Lead, follow or get out of the way

The title is of course in jest, but it does illustrate a point. There are those who are reactionary and those who are proactive. The proactive people are leading their businesses and clients into the future by studying and understanding market trends. These are the people who can help you capture the most value for your investment.

The housing market in the southwest is volitile since the bubble burst. Existing home values are still dropping in Arizona. Construction costs at or near where they were five years ago. It literally costs more to build your dream home than you can buy an existing house. Everyone knows that part. But, we study the markets in private and government publications daily so that we understand what the market is doing at this moment. We proactively seek out ways to help people Bring their Dreams to Life.

While each individual client has different needs, there are some generalizations we can make about the housing market. Our observation for today, March 29, 2012, is that existing home sales have dropped over the past couple of months. That indicates that there is an increasing value in purchasing an existing home. There are properties for sale right now that are so extraordiary that they can't be ignored. The price of existing housing is so low right now, you should be looking for the property, views, location and services that you want. We're not recommending building lots at this time, no, in fact we are do the opposite. There is a great deal of value in buying an existing home that while it may not be perfect in itself it has the great views and a big lot and perfect location. That area of town that you thought you couldn't afford has opened itself up to you. Use your leverage in this market to buy that home, cheap, well under what you have budgeted. Then you can put the rest of your budget to remodel and make that home perfect.
This housing market offers those with means an unprecedented opportunity to create a wonderful, perfect home for far less than they thought they might spend. Buy it, and remodel it before you move in. That's the smart play in todays market. Right now, shoot for the moon, shop big, dream big.

We'll keep watching the publications and indicators, and from time to time we'll let you know what the best bet is for the market we're in at the moment.

Remodeling

Home remodel projects can be frustrating beyond belief. With our knowledge and flexibility, we can help you succeed without the stress. There are several keys to that success.

First, we will work with you to specifically define the project. Nothing drives up cost and frustration faster than a project with a wandering scope. If you can identify the reason for doing the project up front and stick to your plans, you will save a great deal of time, money and stress.

The next key to success with remodels is expertise in construction types. We have spent decades studying buildings and performing remodels. That education and experience allows us to understand how and why different techniques were used. One of the biggest reason for rework during a remodel project is the fact that the designer didn't understand the original construction type. We do. You will hear people say, "we have to open it up to know." While this is a true statement, those of us with experience can make an accurate estimation of what's above the ceiling because of our experience.

Flexibility is the most important key to keeping remodels under control. With existing buildings there are always little surprises that no one could have anticipated. You may find a rotted rafter because there was a roof leak 20 years ago. Or, maybe termites have invaded that wall we thought was sound. Or, maybe the original carpenter didn't correctly use framing connectors. It's almost certain that your project will contain something along those lines. The designer, contractor and owner all have to remain flexible in understanding that there are items that may change the plans slightly.

The design of your remodel can take one of two approaches. The first of course is to change the appearance and function of your home. In which case the remodel is usually used as a design anchor and the existing building is altered to match that. The second type of project is one in which you love your existing home and want the new portions to properly coordinate with that. These are the more difficult projects. In either case you need a designer who understands and listens to you, your building, your budget and the history of techniques. We are the firm that can do that for you.

What the heck is BIM?

BIM or building information modeling, is the latest process being used by designers to improve the delivery of their projects. The core of BIM is a 3D model of the building. But it is much, much more than that. BIM means that every component, every system in the 3D model is linked to a database.

Contractors use BIM for two reasons. 1. It allows them to build the project with the actual components specified to determine if there are any conflicts, and 2. It provides them with an accurate quantity of each different material and quantity to be used. For the builder, this saves time, money and most importantly it eliminates rework.

Architects and engineers use BIM for the same reasons as the contractor, but reap the added benefit of being able to use modules to have more precise analysis of the design. BIM allows the designers to reduce assumptions, which increases efficiency in the design and lowers the cost to the end users.

The capabilities of this are in its infancy. Imagine if you will linking a BIM model of your home to a schedule that determined not only when to replace furnace filters, but actually was capable of ordering the filters for you. A digital model of your building that actually helps you do the proper maintenance. It's like having your car tell when your oil change is due.

RsODesigns and our team of engineers are using BIM through Autodesk Revit, the industry standard. Nearly all system manufacturers have Revit models available with the correct database links. Believe me, this little addition to our services will make your life easier.

More than just solar

 Sometimes we get stuck on a notion of what it means to be energy wise in our homes. Lately it seems that all of the focus is on how solar technology can be used. Don't get us wrong, we really are interested in bringing solar to practical commonplace use in homes, but there's more;

Geothermal heat pumps for instance use the constant temperatures below the surface to create highly efficient heat pump systems.

http://www.geothermalgenius.org/thinking-of-buying/tax-credits.html

With the reduction in operating costs, and the tax incentives, plus the utility company incentives, why wouldn't you consider using geothermal just from a financial viewpoint. For a typical 3000 s.f. house with 7.5 tons of air conditioning for the Tucson environment, the installed cost of the system may be $18,000. But the Federal tax incentive at 30% plus the TEP credit at $500 per ton make the actual installed cost for the first year $8,850.

That same home on average will save about $2800 per year in heating and cooling costs. So the costs of installing the geothermal system will be paid for in just over three years. REMARKABLE!, and we haven't even touched on the environmentally friendly nature of the system.

Geothermal is just one of the options that we can review with you as you decide which direction to take on your project. Just another way that we are responding to the ever changing home ownership market.

Is the market back?

I get asked frequently if the housing market is making a comeback. To begin with, I don't think that I,... or anyone else for that matter can accurately answer that question. Give me ten years and I'll tell you exactly when the housing crisis ended. There are an unknown number of variables that led to and continue the housing bubble crash and recovery. I don't know if the crisis is over.

But, what I do know is this;

A. The cost of purchasing a home is likely at a low point that it will never again surpass.
B. New construction costs remain near an all-time high level.
C.  There is extraordinary value to be found in existing homes.
D. It costs less to remodel an existing home to make it perfect than it would cost to build new.
E. The Boomers are on the verge of retirement, and in Tucson they will increase the demand for housing.
F. Increasing demand will increase prices.
G. There are still huge numbers of underwater mortgages.
H. The home values in the Southwest are years maybe decades away from balancing out with the underwater mortgages.
I. It is possible to increase the value of a home via remodels and additions.

We began this business with the idea that flexibility and innovation can still lead to a successful design business even in this market. As we demonstrated above there are opportunities to improve the market, responding to the shifting demands of the market is where real recovery lies. We are on the cutting edge of that real market based recovery. Join us and help to push Tucson and the nation forward to a healthy housing market.

Realtor Services

What can a design and drafting firm offer to a Realtor? On the surface it may appear that the two professions are distant cousins in the same family, barely related. But we see something more. A creative designer with vision can offer a number of services that could be of benefit to a Realtor. Our capabilities in 3D rendering and design have the extrodinary potential to help your clients visualize the possibilities.

1. Digital Staging; we can use our design and technology expertise to stage your listing without having to rent a stick of furniture.
2. Does my furniture fit; with a few photos and some measurements we can put your clients own furniture into that listing.
3. Perfect Except; we can show your clients the design possibilities of that home that is perfect except for one thing.
4. It was just the color; let us change the color of the interior or exterior digitally to show your client that a simple paintjob fixes that hideous condition.
5. Selling a difficult lot; there are lots that tough to sell just because it's hard to see what a home would look like on it. We can change that by putting a home on the lot, and with 3D rendering, we can spark imagination.

Just imagine what we can help your clients see. So while we may be distant cousins, we can become close friends.

Project Management

One of the aspects of small construction projects that often gets ignored is coordination. On the larger projects there are people who stay with the project from cradle to grave. Some of these people make careers out of coordinating these projects. This is, believe me, a valuable service. Construction projects are complex, and increasingly so every year as the regulations of jurisdictions and the building codes become more obtrusive.

There was a time when you would work with a master builder to create your project. You would give him your ideas and money, and he would give you a building. The relationship was owner and builder with a single point of contact on either side. Simple, smooth and very limited opportunities for mis-communication. In the modern world we are much more specialized. From the designer to the plumber to the electrical inspector, we are each taking up a smaller piece of the overall picture. Even us in the professions cannot always see the full picture. And then there is the owner, all by his or herself with this labyrinth of methods and procedures, much of it hidden from view. Even experienced owner's can run into road blocks that are difficult to work through.

This is where the project manager comes in. This person for a relatively small fee manages all of the aspects of the project in a timely manner and insures that all of the coordination has been done correctly. The clever project manager usually saves the owner more money than he makes in fees. But his value is far greater than that, a good project manager gives you piece of mind. His knowledge and experience can take away the owner's day to day stress that can be associated with a project. He illuminates the dark corners of the construction process and shows you the fastest cheapest way through the maze.

Natural Cues

I am sitting here in my office looking at the snow on the Santa Catalina Mountains. Yes,... it does snow in southern Arizona, anyway it got me to thinking. Since I first visited Tucson in 1980, those mountains have been inspirational to me. From the craggy peaks of Pusch Ridge to the majestic dome of Mt. Lemmon to the sandy bottomed Pima Canyon, the Catalina's have always offered suggestions of form, color, shadow, negative space, view angles and orientation. These mountains embrace Tucson, watch over her and give the designer an unparalleled backdrop. The Catalina's are a big part of what makes Tucson feel like home to me, they are comforting and challenging at the same time.

Those mountains make it easy to create and unparalleled drama in the design of a home. With the use of glass we can let the mountains become the walls of the home, the art, the inspiration. But we can also use contrast to frame those same views and make the interior environment of the home that much stronger of an element. We can use heavy visually impermeable walls on the south to disguise the views, a feature that creates surprise and drama.

As a designer I have always used cues from the natural environment to build upon, in Tucson there are a limitless supply natural cues.

Digital Staging

We've all heard the term staging. While there is some debate as to whether or not it is a cost effective tool in the marketing of homes, there is little doubt that some people very much believe in its use. The problem is that it's expensive, time consuming and limits itself to the vision of the designer who performs the staging. And,... when the house sells you have to remove all of those furnishings.

Digital staging has the same benefits to the seller and realtor, we can furnish the home and show buyers what is possible. But we do so in a manner that is flexible and much more cost effective. For a nominal fee we can provide as much furnishing as you need, we can add subtract or change all of the furnishings with a click of the mouse. We can provide you with still images or walkthroughs of the home that you can use on your website or in your office.

Digital staging is going to change the way that realtors prepare houses for sale. It's a tool for the future that is available today.

A new Home Design Firm ????

Why start a new home design company in this economic environment?

Because no one is offering the service that we want to be capable of offering and that this economic environment requires for success. In order to move forward and bring suitable services to the market we have to abandon the classic style design firm. The classic notion of a design firm has an overhead that is funded by every project whether the services are required or not. In the environment of today, the market demands efficiency, flexibility, streamlining. Not only does this lower the fees to the end user, but it accelerates timelines as well, which in and of itself is a cost savings.

Builders in particular should be able to make use of our new capabilities. Often the design fees for a project are a portion of the contractors profit and overhead. We can reduce our impact on that portion of your fees. We can make contractors money by providing a streamlined and flexible service that only provides what is needed.

The question becomes this, what is sacrificed in the name of streamlining and efficiency? Nothing,... not one capability. We can provide excellence in design, accurate and detailed construction documents, beautiful renderings, 3D design, engineering, permit support, marketing materials, etc. We have everything the big guys have, except for the high fees.