I think it is a known fact that all homebuilders are feeling the pain of this severe real estate downturn. Why does this matter? Well, most builders require a buyer to write an earnest money check directly to them to start construction of a home. If the builder goes out of business, your earnest money may be lost, and depending upon the situation, you may never get your home completed. See why this is an important issue right now? Since some builders require $10k to 10% of the price of the home as earnest money, it could be a major loss of money if the builder goes out of business while your home is being built. So, should you purchase a new home with the current builders all losing hundreds of millions of dollars per quarter?

Recently I placed about 10 bandit signs (small signs that stick into the ground next to the street) around Rancho Sahuarita. These signs explained what 99% of people buying a new home do not know, which is that homebuilders hold back most incentives and do what they can to make some people pay a lot more for homes than others. There’s nothing wrong with that. They are a business. But what about the people who thought they got a great deal only to find out they paid tens of thousands more than their neighbors? I put the signs up on Saturday and got a good reception from the public. Sunday morning I received a call from the Rancho Sahuarita Clubhouse saying, “Rancho Sahuarita does not allow bandit signs.” Hmm, that’s funny. I put my signs right next to the Pulte Home bandit signs and other numerous small signs that all the builders have used for years. Furthermore, I have placed bandit signs in Rancho Sahuarita before with no problems. But those other signs were fine because they were not trying to inform the public about how the builders try so hard to hide the fact that they frequently rip people off. Now, I have always said that I do like the Rancho Sahuarita concept, but it is obvious that they are very pro-builder. In my opinion, this is censorship. The builders definitely do not want a message like mine to get out.
Here are some things that I have observed builders do to make sales and additional money that, had the customer been more educated, never would have been allowed. These actions are legal in the sense that no one has ever called them on it, and they happen regularly.

There is always a lot of talk regarding who builds the most energy efficient home in Tucson. My personal belief is that there is no difference among builders, with the exception of John Wesley Miller. A John Wesley Miller house is constructed for the sole purpose of being energy efficient. In fact, a recent home that he built in Amory Park is a “Net Zero Energy” house, which means it is completely self-sufficient in terms of energy. He built this particular house to demonstrate what’s possible in today’s world, although it’s not a home that everyone would be comfortable with. His other homes all incorporate energy efficiency ideas, like solar panels for electricity generation, super-insulated walls and ceilings, and the inclusion of many recycled materials to limit the amount of new resources required to construct a home. A John Wesley Miller home is extremely expensive. Small 1500 square foot homes begin at $500k. There’s no limit on the high end because he is a smaller custom builder and the sky is the limit. But if your goal is to have an ideal energy efficient home for your family and price is no object, a John Wesley Miller home is the peak of energy efficiency here in Tucson AZ.

Believe it or not, there are many easy ways to make your home much more efficient, resulting in big monthly savings. Here are a few that I feel are a must for every home. Implementing them will allow your home to sell for more because buyers are increasingly seeking energy efficiency in a home before they will make the purchase.

Tip #1: Use a Programmable Thermostat

I have been getting a lot of questions recently about energy efficiency. How can I make my home more energy efficient? What government tax credits or programs related to energy efficiency can I take advantage of? Who builds the most energy efficient homes? The list goes on.

This being said, I have recently been doing a lot of research regarding ways to make homes more efficient, cost savings, upfront costs, efficiency home building techniques, etc. I have decided to start really digging into these issues to help clients and homeowners make their homes more efficient, save themselves money, increase their home’s value, and do their part to save energy wherever feasible. I plan to write a series of posts (time permitting) to assist those who want tips and opinions on the topic of energy efficiency.

In my opinion, the Tucson market has touched bottom. It will take several months for the numbers to indicate this, but by all indications that I see and hear, the market is getting better instead of worse. (Believe me it’s slow progress, but progress, nevertheless!) These numbers indicate that buyers are starting to warm up again to buying (1485 contracts pending), and that sellers are holding tight where they can (active listings down to 8527). Both have a ways to go, though. I would like to see active listings around 5500 to indicate to me that there is a real balance. With the way the numbers are heading, we should be to this 5500 active listings number (again this is a guess) around May of 2010. It will take this long for the market to clear itself out and become balanced again. I predict that beginning in 2010, there will most likely be a small acceleration of prices because few new homes and projects will be coming on board, lessening the supply of homes available.

When deciding to buy a new home from a builder, everyone wants to buy the highest quality home that they can afford. I’d like to share some of the ways I determine the quality of the homes that are being built. Now these tips are not foolproof, and there is definitely no guarantee that your home may not have problems, BUT I would be willing to say that these tips will assist those who want to try to locate the highest quality they can afford for their family.

Tip 1: Do Research