The Building Group is a custom homebuilder that has been serving the northern Virginia area since 2004. The homes range from 6,000 square feet to 15,000 square feet, and are sold for between $1 million and $5 million. The company specializes in two areas of business—spec homes, in which two to three homes are built anticipating that a buyer will be interested in purchasing one. Or, homes are built directly for a specific purchaser on a lot that the company purchases. The company has been pursuing some commercial construction work, with a ‘mix-use’ project currently in the works, awaiting necessary permits, in Arlington, Virginia.

The company is highly acclaimed for its exceptional work. Owner and President of The Building Group, Mike Mafi, explains, “We have won many awards—two Monument awards and two GALA award. We have also entered two houses this year, which we expect to win.”

The Building Group is a small company, with just Mike Mafi and his wife, Mandy Mafi who is an interior designer, and a bookkeeper on staff. Subcontractors handle the remainder of work. Mafi received his Master of Science degree in structural engineering from the University of Maryland in 1986, and has since been working passionately as a professional engineer, with experience in designing everything from shopping centers to residential homes. He sold his part of a previous business in 2004, and at that time focused on creating The Building Group.

Mafi works with clients from the first stages of project development to end product
in order to ensure complete customer satisfaction. The company has a high turnover
rate for its homes, which are generally sold within three months of being on the
market.

DIVERSIFIED BUSINESS

The Building Group is currently focused on a development project, in which the
company purchased a six-acre lot for building three homes. The company is also
working on a community project, building seven houses on a lot. “These are
easier to sell because people generally want to live in a community,” says Mafi.

Another future goal of the company is to diversify its portfolio by adding more
commercial developments, land developments and subdivisions, along with
maintaining its residential home building. Another area of interest the company
would like to pursue is mix-use buildings, which have a commercial business on the
bottom floor and apartments on the above floors.

GOING GREEN

The company is highly committed to ensuring its homes become green certified. The
Building Group designs and constructs homes with sustainable solutions, and aims
at having each one built up to green standards. The company has been investing
heavily in more efficient fixtures in its homes, such as state-of-the-art appliances,
water heaters and spray-foam insulation. The company continually researches ways
to reduce energy costs for its customers.

QUALITY ASSURED

To ensure the utmost in quality for homebuyers, The Building Group offers
warranties on its homes. “We offer a longer warranty on homes, than any other
company,” says Mafi. Warranties can be granted for 30 days, 90 days or as long
as ten years depending on the home. “We do a walk-through of homes and
if there are any findings, or if a client calls with an issue, we log and track any
problems or deficiencies, and then can improve or give feedback to contractors on
those areas,” explains Mafi. “At the end you want to have a satisfied customer.”

With the recent economic downturn, the company has reduced its own profit
budget. “We actually spend more money on the inside of the house, on things like
kitchen cabinets, light fixtures, outdoor lighting and trim packages. We’ve increased
the amount spent on those things, and reduced the profit margin,” says Mafi.

Despite the economic decline, Mafi considers the company to be lucky. “We have
no inventory currently; we just sold a house two days ago,” Mafi says. “We are not
building many houses all at once. We’re building much faster than before—what
used to take seven months, now takes five months.” As contractors are not as busy,
they can be more responsive, work faster and are more on top of projects. Some
cost saving from the contractors, and our company profit reduction ad up and those
savings are passed on to clients. Mafi says, “Customers are getting a lot more now
house than ever before.”

One of the key contributing factors to the success of The Building Group is, “We love
what we do,” says Mafi. “Our theme is that we don’t follow the money; we let the
money follow us by building quality homes and selling it for less and always do the
right thing.” Mafi adds, “Customers are smart and shop around; they are educated
when buying. This actually helps us to sell faster than our competitors.”

SUPPLY CHAIN

“We have a very good relationship with all of our suppliers,” says Mafi. “Suppliers
and contractors are very understanding of the economic situation—they see that
we are selling houses, but that we are making less money.” The company works
closely with its suppliers, preferring to not shop around. “In most cases they do
give a better price if there’s any room for negotiating the profit.” The company
doesn’t necessarily want to utilize the cheapest suppliers. “They don’t meet our high
expectations,” says Mafi.

PROMOTING THE BUSINESS

Mike Mafi’s Facebook profile has given the company much sought after exposure.
Mafi regularly posts photos of new homes on his Facebook page, and he has
even managed to acquire a client via the site. The social networking site is free,
and has allowed the company to be visible to an extensive network of people.

Casey Margenau, a top Virginia realtor, advertises homes for The Building
Group. “He is the best around,” says Mafi. Additionally, Mafi is highly active
in the communities where he lives and builds. Word-of-mouth advertising
has given the business an excellent reputation and a growing client base.