Selecting a Builder for Your Custom Home

Are you building a new home or a custom home in Sequim or Port Angeles? If you've decided to build your next home, this article answers the question, "What is the next step."

Author Rick Anderson is the founder of Anderson Homes, LLC, and with over 25 years of experience he shares his insights in this six part series to guide you in this exciting process.

Part One of Selecting a Builder

Once you've made the decision to build rather than to buy a home, the next thing you need to do is find a builder who can make it all happen. There are many qualities to seek out when selecting a "good builder," and although the characteristics of a builder are sometimes difficult to evaluate, they are important.

Management Skills

First and foremost, you will want someone who can successfully manage a team of craftsmen skilled at constructing a quality home.

Compatibility

Because buying or building a home is such a considerable investment, you want a builder who makes you feel comfortable. Building your home from the ground up is an emotional experience. You should feel at ease asking questions, and confident that there will be open communication throughout the entire process. A builder should be honest and fair, with the ability to listen, and the willingness to be a partner with you in solving problems along the way.

(This article written by Rick Anderson and posted by Marketing Consultant Chuck Marunde.)

The Series:
Read Building a New Home or Custom Home (Part 1 of 6)
Read Building a New Home or Custom Home (Part 2 of 6)
Read Building a New Home or Custom Home (Part 3 of 6)
Read Building a New Home or Custom Home (Part 4 of 6)
Read Building a New Home or Custom Home (Part 5 of 6)
Read Building a New Home or Custom Home (Part 6 of 6)

Financial Trouble in Real Estate?

Some Sequim real estate and Port Angeles real estate owners are looking at serious financial trouble on the horizon. Many property owners refinanced not once but several times in the past five years as the mortgage industry reduced rates and standards. Lower rates created the motivation to not only lower the monthly payment on a long term mortgage, but to keep pulling out cash.

While all that sounds like a free lunch, we all know there's no such thing as a free lunch. Refinancing to lower the monthly payment is great, provided the term of the amortization is not increased, and provided money is not taken out that could go toward reducing the mortgage balance.

Alas, some local businessmen and homeowners are now concerned about their debt service, and this really hits home if the current state of the economy has reduced income. It has for some businesses. In any slowdown, cash is king.

This will present a rare opportunity for real estate investors with cash, and it will also give home buyers with cash or good credit a rare opportunity to buy homes from those who are in trouble. This spring will see new buyers coming from California, Arizona, and the Seattle area shopping for good deals. One aspect of buying and selling will become more important than any other: negotiating experience in this kind of market. The difference could be $10,000 to $50,000. That's not pocket change.

Microsoft and Yahoo Merger Disaster

A Microsoft buyout of Yahoo would be a disaster. Such an acquisition would send us back in time, technologically speaking. The outcome has major implications for all of us, including the real estate industry, which depends heavily upon the Internet. Here's why.

First, large companies (in this case multi-billion dollar companies) do not merge with the same simplicity of making a banana split. You can hardly screw up mixing ice cream, fruit, nuts, and sweet flavors. Whatever you end up with is edible, at least for the creator. Attempting to mix two massive organizations with completely different foundations, management philosophies, marketing structures, business models, affiliate relationships, customer networks, financial and investment practices, and market niches would be the ultimate nightmare for both companies, but ultimately for consumers.

Steven Covey, one of this country's most knowledgeable and respected experts on business and mergers, said long after the merger of his company and the Franklin company that he would not have done it if he knew how massively complex and impossible it would be. That merger would be a skip in the park compared to a Microsoft buyout of Yahoo, which would be more like a New York marathon.

The second reason a Microsoft Yahoo merger (or acquisition) would be a disaster is because we all know from history (which we won't naively forget, right?) that Microsoft is the leader of absolute control, and the consumer is always going to pay for submitting to Microsoft. That is true of operating systems, software, subscription services and Internet infrastructure.

If you give Microsoft the keys to the castle, you will pay forever to live in the Kingdom, to own property, for the right to grow and sell crops, to irrigate your fields, to plant red roses (premium fees will apply if you want other colors), and if you want to actually tour the castle, you will pay in gold (secured by the lives of your grandchildren).

Google co-founder Sergey Brin recently called Microsoft's attempt to buy Yahoo "unnerving" and said the move imperils innovation on the Internet. Sergey Brin is correct.

An acquisition of Yahoo by Microsoft would be a major disaster for all of us. Except Google. The leaders at Google are Internet light years ahead of Steve Balmer and company. While millions of consumers are moving rapidly toward open source software and reasonably priced and beneficial subscription services, and away from Microsoft products and services as fast as they can run, Google is embracing consumers' needs and preferences. What is Steve Balmer thinking? Where is Bill Gates anyway? Oh, yea, he left the building.

Sequim and Port Angeles Real Estate, LLC

Sequim homes for sale and Port Angeles homes for sale, lots, farms, ranches, and custom homes are all now available through the newest real estate brokerage in Sequim and Port Angeles. The website is easy to find at SequimPortAngeles.com and the broker is local real estate attorney turned broker Chuck Marunde. Here is the tip of the iceberg found on the company's website:

Search Properties in Sequim (Search entire Sequim MLS)
Search Properties in Port Angeles (Search entire Port Angeles MLS)
Get Current Listings That Fit Your Specifications
Find Out How Much a House Has Sold For
Get a Free In-Home CMA
Get a Free email Property Evaluation
Current Mortgage Rates
Tips for For-Sale-By-Owners (FSBO)
Sequim's & Port Angeles' Most Informative Real Estate Blog
Listen to the Sequim & Port Angeles Podcasts
Find Homes and Land, Find a Real Estate Agent
Get 20 Years of Real Estate Law Experience Free

I would encourage anyone who is buying or selling real estate to talk to two other agents, and then come see us so you can compare. No one will do more for you than we will. No one brings more experience, knowledge, and loyalty to the table than we do. Come and interview me. Ask me anything about real estate. See if this is the right brokerage for you. Our business model has you, the client, at the center of all that we do, or as I sometimes like to say, "Our clients are the center of mass for all decisions made at Sequim & Port Angeles Real Estate, LLC."

I'm looking forward to meeting you and serving you. Sequim & Port Angeles Real Estate is "Where Dreams Become Reality."

Best regards,

Chuck Marunde, J.D.
Broker/Owner
Sequim & Port Angeles Real Estate, LLC
618 South Peabody St., Suite I
Port Angeles, Washington 98362
tel.: 360-775-5424
fax: 866-733-7135
chuckmarunde@gmail.com
http://www.SequimPortAngeles.com

Port Angeles Real Estate Brokers

Port Angeles homeowners and Sequim homeowners who want to sell their homes, and buyers from California, Texas, Arizona, and on the Seattle side of the pond, are looking for leadership from real estate brokers in Port Angeles and Sequim.

When the real estate market goes through a phase of uncertainty, as we are now, and especially in the slowest time of the year, clients are asking important questions like:

Should I put my house on the market now?
What is a fair listing price on my house?
How long would my house be on the market before it sells?
Is this a good time to buy a house?
Should I buy a home in Sequim or in Port Angeles?
Should I buy an existing house or have one built?

Clients do not want to look into a crystal ball. They want professional guidance that comes from experience and integrity. If you are buying or selling, this is a time for strong leadership from your real estate broker and agent. Do the due diligence to find an agent you can trust and who can do an outstanding job for you. Knowledge, experience, and trustworthiness are all important. Don't buy or sell your home without them.

New Homes in Sequim

You're looking at new homes in Sequim, and you're trying to decide whether you should buy an existing home or build a new home. That's no small decision. This is one of several articles you will see on this blog on this subject, because it is a big subject. The answers you get are only as good as the questions, so what questions are you asking?

Today let's look at one aspect of having a new home or a custom home built on a lot of your choice. One of the early decisions you will need to make is which home builder do you hire? How do you know among the many builders out there which one will build the home of your dreams and do it within the budget and contract you sign?

Perhaps a true story will help flush out the relevant issues on this question. I talked with a client about an experience they had with a local builder. They saw an ad by this builder, and they met with him to discuss what they wanted to do. In their words, "He seemed like such a nice person." They trusted him with a large down payment of $30,000, and they signed a contract with him to build their retirement home. They had been planning this for seven years, and they were excited that they had a contractor who was the lowest bidder.

These wonderful people began to recognize that there were some communication issues early on and that there were some disagreements on some seemingly minor but important construction plans. They put these things behind them as quirks or just unusual little things, but during construction there were between a dozen and two dozen "little things" of concern.

The front entrance to the house wasn't being built the way they thought it would be, and when they asked the carpenter about it, he gruffly told them that he's just a carpenter and that they should talk to the builder. They did, but he told them that's the way it is being built. End of discussion. The clients were shocked to be treated that way, but they didn't do anything to force the issue.

The hallway appeared to have 2x4's with some bows in them, and they brought that to the contractor's attention, and he impatiently told them it would be taken care of.

The bathroom fixtures were not what they had expected, and the builder told them those are the fixtures he uses. End of discussion.

The kitchen cabinets were not the kind shown on "Exhibit A" attached to the contract, and the builder agreed to change them after he made is displeasure very clear. This was all emotionally exhausting to the clients. They felt they had to constantly supervise the construction of their home, because if they didn't it definitely would not be built correctly.

There were a number of other items, which the clients brought to the contractor's attention, and he agreed to change some entirely, some partially, and refused to change others.

I would point out that my perception of these clients was that they were NOT high maintenance clients who were just a pain in the royal behind. Their concerns were legitimate and reasonable. They were actually very polite and perhaps even timid people, so I sensed that they did not make unreasonable demands on the builder, nor were they the kind of people who would be inconsiderate.

When the house was about 90% complete, the builder demanded the clients sign off on the next bank draw to the builder, although the builder had not completed a number of items he promised to take care of. He also informed the clients that there would be an additional $56,000 tacked onto the contract, because of "extras" they had demanded. The clients were completely shocked, because the builder had not asked them to sign any change orders, nor had he discussed any "extras" with them at any point before or during construction.

The clients refused to release the next draw, the builder walked off the job, and both parties retained real estate attorneys. You don't want to know how much the clients spent on attorney's fees, but their home was delayed and they had many more expenses before they were able to move into a completed home. So much for a pleasant experience and a dream home for retirement. They told me it wasn't so much the money, although they couldn't afford all the extra costs and attorney's fees. The real cost was the emotional stress and the strain on their 26 year marriage.

If you are going to have a new home or a custom home built in Sequim or in Port Angeles, may I suggest you do some due diligence to identify and hire the best builder for you. If you need a good referral, you are welcome to call me to chat and ask questions. If I can save you a ton of money and a lot of stress, it would be my pleasure. You can Email ChuckMarunde@gmail.com any time.

Read more on finding a great home builder in Sequim or Port Angeles
Read Elderly Couple Ripped Off by Contractor
Read Hiring a General Contractor in Sequim and in Port Angeles

Prices of Sequim Homes for Sale, Port Angeles Real Estate

Here's what's been happening in the Sequim and Port Angeles real estate market (the stats include all of Clallam County for the fourth quarter of 2007 and are provided by the Washington Center for Real Estate Research).

New building permits are down 18.6% from one year ago. Homes sold are down in Clallam County by 20.4% for the fourth quarter (2007) compared to one year ago. The median price of a home is $225,000, which is down 6.2% from last year.

Statewide, these states look like this: building permits are down 17.3%, homes sold are down 13.7%, and the median price of a home is $293,900, down 2.5%.

While sellers would like home prices to keep going up, up, and up (prices have been doubling in Sequim every 7 to 10 years), buyers are given a reprieve from the slowing rate of increase (even a small decrease) in prices. So buyers are saying, "Thank God."

There are more homes for sale in Sequim, Washington and Port Angeles, Washington than last year at this time, but again, that is good if you are buying. Of course, since many of our homebuyers come from California, Arizona, and other states, if those buyers are unable to sell their homes at a fair price within a reasonable period of time, they will not be ready, willing, and able to buy here.

But there are still buyers who have planned to retire and move here, who have the money, and the timing of this real estate market only plays in their favor. That also means sellers are still selling, which they are. In this kind of market it is even more critical that sellers have the highest level of competence and experience in their Realtor. Anything less could cost them tens of thousands of dollars and months of delay.

I recently sold a Sequim home for $759,000, and the buyers were from Arizona. The sellers were pleased to sell their home in this market, and the buyers are delighted to have found their dream home. Amidst the news media's dramatic headlines, we still are making buyers and sellers happy here at Sequim & Port Angeles Real Estate.

Elwha River Dam Removal

The removal of the Elwha River Dam just west of Port Angeles has been talked about for years. The purpose is to restore Salmon habitat, but man's desire to control the environment never seems to achieve any significant measure of success. [See a more erudite statement about removal of the Elwha River dams at the Northwest Fisheries Science Center website.]

It would be great if it did restore fish and wildlife, or substantially improve it, but I can't think of any examples of anything man has really accomplished on such a grand scale. I grew up in Alaska, and the Fish & Wildlife were always trying to balance the wolf vs. the moose population. One year the F&W Service would announce there were too many wolves, so they would issue an edict that the wolf bounty would increase. The next year they would issue an edict that there were not enough wolves but too many moose, and killing wolves would be prohibited, and a 3,000 page report would announce that you could shoot bull and cow moose. [I almost typed meese, but the plural of moose is actually moose.]

I took the above photo of the lower Elwha River Dam, but the upper dam is slated for removal, too. Here's an interesting dilemma when it comes to the removal of major dams or bridges or other projects in the 100's of millions of dollars: the cost keeps going up dramatically as time marches on.

The Kitsap Sun reported today:

"The official cost of the Elwha Dam removal has more than doubled since 2001, reflecting add-on expenses of new water-treatment plants, mitigation projects and inflation not anticipated years ago. . . . The 2001 estimate of $135 million was updated to $308 million as the result of a comprehensive project review completed last year, according to a statement from Olympic National Park. It was the first such review in many years."

Since government officials seem to have such a tremendous difficulty accurately figuring out how much to tax you and me for all these projects, I thought I might help them out a little. While I'm being sarcastic here and just poking a little fun at government bureaucrats about the removal of the Elwha dams, my mathematical rule could actually be accurate. [Insert laughter here.] So after 30 years of watching projects from Alaska to Washington and beyond, here is Marunde's Rule of Large Government Save-The-People Project Cost Estimates [With a title like that, you might have thought I am a bureaucrat.]

1. Take the original estimate and for the first round of "surprise" cost increases, just double it (due to "cost overruns, unexpected inflation," and so on);
2. Take the new estimate (now double the original), and with another "surprise" add 30% to the lastest estimate (due to additional complex issues that were not originally addressed);
3. And for the finale, when the project is finally given the go ahead, tack on another 15% (there will be a lengthy list of items none of us can comprehend justifying this increase).
   
4. For those of you who wonder about the time period over which these simple rules apply, the last rule is that time does not matter. These rules apply over any period of time for any government involvement in large projects. There is an exception to this last rule. If 10 years pass since the original estimate, and the project has not yet been started, multiply the original estimate by 10 to arrive at the final figure.
   

Apply these rules for all original estimates, and you can figure out how much the project will really cost in the end, which might . . . just might have an impact on your decision to vote for or against a project in the beginning. Based on my formula, the final cost of the Elwha River Dam removal will be $408.65 million. Time will tell. It always does.

New Real Estate Broker in Sequim and Port Angeles

News Release! New Real Estate Brokerage Hits Town!

There's a new Sequim Real Estate Broker and Port Angeles Real Estate Broker coming to town. In both towns! It is an established name in Sequim and Port Angeles. The owner and broker will be Chuck Marunde. Many know Chuck as a Real Estate Attorney, some know him as a Realtor, and others know him as the father of famous athletes.

Blog Manager: Chuck, in this interview I want to take a more personal approach to an interview such as this. I'll ask about the new brokerage and your experience, because that will be important to people, but I think people also want to know who you are. Chuck, give us a brief vignette of who Chuck Marunde is, your business and real estate background generally, your connection here and your family.

Chuck: I'd be glad to. I started in real estate sales in Alaska in the 1970's, and went to law school at Gonzaga University in Spokane. I practiced real estate law for 20 years with a 4-year stint in the Air Force as a JAG. In 1994 I moved my family back to Washington and to Sequim where I continued my real estate law practice and raised my four children. If I may plug my children, I have the cutest little girl in the world, and my boys are amazing, too. Brady is 6'4" and a great basketball player. Bristol is a professional mixed martial artist, and while he is a humble and gentle person outside the ring, he is very dangerous in the ring or the cage. My oldest son, Jesse Marunde, became one of the strongest men in the world as a professional strongman. He placed 2nd in the World Strongman Contest in Chengdu, China three years ago. Jesse died in Sequim at his gym last August from a heart attack. It was a terrible shock, but I can say I am very proud of him.

Blog Manager: Many people in Sequim and Port Angeles knew Jesse. He had an incredible impact on a lot of people. For being only 27 years old, he left a huge legacy.

Chuck: He did.

Blog Manager: With all those athletes in the family, what do you do for exercise?

Chuck: I love to run, workout in the gym, watch my sons compete, and ski with my daughter. Of course, I'm always taking photos of my kids.

Blog Manager: Many people know you, but not everyone knows the extent of your experience in real estate. If you were forced to describe your real estate experience in one sentence, what would you say?

Chuck: I'm not big on talking about myself, because my new brokerage, Sequim & Port Angeles Real Estate, will be all about the client, not me. I really mean that. But people are entitled to know who I am if I am going to represent them in selling their real estate or representing them as a buyer's agent. I only get once sentence?

Blog Manager: Right. But you've already used four. Do you want to try again?

Chuck: [Affirmative nod] My sales experience in real estate goes back 30 years, but my 20 years in real estate law gave me a great foundation in dealing with critical details and problem solving and for building a client oriented business, and along the way I have headed up an escrow company, closed 100's of real estate transactions myself, put together loan packages before they had software that typed everything, negotiated 100's of transactions, drafted 1,000's of real estate documents, litigated 100's of real estate issues, resolved many real estate conflicts successfully, have been an adviser to many real estate brokers around the state, including many agents right here in Sequim and Port Angeles, have handled many commercial transactions, have been an adviser to real estate investors and millionaires, have done many foreclosures and forfeitures, short sales, and creatively structured transactions, am licensed with the State as a real estate educator, and I'm a published author on real estate topics, for example, I write for the Pacific Northwest Home Owner Magazine, I sit on the Seattle PI panel of real estate experts, I'm on several other national real estate panels as an expert author, and I'm an Internet marketing consultant for people in the real estate industry.

Blog Manager: That's a long sentence Chuck, but full of good information for our readers. Tell us something about your new company.

Chuck: Sure. I wanted to build a company where the true center of focus is the client, where the level of professional knowledge and attention to detail is unsurpassed, where customer relationship management is actually practiced. In other words, I wanted clients to get the highest and best counsel in their real estate transactions, and that means getting the best price within a reasonable period of time, and with so much attention paid to the clients that when the transaction has closed, the clients will not only be clients but friends who are delighted with our service. I could describe in detail how this all works, but I think the best way for people to find out is to work with us. That's the ultimate test and the ultimate proof that our business model is truly different than any other Broker's. That's what Sequim & Port Angeles Real Estate is all about, and this is what clients expect and deserve.

Blog Manager: Chuck, you told me earlier that you felt your experience would be beneficial to clients. Do buyers and sellers really want a Realtor who has a lot of experience, and do clients appreciate your real estate law experience?

Chuck: No question about it. Clients want two things, at least. They want a Realtor who is competent and trustworthy. I could talk for an hour about what that means, but long story short, it means that people want someone who really is knowledgeable and understands the real estate business. After all, their Realtor is handling what may be their most expensive investment, their home. They want someone who understands the current market, and who understands pricing, marketing and advertising, the Internet, negotiating, contracts, and who can protect them throughout the entire process all the way to closing and beyond. People don't just want a slick salesman who talks but does not walk the talk. I think the public is getting very smart about this. They are discerning more and more who has experience and who does not. I think more people are not just hiring the first Realtor they talk to, but the first Realtor who can answer their questions with depth.

Blog Manager: Chuck, you did not join a major real estate franchise. Do you think people look for the big names?

Chuck: I'll tell you what clients have been telling me for nearly 30 years. They want someone who will help them find what they are looking for. They could care less about the name of a company or the size of the building. They don't sit in California or Arizona, or even in Seattle, and say, "Honey, let's call a big name franchise in Sequim or Port Angeles, and see if they can help us find our dream home at a rock bottom price." About 75% of buyers start their search for their next home on the Internet, and they're not using real estate portals or franchise websites. Like all of us, they are searching with Google or Yahoo. Again, it's not about me, it's not about the company, but it is all about the client and what the client is looking for. I have a completely different business model than 99% of the crowded brokerage business. For me, it really is all about the client, not me.

Blog Manager: Chuck, since you talk about serving your clients more than anything else, can I assume that you have free resources that people can check out?

Chuck: Absolutely. I offer an incredible amount of information absolutely free. People might be surprised. They can start with
SequimPortAngeles.com, and they can go to
SequimRealEstateBlog.com or
PortAngelesRealEstateBlog.com, and they can also find real estate law help at FreeRealEstateLaw.com, and there are more resources, but that's enough for now.

Blog Manager: Well, there you have it folks. Check out those websites, and thank you Chuck for sitting under the bright lights for us.

Chuck: My pleasure.

To Contact Chuck Marunde:
Email: chuckmarunde@gmail.com, or
Call his direct line: 360-775-5424