New homes won’t be any more affordable in a year or two.
Potential homebuyers who are waiting for costs to come down before building might want to reconsider. The fact is that the past year’s rise in new home prices will most likely continue. While higher interest rates and a weak dollar could play a role, the biggest factors will likely be the most basic ones of supply and demand.
Simply put, the homebuilding industry predicts buyers will demand as many as 1.5 million new homes next year — this pent-up demand has saddled some builders with lengthy backlogs. At the same time there has been a serious shortage of labor and materials.
When it comes to labor, the pendulum has swung. Two years ago, contractors were short on work and willing to accept wage cuts. Now builders are hunting for skilled labor. The downturn saw legions of carpenters and other skilled workers leave the construction industry. The ones who remain are commanding higher wages. The same is true for quality subcontractors such as electricians, plumbers, and drywallers, who often have more work than they can handle, and have raised their prices accordingly.
On the materials side, lumber shortages drove prices in early 2013 to double that of a year earlier. And lumber is a bellwether: the costs of other building materials, from cabinets to carpet to light fixtures, tend to follow its lead.
There are several reasons for the lumber crunch. A number of mills closed during the housing crash when demand was weak. Some of these mills have re-started, helping to lower prices a bit from the recent peak, but tight credit has slowed the process, according to the National Association of Home Builders. It will take time for the industry to ramp up to the needed capacity.
Even if all available mills were operational, there isn’t as much harvestable lumber as there was a few years ago. For instance, mountain pine beetles have devastated millions of acres of timberland in the northwestern U.S. and Canada, while Canadian provinces have ordered permanent harvest reductions from healthy forests.
These forest losses have come on the heels of increasing demand for lumber from China, India, and other countries. In fact, many experts believe that lumber availability and pricing over the next few years will be driven as much by global as by domestic factors, and that it could take five years for supply and demand to balance.
What does all this mean for homebuyers? With prices predictably on the rise, value engineering is becoming ever more important. Value-engineering is a service provided by builders who look for ways to economize without sacrificing amenities or quality. There are lots of ways to do this. One example is to reduce exterior wall space by simplifying the facade. Exterior walls cost a lot more to build than interior walls — a simpler facade will have fewer corners, nooks, and crannies, requiring less labor and materials to build. The ability to value-engineer is one of the many benefits of working with a professional builder.
The bottom line is that while getting into a new home may be more expensive than it was two years ago, waiting for prices to come down is a roll of the dice — with odds of winning that are probably less than those at a Vegas casino. Anyone considering building in the near future would be well advised to do it sooner rather than later.

In the current housing economy, it’s tempting to buy a “short sale” or recently foreclosed home, especially one that was built during the recent housing boom and is being offered at a bargain-basement price.
But that strategy is full of pitfalls and potholes. It’s well-documented that owners of homes in foreclosure tend to neglect their property, knowing there’s no point in maintaining it. They are likely distraught and distracted at the prospect of being evicted from their home, and understandably might focus on more important things than fixing the gutters or repairing a leak.
The result is often a home in poor condition with extra expenses required to bring it back up to par, much less to your standards. After all, a home is the center of your family’s life, a safe haven, a shelter. Walking into a money pit of repairs and service issues — some of which you may not even know about until after you’ve moved in — threatens that security and quality of life. Is it worth the risk?
By comparison, a newly built home provides you with exactly what you want from the get-go. It reflects your specific needs now and into the future, as well as your style and other aesthetic preferences. It’s fresh, unblemished, and ready for making memories.
A new home offers other advantages over an existing home, and especially a short sales or foreclosure, including:
Better Quality. As a professional builder, we are dedicated to delivering a high level of construction and finish quality in our new homes. Not only do buyers demand that our homes be better-built (and rightly so), but we also have the knowledge, skill, strong trade partnerships, and commitment to continually evaluate and refine our building practices and materials to improve that high level of quality.
Better Plans. We and other quality builders were offering “customization” long before it was necessary to satisfy or attract potential homebuyers. That means we work closely with you to determine your needs and find a floor plan and house style that matches your tastes and lifestyle requirements.
The result is a floor plan that is uniquely yours: functional, comfortable, flexible, and efficient. Trying to find exactly what you want and need in that regard in a foreclosed home or older house is unlikely, and probably would require remodeling.
Better Technology. Today’s homes and their occupants demand a high level of technological capability and convenience. Personal computers and other electronics have become part of our daily lives. Homes now require a “future-proofed” design that won’t become obsolete anytime soon, everything from a docking and sync station for smart phones to a network of cable and communication wire for flat-screen televisions.
Technology is moving so quickly these days that few homes built even five and certainly 10 or more years ago simply can’t compete on that level, leaving you and your family wanting (and needing) more. Current wiring and wireless networking systems are available and increasingly affordable … ready for the foreseeable future.
Better Service. If the recession taught the building industry anything, it’s that customer service needed to be improved. Existing homes, bank foreclosures, and short sales offer zero service after the sale.
Meanwhile, a professional builder offering a new home tailored to your needs — especially a company that survived the downturn — is well equipped and eager to make sure the experience is satisfying from start to well past the finish, giving you peace of mind and the highest quality living environment.

Here is an interesting video created by the Seattle Pacific University – School of Health Sciences.  We had an opportunity to contribute a few thoughts from an active adult home builder perspective.   To view, click  on the link below:

Take Control of Your Future: Tips for Successful Aging!

Dear Friends,
With the support of my family, I recently announced to our team that I will be leaving the day-to-day operations of Landed Gentry Homes and Communities effective October 10th. It was a difficult decision to pare back my involvement with the family owned company where I have spent my entire career.

I’ve truly enjoyed my time being on the front lines as a homebuilder and community developer. These past 14 years have been full of opportunities to learn from phenomenal growth and extremely difficult times. Though the thing I am most proud of is that in spite of a difficult environment, we have a team that is still building brand new homes that are meeting the lifestyle needs of individuals and families across the region.

The general management duties will be spread amongst other senior managers of the company; Kendra Gentry-Decker, Kendall Gentry and Dave Moreland. I will remain on the company board, provide behind-the-scenes support and select special project work.

I want to thank my parents, Kendall and Nancy Gentry, the founders of Landed Gentry, for the opportunity to lead and build this amazing team of people that I have been privileged to work alongside every day. They gave Kendra and me enough freedom to be a part of transforming this company into something that is hardly recognizable from what it was over a decade ago.

Though I will miss the being here on a daily basis, Landed Gentry will always be a part of me. Landed Gentry’s future continues as we leverage the benefits of persevering through these times. I look forward to what is next for us all.

Wishing you all my best,

Brian Gentry

When we’re on the job site, we want to make the most progress possible on our clients’ new home. Building is a dynamic and exciting process; one that we try to make trouble free and easy to understand. Once we get going, things happen quickly, so we work with our clients to make decisions well ahead of time to help ensure they get their home on time, on budget, as promised.

Before the first scoop of dirt is moved, we collaborate with our home owners to make most of the big decisions, but that is rarely the end of the process. Once we’re underway, owners often think of a few things they’d like to change. Such changes may range from a change in bathroom cabinets, a different floor pattern or material in the kitchen, or just adding an extra light switch or two.

We document such requests, called “change orders,” to make sure that all parties have a clear understanding of the scope and cost of the change. It is important for the homeowner to understand how change orders affect the building process. When owner and builder communicate well, the impact of change orders on construction schedule and budget can be minimized.

A change order made after construction begins always has a cost attached. The cost may be the time and labor it takes to make the change or it may be the price of additional materials or products required — sometimes both.

The timing of a change order has a big impact on such costs. Typically, the later in the building process, the more expensive the change order. Some changes, of course, are simply impossible or truly cost prohibitive, such as altering the foundation or adding a basement once we’ve started building a home’s structural frame.

We respect our clients’ desires to get exactly the house they want. We know that some finishes (or even floor plans) may be hard to visualize until they’re actually installed or built. Changes will happen! For that reason, we’ve become more sophisticated and systematic about managing change orders. Our process not only ensures good communication and provides assurances between everyone involved, but also helps us maintain the building schedule and minimize additional costs.

The change order process: The most effective change order processes follow a general pattern that creates a paper trail and provides reliable cost information up front, including:

• Centralization. Your change order requests are managed by one person, typically your selections coordinator, to help ensure effective communication between everyone involved. This includes specialty trade contractors, suppliers, our job site managers, and, of course, our customer. We discourage owners from making special requests directly to a trade contractor, as this is a quick route to misunderstandings and disrupted schedules.

• Documentation. Customer requests are transferred to an electronic or paper-based change order form that initiates a paper trail and helps ensure greater accuracy and communication.

• Terms. We anticipate many of the changes our homebuyers make. We have a good idea of the cost and time most changes require. As a result, we can often communicate the terms quickly so that owners can make an informed decision in plenty of time to make the change or decide against it.

• Confirmation. It’s important to everyone involved that no change occurs without a client signature. Clients must approve the cost and terms, as well as the style, finish, or other details about the change. In addition, clients must be aware of how the change may affect their move-in date or other aspects of the construction schedule.

• Inspection. We may request a client to visit the new home’s job site when the alteration is being made so they can see it happen, ask any questions and insure satisfaction.

• Payment. Costs for change orders may be billed separately, usually as soon as the change has been made and completed to a client’s satisfaction. Sometimes we ask for a percentage of the cost or full payment up front before making the alteration, depending on the type of request.

By using a dedicated, document-based change order system, our clients are assured that any changes they consider — whether minor or extreme — are taken care of in a timely fashion without confusion, miscommunication or unnecessary costs.

 Do you know what most often hinders the success of a new-home project? Fear. Fear of the unknown, of unscrupulous contractors, shoddy materials, of somehow getting caught in a money pit and ending up holding the bag.

This high-level of concern is understandable. Often our clients’ home is their largest single investment. For many, this is their first experience building a home. And for all there is a lot to learn about new home construction.

As professional builders, we understand and respect our clients’ concerns. Our job is to demystify the building process, help our clients identify and understand their concerns and overcome them quickly and confidently.

In addition to being good listeners and problem-solvers, professional builders operate on solid business principles and practices that alleviate the majority of what clients often fear about the homebuilding process, including:

Reliable partners. We seek out, work with, and retain top-quality subcontractors and materials suppliers. Our trade partners possess similar philosophies and approaches to running a successful business and are committed to the same high level of construction quality and standards. This helps mitigate disputes, foster cooperation and produce better-built homes.

We constantly review our trade relationships to ensure that their pool of subs and suppliers consistently delivers high-quality work at a fair price. That diligence protects your investment and helps remove the fear of poor workmanship and unreliable performance.

Record keeping. The best builders are diligent (some say obsessive) about documenting their new-home projects to make sure costs, schedules and progress align and meet their standards of quality and those of their clients.

For the same reason, professional builders demand similar diligence and reporting from their trade partners — not so much to keep them in line, but more to enable their own accounting processes to be complete, accurate and current.

As such, professional builders can present completely transparent and reliable reports at any time to their clients to ease concerns about whether their new home project is on track.

Protection. People having a new home built for them are often afraid that they’ll somehow be on the hook for unpaid work or materials once the job is over and their builder has moved on to his next house. It’s a legitimate fear and an all-too-common reality.

These concerns are easily managed by professional builders. As part of their standard business practices, they pay their bills on time and only from each project’s budget. In addition, they routinely collect lien releases from their trade partners upon satisfactory completion of their work.

Collecting lien releases on a timely basis (as the project progresses, not just at the end) removes the chance that a subcontractor or materials supplier will make a claim for payment against a new home; in fact, the best builders provide copies of those lien releases so that owners can rest assured that the bills have all been paid.

Sophisticated builders practice “fear management”. They take a professional approach to their business and are sensitive to the concerns of their clients. They help clients manage any anxiety from project inception through final walk-through. The key, as always, is communication. Helping clients manage their fear goes a long way to keeping communication lines open and promote a satisfying experience for all.

 Brian Gentry – Landed Gentry Homes & Communities

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The construction of a new home has a particular rhythm, fluctuating from dynamic progress in the early stages, to a natural and predictable ebb of activity as the house nears completion. Our clients find it useful to understand this tempo. They know what to expect and they can better appreciate the building process as their new home takes shape.

Initially, the building process shows almost daily progress. As we build the foundation and structural frame, the general, three-dimensional shape of the house quickly takes form. The house becomes real and tangible; room sizes and locations become obvious within a few weeks.

The beginning phases of construction happen faster than the finishing stages. At the outset, large-dimension components, such as wall studs and roof rafters are assembled into three-dimensional forms. At this stage, several workers often build those and other structural elements at the same time on different sections of the house. The job site is a hive of activity, and there is obvious progress.

Likewise, the windows and doors, roofing, and siding materials install nearly as quickly as the home’s foundation and structural frame, resulting in a nearly finished exterior shell. Meanwhile, the electrician, plumber, and heating contractors work inside to install their respective behind-the-wall systems before the framed walls are filled with insulation or covered over with drywall and other substrates.

It is a very encouraging time for everyone involved.

As work continues, however, the pace begins to slow considerably as the focus shifts from the so-called “rough” or early stages of construction to the finishes. Dynamic progress gives way to very subtle, yet equally critical, improvements and finishing touches toward the home’s completion.

While the placement of insulation and drywall occurs somewhat quickly, and produces the dramatic effect of having the walls and ceilings nearly finished, the process of taping and texturing these surfaces to make them ready for paint, wallpaper, or other textures is necessarily slow. A drywall contractor may require a week or more to properly prepare an entire house. In addition, few other contractors can complete their work during this phase of the finishing process.

Typically, from this point to a home’s completion, the various trade contractors that once worked side-by-side must now operate in sequence. Carpenters, for instance, install the cabinets and countertops before the appliances and plumbing fixtures can be connected and finished.

Meanwhile, the painting contractor waits for the trim carpenters to finish before he can cover their work. And imagine how many faceplates, switch plates, light fixtures, and other finishes need to be fastened in place to complete the electrical system, not to mention carpeting and other floor finishes, tile work, and plumbing fixtures.

The laborious rate at which this stage of construction occurs can test the patience of any homebuyer. To help ease anxiety and take any mystery out of the process, we often schedule ‘walk throughs’ with our buyers. This provides us the opportunity to point out the understated progress going on in the latter stages of construction and assure our clients that their home is nearing completion.

Understanding the rhythm of homebuilding, from dynamic beginnings to the precision of its completion, helps our clients establish reasonable expectations and appreciate the realities of the construction process.

As a professional builder, we understand the importance of being in tune with the expectations of our homebuyers. We engage in continuing education to stay up-to-date with current trends in residential design and construction. We seek to anticipate what our homebuyers are looking for in a new house. We offer choices that fit each client’s budget and lifestyle. At the same time, we commit to high quality standards, remain on schedule, within budget, and service our work and the components we use to build each new home.

To achieve these goals, we must be very particular about the materials and products we recommend to our homebuyers.

Occasionally, a homebuyer may suggest something that’s not within our package of standard, upgraded or optional products. Although we constantly look for new and better ideas, some of the suggested products and materials may not meet the expectations we and our homebuyers have for lasting performance and cost efficiency.

To better understand the value of our role in offering a market-savvy selection of finishes, products, and materials for use in our new homes, consider the following questions and answers:

Q: My builder insists that I choose certain products and finishes by a prescribed date after signing the contract. Why is it so critical to meet those deadlines?

A: Making product selections early in the construction process, often before your home is started, allows us to insure that the products will get to the job site on time and within budget. Coordinating vendors and trade contractors involves a certain amount of “lead time”. This is the time it takes to receive a product from a supplier and schedule an installer. With timely selections from our clients we are able to keep a project on schedule and avoid paying a premium for rush deliveries.

Q: A contractor in my area says he’ll roof my house for a lot less than what my builder quoted, but my builder advised against using him. Why?

A: As with most things in life, a lower price doesn’t necessarily mean a lower overall cost. We seek out the best trade partners (like roofers) and negotiate the price of their work based on a variety of considerations. These include their availability, skills, experience, and ability to meet our deadline and quality standards. A low-priced roofer may not be sensitive to our schedule, leave the job unfinished or fail to meet our quality standards. This delays construction, often resulting in higher overall costs and extra work. Simply put, if the roofer is unknown to you and us, that’s a risk we’re uncomfortable taking on your behalf.

Q: I found some great outdoor light fixtures that would be perfect for my house. Can I use them instead of the ones being offered?

A: Some builders provide their clients with allowances to purchase certain products (usually finishes, like light fixtures) on their own. Even in those cases, however, we’re going to point our clients to the showroom of a reliable supplier; one with whom we work with regularly, can stay within budget and steer an owner in the right direction. An off-the-shelf or mail-order item, even a brand name, carries some risk for both builder and homebuyer. The builder must guarantee its installation and durability without truly knowing how it will perform in your home. It may also be more difficult to install than the line of products we offer, raising costs.

Q: Why does my builder charge more for the exact same faucet I found online for less?

A: A builder’s cost is more than just the price of an item. It may include the cost to ship and install it, to service it, and a nominal markup to cover overhead costs, insurance, storage, and profit. For all the products and systems in a home, we assume certain risks and costs on your behalf.

In order for us to give reliable assurances and properly service the products and features of your new home, we must be allowed to control and coordinate every aspect of the construction process. While we offer plenty of choices, those choices are determined based on extensive market analysis and years of experience in offering the most valuable commodity of all: your peace of mind.