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Shelter is a basic human need and everyone needs to have a home. The single largest investment in our lives is in a home. However, several factors have pushed up the cost of a decent home very high.

The Prefabricated House is a solution to challenge this situation and make decent housing available to all. Use of prefabricated technology whereby the house is prefabricated in a factory greatly saves on materials in that the customer only pays for the used materials as opposed to the normal traditional method whereby a lot of material is wasted on site.

Prefabricated technology also saves in labor since the house parts are easily fastened to each other during installation.The quality of construction is also kept high since the houses are made in an ISO 9000 2000 certified factory as opposed to the normal traditional method whereby the quality of construction and workmanship is not easily determined until the building is completed.

Current global building technological advances, mainly Structural Insulated Panels on structural steel structures are used for wall, roof and floor. Structural Insulated Panels are made of two steel panels with polyurethane form insulation in between them and come in panels of 1.2 meters by 2.4 meters.

The room space design is flexible and can be customized to a customer’s requirements. Customers can select a house plan form our list or request a new house plan design according to their wishes. Once house plan design is agreed, the house is then installed in the customer’s land wherever it’s located.

Prefabricated housing provides genuine housing solutions to all in the most economically viable and environment friendly way.

A chunk of every home building budget goes to the inspector. Those sneaky people who come to poke around, slow you down, and make you redo what you’ve already done. Sometimes it seems like your local building authority is ready to dispatch one to analyze every move you make.

Are you planning to build or remodel? Well, you gotta pay the man. And sometimes those building department fees really add up.

Owner Builders and the Local Building Authority

Over the years, I’ve discovered that owner builders are mystified by the requirements of their local building authorities. They worry about the code requirements, the submission of plans, and the inspections. Often, owner builders are baffled by what seems like unjustifiable costs for permits.

Here’s an outline of some of the costs you should expect and the reasons you are being charged. My goal isn’t necessarily to justify them, but to reduce the mystery so that you can be empowered to move forward with your project.

The Dreaded “Permits & Fees”

Just another form of taxation? I hear that a lot and in a way, it could be true. Building Departments are government agencies and salaries and bureaucracies cost money. But, let’s take a look at this from a practical standpoint so you can figure your costs and budget accordingly.

These represent some of the most common and your agencies could require more or less:

• Compliance with universal and local building codes: You’re actually paying for them to hire structural engineers to review every single plan that comes across their desk each day. They scrutinize every aspect of the structure.
• Health and Safety departments: Fire safety and other departments have to put their stamps of approvals on things.
• Parks and common areas: Expansion and maintenance of local parks & recreation departments are often involved in cities and counties.
• Schools: This, as well as all of the fees, can vary. Is your area growing rapidly?
• Utilities and hook-ups: Gaining access to city sewer, electrical grid, water, etc. can be rather costly but the alternatives can be substantially more expensive.
• Mitigation and variances: It is becoming quite common in many areas to charge impact fees to help find ways to balance growth and building with the environment. If you’re in an area where this is prevalent, the fees can be exorbitant.
• Periodic inspections: Yes, these are the guys and gals that come and snoop around.

So what does all this add to the cost of building a home? Generally, you can figure on less than 5% of your overall budget. Your local building authority should be happy to provide you with a list of all the fees and I recommend that is one of the first things you should do when thinking about building.

Where to Get Help With Complying

Finally, you very likely need some help getting your plans through the building department’s approval processes. As always, I advise people to use experienced building professionals and recommend a home building coach. Your coach will point you towards other professionals as well.

Another suggestion would be to use a local architect, designer, or drafter in conjunction with a structural engineer. With this approach, most of your fears will vanish as they will not only design the home in accordance with all the codes, they will back up their work and make any changes the building authority requires.

Mention that you’re looking at buying a prefabricated or mobile home to friends and often the response you’ll get is one of confusion. Most people have an image in their mind about prefab or mobile homes that is a holdover from the early days of mobile home construction. Gone are the days of builders creating metal shoebox monstrosities. And as in any new industry, as the standards have evolved the quality of product has gotten increasingly better.The modern mobile or prefabricated home has many benefits for the home buyer that might not be immediately apparent.

The obvious benefit of buying prefabricated is, of course, the speed in which you actually have a new home to live in. If you are buying a custom home, it will take about 12 weeks for delivery, but a previously built home takes only as long as delivery and set up! Building a home on-site can take much longer due to weather conditions, contractor scheduling, and availability of materials or workers.

A less obvious benefit to mobile and prefab homes is that they’re environmentally friendly. Because they are built in a climate controlled assembly line factory environment, there is less waste generated and less building materials ruined by weather or vandalism than you would find with on-site building. Many companies also give you the option to choose more energy efficient options for your custom built home, saving you even more money in the long run.

Having your home built in a factory setting is also more efficient for the workers building your home, which in turn helps lower the price of your home. Since all the building materials are at the factory where your home is being built and the construction process is done on an assembly line, the work is completed more quickly. The set up of your new home on the building site is also much quicker because your home will be mostly completed when it arrives.

You might think that buying a prefabricated or mobile home will let result in a home that’s a cookie cutter version of all the other prefabricated or mobile homes out there; in reality there are many options that you can choose from when arranging to have your home built. Take a look at the builders that are available to you and see what your options are. Shop around for floor plans that appeal to you and fulfill your particular needs.

Whether you require a cozy bungalow or a more spacious design, rest assured that there are mobile or prefab designs out there that will suit you. And once you’ve picked out the best plan and customized the details to your tastes, you may just change the way that your friends view modern prefabricated or mobile homes!

When a company undergoes a construction project located within a residential area, one of the main concerns that it faces is the effect of soil erosion. Soil erosion is natural when construction is ongoing, but should be addressed appropriately by the company especially that it is working within a residential area.

Now, what is soil erosion? This is damage done when the top soil is affected and excavated. This happens with construction, since the company has to make sure that the structure will have enough foundation to prevent it from collapsing under its own weight. However, they have to sacrifice the top soil for that.

The top soil is considered the most important part of the land. It is where most biological activity like plant growth and subterranean animal life thrives. Hence, one of the on-site results of soil erosion is decreased biological activity in the site, but that can be remedied through rehabilitation after the construction project is done. However, the more serious effect of soil erosion is off-site and not on-site. Being on a residential area does not help either.

One of the byproducts of soil excavation is sedimentation. Sediments, like rocks and pebbles under the ground, are dug up during ground-breaking. Since the site is within a residential area, these sediments can inadvertently roll out from the construction site unnoticed and enter the storm sewer system through drainages which are unfortunately common in a residential area.

This can result to several undesirable situations, like the following:

Sedimentation can result to a reduced quality of water, which can cause health problems for those that rely on public water supply.

It can cause an overflow in the storm sewers in the event of a strong rain or storm because of sedimentation in the underground water supply.

Because of these possible problems, it is mandated by law that builders, both commercial and residential, take measures to prevent these sediments and other results of soil erosion from getting out of their construction projects. How do they do that? They fulfill that requirement through soil erosion control products.

Options for Soil Erosion Control Products

Soil erosion control products come in the form of fencing. Fencing not only keeps undesired elements from getting into the project; it also keeps inside things that should be kept inside like sediments that result from soil erosion.

There is more than one form of soil erosion fences available for residential builders. These would include the following:

Printed Silt Fence. The printed silt fence is designed not only to keep out silt and sediments from escaping, but also to provide advertisement for the builder. It includes a vinyl banner that is digitally printed with the company logo, name, and contact information.

Visual Barrier Fence. Aside from guarding against sediment escape, visual barrier fencing also prevents accidents by being visible at night. These fences are designed to be seen by motorists traveling at nighttime because of the brightly-colored banners that they use. Of course, these banners can also be printed important company information for advertising.

It’s easy to overlook things when preparing to build a home. The cost of land improvements (utilities) is a good example of that. Land owners are often shocked to find out how much money is needed just to ready their lot for building. Land purchasers should take stock.

Buying a parcel of land to build on requires a bit of homework to avoid unnecessary or unwanted fees. Sometimes it can still be a shot in the dark.

2000 and Counting …

Some two years ago I had people in my office who had a dilemma. They had spent $85,000 for their parcel of land to build on and it didn’t have any access to utilities. Okay, not the end of the world in most cases but, imagine this: they had already drilled a 2000 foot well and still no water!

They knew the area was hit and miss as far as well depths but they figured they would chance it. How would that affect you? Probably not your best strategy unless you’re willing to pay the extra money to gain other advantages that you may greatly value.

Water, Power & Sewer

Livability and resale values are dependent on the three main services of water, power, and sewer. They can be provided by the local government or they can be independently accessed.

It’s easy to figure the cost when provided by the local government agencies and rather nebulous when you go looking for them yourself! And, as far as an overall homebuilding budget goes, you can’t afford to estimate this cost too low. You can easily spend upwards of 5-10% (or more!) of your building budget on self-provided utilities.

Let’s break it down:

• Water: What would you do in the above scenario? Drill deeper? Drill another well? Sell the lot? Who would buy it now? Certainly a situation you would want to avoid.
• Power: Another example came with clients who ended up having to spend $80,000 just to bring in power and power poles to their land. This was way more than they imagined when they purchased the land years before.
• Sewer: If your land is not on the city sewage system you will need to install a septic system. Normally this is not too big of a problem but in certain areas, the system needs to be specifically engineered due to soil percolation problems. This can increase the usual cost by five times or more!

Fore-warned is Fore-armed

No one likes to be the barer of bad news but it is critical that you do your homework before you purchase your building lot. If you own already, thoroughly assess your situation before you get too far in your planning.

Sometimes it’s better to purchase your second choice in land or sell the land you have if it turns out that you can’t build the home you want. Do your homework … make some calls. You’ll be glad you did. And you might even thank me later!

One of the best known secrets of living in Las Vegas is the beautiful master planned community of Summerlin. Summerlin has been one of the best selling master planned communities in the Las Vegas valley for over a decade. Conceived and developed by the Howard Hughes Corporation, the community was named after Hughes’ grandmother, Jean Amelia Summerlin. The initial purchase of the land that would become Summerlin was made in the 1950’s and was considered almost worthless at the time.

The idea of Summerlin took root around the traditional small town neighborhoods of years gone by combined with the latest construction techniques and advance planning. The end result was spectacular and simply…Summerlin.

Summerlin is set against the backdrop of the Red Rock Conservation Area. A census done in 2003 showed that over 84,000 people lived in the 22,500 acre community. Currently home to 18 unique villages offering a wide range of single family homes, townhomes and condominiums, residents enjoy a high level of community amenities and features. There are two age restricted communities, Sun City Summerlin and Siena. Every village has its own community park, usually more than one and some have their own private golf course. Each community is also interconnected by walking trails which total a 150 miles. Some villages focus around a specific theme or is known for its community amenities. A good example is the Arbors village, known for its numerous community tennis courts.

Neighborhoods

• The Arbors

• The Canyons

• The Crossing

• The Gardens

• The Hills

• The Hills South

• The Mesa

• Paseos

• The Pueblo

• Red Rock Country Club

• Ridgebrook

• The Ridges

• Siena

• Summerlin Centre

• Sun City Summerlin

• The Trails

• The Vistas

• The Willows

Culture

Another great thing about Summerlin living are the many cultural choices available. Summerlin is home to the state’s only ballet company. There is a 294-seat Performing Arts Center theater and the Hills Park Amphitheater. During the year there are several shows and festivals as well. Summerlin also has a huge community recreation and cultural facility. The facility has 20,000 square feet of classroom and workshop space, fitness area, a full-court gym, an aerobics/dance area, play room and a game room. The center also offers a variety of programs such as dance, drama, yoga, martial arts, gymnastics, fitness programs, senior citizen activities and arts and crafts.

Recreation

Each Summerlin neighborhood also has its own park. There are also community swimming pools, ball fields, soccer fields, tennis courts and public golf courses. At last count, there were 19 major parks and 80 neighborhood or pocket parks. Summerlin is also home to the only PGA tour golf course in the state. For outdoor enthusiasts, Red Rock offers great hiking and rock climbing. During the winter months, skiing and snowboarding are just a short drive away to Mount Charleston. Summerlin is about an hour’s drive away from Lake Mead, depending on traffic.

Schools

Summerlin offers its residents more educational choices than any other community in the Las Vegas valley. Currently there are nine private schools, both secular and non-secular and ten public schools. Summerlin is also a short drive from the University of Nevada-Las Vegas. Other higher learning institutions in the Las Vegas valley include the University of Phoenix, DeVry University, La Cordon Bleu College of Culinary Arts, Heritage Collage and the College of Southern Nevada.

Industry

The main commercial district is Summerlin Centre. The village is mixed use and is home to five large business centers with retail, office space and other commercial property. The result is a huge range of recreational, shopping and dining choices just minutes from all parts of the community. Summerlin Centre is still under construction with more office space planned in the future.

Construction is ongoing in the Summerlin community. At build out, the community will be home to 30 distinctive villages. This vibrant community has held true to its original vision and will remain one of the most desirable addresses in the Las Vegas valley.

“Today, being a professional salesperson is just that - sell homes and move on. Running a business where you have all the costs is running a business.” (Lee Woodward, CEO Real Estate Academy). In other words, the two should not be confused.

If there were an award for the most controversial and widely debated topic in real estate today, that award would arguably go to the topic of pay structures in this industry.

In an attempt to gain direction and understanding of this issue, a number of prominent industry leaders gathered together in one room recently at The Complete Leader Conference, hosted by renowned sales coach and business visionary, Lee Woodward. Lee was joined at the conference by a unique line-up of leadership professionals, who, over two days, tackled head-on, a number of crucial issues facing real estate industry leaders today. In this way, it wasn’t so much about being given the answers, but more an open forum where participants were encouraged to contribute and be open to a variety of views on many thought-provoking leadership issues.

Extensive research was undertaken prior to the conference in order to develop an interactive survey that formed a key part of the day. The purpose of the survey was to anonymously extract information about the delegates as a broad representative sample of our industry leaders. The findings of the survey highlighted that, in terms of pay structures, the average commission of a salesperson stands at 41 - 43%. Despite the average though and, as anticipated, pay structures proved to be a topic of great variance in opinion and controversy. It provoked much discussion and debate amongst conference participants and our panel of speakers:

Lee Salce (Phillip Webb Real Estate)

Anthony Toop (Toop & Toop Real Estate)

Mark McCleod (Ray White)

Peter Mumford (McGrath)

It was certainly clear from our audience response that the majority share an annoyance that attempts are made regularly by other agencies to lure their salespeople with offers of ridiculously high percentages. The fact of the matter is this - these are not representative of a real deal as anyone who is offered in excess of 60% is provided with no support. They have to pay for everything from paper and ink to all marketing and prospecting tools. At 41 - 43%, a salesperson is provided with the necessary infrastructure to get on with the job of selling homes. Anything above this and they are nothing more than a contractor to a business who pays for their own office space.

As Lee Woodward pointed out, “don’t be fooled by these massive commissions being offered. You have to ask yourself - is this the real deal or is it a fake deal because 100% of nothing is nothing.”

Other interesting views on the issue of pay structures are more aligned with people and performance matters such as culture, leadership and support.

It is interesting to note that in our research, those leaders who rated their workplace moral as high also had the best staff retention levels despite offering average commission structures.

People and performance expert and Director of RealChange, Sadhana Smiles, said there is a misconception that salary is the number one reason for staying in a job, particularly in real estate. Research has shown however that people choose to stay for other reasons.

According to Sadhana, people today want security, support, recognition, opportunities, culture and lifestyle. Price, product and service are no longer the key points of difference because everyone’s offering those.

In another survey, conducted by Manpower, Generation Y employees (under the age of 25) were asked to rate, in order of importance, the elements that were important to them in a job. The results were as follows:

1. Culture

2. Team

3. Management style

4. Flexibility

5. Conditions

6. Salary

When asked if there should be the same deal for each salesperson, Sadhana’s response was a definite “YES”. She qualifies this view by saying that people inevitably talk amongst themselves and one of the standards she feels you must have to avoid discontentment is your pay structure.If questioned by an employee on this, Sadhana suggested the following response:

“As a business owner, I am not prepared to change my business standards, however we can offer: (list other benefits of working with you, such as lifestyle, fuel cards, area exclusivity, your own database, health fund contributions)”.

Sadhana’s views are shared by Bradley Brown, CEO of the multi award-winning Fletchers in Victoria and a contributor at the conference by recording a double audio CD, Power of People, a copy of which was provided to all participants. On the audio, Bradley shares his views on many leadership issues, including pay structures, which he said are the same across the board at Fletchers. Operating on a sliding scale for commissions, every staff member also has the opportunity to participate in a bonus scheme whereby if an annual target is met, the staff member is rewarded with travel, an incentive that is regarded very highly in his organisation.

According to Bradley, “remuneration is far beyond just a pay packet”. He is finding that his people don’t want the higher commissions without the support. “It is the complete package they are after”.

All too often principals are held to ransom by their top salespeople. It is vital not to have ‘all your eggs in one basket’. You have to ask yourself the question - what would happen if they leave you?

From an outsider’s perspective, one thing that was clear from this topic was that there isn’t one simple answer to the issue of pay structures. In my opinion, there clearly needs to be more focus on profit to the business and less on an individual’s pay structure. It’s also about culture, training, career path and where the organisation is heading as a whole. Keeping it simple and making it transparent also seems to make most sense. Perhaps some work needs to be done in ascertaining the actual desk fee for an agent. How much does it really cost to have a salesperson? It is only when you have that answer that you can really determine how much that salesperson needs to bring into the business for a return on the investment.

To summarise the findings of the great fee debate at The Complete Leader Conference, it was concluded that anywhere between 40 and 43% would be an appropriate commission for a real estate salesperson, provided adequate support, infrastructure and opportunities are made available.

Read enough about the Phoenix (or elsewhere) real estate market, and someone will start spouting statistics. And while market stats are important to understand, one must exercise extreme caution in interpreting them, or listening to others interpretations.

Let’s take a look at “Days on Market” (DOM), or “inventory”, or “months supply”. Whatever you prefer to call it, it is an oft-cited indicator of overall market conditions. And generally speaking, it’s not a bad indicator. The supply of homes available for sale is a key component in understanding the overall real estate market conditions.

It is important to understand a few things though:

• Our current market really consists of three major categories of inventory: 1) Bank/lender owned homes (also known as REOs); 2) pre-foreclosure/ short sale properties; and 3) “normal” properties (homes that are owner/investor owned and not in a pre-foreclosure status).
• Real estate is local. And the Phoenix metro area is a BIG place. Any time statistics or price indexes are quoted for the entire Phoenix area, you have to understand that conditions across the Valley can vary dramatically. Even within a suburb, conditions can vary from subdivision to subdivision. Within a single large Master Planned Community, conditions can vary from neighborhood to neighborhood.

The supply of homes is a perfect example. The general consensus in the real estate industry is that a six-month supply of homes is considered a “balanced market”. Less than a six month supply means we are in a seller’s market and more than a six-month supply is an indicator that we are in a buyer’s market.

At this moment in time, if you look at all the available inventory of homes across the Phoenix metro area, there is a 5.2 month supply of homes.

If you’re a seller, you may be thinking, “Hallelujah! Phoenix is a seller’s market!” and if you’re a buyer you may be thinking, “Crap. I should have bought a home a couple of months ago when it was a buyer’s market and I would have had more negotiating power.”

Let’s look at the categories of inventory that make up this number…

If you extract the data for just lender owned properties, you’ll see a much different picture.

Currently in the Phoenix metro area, there is only a 1.1 month supply of foreclosed homes. That indicates a very strong sellers market for foreclosed homes. A close examination of the data shows that foreclosure inventory is down, sales are up and pending sales (those homes under contract but not yet closed) are also up.

OK, so now you need to understand why these numbers are what they are. And sometimes the numbers alone won’t tell the whole story. Nothing in the numbers tell you that some large lenders and the Government Sponsored Entities Fannie Mae and Freddie Mac imposed moratoriums on foreclosures that are in the process of being lifted. Nothing in the numbers tell you that there is still a lot of short sale/pre-foreclosure inventory - much of which slips into the lender owned category when it doesn’t sell on the open market.

There are almost 12,000 homes listed in a short sale position. And it would take 15.2 months to sell all the existing short sale properties - if there were no more properties placed on the market.

The simple fact is, no home lasts for 15 months in a short sale position. The lender will foreclose long before that time period expires.

And what if you are a “normal” seller? Just the guy who owns their home and wants/needs to sell it. You aren’t in trouble with the payments, and you’ve got enough equity to sell at current values and repay your loan (and hopefully pocket a little cash at close).

There is a 11.9 month supply of “normal” homes. You my normal seller are still looking at a strong buyer’s market. Yes, sales and pending sales are trending up, but they are nowhere close to what they were last year and the year before. On average, you can expect it to take almost a year to sell your home. And guess what? You also get to compete with that foreclosed home across the street. The seller there is a bank that has probably already taken it in the shorts, they have no emotional investment in the home, and they’ve priced it very aggressively to get it off their books.

The Bottom Line

Not all statistics are as they appear, nor does any one stat tell the entire story. Consolidating all types of listings across an area the size of Phoenix metro into one number is usually very misleading. Look closely at all real estate stats, keeping in mind that the variations across market segments and location can swing wildly (and change quickly). You should try to understand what the real estate market is like in your location, for your type of home in your situation. Just keep in mind that it is very easy to generalize and misinterpret real estate market stats, particularly the data that aggregate large areas of completely different property types.

What is a real estate grant? It’s cash that individuals can obtain to purchase a new home, repair or update their existing home, or to help them pay down a mortgage. This is funding that is available regardless of income or credit.

Real estate grants are available through local and state government agencies as well as private foundation groups. They provide you with the cash you need, which in one way or another they benefit from as much as you do. Here’s how…

Let’s say you obtain a real estate grant to help you buy a new home. First time home buyers, for example, can receive as much as $20,000 in cash to be used for a down payment or closing costs. By obtaining these funds, it gives the individual the opportunity to buy a home when she may not otherwise be able to.

As a result of helping thousands of people in your community, the government helps move the needle in the real estate market by assisting with home sales. That means property values will rise, hundreds of construction workers keep their jobs as investors and home builders continue to have opportunity. In the end, the government imposes real estate taxes and makes the money back in the long run.

Similarly, with a home improvement grant, you can get the cash you need to upgrade, restore or expand your home. That increases home values for the entire neighborhood, which increases taxes and attracts a higher class of buyers. While real estate grants may be $20,000 in free money for you, it’s just a drop in the bucket for the government who wins in the end.

It is crucial that anyone desirous of acquiring a home- condominium or any townhouse should take cognizance of the various rules governing such locality. HOA, managers the affairs of the community you are desirous of.

To be able to able to live peacefully in this community you need to join the HOA and abide by their regulations. Therefore it would be wise to learn the majority of HOA rules governing that locality before you buy your home in that vicinity.

These rules are different from one area to another. So take some minutes to consider the following six rules prominent to you as member of the homeowners’ association in your new community.

Fees:
In order not to get your family into unplanned expenditure, you should take keen interest in the fees and the rate of increment. You should ask your estate agent thorough details about the various fees to be incurred from the HOA. And how those fees are regulated, mode of increment, ten year historical review of increment of such levy and the strength of the HOA pulse. Find out the monthly fee and exactly what it covers. You can compare the fees with that of two or more neighborhoods to get a feel of your choice, having in mind that you would also pay for other things like recreational facilities [you might need to check those facilities to know their level of maintenance] like swimming pools and tennis courts.

Know how HOA resolves controversy:
Knowing past controversies and how they are resolved throws light to the kind of environment you might be moving into. This crucial information can be gotten by reading past minutes. Be sure that the HOA president is the kind of person you want. Also know from the minutes various politics played among members. Clarify properly if the HOA is governed by private managers or residents.

How do I know my managers?
It is always recommended that before you buy your home, know the managers and how competent they are? If possible find out if the HOA is privately managed or if it is managed by the residents. If it is managed by a private body, research that company and know its competence in such field. Talk to the president of the HOA to determine his skills and his person. Find out his passion for the community and how active is he or her. From your discussion you should be able to know if his activeness will cause you problem with the use of your property.

Past suit:
You may need to find out if there has been history of law suits. That is, if the HOA has sued any residents. This you can find out from residents of the community. You may need to find out the aftermath.

Power play:
Reading the past minutes will aid you to know the history of the HOA board and probably the power hands in the board. You can then determine if you are interested in the community or not.

Disaster prone areas:
Find out the insurance the HOA has on the building, in case of such occurrences.

Know your budget:
Know if you can afford the fees that need to be incurred. Consider it on both the short and long term period.

Just be alert to the rules before you venture into purchasing such property.