Overcoming Customer Objections

December 31, 2018

“One of the best predictors of ultimate success isn’t natural talent or industry expertise. It’s how you overcome objections and explain failures.”

— Ken Corbin

Pareto’s Law

Here’s an interesting question: Are you serious about earning more money by overcoming more objections? Of course, everyone says, “Yes, I want to earn more sales commissions!”

If it was that easy, everyone would sell a lot of homes and make more money overcoming simple, easy customer objections.

Unfortunately, the 80/20 rule carries in our industry. It’s called “Pareto’s Law,” and says 20 percent of all the housing consultants make 80 percent of all the commissions. Unfortunately, 80 percent of all salespeople make only 20 percent of the earnings.

The sales strategies we’ll discuss to overcome objections will give you some well-proven ideas and strategies to help you deal with demanding situations and close more sales. There’s no waffle or padding, just the information you need to increase your sales by overcoming more objections.

A few strategies to overcome objections from customers. — Learn how professional home sellers can talk customers through questions, as well as identify and solve customer objections.

So, What are Objections?

They’re just a part of the complete home-selling process. This section will also deal with some added appointment setting and prospecting. As we go through it, we’ll build into a sales training resource for every stage of the selling process.

Objections can occur anywhere in the sales process. The most common objection, or smoke screen, you’ll hear is “I’m only looking,” before you even say anything.

Think about reasons behind such a simple statement from the customer:

They don’t want to show any commitment by asking for help
They’d like help, but don’t want to show lack of knowledge
They don’t want to give any financial details
There’s a fear of salespeople
They’re short on time

Many new housing consultants automatically will become frustrated. My goodness, all you did was offer your assistance! How were you supposed to know what was going on in their head?

Here are some techniques to overcome objections that will add to your sales skills. These techniques will give you additional strategies and skills anywhere in the sales process. The aim is to give you alternative viewpoints on how to handle objections in the home-selling process, so you can adapt them for your sales role. At no point am I saying scrap what you do now and do it this way. Sales is about acquiring new skills and using the best techniques in each sales situation.

Objection or Question

Ask questions to overcome objections — If you have the right kind of conversation, a customer will tell you what’s really troubling them.

Many housing consultants who first attend my sales seminars confuse questions with objections.

“Is there a full guarantee on not just the home, but the appliances?” is not an objection to the home. It’s a question. It’s also a clue as to the benefits the buyer is looking for in the transaction.

Get the prospective homeowner to ask questions. Encourage it. There is nothing more frustrating than a low-reaction customer who gives little information with one-word answers.

Even questions phrased negatively should be welcomed, not seen as objections.

“Do you think that’s an awfully expensive price?” is not an objection. It’s a question. And it’s easily answered with, “That’s a great question and let me show you the added value this home offers you and your family.”

Of course, the best way to utilize these sales techniques is to answer the objection in your own words, appropriate to the situation. Just like there are different personalities, there are numerous ways to overcome objections during the selling process. Over time, you’ll develop your own set of phrases and techniques that fit not only your personality, but the personality of the customer.

The Two Types of Objections

“Obstacles don’t have to stop you. If you run into a wall, don’t turn around and give up. Figure out how to climb it, go through it or work around it.”

-Michael Jordan

First, let’s discuss what are called smoke screens. There IS an objection the potential homeowner has; although they’re simply hiding it.

One thing to remember is this can be intentional or subconscious. Even if you use razor-sharp methods to answer the objection, you may be no closer to a sale. It’s because, in their mind, you haven’t answered the real objection.

Unfortunately, sometimes you’ll find more objections keep popping up to create even more smoke screens. It can become not only frustrating for you, but for your customer.

The key to solving this is in how you define the real objection. Let’s take a moment and consider this statement… “That sounds VERY expensive!”

Is this a genuine objection or a smoke screen?

Genuine objections are honest reasons for not moving forward. It’s important to remember this is from the customer’s point of view. It’s a genuine objection they’ve developed based on the information they have at that moment, AND the viewpoint they have formed.

You may know they are wrong. Unfortunately, that’s your viewpoint, and the only one that counts is the viewpoint of the potential homeowner. Even if you’re talking from a more informed position, the customer’s objection is real in their mind. So, treat it as a genuine objection.

Over the years, I’ve found it more effective to categorize objections as “Defined” or “Vague,” rather than real and smoke screen.

The objection was, “That sounds very expensive.” It’s now viewed as a vague objection that needs defining by asking good questions.

Not Acknowledging the Objection

Here’s where you need to learn to be flexible. In most instances, I recommend you acknowledge the homebuyer’s objection, repeating and rephrasing it.

Depending on the customer, the situation and the objection, it’s possible you can add strength to their objection by acknowledging it. As an example, if you say, “I can see why you might think that,” or, “I appreciate what you’re saying,” you’re agreeing with them.

Overcome customer objections with specific strategies — There are specific strategies to overcome customer objections.

It’s what I call “Getting Caught.” It’s going to happen to you, and when it does, I would use an acknowledgment that’s followed by an effective phrase.

For example: “I can see why you might think that, because I haven’t shown you all of the standard features in this series of homes. Many of the items I’ll show you would be expensive options in other models. I think you’ll appreciate how these custom features will save you time, money and offer the convenience you’re looking for in your new home.”

This technique is best used when the objection is clearly defined and you can answer it. It’s simply a process that’s constant, that can be assessed, altered, adapted and made more effective.

If you just answer objections, with no thought to the process, you’ll find it hard to know which parts are working and which parts to change. So, prior to answering their objections, you must define them.

Research how to overcome objections from customers — Take time to find solutions for customer objections.

How to Define True Objections

Question to find the real objection

Use your probing skills to discover the real objection. You’ll define it until it’s clear for you to know what you need to answer. Only once you have defined the real objection can you continue moving through the home-sales process.

If the customer does not give you the genuine reason behind the objection, you should decide if you are making effective use of your time. And don’t forget there are many reasons why a customer may not be forthcoming with the information.

There is a financial situation
They need to speak to a partner or family advisor
The home is great, but they’re not sure about the community
A bad sales experience at a competitor
Nowhere to place the home

This is where your home-sales skills can be used. It’s likely trust and relationship building that will get you to the next stage of the process.

Gain agreement from the customer

Remember the saying, “Patience, grasshopper”? I often see sales people ready to jump straight in with an answer once they think they’ve defined the objection. It’s best to sometimes hold yourself back, take a breath, and consider a different action.

Before you move to answering the objection, you want to gain some agreement from the customer. This includes defining the objection and then making sure it’s the only one stopping them from moving forward.

Again, use your own words and phrases. The more agreement you gain at this point in the home-selling process, the easier it will be to move forward and eventually get to closing.

Present the answer to the sales objection

The key message here is, “Forget the features and focus on the benefits and what it means to them.”

All your home-selling strategies help you by having a thorough understanding of how to use those benefits and personalize them during the sales process. Most of these will present the answer that covers the objection. Keep your focus on what it is the customer needs, and then personalize EVERYTHING to meet those needs.

Answering objections does not always mean making concessions! These are overcome by giving additional information, changing the customer’s viewpoint, showing the benefits and personalizing them to your potential homeowner.

Close or gain agreement to your answer

Don’t take it for granted that you have answered their objection.

Ask the customer. Gain their agreement that you have dealt with the objection they raised. If the objection was to the closing of the sale, then close now. Don’t wait.

They agreed earlier that there were no more objections to their purchase, or to moving forward, and that you understood and defined their objection. You can now close and move forward to the next stage.

You can see now why gaining agreement to the defined objection is such an important part of the selling process. If you hadn’t asked if there were any other objections, you could now be faced with even more objections to overcome.

Admit you can’t handle every objection. It’s rare that a customer walks in and immediately finds their dream home with no negatives. In most instances, that type of buyer is a “get me done,” and will purchase anything if you can get them financed.

This type of buyer knows this and might push you with objections just to make sure they are getting the best deal possible. Remember, many people start out viewing you as possibly less than ethical, or “a bit sharp.”

On the other hand, some customers will make unrealistic demands either deliberately or because they are not as informed as you are. Take all this in stride and answer concerns in an appropriate way.

Build the value of the home, stay with the process to overcome objections, and point out the positives to outweigh objections you can’t answer.

Overcome objections to help customers — Helping to overcome objections is more than a sale technique, it’s a matter of solving problems for your clients.

Objections are a Vital Part of a Home Sale

“An objection is not a rejection. It is simply a request for more information.”

-Bo Bennett

Customers bring with them reasons to do business with you and several more reasons not to do business with you. Those housing consultants who are highly skilled address both. By the end of the interaction with the customer, they will have convinced that potential homeowner to do business with them.

The key here is to address objections in the beginning of the interaction.

When speaking with the customer, always highlight the most common objections and why those are not actually problems. Then, watch their body language during this process. They may change their posture, facial expression or breathing.

These are good indicators that you have hit on something they are feeling.

Of course, it is not possible to guess everyone’s objections. So, throughout the sales process constantly check in with them and get a sense of what they’re thinking. They will very often tell you upfront what their sticking points are, which makes your life much easier.

When it comes time to close, don’t be afraid to ask if they have any concerns. Watch their body language. If they appear more closed off, they probably have not followed you through the whole process. This is not a problem.

At that point, simply go back and elicit whatever their objections are and move the customer beyond them. This will make the sales process much easier, because you have built a good rapport with them.

Recognize Resistance to Change

Some prospects have a natural resistance to change. They follow the “If it’s not broke, don’t fix it” philosophy, which makes it difficult to decide. Some just can’t pull the trigger, and are unwilling to risk that housing change.

When these potential homeowners raise objections, listen carefully and ask for clarification. By asking them to go into more detail about the objection, you’ll be in a better position to overcome it. Most housing consultants simply give up at that point. They fail to understand the customer is truly looking for a good reason to make that housing change!

Remember, no decision IS a decision!

Fair Housing and Those Tricky Familial Status Issues

Rick Robinson

December 28, 2018

Discrimination Claims on the Basis of Familial Status Are Increasingly Common

Rick Robinson on familial status — Former MHI General Counsel Rick Robinson

As general counsel for MHI, I spend a great deal of time on issues relative to the Fair Housing Act.

Title VIII of the Civil Rights Act of 1968 makes it illegal to discriminate in any type of housing based upon race, color, religion, gender, national origin, disability or familial status. The “protected classes,” as they are called, are the basis for what has become known as the Fair Housing Act.

Fair housing policies and training for community staff are a must. This should be coupled with a review of added protected classes under state law and local ordinance.

One area that raises a lot of concern for communities is potential discrimination based upon familial status. Simply put, a claim for discrimination based upon familial status will be grounded on the premise that the housing provider somehow treated families with children differently than other potential buyers or residents.

There has been an increase in familial status claims in recent years. Therefore, community operators and retailers should be aware of the need for family friendly policies. They should be drafted in ways that are least restrictive to children.

Occupancy Standards and Familial Status

First, and foremost, consider the occupancy policy for the community. Remember, many jurisdictions have state law or local ordinances on the number of people living in a unit.

The Department of Housing and Urban Development has a Statement of Policy on occupancy standards. “An occupancy policy which limits the number of children per unit is less likely to be reasonable than one which limits the number of people per unit.”

The Statement of Policy also notes that “in appropriate circumstances, owners and managers may develop and implement reasonable occupancy requirements based on factors such as the number and size of sleeping areas or bedrooms and the overall size of the dwelling unit.”

Thus, in reviewing any occupancy policy, make sure any limits are based upon the number of people residing in the unit as opposed to the number of children. HUD will recognize state and local occupancy standards.

Steering Customers with Children

Secondly, make sure that the community does not have a practice of steering residents with children to one particular area of the community. There are several cases where housing providers paid large fines for segregating families. You can’t draw an imaginary line in a community and state one portion is for families and the other for adults.

Familial Status for Pools and Other Amenities

Thirdly, for communities with amenities, you must ensure that the rules for use are not discriminatory against families. Rules that restrict or single out usage by children often can be determined as discriminatory.

Examples of pool rules that courts have determined to be a violation of the Fair Housing Act include:

Children under the age of 18 are not allowed in the pool or pool area at any time unless accompanied by their parent or legal guardian.
Under no circumstances may a child under the age of 18 be in the pool or the pool area without a parent.
Children must leave pool by 6:30 and must be supervised by a resident relative at all times when using the pool.

Arguments that restrictions for parental supervision are for the safety of the children using the pool generally are rejected. Community operators should consult state law and local ordinances on supervised swimming. For instance, California law requires those under 14 to be supervised.

Therefore, swimming rules that broadly target all children and require parental supervision should be avoided. Instead, draft policies that specify the basis for the restriction. Only narrowly, if at all, target the subgroup of children to which it applies. The policy should not limit supervision only to a parent, but by a competent swimmer.

This same analysis goes for communities offering other amenities where there are safety concerns, such as fitness rooms or gyms.

Other Rules That Come Under Familial Status

Finally, community owners are now getting the idea of how age-restrictive rules can violate the Fair Housing Act. Other problem areas include curfews, supervision, noise, attire and common areas where playing is restricted.

Like those listed above, housing providers have gotten into trouble when the rule strictly targets children. A policy requiring “Children on the premises are to be supervised by a responsible adult at all times” was held to be a Fair Housing Act violation. However, a rule that required all tenants – not just children – to keep “bikes, carriages, strollers, tricycles wagons, etc.” in the home or garage was upheld.

Conclusion Familial Status

When it comes to Fair Housing Act claims based upon familial status, words matter. Avoid policies that are restrictive to children. Make sure that all policies restricting use are tailored to specific safety concerns and are the least restrictive possible. Blanket rules should be children-neutral on their face.

Oxford Bank & Trust Cultivates Community Relationships

Patrick Revere

December 27, 2018

short-term rental Rent Seasonally Home in Community

Illinois-based Oxford Bank & Trust Helps Community Owners Help Residents

Few lenders specialize in serving the manufactured housing marketplace. Those who do often can do more to build adequate partnerships in the industry.

There’s merit to a long-term strategy, according to Eric Oaks, assistant vice president of Oxford Bank & Trust.

Oaks gives an example: If a community lacks the capital to buy a newly vacated home on one of its lots, many lenders wholesale the home. The community is left with a vacant manufactured home site that isn’t producing lot rent. Instead, a long-term approach can create occupancy that generates consistent community profits. Portions of that revenue could go to the bank, as well.

Oxford Bank Looks to Expand Partnerships

Oxford Bank & Trust has learned to avoid those missed opportunities by developing relationships within the industry. Based in Oak Brook, Ill., the bank serves about 250 manufactured housing communities in six midwestern states. It’s considering expanding into other states, and continues to seek more community partners, Oaks said.

“Manufactured housing is the core of our business,” he said. “We love the opportunity our bank has to lend to low- to moderate-income folks and help them meet their dreams.”

The cornerstone of Oxford’s efforts is its Community Partnership program. It is both a formal agreement and a general guide for how the community will treat the bank. And how the bank will treat the community.

“Both entities are protected,” he said. “We agree not to pull homes from community owners that have a partnership with our bank. And the community owner doesn’t have to fill an empty lot with new product.”

Oxford Bank & Trust Builds Relationships with Communities — Owners and residents benefit from a lender who works with communities to keep homes in place. Photo courtesy of Rickert Communities.

Community Gets First Chance to Re-sell Homes

When Oxford Bank & Trust repossesses a manufactured home, it makes whatever repairs are necessary to put it back into retail condition. Once the home is ready, the community lists and handles the home’s sale details. Both parties agree on a fair price — a price that allows the community to sell the home but doesn’t “beat up” the bank.

The bank pays the community a 10 percent commission for handling the sale. No lot rent is charged by the community while the house is being repaired and sold. However, all homebuyers must be approved by the community prior to the completion of the sale.

One of Oxford’s community partners is Roselake Estates in Pendleton, Ind. Manager Adriane DeRose said her community doesn’t charge the bank lot rent for its vacant homes. Rather, it works with it to get the homes re-sold in as smooth a manner as possible.

“We’re committed to working with them to keep those homes in our community, and we appreciate that that is their policy,” DeRose said.

She said the community partnership concept is rare in the industry.

“A lot of lenders will pull the homes out without discussing it with the community owner first,” she said. “We prefer homes stay in the community, rather than have to fill the lot again.”

Partnership Results in Speedy Re-sale

With Oxford’s aid, community partners typically sell repos within 90 days, Oaks said.

“If I have a repo in a community, it’s not necessarily a negative because the owner will help get it sold,” he said. “We get some losses sometimes, but in totality the program succeeds because of the vast number of loans.”

Gary Fath, manager of New Durham Estates in Westville, Ind., said Oxford Bank & Trust works to get empty homes filled right away, ensuring the community access to lot rent payments as quickly as possible.

“They’re the easiest to work with,” Fath said. “They also work well with the people getting loans.”

Oaks said the Community Partnership program is designed to benefit all parties. The community owner gains a viable new resident. The bank gains a new client to lend to, most likely. Also, that client avoids paying thousands of dollars in home-moving costs.

A home buyer can get a reduced interest rate on the home loan. Also, the bank uses more than credit score to define customer terms. Rather, Oxford’s rates are determined by the buyer’s overall financial history and the age and size of the home.

“We have truly enjoyed working with Oxford Bank over the years,” said Kenny Lipschutz, CEO of HomeFirst, which owns manufactured housing communities in Michigan. “Their personalized customer service and focus on digging into everything they can to help get our potential residents approved and financed has been tremendous.”

Clayton Announces Founding Sponsorship for Veteran Transition Program

Patrick Revere

December 26, 2018

Warrior's Compass Program Donation — Clayton Home Building Group presented a check for $300,000 to Hope For The Warriors as the founding sponsor of the Warrior's Compass Program Suite.

Hope For The Warriors Launches New 2019 Warrior’s Compass Program Suite

Clayton Home Building Group is a founding sponsorship of national military nonprofit, Hope For The Warriors^®(HOPE) 2019 program, Warrior’s Compass Suite.

Warrior's Compass Program to benefit wounded veterans. — In 2017, Hope For The Warriors supported 6,000 service members, veterans and their families.

Since 2015, Clayton Home Building Group has supported Hope For The Warriors and their commitment to enhance the quality of life for post-9/11 service members, their families, and families of the fallen who have sustained physical and psychological wounds in the line of duty. Warrior’s Compass was founded as an extension of the transition services Hope For The Warriors currently offers to help veterans transition from service to the workplace.

Clayton Home Building Group committed to donating $300,000 to HOPE over the next three years to support Warrior’s Compass Program Suite.

“On behalf of Hope For The Warriors and the thousands of veterans we serve each year, a sincere thank you to Clayton Home Building Group for its three-year commitment as the founding sponsor of the Warrior’s Compass Suite of transition services,” said Robin Kelleher, Hope For The Warriors President/CEO. “Their ongoing commitment supports veterans’ transition from military to civilian life. Whether providing critical financial support to augment gaps in benefits, supporting spouse education opportunities, or offering a needed boost to a new career or business startup, Clayton’s partnership will positively impact veterans and their families for years to come.”

The Warrior’s Compass Program Suite includes:

Warrior’s Compass: A web-based employment search engine designed for veterans and their families. The program offers a comprehensive range of resources including resume support, job training, military skills translation, candidate matching and structured mentorship from other veterans.
Warriors To Business: A program that supports veteran entrepreneurs in creating or growing a small business. The program offers numerous tools to help their businesses succeed; including professional development, tools and equipment, networking opportunities and business resources.
A Warrior’s Wish: The wish program fulfills desires for quality of life beyond recovery and a quest for life-gratifying endeavors. Wishes granted include adaptive tools and equipment for hobbies and restorative family trip experiences.
Transitional Critical Support: Transitional critical support provides for service members’ financial and organizational needs as they transition out of the military. These needs include collecting documents, working with care providers, providing stop-gap financial assistance, creating SMART goals and providing referrals.

“Hope For The Warriors provides so many resources for our nation’s veterans, and their families,” said Clayton Home Building Group President Keith Holdbrooks. “We’re so fortunate to sponsor the Warrior’s Compass Suite that will extend the support for service men and women as they transition into the workplace. Our assistance is just one way we can show our appreciation and give back to those who have served our country.”

Experience the interactive Multichannel News Release here: https://www.multivu.com/players/English/8335053-clayton-hope-for-the-warriors/

Since 2015, Clayton Home Building Group has donated over $365,000 to Hope For The Warriors. For more information or ways to get involved, visit www.hopeforthewarriors.org or www.claytonhomes.com.

Comprehensive National Data Shows Occupancy, Rents on the Rise

Patrick Revere

December 26, 2018

Rent and Occupancy on the Rise — Photo courtesy of Rickert Communities.

National Occupancy, Rents Show Positive Trends in 2018

Each month, Datacomp Appraisal Services releases a new set of updated information on manufactured housing communities in specific U.S. markets. In addition, this time each year, Datacomp provides an annual national summary of all major housing markets.

The annual information comes from all 160 major housing markets covered by our team.

Datacomp and JLT data always is published so manufactured housing professionals will find the value it lends to business. We provide a comprehensive look at investment-grade properties. This enables informed decision making for industry professionals including:

2018 was a good year for rent and occupancy growth. — The interior of a new Champion home.

Owners
Managers
Lenders
Appraisers
Brokers

2018 Annual National Summary

The JLT Summary for 2018 shows increases in adjusted rent and occupancy across the board. The industry growth is evident for All-Ages and 55+ communities in every region.

Occupancy rates nationwide rose 1.2 percent year over year, with All-Ages communities bumping up 1.5 percent to 91 percent, and 55+ communities increasing 0.6 percent to 96 percent nationwide.

Adjusted rents increased nationwide year over year by 3.5 percent for all communities, to $526 per month. The same rents at All-Ages communities rose 3.7 percent to $507 monthly.

The biggest increase in monthly adjusted rents occurred in All-Ages communities in the West and Southwest, with 4.4 and 4.6 percent gains respectively. For 55+ communities, the South and West regions led the way in rent increases, each with an increase of 3.8 percent.

For increases in regional occupancy, gains in All-Ages communities in the Southwest outpaced the rest of the country, with an increase of 4.6 percent. In 55+ communities, the Midwest led the way in occupancy increases, up 2.7 percent for the year. However, most markets with lesser gains in occupancy already were operating at 90+ percent, while Midwest and Southwest properties had been operating in the high-80s for occupancy percentage and therefore had more to gain.

For more information on JLT Market Reports and Datacomp custom reports, including detailed information on communities where you operate, visit https://reports.datacompusa.com/.

Double Down on Energy Efficiency

Brad Dockser

December 19, 2018

Energy Efficiency for Manufactured Home Communities

Energy Efficiency is a Focal Point for Business Efficiency

Whether putting up an office building or rental community, energy is fundamental to the success of any real estate project and plays an essential role in both cash flow and valuation.

GreenGen focuses on energy-efficiency — Brad Dockser, CEO of GreenGen

Too often, the focus is on cost first… to the detriment of operations and life cycle analysis.

Many GreenGen clients approach us to help with the engineering and implementation of energy efficiency projects that not only lower operating costs but also improve sustainability.

Generally, energy and building systems are overlooked during initial design and are addressed at the end of a project. This can create hard and soft returns with significant impact on an asset’s perception and value. The right energy solution not only will reduce operating cost, but also increase asset value.

Applicable to manufactured housing, we have assessed numerous rental developments during the past year to evaluate potential to reduce costs via energy efficiency upgrades. Assessments revealed many opportunities for cost savings and value creation, most notably around lighting efficiencies.

This was the case for a student apartment building in Tucson, Ariz., near the University of Arizona. Even though the property was relatively new, the assessment revealed a variety of ways to upgrade the controls and lighting systems and increase property value in both the units and the common areas.

Powering Down to Improve Energy Efficiency

Replacement of fixtures and lamps in a facility, as well as adding occupancy-based controls, offers a great payback for property owners. LEDs offer much better efficacy than their incandescent, fluorescent, and metal halide equivalents. Additionally, the life of an LED is up to ten times longer than the lamp and/or fixture it replaces. Using automated occupancy sensors in intermittently occupied spaces also presented another major chance to reduce costs.

Many common spaces in communities have vending areas that present savings opportunities. Snack machines often operate all day even though they are not continuously used by residents. Occupancy-based vending machine controls turn off machine lights and cycle down compressors to optimize savings while maintaining desired temperatures. Typical savings for these controls are in excess of 50 percent.

An Eye on Water Consumption is Key in Every Locale

Another savings source is to reduce water consumption. At the Tucson asset, most restroom faucets consume 2 gallons per minute. Yet, Energy Star’s recommended consumption levels are at 1.5 GPM or lower. Aerators that go down as far as 0.5 GPM are available as well. Retrofitting existing faucets with pressure controllers reduces water consumption and water heating costs by maintaining a consistent GPM flow.

Installing efficient showerheads that prevent hot water from running down the drain while waiting for it to heat up is also a great way to save. These kinds of savings can be particularly valuable for properties that combine MH and RV occupancy, for communities that focus heavily on rentals, and in common areas at most communities.

Energy usage fluctuates with time of day and year. For common spaces in communities, summer may see increased usage with students away from school. Owners can capitalize on these changes by optimizing building operations around occupant schedules. Using controls to optimize use and run equipment ensures that facilities can maximize savings during down times.

Controls can include simply regulating a device or managing an entire system. At a minimum, lights should have sensors that turn off or dim when no one is around. Part of the implementation strategy for occupancy sensors is that light levels meet safety requirements and that the occupancy sensors are properly located. Prime locations are corridors, elevators, common/recreation spaces and storage areas.

A well-designed controls platform means energy usage correlates with physical occupancy. For users, that means the lights are always on when and where they are present. Device controls are simply and quickly rolled. And they are designed to function with most any fixtures to take advantage of nearly immediate savings.

Double Down on The Bottom Line

Implementing these measures will significantly improve the property efficiency and decrease energy consumption and cost. At the Tucson student housing, the facility upgrades, combined with available rebates, will increase the building’s value by more than $1,827 per bed, totaling nearly $1.1 million in added value.

Developing custom solutions ensures savings opportunities for every property.

Lighting efficiencies and plug load reductions generally are at the top of the list as the lowest expense, with the bonus of quick payback. This adds value to a property or a building through increasing comfort and safety of residents, as well as improving the overall experience.

When done correctly, financial return and sustainability are not discrete, separate choices but rather byproducts of each other. They are interrelated decisions that support and catalyze one another, creating multiple opportunities to create value.

This double bottom-line approach helps property owners and managers “Operate in the Green®”.

December 2018 JLT Market Reports for Ohio, Penn., Tenn. Now Available

Patrick Revere

December 17, 2018

Datacomp Releases December 2018 JLT Manufactured Home Market Reports for Ohio, Pennsylvania, Tennessee

Datacomp has published the December 2018 JLT Market Reports manufactured home community rent and occupancy reports for 12 markets in Ohio, Pennsylvania and Tennessee.

JLT Market Reports provide detailed comprehensive national data from more than 160 major housing markets throughout the United States.

Included in JLT Market Reports

The latest rent trends and statistics
Marketing programs
Contact information
Useful management insights

Datacomp’s JLT Market Reports for more than 20 years have been the industry standard for manufactured home community market analysis.

December Reports include information on 342 communities from 12 major markets

Datacomp’s manufactured housing data published in the December 2018 JLT Market Reports includes information on 342 “All ages” and “55+” manufactured home communities. Those communities are located in 12 major markets in the three states. Altogether, the reports include data representations for 65,476 homesites.

“A pair of markets in Ohio have experienced slight decreases in occupancy at retirement communities. Likewise, a pair of markets in Pennsylvania had occupancy decreases, one of which had drops in both retirement and all-ages communities, ” Datacomp Co-President Darren Krolewski said. “However, a great majority of the remaining eight markets experienced growth in both occupancy and rents, which has been the trend nationally throughout 2018.”

Each JLT manufactured home community rent and occupancy report published by Datacomp includes detailed information about investment grade manufactured home communities in major markets.

Information on JLT Market Reports includes number of homesites, occupancy rates, average mobile home community rents and increases, community amenities, vacant sites, and repossessed and inventory homes.

Moreover, established reports show trends in each market with a comparison of December 2018 rents and occupancy rates to December 2017. In addition, there is a historical recap of rents and occupancy from 1996 to present date in most markets.

How to Get December 2018 JLT Market Reports for Ohio, Penn., Tenn.

The December 2018 JLT Market Reports for 12 markets in Ohio, Pennsylvania and Tennessee are available for purchase and immediate download online at the Datacomp JLT Market Report, or they may be ordered by phone in electronic or printed editions at (800) 588-5426.

Each fully updated report for mobile home communities is a comprehensive look at investment grade properties within a market, enabling owners and managers, lenders, appraisers, brokers and other organizations to effectively benchmark those communities and make informed decisions.

Skyline Champion to Open Louisiana Plant

Patrick Revere

December 17, 2018

New Skyline Champion Plant to Create about 200 Jobs

Leesville, La., is known as “the best hometown in the world”. And the little city in Louisiana is about to get even better with the opening of a new Skyline Champion manufactured housing plant.

The new Skyline Champion plant will be the only manufactured housing facility in the state of Louisiana.

A 127,000 square-foot Skyline Champion Corporation plant will open January 2019. Facility will begin production in the spring. The idle facility is a former Pioneer Housing Systems plant. Skyline Champion Corporation will reconfigure and automate the facility to include updated manufacturing techniques.https://mhinsider.com/off-site-built-partners-champion-quartz/

The new facility will allow Skyline Champion to:

Create 200-plus jobs over the long term and add to its 7,000-plus North American team
Increase capacity to meet growing demand in the affordable housing sector
Increase market share by offering greater convenience and affordability to customers in Louisiana and surrounding states

“It’s an honor to be the only operating manufactured housing facility in the state of Louisiana,” Chief Executive Officer Keith Anderson said. “We are thrilled to bring our high-quality, cost-effective homes to an even wider customer base. As well as to offer the exceptionally skilled local workforce with hundreds of new jobs.”

New Skylilne Champion Plant — Champion’s Bradford Model.

New Plant to Provide More Affordable Homes for the Region

The plant’s location will offer huge benefits to Louisiana homebuyers, as well.

“The facility’s location will allow us to provide better value due to reduced transportation for the future homebuyers of Louisiana, east Texas, south Arkansas and south Mississippi,” said Wade Lyall, vice president of the southern region. “We are strongly committed to providing affordable housing to the residents of this great state and we look forward to building long-lasting relationships with the City of Leesville, the Louisiana Economic Development Corporation, local Retailers, and the LA Housing Commission.”

Interested jobseekers can complete an online application at www.championhomes.com/leesville.

Legacy Housing Announces IPO Pricing

Patrick Revere

December 14, 2018

$12 Per For Each of the New 4 Million Shares Offered by Legacy Housing

Legacy Housing Corp., trading under the symbol LEGH, announced pricing of its initial public offering of four million shares of common stock at a public offering price of $12 per share.

The Dallas-based builder is the fourth largest producer of manufactured homes in the United States. It is a recognized leader and innovator in the manufactured housing industry.

The gross proceeds of the offering, before deducting underwriting discounts and commissions and other offering expenses payable by Legacy Housing, are expected to be $48 million.

All Common Stock in Offering from Legacy Housing

Legacy Housing has granted underwriters a 30-day option to purchase up to an additional 600,000 shares of common stock at the IPO, less underwriting discounts and commissions.

Legacy Housing intends to use the net proceeds of the offering to expand its retail presence in the southern United States and surrounding geographic markets, provide financing solutions to select housing community-owner customers, repay debt and pursue possible acquisitions, and use the remainder for working capital and general corporate purposes.

The common stock is expected to begin trading on The Nasdaq Global Select Market on Dec. 14, 2018, under the ticker symbol “LEGH.” The offering is expected to close on Dec. 19, 2018, subject to satisfaction of customary closing conditions.

The offering is being made through an underwriting group led by B. Riley FBR Inc., Oak Ridge Financial and National Securities Corp., which are acting as joint book-running managers for the offering.

A registration statement relating to the shares being sold in this offering was declared effective by the SEC on Dec. 12, 2018. This offering is being made only by means of a prospectus. Copies of the final prospectus related to this offering may be obtained, when available, from: B. Riley FBR, Inc., Attention: Prospectus Department, 1300 14^thStreet North, Suite 1400, Arlington, Va., 22209, or by phone at (800) 846-5050 or by email at prospectuses@brileyfbr.com; Oak Ridge Financial, Attention: Joseph Sullivan, 701 Xenia Avenue South, Suite 100, Golden Valley, Minn., 55416, or by phone at (800) 231-8364 or by email at jsullivan@oakridgefinancial.com; or National Securities Corporation, Attention: Marguerite O’Brien, 200 Vesey Street, 25^th Floor, New York, NY 10281, or by phone at (212) 417-8164 or by email at prospectusrequest@nationalsecurities.com.

About Legacy Housing Corporation

Legacy Housing builds, sells and finances manufactured homes and “tiny houses”. Homes are sold through a network of independent retailers and company-owned stores and are sold directly to manufactured housing communities.

The company is the fourth largest producer of manufactured homes in the United States. The ranking is determined by number of homes manufactured via information from the Manufactured Housing Institute and IBTS. Legacy offers customers an array of quality homes ranging in size from approximately 390 to 2,667 square feet.

The homes consist of one to five bedrooms and one to 3 1/2 bathrooms. Legacy homes range in price, at retail, from approximately $22,000 to $95,000.

Ask the Planner: Four Points on Home Appearance

Donald Westphal

December 13, 2018

Home Appearance Sells Your Community

QUESTION: How can we improve community image with good home appearance and home siting?

Nearly all manufactured homes today have an acceptable appearance when set on a subdivision lot or in a land-lease community with the long face of the home parallel to the street. Most of these homes are displayed in shows and sales centers “broad set”, in order to capitalize on that more attractive-looking face.

Unfortunately, many of these same homes function poorly and lack curb appeal when placed on the narrow lots found in many subdivisions and most land-lease communities.

Cost Considerations Often Play Against ‘broad set’ Homes

Cost considerations related to lot width often rule out the possibility of broad-setting homes in most communities. However, four actions can be taken to improve community appearance with little or no added cost.

First, be certain that homes on corner lots are placed with the front door and yard facing the street. This consideration must be made in the initial planning of the community and can be accomplished by either spinning corner lots ninety degrees, as shown in the sketch, or making provisions for the utility risers to accept a home with a reverse floor plan.

Second, require in the community guidelines that all homes have some attractive treatment on the street-facing end of the home. This can be accomplished by requiring one or more of the following:

a minimum amount of window area
an eyebrow roof or bay window
a porch or entry covering if the home has a street-facing entry door
a garage or carport in front of the home

I have driven through many communities where the end of the home facing the street was a solid wall of vinyl or hardboard siding, and the attractive side of the home was not visible from the street.

Third, see that the placement of homes on the lots results in a uniform front setback from the street. Many communities are designed with the utility risers placed very close to the rear of the homesite. This requires the home to be placed to the rear of the homesite to cover the sewer and water risers. As a result, there are marked differences in the front setbacks and a lack of continuity in the streetscape.

Many designers now place the utility risers further forward on the homesite so that the shorter multi-section homes can be placed closer to the street without making riser location adjustments.

Fourth, off-street parking should be designed so that landscaping can be placed along the front of the home. Many communities are designed with the parking in front of the home, making it impossible to landscape there. Some developers design the parking in tandem along the side of the home. This allow for a future carport or garage. Also, it reduces the number of cars parked off-street adjacent to the curb and results in fewer cars in the streetscape.

An attractive streetscape in your community will not happen by accident. Some developers require plot plans for each home placement in the community. This can help make certain that the home and homesite all add to the positive appearance of the community.

Remember, interior appearances sell the home, exterior appearances sell the community.

1...737475...97 Page 74 of 97

EVENTS

— Ken Corbin

Pareto’s Law

So, What are Objections?

Think about reasons behind such a simple statement from the customer:

Objection or Question

The Two Types of Objections

Not Acknowledging the Objection

How to Define True Objections

Question to find the real objection

Gain agreement from the customer

Present the answer to the sales objection

Close or gain agreement to your answer

Objections are a Vital Part of a Home Sale

Recognize Resistance to Change

Discrimination Claims on the Basis of Familial Status Are Increasingly Common

Occupancy Standards and Familial Status

Steering Customers with Children

Familial Status for Pools and Other Amenities

Other Rules That Come Under Familial Status

Conclusion Familial Status

Illinois-based Oxford Bank & Trust Helps Community Owners Help Residents

Oxford Bank Looks to Expand Partnerships

Community Gets First Chance to Re-sell Homes

Partnership Results in Speedy Re-sale

Hope For The Warriors Launches New 2019 Warrior’s Compass Program Suite

The Warrior’s Compass Program Suite includes:

National Occupancy, Rents Show Positive Trends in 2018

2018 Annual National Summary

Energy Efficiency is a Focal Point for Business Efficiency

Powering Down to Improve Energy Efficiency

An Eye on Water Consumption is Key in Every Locale

Double Down on The Bottom Line

Datacomp Releases December 2018 JLT Manufactured Home Market Reports for Ohio, Pennsylvania, Tennessee

Included in JLT Market Reports

December Reports include information on 342 communities from 12 major markets

How to Get December 2018 JLT Market Reports for Ohio, Penn., Tenn.

New Skyline Champion Plant to Create about 200 Jobs

The new facility will allow Skyline Champion to:

New Plant to Provide More Affordable Homes for the Region

$12 Per For Each of the New 4 Million Shares Offered by Legacy Housing

All Common Stock in Offering from Legacy Housing

About Legacy Housing Corporation

Home Appearance Sells Your Community

Cost Considerations Often Play Against ‘broad set’ Homes

Many designers now place the utility risers further forward on the homesite so that the shorter multi-section homes can be placed closer to the street without making riser location adjustments.

EVENTS

EDITOR PICKS

POPULAR POSTS

POPULAR CATEGORY