentionally classified as nonresidential real property. A QIP is any improvement to an interior portion of a nonresidential property. The improvement must be made after the building is first placed in service, can’t include enlarging or changing the internal structure of the building, and can’t involve adding elevators or escalators.

Suddenly these QIP’s that should have qualified for 100-percent bonus depreciation as 15-year property were subject to a 39-year depreciation schedule. It was called the retail glitch because, while the definition was meant to give retail, restaurant, and commercial real estate property owners a valuable tax break for making interior improvements to their spaces, it

didn’t. All because a specific reference to QIP’s was left out of the list of property eligible for the bonus.

The CARES Act remedies this glitch and gives 100-percent bonus depreciation power back to QIP activities. The change is retroactive to cover assets placed into service in 2018. If you already filed your taxes for 2018 or 2019 and included QIPs at the 39-year depreciation schedule, you can amend your return to take advantage of the 100-percent bonus depreciation.

Other Important Changes Recent IRS guidance allows taxpayers to take a late election, revoke an election, or withdraw an election for the 2018, 2019, or 2020 tax years regarding the depreciable property. Taxpayers can now choose to (a) elect 100-percent bonus depreciation, (b) elect to deduct these qualified expenditures under Section 179 (“expensing”) or (c) depreciate these assets over a 15-year life. There are various advantages and disadvantages for each method and taxpayers need to review their specific situation.

Other significant changes relate to business losses. The CARES Act removes excess business loss limits for taxable years beginning in 2018. Under the TCJA, business owners who made a passive or investment income of $500,000 per married couple ($250,000 for single filers) were restricted in the amount of net losses their pass-through entities could claim.

There are currently no limitations (although they’re set to return in 2021), and additional provisions include how capital gains and losses can help determine the excess business loss.

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Net operating losses (NOL) are also temporarily affected (for election in tax years 2019 and 2020). Businesses or business owners that need to increase cash flow and liquidity may be able to apply NOLs generated in prior years to offset taxable income by 100 percent.

This can be done by carrying back losses for up to five years, but be aware that it might trigger an alternative minimum tax (AMT) in those previous years and carry-backs to offset Section 965 income aren’t allowed.

As with any election that allows you to carry back or spread out tax liabilities from year to year, considerations unique only to you and your business can help determine the best course of action. But if you’ve made commercial property improvements or have excess business or net operating losses over the past couple of years, you may be due a tax refund – perhaps over several years. It’s money on the table you’d be wise to pick up.

Steven Bankler has more than 43 years of experience in the accounting industry. Steven’s expertise lies in consulting, planning, tax, and asset protection, as well as exit strategy services for closely held businesses. He also provides litigation support (both as a testifying expert witness and a consulting expert), business negotiations and estate planning. Visit www.bankler.com for additional tax strategy tips and to learn more about Steven Bankler, CPA, Ltd.

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Building Savvy

Building Savvy

[best practices]

Blocking & Tackling

Be Sure Your Lineup Is Ready

I think all of us will appreciate the fall football season even more this year. The NFL says its 2020 regular season will kick off on Thursday, September 10, and end after Week 17 is played on January 3, 2021. We’ll keep our fingers crossed!

By Ross Conner, Hotchkiss Insurance Agency, LLC

Meanwhile, as you begin to consider your plans moving forward in this very interesting year, I like to remind my customers about the importance of blocking and tackling … something that certainly applies to football linebackers, but also to contractors. The “fundamentals” of insurance protection are the blocking and tackling mechanisms for keeping your business sound.

Throughout the past, we have delved into specific types of insurance that builders and remodelers should consider. Some might suggest that there is virtually nothing that you cannot insure, but in our litigious society, and in a business with a lot of moving parts, protecting yourself and your assets against loss should be counted as one of your most important considerations.

One of the best things a business owner can do is transfer the risk of a loss or potential loss away from themselves. In construction, this typically comes in two forms: transferring the loss to an insurance company and/or transferring the loss to a responsible third party that is negligent.

Let’s review the most common forms of insurance needed for builders, commercial GC’s and subs alike, as well as other risk transfer tools:

GENERAL LIABILITY – As you consider your coverage needs, it is important to understand what kinds of claims GL safeguards against – and what it doesn’t.

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In the event of an accident involving bodily injury, GL policies can pay for medical attention at the scene of the accident, medical expenses resulting from the accident, funeral expenses and court-awarded compensation for a third party’s injury or death. However, your own employees’ on-the-job injuries are not covered by a GL policy; this would require Workers’ Compensation Insurance.

GL also protects your business against the high cost of a lawsuit if someone alleges that your business has damaged their property or is responsible for their inability to use that property. Remodelers should note that property damage liability coverage under the GL policy typically does not cover damage to client property you are working on, however.

GL policies can protect against claims related to the services you’ve completed and the products you’ve produced. Some policies also cover against non-physical damage claims, for example, that you copied another party’s advertising or infringed on copyrights or brands.

SUBCONTRACTOR AGREEMENTS – Subcontractor agreements are a risk-transfer tool from builders to subs. It is important that all subs should be required to sign a subcontractor agreement whether they actually have the insurance to back it up or not. I cannot overstate the importance of a signed agreement. Builders need proof that subs carry

proper insurance in the form of a certificate of insurance. Require your subcontractor to name you as an “Additional Insured” on their own general liability policy. Once named, you get the same protection that your subcontractor gets. Therefore, if you are sued for damage the subcontractor causes, the subcontractor’s insurance company will cover you for the claim. The key component of a sub-agreement is the Indemnification and Hold Harmless Clause found therein. In the event the sub does not carry insurance, you will still want them to “make you whole” in the event a loss arises due to their negligence. Insurance just makes it much easier for the sub to fund this obligation.

WORKERS’ COMPENSATION – While Texas does not require this coverage, it is the only coverage that provides medical and income benefits for injured workers, and legal protection for employers, whether you use subcontractors or employees. Benefits include payment of medical expenses, lost wages, lump-sum benefits for disabilities and death benefits. In Texas, if you do not choose to carry work comp, you are still required to notify the State of this, through the use of a DWC-5 form, and, believe it or not, you are still required to report lost-time injuries.

you will have to ensure your General Liability policy is written correctly and responds to defend you. Having a solid WC policy in place on the sub’s part, and your part, ensures there is money to pay for injuries and lost wages, and reduces the likelihood of legal action against you. This all gets back to contracts, however, and the importance of having a good one in place which transfers job-site risk away from you.

BUILDERS’ RISK – Typical property insurance policies only cover materials that are stolen or damaged while on someone else’s property. Property insurance would also not cover damages to construction projects in progress either. Builders Risk is specifically designed to cover damages caused, for example, by fire, weather or vandalism that could destroy a job in progress. Make sure if you are a remodeler, you visit with your customer on the need, or lack thereof, to insure the “existing structure” as well as the improvements and inform your agent about this conversation.

THIRD-PARTY WARRANTIES are designed to protect both builders and buyers from being legally exposed to construction defect issues. Insurance-backed warranties typically cover workmanship and materials for one year, delivery portions of systems for two years, and structural components for 10 years. Warranties are an excellent arrow in the quiver of risk management for builders, namely because they don’t require negligence to be proven on behalf of the builder.

As you can see, just like your favorite football team, your risk-management plan has many players that must work as a cohesive unit.

Keep in mind that you want your subs to carry work comp whenever possible for one huge reason: In Texas, even though you aren’t required to carry WC, you are still liable as an employer for your employee’s injuries. Therefore without WC, you and your subs are exposed for job-site injuries. Subs that get injured can come after you in two main ways. First of all they will try and allege that you, as a builder, were their “employer.” Secondly, they will allege “negligence” on your part as the hiring contractor, and if this happens,

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Building Savvy

Building Savvy

[savvy trucks & toys]

By Beverly and Steve Smirnis

All 4Runners are rated to tow 5,000 pounds. They come with a hitch as well as fully integrated sockets that accept four-pin and seven-pin trailer wiring plugs. The top-tier TRD Pro model and base-model 4Runner both pack the same powertrain – a 4.0-liter V6 paired with a five-speed transmission, cranking out 270 horsepower and, more importantly, 278 pound-feet of torque. The TRD Pro model’s price tag is, however, approximately $13,000 more than the base model’s.

Toyota’s

Hold-Out Strategies

Our recent test vehicle was a TRD PRO with a price tag of $51,419.

“TOYOTA” is displayed proudly across the front grille as if to taunt the competition. If the grille were the truck’s mouthpiece, it would be saying, “Look at me! Go ahead and sell your new smooth-driving crossover, but I’m the real deal. Toyota welcomes all hardcore customers.”

Pay Dividends

The 4Runner hasn’t been redesigned since 2010 and only gets 17 mpg. “So what?” say its cult-like followers. A little sameness in a constantly changing world goes a long way. But Toyota is stellar at raising the bar just enough here and there to continually impress its 4Runner cult and sell them on the top-of-the-line TRD Pro. Pro Army green paint, a Texas-sized rooftop cargo basket, black TRD badging, Fox shock absorbers, TRD-tuned front springs, and matte black 17-inch wheels with all-terrain tires are all attention-grabbers.

Toyota believes there’s still life in the large car segment, at least for one more generation of affluent, mature buyers.

They’re banking on the idea that buyers will want hybrids over the early all-electric options others are focusing on. Offering the last major midsize, body-on-frame sport utility vehicle on the market, Toyota continues to report steady sales for the 4Runner the last major midsize, body-onframe sport utility vehicle on the market.

For some devotees, it’s enough just to know the locking rear differential, Multi-Terrain Select, and reworked front and rear bumpers will allow them to smoothly accelerate up steep hills and power through mud puddles. These drivers will truly put this vehicle to the test, and it won’t disappoint. They will also appreciate that the row of auxiliary buttons is ready for aftermarket light bars, winches, and whatever else they may need for their wild adventures.

And, while not the most comfortable ride ever, 4Runner owners count headroom, legroom, and cargo space as the true luxuries.

Minimal upgrades to the dash are enough to satisfy, and Toyota Safety Sense™ now comes standard. Support for Apple CarPlay, Android Auto, and even Amazon Alexa are offered in late models.

They also have a front-mounted data port, and two extra power-only USB ports have been added for rear passengers.

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It’s no wonder Toyota relocated to Texas! Welcome to a bigger, badder world where what’s going on elsewhere won’t change our loyalties – a beautiful land many 4Runners call “home.”

• Commercial Doors & Hardware

Beverly and Steve Smirnis are members of the Texas Auto Writers Association and the Texas Motor Press Association, reviewing vehicles and casting their votes at driving events where the Truck of Texas, Car of Texas, and Off-Road Truck of Texas are some of the titles awarded. Follow their automotive blog on TheSavvyList.com/ TheSavvyDriver.

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Building Savvy

Building Savvy

[sales savvy]

By Paul Evans

W

The New Normal: Winners Will Rise to the Challenge

Our “new normal” after COVID-19 will mean we will be building houses differently, delivering materials differently, and sending and receiving information differently. Our sales forces will be selling and showing products differently, as well. Are people going to feel comfortable coming out to our sites?

How do they want to be treated once they are there? What can we do to make them feel safe? How can we make a sale?

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We are going to need to do more to get noticed, and that may mean using different means than we have before. Social media will continue to be a critical tool to get the word out about who you are. A few builders and industry-related companies have hired part-time, tech-savvy, out-of-work homeowners to put together social media blogs from home. Have you thought about hiring one of your clients to blog about their new or remodeled home? Their blog content would be about more than just the home – rather, what they are doing in the home and how the home itself is helping meet their unique needs. Maybe the office, home’s playground, or outdoor gathering space is allowing their family to enjoy the things they can no longer enjoy in public spaces. Could your blogger tell readers about their great times in the home you built for them?

So, what is the next step? How can you turn this generated interest into a view of your website or of your virtual model home? That blogger is your gateway for getting customers interested in the product you have to offer.

A virtual model home is more than just a tour of the model home you already have on your website, more than a video of the home you paid to have photographed. It should be a virtual walk-through in which the potential homebuyer can interact, start and stop the view, and analyze the home they possibly desire to own. A virtual model home will allow buyers to view rooms from different vantage points, open doors, look inside appliances, and

even change the time of day to see the amount of sunlight coming into a room. Your vendors’ showrooms may allow your clients to try their products, with abilities to view, manipulate, almost hold the goods in their hands — all from the safety of their own homes.

Companies are springing up everywhere offering to make your existing model homes interactive so that customers can experience them before ever setting foot on site. They’ll feel safer and can take all the time they need to really look through the home.

So, do you still need salespeople? The short answer: yes. You need the right salesperson now more than ever!

Salespeople are a vital part of the virtual interaction. As the customer opens a door, a salesperson can tell them about the type of door they just opened, what the material and weight are, and what paint colors are available, just as if they were standing next to each other! We are experiencing a new normal, but it is really just the old normal done differently.

The virtual model can track everything a customer does in the home – for example, how many times they looked at a certain appliance or molding, or how much time they spent on the outside of the home looking at the patio.

All this data can help you evaluate important features to include in a spec home. We’ll be better able to identify buying trends, and product manufacturers can better gauge needed product inventories.

Let’s say you have a customer interested in your home because they

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read a post by your satisfied homeowner-blogger. Next, they do a virtual walkthrough, and you get data on what they looked at and reacted to. Now what? Here’s what hasn’t changed – the listening and selling mode. Today’s process involves getting permission to reach out to the customer. Once they agree, you could study their data and build a set of questions to gain the knowledge you need to make the sale. Was there a certain door they touched? An appliance they opened?

Why did they spend so much time on the patio? What will never change is the salesperson’s need to take action using available info to make the sale.

Action is key. Opportunities should never go to waste.

These are challenging times in an ever-changing industry. Be the one to see the glass half full. Make the calls and make the sales. I challenge you to take this “new normal” to new heights.

R. Paul Evans, CGA, CAPS, CGP is a native Texan with over 40 years in the construction industry. He is a graduate of Lamar University’s School of Engineering and the national VP of millwork for BMC. Paul has been an instructor with the NHBA for over 15 years and is one of only a handful of master instructors for the NHBA in the country. He travels the country teaching sales and marketing, customer service, and negotiating skills, and has authored numerous articles and three books on these subjects. Paul is also a voting member of the ICC, is licensed as an engineer in Texas and Louisiana, and holds GC licenses in 17 states. He owns and operates a fully sustainable farm and is a licensed professional race car driver, as well.

Building Savvy

Building Savvy

[trevor’s take]

San Antonio Real Estate Endures

OWNERS - BRIAN & TOMMY MOON

T he I ndustry ’ s R oof M ay L eak , B ut T he F oundation I s S till S trong

By Trevor Whitney

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Unless you live under a rock, you already know that America is currently enduring one of the rockiest economies in its history. Since the COVID-19 pandemic landed on the shores of the United States, stocks tanked, and economic activity was completely interrupted. Quickly, 30 million citizens found themselves unemployed, and a red-hot economy came to a screeching halt as states and localities ordered massive shutdowns in businesses, schools and major parts of society.

San Antonio’s construction industry has been one of the hottest in the nation for over a decade. As Texas emerged from the recession of 2009, housing led the way to recovery. I was curious how COVID-19 was impacting the industry today, and if the professionals on the ground were seeing glimmers of hope or more darkness to come. Here’s what I found: “During the height of the pandemic (April), we saw a drawback in purchase business and new

Trevor Morton VP of Business Development Cachet Real Estate Finance “Early on, [contractor] labor was short-staffed, and lead Trevor Morten times on job sites were longer.

However, demand in homebuilding has grown stronger. We are probably going to have to hire new employees. There will be some vendors and contractors that may not survive this economy, however we [San Antonio] are not as impacted as other large municipalities.”

Lloyd Vaughn Manager of Bluebonnet Dream Homes Former VP of Market Research for Meyers Research

Lloyd Vaughn “The market has been energized by the ‘new normal’ need for that extra room or space for work-from-home employees or teachfrom-home parents.”

construction starts. Most clients elected to put the process on hold if they hadn’t begun yet. However, those that were in the process of building never completely stopped.

May rolled around, and everyone that had put on the brakes came flooding back in. Coupled with clients looking to take advantage of record low rates, it hasn’t quit.”

Michael Berlanga, CPA/LREB Tax Professional, Real Estate Broker Resolutions Now

“Our business is outpacing our 2020 sales goals. One thing that we had planned to roll out Michael Berlanga in 2021-2022 was electronic closings. But when the pandemic got serious, we had to bump up those plans and implement them immediately. Rates are at historic lows, and we expect the pace of our business to continue to speed up”

Brian Gutierrez Branch Manager/Loan Originator Benchmark Mortgage

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B&T GLASS AND MIRROR, INC. 210.429.8545 | BTGlassandMirror.com

Even if you are building on limestone a pocket of clay may be found underneath.

Contact your local structural warranty expert today

The word on the street was overwhelmingly positive. To industry pros in homebuilding, Brian Gutierrez lending, real estate, and related lines of work, there are clear signs of hope on the way. As the deaths from COVID have decreased, America is getting more confident that it can weather the storm of the pandemic. As the economy emerges from this 21st century catastrophe, it looks like the construction related businesses in San Antonio stand to propel our city forward while other industries try to get back on track. So get back to work!

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12402 West Ave San Antonio, TX 78216