De Young Properties Interview by Logan Coughlin

Established in 1974, De Young Properties continues a family legacy, which in its third generation, of helping families realize the American dream: home ownership. De Young Properties is one of Central California’s largest and most visionary homebuilders. I had the opportunity to interview Jon Ryan De Young, from De Young Properties, and ask him questions about the home building business and the valuation in which pertains to home building. Jon Ryan has been apart of this family business since the age of 10 years old. He fell in love with this business at an early age and felt like this industry was his to pursue.

Q: What was your background before you entered the home building business?

A: “I am from Fresno. After graduating high school, I went down to San Diego to go to college. I went to the University of San Diego and got my Undergraduate Degree in accounting with an emphasis in finance. After graduating, I went back to get my Graduate degree in accounting with an emphasis in finance management and real estate”.

Q: What is a routine day like for you, including, your typical duties and responsibilities?

A: “Currently I am the V.P. of Finance and working as the sales manager. I always have to be evaluating and staying on top of the market. I train our sales associates, work with our advertising department, and try to generate as many sales as I can. I usually am in the office as early as I can be and usually the last one to leave”.

Q: What skill set and personality type is best fit for a career in the home building business?

A: “As a sales manager, you have to be a people person. You are dealing with all your sales associates and potential homebuyers. Good communication and negotiating skills are critical because you are trying to sell these homes to people and try to do what is best for your customer and your company. Being positive is also important, especially when you are managing people because a negative morale can leak down to your associates. Embracing change is another trait you need to have because this business is always changing. This is a copycat business and you need to be aware of what is working and what is not”.

Q: How has the decline in the real estate market affected local home building?

A: “We have taken our focus off construction and focused more on our sales. To improve on our sales we have to better our agents, concentrate on the looks of a home, and make sure functionality is a priority”.

Q: How has increasing energy costs influenced new home development?

A: “De Young Properties have net zero homes. We have multiple floorplans designed to reduce the customer PG & E bill to zero. This option is free to homebuyers”.

Q: What market data sources do you consult with on a regular basis?

A: “We run sales reports to see what our competitors are doing. We research online or physically walk through competitor’s tracts to try to find information on what is selling. We talk to other homebuilders to learn their product or new products on their way. We also participate in webinars”.

Q: How do property values influence homebuilding?

A: “It determines the specifications of the future housing development. We don’t want to put 40,000 sq. foot homes in an area of town where the homes are past its maturity. More run down homes can affect other homes around them. We set our home building specs to how high or how low we think property values are going to be”.

Q: How do developers use property valuations in their decisions to develop?

A: “When we appraise the land, the higher the future value of a property is, then more likely we are going to develop in that specific area. We are always engaging in the sales comparison approach to see what the market is holding and how mush can we get out of it.”

Q: What strategies and development opportunities do you plan to pursue in the next five years?

A: “We have our top ten favorite development locations set for the future but that is nothing in concrete. At the moment, you have to development land on a piece-by-piece basis because this is not a buyers market at this time. You have to use a just-in-time approach because it puts less on your books”.

Q: What do you forecast in the home building industry for the next five years in the Fresno/Clovis area?

A: “Builders are going to follow the leaders, in relation to making a home more energy efficient. It will again be a sellers market, so we have to have all knowledge that is available so we can stay competitive when it turns around”.

Q: What is the most rewarding aspect of your career?

A: “Seeing the faces of our customers. Homebuilding is more than just building a product. Memories and emotions take place in a home and that brings me joy and happiness”.

I learned a lot in my interview with, Jon Ryan De Young, pertaining to the home building business and real estate valuation in the home building business. He talked to me about the importance of knowing the value of land and the future value of land. If you make a mistake there, then it may take years to rebound from an overvalued development project. The home building industry was interesting to research because it can show the future of how a city grows. I would like to thank Jon Ryan De Young for taking time out of his day to be interviewed. De Young Properties is doing good things and I expect them to grow in the future.