Or maybe you’re just not sure if you are financially ready.  Here’s a little quiz that might help.

Which one of the following do you NOT need to purchase a home:

1. A decent credit record.
2. A big down payment.
3. Enough money to make monthly mortgage payments.
4. Enough income to pay property taxes and homeowner’s insurance.
5. The ability to maintain the property.

Check back in a few days for the answer.

Chuck Miller

We need to stop promoting a college education as the only path to a good paying job.  How many unemployed college graduates are there? We need to recognize that some young people have skills and abilities which they could put to use in manufacturing or construction jobs.  The FT article quotes one business owner who has been unable to fill 3 positions for sheet-metal set-up operators.  These jobs pay $80,000 and include health and pension benefits.

I have served on the board of advisers for our local school district’s vocational-technical education program.  That program is suffering because parents and guidance counselors discourage kids from taking those classes. Many students are unaware that the programs even exist.

I have been in the construction industry all of my life.  I started as a carpenter’s helper the summer between my sophmore and junior years in high school.  I loved building things.  My favorite toys as a kid were building blocks, Lincoln Logs, and a toy by Kenner called the Girder and Panel Building Set.  My counselor encouraged me to attend a liberal arts college, but I knew what I wanted to do when I finished school.

Those robots we’ve all seen on TV commercials assembling our cars and trucks are operated and maintained by skilled workers.  Our homes, our schools, our hospitals,our churches, the buildings where we work and shop are all built by skilled-workers.  The demand for skilled workers is always going to exist.  The BIG question is how will we meet the demand.

The Commerce Department said Monday that new-home sales fell 2.3 percent to a 295,000 – a six-month low – and less than half the roughly 700,000 that economists say must be sold to sustain a healthy housing market.

But all home sales remain weak. August sales for previously occupied homes at a seasonally adjusted annual rate of 5.03 million were slightly above last year’s sales but still almost a million less that the roughly 6 million older homes that economists say need to be sold each year to sustain a healthy housing market.

The low sales have been attributed to a lack of consumer confidence and on competition from short sales and foreclosures which are selling at an average discount of 20 percent. But is that really the case?

The Builder Magazine/American LIVES 2011 Study of buyers who had recently purchased or looked at newly constructed homes measured, among other things, home shoppers opinions regarding Short Sales and Foreclosures. The survey asked:

“Home shoppers have different opinions about Short Sales and Foreclosures. Check what is true for you.”

 I’ve heard that Short Sales take forever and sometimes you don’t even get the house.
 I’ve heard that the Foreclosures can be a really good deal.
 You need to know a lot more than I do to consider a Short Sale or Foreclosure.
 You can find some really good deals in a Short Sale.
 I’ve heard that Short Sales are a pain in the neck, even if you finally get the house.

In the Builder Magazine/American LIVES 2011 Home Buyer Study, 40% responded that they’d heard that the Foreclosures can be a really good deal and 38% believed that you can find some good deals in short sales. But 41% heard that Short Sales take forever and sometimes you don’t even get the house, 40% felt that you need to know a lot more than they do to consider a short sale or foreclosure, and 32% had heard that Short Sales are a pain in the neck, even if you finally get the house.

Short Sale or Foreclosure homes are selling at an average discount of 20 percent, and they are lowering neighboring home values, making many re-sales a bargain compared with new homes and creating an average 30 percent disparity in prices.

Given the uncertainty about jobs and the economy, is it a surprise that people are shopping for “deals?” Getting a “perceived deal” can give you the psychological lift you need to be confident that you are making a good decision. In addition, our expectations are being set by all of the “deals” being offered by other parts of the economy – groceries, dining, vehicles, and vacations.

According to the latest report from my friend and fellow MIRM, Mike Pennington, while the number of distressed properties in Ada and Canyon counties is declining, it is not declining at the rate we need to cause average prices of homes to increase.

Because all real estate is local, I would like to know how you would respond to the survey question on short sales and foreclosure.

Chuck Miller GMB CGB CGP CAPS MIRM CMP MCSP CSP
President / Builder – Chuck Miller Construction Inc.
(208) 229-2553
chuck@chuckmillerconstruction.com

When asked “Why are energy efficient home improvement projects important to you?” 35% of homeowners cited saving money on energy costs, 25% responded that saving energy helps the environment, and 23% responded it would increase the comfort of their home.

The majority of homeowners, 82%, said they were investing in home improvement projects to increase overall living quality. Only a very small percentage, 13%, were seeking to increase the value of their home. 4% were putting their house on the market and wanted to increase its value and 1% were putting their house on the market and wanted to increase its curb appeal.

Chuck Miller _{GMB   CGB  CGP  CAPS  MIRM   CMP   MCSP   CSP}
President / Builder – Chuck Miller Construction Inc.
(208) 229-2553
chuck@chuckmillerconstruction.com

A recent survey of people likely to vote in 2012 conducted on behalf of the National Association of Home Builders (NAHB) shows that despite the ups and downs of the housing market, home owners and non-owners alike consider owning a home essential to the American Dream. 75% of the people polled said that owning a home is worth the risk of fluctuations in the market and 95% of home owners said they are happy with their decision to own a home. Follow the link below to download the slides and listen to an audio recording of the June 7 presentation of the results of the survey.

www.nahb.org/VoterPoll

But don’t stop there. If you agree, contact your elected officials and let them know.

Chuck Miller GMB CGB CGP CAPS MIRM CMP MCSP CSP
President / Builder
Chuck Miller Construction Inc.
(208) 229-2553

chuck@chuckmillerconstruction.com

Homebuilding was not one of the ten happiest careers. As I read the article and viewed the slideshow of the “10 -Happiest Jobs in America”, I realized that they had obviously made a mistake. Why do I say that? Let me explain.

I teach the National Association of Home Builders “Business Management for Building Professionals” course. One of the slides from that course contains a picture of 14 different hard hats – each one representing a different role or job within a small volume building company. The building professionals in the class are asked “How Many Hats Do You Wear?”

According to the Census Bureau, as of 2007, there were almost 2.6 million nonemployer residential construction and specialty trade contracting firms, including foundation, framing, siding, masonry contractors, stucco, electrical, plumbing, heating, air-conditioning, drywall, painting, flooring, and landscaping contractors. So, naturally, the typical small volume builder wears many hats and fills many roles in his company. As I viewed the slideshow of the “10 -Happiest Jobs in America”, I realized that a career in home building typically encompasses 7 of the 10 careers listed as the happiest.

No. 2 – Customer Service. Customer service professionals enjoy working directly with customers, helping people, managing conflict, and problem solving.

No. 3 – Education. Home builders are educators. We educate our customers about the building process and we educate our trade contractors on how we prefer our homes to be built

No. 4 – Administrative – Clerical.  These professionals simply feel good about their daily tasks. They keep things running smoothly.

No. 5 – Purchasing – Procurement.  These professionals are responsible for purchasing the materials and goods for their companies. Their satisfaction stems from relying on their superior negotiating skills to secure the best deals possible.

No. 6 – Accounting.  The professionals hold the purse strings and ensure that their companies are run efficiently, that records are kept accurately, and that taxes are paid properly and on time.

No. 7 – Finance.  These professional handle transactions and provide guidance to make sound investment decisions.

No. 8 – Non-Profit Employees.  According to the National Association of Home Builders latest “Cost of Doing Business Study,” the average small-volume builder in 2008 had a net loss $53,000 or 1.4%. Non-profit employees derive satisfaction from doing good. Abraham Lincoln said that “The strength of our nation lies in the homes of its people.” Seeing a family move into a new home you built just feels good.

The only careers not encompassed by home building were No. 1 – Biotechnology, No. 9 – Health Care, and No. 10 – Legal. So, if you’re chosen career in home building, you’ve chosen one of the happiest careers in America. Don’t you agree? I do.

Chuck Miller GMB CGB CGP CAPS MIRM CMP MCSP CSP

President / Builder – Chuck Miller Construction Inc.

(208) 229-2553

www.chuckmillerconstruction.com

Prices for materials used in construction actually increased 5.4 percent in all of 2010.  Prices increased at double-digit rates over the year for four key construction materials. Diesel fuel prices climbed 28 percent in 2010; steel mill product prices rose 12.5 percent (think rebar, nails, kitchen sinks, appliances, etc.); copper and brass mill shape prices were up 12 percent (think electrical wiring, water supply valves and fittings); and prices for aluminum mill shapes rose 12 percent over the year.  Other items that contributed to the climb included lumber and plywood, 5.7 percent; architectural coatings, primarily paint, 1.5 percent; brick and structural clay tile, 1.0 percent; gypsum products, 3.4 percent; asphalt, 4.6 percent; and insulation materials, 4.4 percent.  The National Association of Home Builders predicts single-family housing starts will increase 21 percent to 575,000 in 2011.  Although the demand for construction in the United States will remain relatively weak, the price increases are likely to intensify in 2011 as global demand for construction materials grows.

Have you been waiting to build your new home or remodel your existing home hoping prices will continue to fall?  You might have already waited too long.

Chuck Miller _{GMB   CGB  CGP  CAPS  MIRM   CMP   MCSP   CSP}

President / Builder – Chuck Miller Construction Inc.

(208) 229-2553

chuck@chuckmillerconstruction.com

As we prepare for another Thanksgiving holiday, I would like to encourage everyone to count our blessings. It has been a challenging couple of years for many of us. But I sincerely believe in the Law of Attraction and the importance and power of developing an “attitude of gratitude.” Learning to appreciate what we have makes life more valuable and meaningful. Sharing our gratitude improves your quality of life because it can only result in positive emotions. So let’s spread some positive emotions. I’ll start.

•   I am grateful for my faith and my connection to my Source of Being.
• I am grateful for my ability to think and reason and choose and for my desire to learn and grow.
• I am grateful for having been born in the USA and for the freedoms we enjoy – the freedom to worship and believe as we choose, the freedom to express our opinions, the freedom to elect our leaders.
• I am grateful for my family and friends and for the love and friendship we share
• I am grateful for my health, for the food that nourishes me and the fresh water that sustains me.
• I am grateful for my home and for a warm comfortable bed to sleep in
• I m grateful for my successes in life – personal and professional
• And I am grateful for the challenges that I face – for the opportunities they provide to face and overcome my fears and to learn and grow.

According to the September 16 producer price index (PPI) report by the U.S. Labor Department, prices for construction materials edged up 0.2% in August. Prices are 3.6% higher than one year ago.

Nonferrous wire and cable prices increased 1.8% for the month and are up 8.7% compared to August 2009. Prices for plumbing fixtures and fittings were up 0.6% in August and up 1.2% from the same time last year. Prices for concrete products inched up 0.5% for the month, but are down 1.1% from August 2009 levels.

Softwood lumber prices slid for a third straight month, down 3.1% in August. However, prices are still 6.8% higher on a year-over-year basis. Iron and steel prices were down 1.5% in August, the third straight monthly price decrease. But, prices are still 18.2% higher than they were one year ago. Steel mill product prices were down 3.9% August, but were still up 17.1% from last August. Prepared asphalt, tar roofing and siding prices slipped 0.9% in August, but were up 8.6% over the last twelve months. Prices for fabricated structural metal products decreased 0.2% for the month, but were up 2.8% compared to August 2009.

Overall, the nation’s wholesale prices increased 0.4% last month and are 3.1 percent higher from August 2009.

Are you waiting for the price of that new home you’d like to build to drop further?  I wouldn’t.

Chuck Miller _{GMB   CGB  CGP   MIRM   CMP   MCSP   CSP}

President / Builder – Chuck Miller Construction Inc.

(208) 229-2553

chuck@chuckmillerconstruction.com

 Insulation materials are rated according to their ability to resist heat flow. The thermal resistance rating is known as an “R-value”. The higher the R-value of a material, the better its ability to resist heat flow.

 Most new homes are insulated with fiberglass batt insulation.  However, improper installation of the fiberglass batts can significantly reduce its effectiveness.  Gaps or voids can provide paths through which heat and air can easily flow into or out of the home.  Compressing the insulation behind piping and electrical wiring also reduces the thermal resistance.

 Newer types of insulation like blown-in-blanket fiberglass, batts made of denim, blown cellulose, and spray foams have higher R-Values and protect against convective heat transfer because they penetrate around obstructions and into odd-shaped cavities, completely filling gaps or voids and providing a monolithic blanket of insulation that forms a tight seal around wiring, plumbing, and framing materials.  

 Benefits of improved insulation

 Improved insulation provides:

 Improved comfort

 Improved insulation reduces conductive heat losses and gains resulting in warmer interior surfaces in the winter and cooler interior surfaces in the summer. As noted in my article on advance framing, approximately 40 percent of our physical comfort is due to the radiant heat exchange between our bodies and the surrounding interior surfaces. Improved insulation reduces this radiant heat exchange and minimizes temperature differences between rooms, thus maintaining a more consistent level of comfort throughout a house.

 Improved indoor air quality

 When insulation materials are properly installed, there are fewer gaps and voids through which unconditioned air can leak into a house. This helps avoid dirt, dust, and other impurities that can negatively affect indoor air quality. A tight building envelope is a critical component to ensure good indoor air quality.

 Reduced heating and cooling loads

 Improved insulation also helps to reduce heating and cooling loads, allowing smaller “right-sized” heating, ventilation, and air-conditioning (HVAC) systems. The cost savings from using smaller HVAC equipment can be used to offset the additional cost of high efficiency heating and cooling equipment.

 Lower utility bills

 More than 40 percent of the energy consumed in a typical household goes to heating and cooling. Proper insulation reduces this energy consumption which results in lower utility bills.

Chuck Miller _{GMB   CGB  CGP   MIRM   CMP   MCSP   CSP}

President / Builder – Chuck Miller Construction Inc.

(208) 229-2553

chuck@chuckmillerconstruction.com