Construction Informer

As social networking continues to come of age it isn’t surprising to see networks spring up that mix together buyers and sellers of home improvement products and services. Home Savvi is one that brings together all those with interests in fixing up existing structures…most specifically homes.

According to the release:

Co-founders Villette Nolon and Will Hartmann created HomeSavvi for the purpose of allowing homeowners and businesses to take advantage of new Internet-based social networking and project management tools to facilitate exchange of home remodeling expertise and services over the Internet.

The first market rollout is Seattle and will be followed by Portland, San Francisco, Boston, Miami and Dallas. For your construction business it promises unique ways for you to build relationships with potential new customers. You could answer questions, contribute articles about real projects, add posts to blogs and generally be available as an expert that homeowners would contact for advice on remodeling.

You can create a profile at no cost to you and from there you can expand the exposure you would like to have. This is an Internet area that many have been having a tough time developing. It is essentially local Internet and it has its own unique challenges not the least of which is getting attention amidst already in-place word-of-mouth and established relationships.

It would be a good idea to keep an eye on these types of efforts because there are more and more people who like developing relationships within the comfort of their homes without the challenges of dealing face-to-face. Then, when they are ready, and feel comfortable with the relationship that has developed they will take the next step and ask for an estimate.

Most notably these are thoughtful people who may know as much about the topic as you but they are just not interested in doing it themselves. Talking down, and acting like you are the epitome of knowledge will probably just turn them off. These local Internet efforts are all about building relationships just using a different process then has been typical. Patience will pay dividends here.

As the sub-prime debacle goes through its process we see credit tightening and even people with very good credit are having difficulties getting mortgages. As more people are forced to stay in the home they have they will be spending money to maintain and upgrade those homes.

Interestingly, prior to 1999 and the beginning of the official HUD recording of the sub prime market, the total value of improvements nationally had never reached much over $92 billion. Suddenly in 1999 that number surged to more than $100 billion and hasn’t looked back ending up at almost $175 billion in 2006. Even maintenance and repairs which had bounced around in the $40 billion range for the 12 years ending in 2003, climbed above $50 billion in 2003 and has been inching modestly upward ever since.

If historical records are any indication remodelers will be seeing a continued emphasis from home owners on wanting alterations (defined by HUD as “changes or improvements made within or on the structure”). From 2003 to 2006 the total value of alterations climbed from just under $92 billion to almost $130 billion.

Additions appear to be a mixed bag. After a major slump in 2001 they held steady for a couple of years at around $20 billion, then declined by $3 billion in 2004, rebounded in 2005 and then took a steep decline to $13.5 billion in 2006. There’s no where to go but up with this segment especially if people are going to have to stay put.

Maintenance and repairs is a segment that does not post big gains in short periods but it is a constant. For anyone who can hang a door, fix a step or patch a roof this market is one that can help stabilize other parts of a remodeling business.

So, if you work on existing structures in any capacity, now might be a good time to be thinking about whether or not you’d like to expand. If so, there are alliances to forge with suppliers, helpers and other talent so you are ready to handle the new business.