Goat Meat For Sale: A lesson in creating a successful new home community

Thursday, August 13, 2009

GOAT MEAT FOR SALE: A lesson in creating a successful new home community
A few years ago I inspected a vacant tract of ground in a remote location in the western suburbs of Birmingham, Alabama. Although situated within the city limits of Hoover, an upscale suburb which is considered to contain one of the better school districts in the metropolitan area, this property is and would naturally be perceived as for all intents and purposes physically within Bessemer, a lower income and socio-economic city in the process of decline.The growth in Birmingham had historically followed four major traffic arteries to the south. This property, unfortunately, was not proximate to any of those routes and instead was accessed only from surface roads after what seemed to be a long and arduous journey, remote from other development and services. In fact, when I first went to visit the site I wondered how we would attract prospective purchasers, especially as the most visible landmark along the way and very near to the property was a hand painted sign nailed to a tree that read Goat Meat for Sale.

Now I have come across a number of signs in my life that were puzzling. Last week in a restaurant restroom I noticed a sign next to the soap dispenser that read for washing hands only. I am still uncertain what the management was hoping to avoid by posting that sign, perhaps someone deciding to shampoo their hair? But I had no doubt what the goat meat sign meant and what it suggested about the perception of the neighborhood in which the property was located.
The developers behind the community were two experienced and successful real estate development companies in the area who had commissioned a market study by a national research firm before entering into their joint venture. And prior to finalizing the community plan and just to be certain that they were on the right track, they commissioned a second study to be certain that market conditions had not changed and to consider necessary adjustments to the development strategy prior to starting. I had the pleasure of performing that second study and commented to my client that their action reminded me of the first rule I learned in this business, taught to me by a carpenter during my month-long field indoctrination into the homebuilding process measure twice, cut once.
My report recommendations contained relatively minor changes from the original concept adjusting density and pricing within the parcels, changing the sequence of the development, revising some of the housing product positioning to reduce internal competition, and reducing the size of the Village Center property which required a TND housing component. This last recommendation was due to the local markets less than overly enthusiastic response to the TND concept in several existing developments. These recommendations were all implemented as were my specific suggestions for the community positioning and sales and marketing implementation. While there certainly are a number of successful new home communities across the country that opened in 2005, I believe that Ross Bridge is arguably unique in that its success has continued even through the current economic and housing downturn.
The original absorption estimates for the community had forecast home sales averaging 150 annually. The results achieved have met or exceeded that goal even though the local housing market has seen substantial deterioration. In 2006, the first full year of sales, 194 homes were sold; in 2007, 204 homes were sold; in 2008, 177 homes were sold (and in that year the lower priced home segments within the community were already sold out) and it appears that for 2009 they will sell 130 homes.
On an absolute basis those numbers may seem respectable but from a market share standpoint, they are exceptional. The 2006 absorption equaled a 2.5% share of the total new home production for the metro area, an outstanding accomplishment for a single community. And as the overall market declined by 30% in 2007, an additional 37% in 2008 and a projected additional 60% for 2009, Ross Bridges share of market increased to 3.6% in 2007, 5.7% in 2008 and to an amazing 14.2% in 2009.


What has made Ross Bridge so successful and what lessons can be learned for future residential development?1. They selected a location where their markets wished to live. That may sound simple, almost an absolute, but it was a concept that was often forgotten in the recent boom years.2. They created a true community, not just a subdivision, wherein the individual villages are sized for a reasonable sellout and are separated from each other to preserve values and allow for changes if market conditions require.3. They provided amenities that were appropriate to and desired by the target markets yet did not burden the development or the purchasers with undue cost.4. They selected professional builders and carefully segmented the product and pricing of the homes so that three full pricing quintiles were covered, maximizing the market appeal, while minimizing direct competition within the community.5. They regularly update their market evaluation including analysis of each builders performance and positioning to determine opportunities for their builders to increase sales.6. They required centralized sales and marketing by the developer to insure a cohesive and professional presentation to the market and they provided what I believe is the best sales operation in the market under the direction of my personal choice for one of the best new home sales directors in the business.7. They promote and market the community professionally, recognizing early the paradigm shift to web-based advertising and they spent their advertising dollars intelligently and effectively.
I would recommend taking a look at the community, with a physical visit if possible but, if not, at least a visit on-line http://www.rossbridge.com/
Posted by DanielLevitan at 11:12 AM




Labels: new home marketing, new home sales, new homes, residential development

http://daniellevitan.blogspot.com/2009/08/goat-meat-for-salea-lesson-in-creating.html

Join us at The Ross Bridge Community Yard Sale

Spa Winter Feast

To all of our residents: Take advantage of these fun spa specials at the resort! Click on the image to enlarge!

The Nail Spa Testimony

As we announced last month, the Nail Spa at Ross Bridge is now open! Below is an e-mail sent by one of our Village Center residents telling her friends about her experience. Whether you're a resident, or just passing through, we'd love your support of our local Ross Bridge town center!

"Hey girls! Just wanted to let you know that the nail salon in Ross Bridge is awesome! I went there this weekend for a mani/pedi and, oh my gosh, they are GREAT! It is sooo clean and nice. They have awesome chairs and let you hang out in them for as long as you want before they start. They use the parrafin wax on you and it makes your feet soooo soft! They even offer you wine while you are there! It was awesome and it was only 44 bucks for both! If your toes are looking anything like mine were....I think you should make a trip out here! Just wanted to share with you......see ya soon!"

The Nail Spa is offering a 15% off discount through the month of March, so hurry and take advantage of this special!

On A Winter's Day... in Ross Bridge

Many were skeptical about the possiblity of snow, but when Sunday morning arrived, there was no doubt that we would be enjoying a beautiful white morning in Alabama! We don't get many of these days around here! Here are a few shots of beautiful Ross Bridge in the snow...

Although the snow was all melted by early afternoon, I think everyone enjoyed the snowy morning.

Community Yard Sale Registration

Click on the image to enlarge.

The Sweet Stop Official Grand Opening

Click on the image to enlarge.

Fat Tuesday

Happy Mardi Gras from James Hill!

Did you know that the first recorded celebration of Mardi Gras in what is now the United States occurred in 1699? Well, now you do!

The Nail Spa

Residents and future residents of Ross Bridge are excited about how the retail space in the Village Center is shaping up.

Today is the grand opening of the Nail Spa at Ross Bridge, our second retail shop!

We are excited to welcome this new shop, and can't wait to experience our first manicure and pedicure treat!

Love is in the Air at James Hill!

Valentine's Day in James Hill was extra-special for soon-to-be residents Jason Fill and Emily McManus!

Just after lunch on Valentine's Day, Emily had planned a couple's massage for her and Jason at the Ross Bridge Spa. After their royal treatment at the spa, they headed over to James Hill to take some pictures of the appliances in their almost finished home.

Emily noticed a few lights on in the home when they pulled up, but just assumed they had been left on after their orientation walk-through the day before. When Jason and Emily walked into the front door of their future home together, Emily noticed a dozen red roses, a bucket of champagne, and two champagne flutes on the kitchen counter. Jason turned to her and wished her a Happy Valentine's Day, and on the way to the kitchen, they stopped in the middle of the living room and embraced each other, talking about how much they love each other. Emily wanted to see the roses, but Jason wanted to savor the moment, so they stood there just a little longer.

Finally making their way to the kitchen, Jason held Emily, kissed her and told her again how much he loves her. As he dropped to one knee (or as Emily sees it, knelt down in slow motion :-)), she asked if he was serious, and when he said yes, she immediately grabbed him around the neck and knelt down on the floor with him before he could even ask. Together in their new kitchen, Jason asked Emily if she would marry him, and Emily replied "YES!" as tears of joy ran down her face!

Below is an excerpt from Emily about the proposal:

"Being that we had been together all day, I wondered how/who put the beautiful flowers and champagne in the house. Chrissy, the Customer Care coordinator with Signature had been working with Jason as to how to get everything in line for the proposal. Allen, one of the builders, had purchased the flowers, and Tarayn and Whitney from the James Hill Sales Center were so sweet to bring in the champagne and glasses and set everything up. What a wonderful day in a wonderful place! We LOVE James Hill!"
Congratulations, Jason and Emily! We are glad that we could be a part of your special day!

Jason and Emily close on their new home this Friday and plan to get married sometime this year!

2009 Event Calendar

The Ross Bridge community has successfully re-created the traditional American home town.

In addition to regular activities planned by the residents and parties planned by the builders and marketing teams in each community, developer Daniel Homes sponsors several big community events every year!

Click here to see photos of a few of our past events.

And click here to view our 2009 calendar of events.

We are looking forward to seeing you at the next neighborhood event!

Super Bowl XLIII

Congratulations to the Pittsburgh Steelers on their win over the Arizona Cardinals in the NFL Super Bowl 2009! Although the Steelers dominated most of the game, the 4th quarter was certainly a nail-biter.
In the Birmingham/Hoover area, James Hill is considered to be the Pittsburgh Steelers of the real estate market! Although there are some nice places to live outside of Ross Bridge, James Hill ultimately brings home the Vince Lombardi trophy. :-)


Think we're kidding? Builder Magazine doesn't think so! Click here to see what this national magazine has to say about how James Hill is defying all odds.

Flop, Turn, River

It's always funny to watch men plan get-togethers. Girls plan major events like the Mad Hatter Tea Party. The men get together, each chips and salsa/queso/guacamole, and play cards. Difficult to get a picture of the group because there are no girls allowed, and let's admit that it's sometimes hard to get a man to corral a bunch of other men for a group photo. ;-)

Looks like Daniel Pittman left the big winner, followed by John Haygood and Justin Hardy. I think the biggest loser award goes to Steve Davis... sorry Steve, maybe next time!

It also looks like there is another team of poker-playing men who get together once a month in the Village Center. These two groups, now aware of each other, are going to combine forces for a mean poker night in March. Maybe we can bribe one of them to take a photo for us so we can all get a glimpse of what goes on during the super-secret poker nights!

Glad the men can have just as much fun as the ladies! If you are a man interested in playing (sorry ladies), please let us know and we'll tell you who to contact!

Girls Night Out

By order of the queen, all Ross Bridge Ladies were asked to attend a Mad Hatter Tea party on Friday night hosted by the Ladies of the Village Center. There is usually a Girls Night Out about 5 or 6 times a year hosted by a different community in Ross Bridge. In December, Butler Springs hosted an Ornament Exchange. In May, Greenside and Freestone Ridge will be hosting a Cinqo de Mayo party! And I'm so excited to see what the rest of the year will bring.

Dawn Ey, Rebel Gregory, Lauren Nickels, Rachel Leader and the other ladies in the Village Center did such a great job transforming the Town Hall into an English garden for our party. The food was fantastic. Thanks to Diggscape for loaning the beautiful plants for our garden, Birmingham Home Theater for providing the music and speakers, Ross Bridge Spa for donating the door prizes, Louise's Cakes and Things for the fun Mad Hatter cake, and Signature Homes for the delicious edible fruit arrangement!

I was so impressed with the creativity of all the Ross Bridge ladies. I had no idea that everyone would participate so enthusiastically in the hat contest! The votes came pouring in throughout the evening.

And the winners are....

The Ugliest Hat award goes to this lady who was adorned in University of Tennessee garb from head to toe!

The Most Useful Hat was created using shot glasses and Christmas lights.

Elizabeth Bennett and Valerie Hughen won Most Creative Hat for their Ross Bridge heartbreaker theme!

Bobbie Bowman took home the Best Homemade Hat award with this gigantic headpiece full of flowers and blow-up bunnies. Believe me, this thing was HUGE!

Maybe we should take a few tips from this lady who won Most Stylish Hat.

And the grand prize winner is the Village Center's own Shah Hines for Best Overall Hat!

Congratulations to all the winners, but we can't overlook these three who all received lots and lots of votes for their fabulous hats... so they all received an Honorable Mention award.

Here are some other pictures of some of the ladies who came. We had such a fun time visiting with everyone and getting to know our Ross Bridge neighbors. :-)

Mary Jim Blackerby, Whitney Hardy and Dana Pittman

Julie Kent, Emily Haygood, and Whitney Hardy

Rebel Gregory and Vicki Davis

Rachel Leader and Pam Ashworth

Lanier O'Hare, Kate Giffin, and Leslie Jackson

Debbie Calvert, Emily Haygood, Marta Self, and Julie Kent

Rebel Gregory, Ashlie Grubb and Shah Hines

Wendy Rohrer and Brandi Belcher

Jane Lewis, Allison Licht-Brown, Sandy King, Rachel Leader

Kathy Cawley and Theresa Tate

Sandy King, Liz Darby, Leanne Ruffin, Amy Alford, Stacey Spears, Kathy Cawley, Sharon Blair

I'm quite sure the Town Hall will not be so beautiful ever again!

Ross Bridge or Breckenridge?

Saturday morning brought Ross Bridge a beautiful treat! I think we had all hoped to see a little of the white stuff... after all, it had been almost a decade since Birmingham has had any snow to speak of. Ross Bridge was absolutely beautiful covered in white. Neighbors gathered in the street to sled down hills, have snowball fights, and build little snowmen. Even the slopes on the golf course were covered with families trying to find the perfect place to sled.

Using creative homemade sleds... Tip: plain cardboard covered in a big black garbage sack works pretty darn well!

Ross Bridge Golf Course (there were actually people playing golf in the snow!)

Village Center residents/Snow Bunnies Amy Anderson and Whitney Hardy just trying to stay warm!

If you have any pictures to share of how you spent your snowy Saturday, e-mail whardy@danielhomes.net, and we'll be happy to post them!