American automakers are suspending production on low mileage vehicles. Inventory levels of SUV’s and Light Trucks exceed four months. Gas is selling at $4.25 a gallon. Americans have reduced their mileage driven by over one billion miles per month. Meanwhile hybrid cars are selling above list.
Americans want to do what is right for society, the environment, the trees…but more importantly they want to save energy and energy costs. It makes good sense. But in the new home building business we simply trudge onward…reducing prices, increasing incentives, hoping to find the bottom of the market.
Take a look at this video...it spells out the challenges and the opportunities pretty clearly.
We need a new building boom but a sustainable and responsible boom. We need the American Dream business to be part of the American Green Solution.
I would like to propose that Senator Obama suggest an enhancement to the federal tax credits for energy efficient new homes as is contained in the federal Energy Policy Act of 2005. I would suggest that this program could also be combined with a tax incentive for consumers that purchase an energy efficient new home as well.
Currently the 2005 Energy Policy Act limits the tax credit to builders at $2000. It is estimated that making a new home “energy efficient” enough to qualify for the tax credit would require as much as a 4% to 7% increase in direct cost. This cost would be passed on to the consumer and would have a direct and negative effect on the pricing elasticity relative to less efficient new homes. I propose increasing this credit to a maximum of $5000 per home. The credit could be targeted to new homes under $500,000 for maximum impact. We would then increase the likelihood that builders will build more homes that would qualify for this sort of tax advantage.
The consumer should also be rewarded for purchasing a more energy efficient new home as well. The tax incentives should be immediate and worthwhile. A $500 tax rebate would be a reasonable target as it would not be a budget buster but it would provide real tangible benefits directly to the consumer. We need to address both the supply and demand pressures for adopting green building technology.
The homebuilding industry is not only a major employer but it is also a driving force for our economy as a whole. We are currently experiencing the worst housing downturn in over 19 years. We need to stimulate responsible growth in this industry. We also need to increase the focus on energy efficiency in our homes as well as our automobiles. Rather than constantly focusing on gas prices, we can save energy and reduce harmful by products just by changing the way we build our new homes. It is estimated that new homes may be as much as 20% to 30% more efficient than homes of thirty years ago.
Right now programs like Energy Star and LEED are delivering homes that are between 25% and 50% more energy efficient than other new homes. Why not encourage that? It would be the equivalent of taking a car that currently gets 25 miles per gallon and improving that to 31-37 with no new technology!
A program that targets energy consumption and green house gas reduction while stimulating the housing industry would be a great way to get America building again!
Thursday, June 26, 2008
Thursday, May 8, 2008
Another View...How to keep your sanity in an insane market.
Editors Note: I am always looking to share other people's views and insights as well as my own. As many of you know, the people who work in the Real Estate market are trying to make sense of what they are going through. This week I am posting the thoughts of a special guest writer. Nicole Abele is a Sales Manager with Lakewood Homes. She shares her insight on how she is coping with this dysfunctional housing market without becoming dysfunctional. RB
2002-Control it
2003-Work for it
2004-I think I am working for it (But it seems too easy)
2005-Now I think I have it
2006-Got it
2007-Trying to hold on to it
2008-Lost it
I just realized today I am the youngest person still employed by my company. Funny, I am 28 (what is considered a seasoned age at some companies) and it drives me nuts when people play the age game with me. My dad always said that you will graduate college thinking you know everything and will enter your thirties knowing you know nothing. I know nothing!
“Growing up” professionally in this industry has been such an experience. I went from being a nursing student to being part of prosperous company that sold 1,800 homes in a year. It was all about timing. I was a successful sales person mostly because I was here at the right time. For most of us (from 2002-2006) in the new home industry all we had to do is show up and know how to work fast. By doing that, we were successful.
Reality, however, kicked us in the ass in June 2006. I was just promoted to a sales manager. Lucky for me, just in time to maintain my old salary as the market took a hard hit. Unlucky for me, I had no idea what was to lie ahead.
I went from literally taking orders to “what the hell is wrong with me? I have not sold anything for a month.” All the skills I had (working quick, being efficient and creating urgency) were rendered obsolete by our housing recession. I resisted at first, thinking that this was a fluke and that if I kept doing what I did so well in the past everything would fall back into place. WRONG!
Then something happened. I sat last Saturday and listened to a client say that she was buying here because of my partner. She said and I quote “I loved his personality and his selling style. That is why I am here”. Shit, I almost fell out of my chair! “It works” I thought. Being there, being present and willing to try new things got us a sale! If I would have heard this in 2006 I would have thought “Oh how sweet”. But for all of us out there selling now…know that this kind of occurrence could just be our tipping point.
I have to say my mindset has completely changed. I always was looking at what can this market do for me. Now I am thinking… “what opportunities do I have in this market?” People, more than ever, are looking for guidance during this “housing crisis”. People still want to move, they want a new home and a safe community to raise their family. What they are lacking is the security to do so. They listen to all the negative talk on the news about the declining market. Yet, they still get in their cars and drive to our communities in hope of finding answers. What we need to do is have the right mindset and be there to give them the answers they need. Hell, we are all scared right now and our lives reflect that. This market has affected our paychecks, lifestyles and attitude. Yet we are still here and so is our opportunity. Helping people get into the home they want and can afford is still a strong desire for most people in our line of work. For us, sales people that love their jobs, we can still do this.
Making 150 to 200K a year is long gone…for now. Making 70K is a challenge but still realistic. You can choose to bail out right now…this an option. If you do not love what you do then you should probably go. If you love what you do…then stay. Try crazy things, do what you never thought you would do and for god-sake have some fun! Try it, it just might work. What you do right now may not bring immediate results (sales), but it will position you and your company for a great future.
An aside…
This past month has inspired me. Like golf, you can play so poorly for so long and think you suck. However, all you need is that one good hit (the right swing, mindset and contact with the ball) to keep you in the game. Despite layoffs, confusion and uncertainty I find myself drawn back. I feel something is happening. I do not know what it is, but I know that it is good. Take me off your list of people to worry about. One thing about me…I am always ok. I may float between extremes but it is the only way I find common ground. I like that about me (because it works for me)!
Here are some inspirational quotes and words of wisdom that Nicole likes to remember:
Terra firma ain’t so firma.
All structures are unstable.
Wisdom is knowing that I am nothing…Love is knowing that I am everything…and in between my life moves.
This too shall pass.
Whatever you resist…persists.
Chin up, shoulders back, strut a little. Don’t lick your wounds. Celebrate your scars. You are in a lion’s war. Just because you did not win doesn’t mean you don’t know how to roar. (Ok, it is from Grey’s Anatomy but I liked it. LOSER)
When you do not know what to do…do nothing.
The answer will come at the time when you have to make a decision. (That’s from Grandma got to love her)
Final Note: In the future I will be trying to strong-arm more of my friends, family, and colleagues into sharing their views. If you have some thoughts to share on leadership, life, motivation, self-improvement, sales, real estate, politics or any other worthwhile topic please let me know!
2002-Control it
2003-Work for it
2004-I think I am working for it (But it seems too easy)
2005-Now I think I have it
2006-Got it
2007-Trying to hold on to it
2008-Lost it
I just realized today I am the youngest person still employed by my company. Funny, I am 28 (what is considered a seasoned age at some companies) and it drives me nuts when people play the age game with me. My dad always said that you will graduate college thinking you know everything and will enter your thirties knowing you know nothing. I know nothing!
“Growing up” professionally in this industry has been such an experience. I went from being a nursing student to being part of prosperous company that sold 1,800 homes in a year. It was all about timing. I was a successful sales person mostly because I was here at the right time. For most of us (from 2002-2006) in the new home industry all we had to do is show up and know how to work fast. By doing that, we were successful.
Reality, however, kicked us in the ass in June 2006. I was just promoted to a sales manager. Lucky for me, just in time to maintain my old salary as the market took a hard hit. Unlucky for me, I had no idea what was to lie ahead.
I went from literally taking orders to “what the hell is wrong with me? I have not sold anything for a month.” All the skills I had (working quick, being efficient and creating urgency) were rendered obsolete by our housing recession. I resisted at first, thinking that this was a fluke and that if I kept doing what I did so well in the past everything would fall back into place. WRONG!
Then something happened. I sat last Saturday and listened to a client say that she was buying here because of my partner. She said and I quote “I loved his personality and his selling style. That is why I am here”. Shit, I almost fell out of my chair! “It works” I thought. Being there, being present and willing to try new things got us a sale! If I would have heard this in 2006 I would have thought “Oh how sweet”. But for all of us out there selling now…know that this kind of occurrence could just be our tipping point.
I have to say my mindset has completely changed. I always was looking at what can this market do for me. Now I am thinking… “what opportunities do I have in this market?” People, more than ever, are looking for guidance during this “housing crisis”. People still want to move, they want a new home and a safe community to raise their family. What they are lacking is the security to do so. They listen to all the negative talk on the news about the declining market. Yet, they still get in their cars and drive to our communities in hope of finding answers. What we need to do is have the right mindset and be there to give them the answers they need. Hell, we are all scared right now and our lives reflect that. This market has affected our paychecks, lifestyles and attitude. Yet we are still here and so is our opportunity. Helping people get into the home they want and can afford is still a strong desire for most people in our line of work. For us, sales people that love their jobs, we can still do this.
Making 150 to 200K a year is long gone…for now. Making 70K is a challenge but still realistic. You can choose to bail out right now…this an option. If you do not love what you do then you should probably go. If you love what you do…then stay. Try crazy things, do what you never thought you would do and for god-sake have some fun! Try it, it just might work. What you do right now may not bring immediate results (sales), but it will position you and your company for a great future.
An aside…
This past month has inspired me. Like golf, you can play so poorly for so long and think you suck. However, all you need is that one good hit (the right swing, mindset and contact with the ball) to keep you in the game. Despite layoffs, confusion and uncertainty I find myself drawn back. I feel something is happening. I do not know what it is, but I know that it is good. Take me off your list of people to worry about. One thing about me…I am always ok. I may float between extremes but it is the only way I find common ground. I like that about me (because it works for me)!
Here are some inspirational quotes and words of wisdom that Nicole likes to remember:
Terra firma ain’t so firma.
All structures are unstable.
Wisdom is knowing that I am nothing…Love is knowing that I am everything…and in between my life moves.
This too shall pass.
Whatever you resist…persists.
Chin up, shoulders back, strut a little. Don’t lick your wounds. Celebrate your scars. You are in a lion’s war. Just because you did not win doesn’t mean you don’t know how to roar. (Ok, it is from Grey’s Anatomy but I liked it. LOSER)
When you do not know what to do…do nothing.
The answer will come at the time when you have to make a decision. (That’s from Grandma got to love her)
Final Note: In the future I will be trying to strong-arm more of my friends, family, and colleagues into sharing their views. If you have some thoughts to share on leadership, life, motivation, self-improvement, sales, real estate, politics or any other worthwhile topic please let me know!
Thursday, May 1, 2008
The Truth about Housing Cycles
Here is an easy to understand and informative explanation of the current housing market. I thought you might appreciate a calm and coherent antidote to all the hysteria and panic.
This cycle reminds me of a long family vacation...screaming from the back of the station wagon..."Are we there yet?" My Dad, sounding a little like John Wayne, would simply say..."No and if you ask me again...you might not make it there at all!"
Sit back and enjoy the movie...we'll be there soon!
This cycle reminds me of a long family vacation...screaming from the back of the station wagon..."Are we there yet?" My Dad, sounding a little like John Wayne, would simply say..."No and if you ask me again...you might not make it there at all!"
Sit back and enjoy the movie...we'll be there soon!
Wednesday, February 27, 2008
What type are you?
Sunday morning as I was shoveling down the last bites of my breakfast, I was rapidly thumbing through the Sunday Sun-Times before heading into the office. I was half-reading...reading headlines and pretending to absorb the whole story. I landed on a story that made me stop skimming and start reading. It was titled, "The Supervisor vs. The Champion" and it featured a picture of a smiling Barack Obama next to a smiling Hillary Clinton. It was written by Emily Yoffe from slate.com.
The subtitle pulled me in..."What personality tests reveal about Dem candidates." As I read the article I recalled the test the author was referencing. The Myers-Briggs Type Indicator test was a test I had taken a few times. The test uses sixteen different classifications to typecast people. The sixteen classifications are also sorted by psychologist David Kiersey into four sub-groups: Idealists, Artisans, Guardians, Rationals. The different personality types draw heavily from the work of the famous psychologist Carl Jung.
I read that according to Yoffe, Hillary Clinton was an "ESTJ" (Guardian/Supervisor) and Obama was an "ENFP" (Idealist/Champion). The following day in a Monday morning article Yoffe postulated that John McCain was an "ESTP" (Artisan/Promoter). Yoffe proceeded to use these "typecasts" to outline her view of the strengths and weakness of the three Presidential candidates. While it is unlikely that John, Hillary or Barack actually tested their MBTI with Miss Yoffe present, her typecasting seemed to be plausible and accurate on at least a surface level.
As I read the article, it seemed to explain my attraction to Obama's message of hope and change while also explaining my hesitancy to embrace Hillary's message of experience and competency. You see, I am an Idealist like Obama is...in other words Barack is most similar to my type and I seem to connect with his message more readily than I do with Hillary's. I am classified as an "ENFJ" (Idealist/Teacher). David Kiersey's and Typelogic's analysis of my type seemed to be fairly accurate...plus it didn't hurt that it was really cool to be psychologically similar to people like Abraham Lincoln, Ronald Reagan, King David of Israel, Michael Jordan, Oprah Winfrey, and Johnny Depp.
I don't really know if the MBTI test is much more than a HR department equivalent of a horoscope or if it is akin to a rigorous Wunderlic test administered to NFL rookie prospects prior to the draft. However, I do know that I enjoy the journey of understanding. Tests like the Myers-Briggs test, IQ tests and other silly tests like the ones you can find on Tickle.com have always been interesting to me. Perhaps it is the competitive part of my personality...I like testing myself and I enjoy the self-evaluation.
MBTI probably isn't the best way to pick a Presidential candidate but it can be helpful in understanding more about yourself. Self-discovery is always a worthwhile journey. Stephen R. Covey said it best in his book "Seven Habits of Highly Successful People". "Seek first to understand, then to be understood." If you want people to understand you, you need to understand yourself. Take some time and look inward. If you take the time to become more aware of your "self" you will likely be able to become more aware of others. So if you have some time, you can go to Humanmetrics.com to find your personality type using their short-cut MBTI test. Give it a try...
How can figure out where you are going if you don't know where you are?
The subtitle pulled me in..."What personality tests reveal about Dem candidates." As I read the article I recalled the test the author was referencing. The Myers-Briggs Type Indicator test was a test I had taken a few times. The test uses sixteen different classifications to typecast people. The sixteen classifications are also sorted by psychologist David Kiersey into four sub-groups: Idealists, Artisans, Guardians, Rationals. The different personality types draw heavily from the work of the famous psychologist Carl Jung.
I read that according to Yoffe, Hillary Clinton was an "ESTJ" (Guardian/Supervisor) and Obama was an "ENFP" (Idealist/Champion). The following day in a Monday morning article Yoffe postulated that John McCain was an "ESTP" (Artisan/Promoter). Yoffe proceeded to use these "typecasts" to outline her view of the strengths and weakness of the three Presidential candidates. While it is unlikely that John, Hillary or Barack actually tested their MBTI with Miss Yoffe present, her typecasting seemed to be plausible and accurate on at least a surface level.
As I read the article, it seemed to explain my attraction to Obama's message of hope and change while also explaining my hesitancy to embrace Hillary's message of experience and competency. You see, I am an Idealist like Obama is...in other words Barack is most similar to my type and I seem to connect with his message more readily than I do with Hillary's. I am classified as an "ENFJ" (Idealist/Teacher). David Kiersey's and Typelogic's analysis of my type seemed to be fairly accurate...plus it didn't hurt that it was really cool to be psychologically similar to people like Abraham Lincoln, Ronald Reagan, King David of Israel, Michael Jordan, Oprah Winfrey, and Johnny Depp.
I don't really know if the MBTI test is much more than a HR department equivalent of a horoscope or if it is akin to a rigorous Wunderlic test administered to NFL rookie prospects prior to the draft. However, I do know that I enjoy the journey of understanding. Tests like the Myers-Briggs test, IQ tests and other silly tests like the ones you can find on Tickle.com have always been interesting to me. Perhaps it is the competitive part of my personality...I like testing myself and I enjoy the self-evaluation.
MBTI probably isn't the best way to pick a Presidential candidate but it can be helpful in understanding more about yourself. Self-discovery is always a worthwhile journey. Stephen R. Covey said it best in his book "Seven Habits of Highly Successful People". "Seek first to understand, then to be understood." If you want people to understand you, you need to understand yourself. Take some time and look inward. If you take the time to become more aware of your "self" you will likely be able to become more aware of others. So if you have some time, you can go to Humanmetrics.com to find your personality type using their short-cut MBTI test. Give it a try...
How can figure out where you are going if you don't know where you are?
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