Saturday, April 16, 2016

Home Builder Term Project

Landon Bangerter
Professor Jennifer Adams
Business 1010
March 12th, 2016
Homebuilder Project Paper
            The responsibilities of a homebuilder can be incredibly diverse.  They vary depending on what responsibilities you deem on yourself.  Some homebuilders work strictly from an office and pay different contractors to perform specific jobs while they worry about finances, inspections, etc.  Some are a little bit more hands-on and perform those diverse tasks such as building home frames and walls and installing electrical wiring, windows, and insulation (“Home Builder: Job Description & Career Info,” n.d.).
            The amount of education required to succeed in construction largely depends on what specific field you hope to get in to.  Monster.com lists such requirements.  If you hope to become a craftsmen or laborer, it’s not really required to pursue any kind of education, although a high school degree and some proficiency in math and shop are of a large help.  I learned all my handiwork from experience of working a construction company, and then obviously learned math in school.  However, my goal is to be in a manager position overlooking home building.  The requirements here are not set in stone.  The usual idea is to have at least some experience and in addition have at least a bachelor’s degree in your choice of construction field (“Construction Careers,” 2015), but there are apparent exceptions to the rule.
            I had the opportunity to interview Blair Bangerter of Bangerter Homes, a local homebuilding company in the Salt Lake area.  As you can guess, yes, he is related to me.  He’s my father.  My brothers, a couple other people, and I work under him and two other co-owners as their laborers.  Blair Bangerter attended Utah State University and graduated with a major in business and minor in Spanish.  He had a little bit of experience with construction, never participating in any form of schooling for it.  And yet he decided to pursue a career in home building anyway.  When I asked him how much his degree has helped him with his career, he responded back with a low percentage of 15%.  What’s more is that he is also the architect for Bangerter Homes, designing all of the homes.  He’s never taken any classes for that either.  His experience simply consisted of his fascination for sketching homes and figuring out what a great home would look like.  Through his own self-taught designs, he would ask other architects and associates for any advice they have on how to improve his home designs.  He does this while hiring contractors to do framing, plumbing, etc. as well.  He will often ask them what they think would be the best solution to certain problems or how to make a home more livable for their homeowners.  Blair has stated that all it takes to lead a successful business is two aspects; Put all your might, mind, and strength in your work and have a genuine concern and interest in each of your potential and current homeowners (Blair Bangerter, personal communication, April 13, 2016).
            It seems to me that there is no specific educational requirement to pursue a career in home building.  A lot of it is determined by dedication and interest, but it is certainly helpful to be knowledgeable in those fields.  For me, for instance, I have the experience and interest in the construction field, but I believe I lack the business skills required to engage in such a career at this point.

      Homebuilding isn’t just limited to one specific type of builder.  In fact, there are three different types of homebuilders.  One is the custom homebuilder.  This is the type of builder Blair Bangerter is.  The potential homeowner will first buy a lot, usually from a specific homebuilding company, and work with those builders.  If they don’t already have an architect, the builders and owner will find one and pay them to design their own.  The built of the home in this scenario is specific to the want of the homeowner.  Before construction is even begun, the homebuilder, homeowner, and architect go over specific desires wanted for the home, such as size, style, features and creative touches (“Home Builders – Understanding the difference between a Custom Builder, a Spec Builder and Tract Builders,” n.d.).

            The next type of builder is the spec homebuilder.  Unlike custom homebuilders, spec homebuilders build according to their own designs.  Without a perspective homeowner, they will start building their own type of home.  Usually a buyer will come along after the home is completely finished, but every once in a while a purchase will be made during the construction of house.  Sometimes working with customers on custom homes can be really stressful, so for those construction managers that want to avoid those difficult situations, they’ll more than likely build spec homes.  These are not your average cookie-cutter houses.  Often these types of builders like to throw in their own unique tastes and work in the construction process (“Custom v. Spec v. Tract Homes,” 2016).

            The tract homebuilder is the third and final type of homebuilder.  Now this is the definition of a cookie-cutter homebuilder.  Leslie Mann from the Chicago Tribune (2010) explains that instead of focusing on quality, unlike the other two builders, this one shoots for quantity.  Interestingly enough, Blair Bangerter’s father and my grandfather, former Utah Governor Norm Bangerter, was a tract homebuilder.  The idea is to build them quick and let people buy them quick.  Usually the advantage here is price.  A lot these houses look incredibly similar, but they usually tend to be cheaper than any of the other types of homes.

            For my personal preference, my goal is to be a custom homebuilder.  While there are certainly some desirable aspects to the other types of builders, I really enjoy working with people and helping them live a dream, in this case living in their supposed dream house with their own unique, personal touches.

            A career in home building certainly has its fair shares of pros and cons.  Learningpath.org lists such pros and cons.  From a very general standpoint, the pay is incredibly good.  The average wage is high.  The median annual salary as of May 2014 was $86,000.  One of my personal favorite aspects about this career is that it’s not solely an office job.  You’ll certainly have an office, but you will often be required to visit with other contractors, make visits with the city, and visit your various jobs to make sure construction is going according to plan.  It’s something new every day.  It keeps things fresh and interesting.  There’s also a sense of accomplishment you receive upon seeing the completion of a home and finally allowing a homeowner live in something you created.
            Unfortunately, like any career, there are some downsides to being a homebuilder.  There are certainly going to be some days where work will be longer than usual due to situational circumstances.  The workload would probably require you to multitask, which could be really stressful for some.  There will probably several instances of unexpected occurrences, delays, and emergencies.  Not to mention the amount of work you have could inconsistently depend on the economy (such as the housing market crash in 2008).  And every so often, injuries could occur in the workplace.  Apparently, about 4% of people working in the construction industry experienced an injury or illness back in 2013 (“Pros and Cons of a Career in Home Building,” n.d.).
            The outlook for the field of construction management is pretty good.  Within the next 10 years, bls.gov has projected that job opportunities in that field will grow about 5% percent.  As of 2014, there were 373,200 construction management jobs in the country.  The future is looking fairly bright for this specific field (Construction Managers, 2015), as long as you’re able to deal with all the cons that follow it anyway.
            I’m very confident with my fit in this field.  Working for Bangerter Homes as a laborer has been incredibly informative.  I really enjoy talking to different contractors and going over building plans.  What makes it even more rewarding is being able to stand back after you’re finished with a project and evaluate your work.  I’ve been with the business for a while and have learned a lot.  My older brother and I have been talking about going into business together as homebuilders once I’m done with school.  He’s already had a lot of experience in building and even selling as a real estate agent.  I’ve enjoyed every minute of investigating these unique sources and learning more about the homebuilding industry.  Performing all of this research has been incredibly helpful and has only solidified my desire to be a homebuilder.  I can only have faith that the future in homebuilding is as bright as it seems to be.



Sources
1.     Home Builder: Job Description & Career Info.  Study.com.  Retrieved from http://study.com/articles/Home_Builder_Job_Description_and_Information_About_Starting_a_Career_as_a_Home_Builder.html
2.     (2015).  Construction Careers.  Monster.  Retrieved from http://www.monster.com/construction-careers
3.     Pros and Cons of a Career in Home Building.  LearningPath.org.  Retrieved from http://learningpath.org/articles/Home_Builder_Career_Info.html
4.     (2015).  Construction Managers.  Bureau of Labor Statistics.  Retrieved from http://www.bls.gov/ooh/management/construction-managers.htm
5.     Home Builders – Understanding the difference between a Custom Builder, a Spec Builder and Tract Builders.  Peak Construction Company.  Retrieved from http://peakconstructionco.com/blog/home-builders-understanding-the-difference-between-a-custom-builder-a-spec-builder-and-tract-builders/
6.     (2016).  Custom v. Spec v. Tract Homes.  Shelia Conkling Jonesboro Real Estate & New Construction.  Retrieved from http://www.neahomes.com/custom-v-spec-v-tract-homes.html

7.     Mann, Leslie (2010).  Custom, spec or tract: Which house fits you?  Chicago Tribune.  Retrieved from http://articles.chicagotribune.com/2010-07-02/classified/ct-home-0702-custom-spec-homes-20100702_1_custom-house-spec-new-house

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