The Magically Growing MarkSystems Glossary

• ADDENDUM – This is a document that is created for the Home Buyer through the Sales Office/Design Center to add/remove/change Options on the House.
• AOS – Initials for Agreement Of Sale, which is the official document signed by the Home Buyers when they are ready to build their new home with the Home Builder.  AOS can be found on a button in the Budget Entry menu area – where the appropriate person ratifies the Agreement.

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• CHANGE ORDER – This is a mutually-agreed upon change to the construction work being done on the new home.  This refers to a change in work between the Home Builder and the Trade Partner.
• CONSTRUCTION LOAN – This is a loan that is secured by the Homebuyer (or the Home Builder) that pays out portions of that loan to the Home Builder as the house is being built.  The Lender may provide a Draw Schedule that will outline how much money can be disbursed based on the work completed at that time.  A Draw Request is sent to the Lender when money is requested, and the Lender will send an Inspector to the job to verify the work is complete.  Once verified, money is sent to the Home Builder.
• CUSTOM OPTION – This is an addition, a removal or a change to a house that is not found on the predetermined list of available Options (see definition on this page).  A process typically revolves around a Custom Option Request whereby the Home Builder must do some additional and/or special estimating to determine the feasibility and the cost in order to set a Sales Price for it.

• DEVELOPMENT – Often, this is a community in which a Home Builder is building; however, it’s more correctly defined as a collection of like Houses for which the Home Builder wants to group together.  For example, “Scattered Lots” may be a Development.
• DIVISION – An Accounting term in MarkSystems, a Division is simply a “profit center” or a “cost center” – depending on how the Home Builder’s Management wants to report financials.

• ELEVATION – An Elevation is the “look” of a house from the outside.  Typically, Home Builders assign several different Elevations to the same Model (see definition on this page)  For example, one Elevation may be all siding; one may have half stone or brick; one may have all stone or brick; and another one may have a full front porch.  Elevations are given names as simple as:  Elevation 1, 2, 3, A, B, C – or – they may have more marketing-savvy names like “Craftsman,” “Traditional,” etc.

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• GENERAL LEDGER – This is also often known as the Chart of Accounts.  This is the part of the software where all financial transactions are recorded and used for financial reports.

• HOUSE NUMBER – In MarkSystems, a House is an 8-digit number for identifying the lot on which a Model/Elevation will be constructed.  Each Home Builder decides how to number their Houses to easily identify them within the Development.

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• KICKOUT – This is a process used to release a Home Buyer who has cancelled and is no longer building with you.  The KICKOUT button is found in the Budget Entry screen.  If no work has started (and/or costs received), you can easily turn the House back into a vacant lot.

• LENDER – This is a bank or other finance company who provides money to build and/or buy homes.  These may be through Construction Loans, Construction to Permanent Financing, or Permanent Financing (see definitions for all loan types on this page).
• LUMP SUM PRICING – When bidding out different parts of building a new house, some Trade Partners will offer pricing to the Home Builder using “lump sum pricing” – which means they lump all the parts, pieces and labor into one convenient price.  For example, a plumber may give a price to do plumbing on a house that includes the tubs, faucets, pipes, and all labor to complete the job with a simple flat price.  It’s quick and simple (and used by many), but it does not have the detail that some Home Builders want or need.  For detail, Home Builders rely on a Material List (see definition on this page).

• MATERIAL LIST – A material list is a detailed list of parts, pieces, and/or labor for a particular part of construction.  Home Builders use this to order specific windows, doors, and items like lumber or trim materials.  It takes longer to create these than Lump Sum Pricing (see definition on this page), but it provides more detail for the Home Builder.
• MODEL – A Model is the name given to the pre-designed house that is being offered for sale – essentially the name of the Plan.  Examples:  The Lincoln, The Mulberry, and The Juniata.  Different Elevations (see definition on this page) are then added to the Model to denote changes to the Plan (Ex:  The Lincoln A).
• MODEL HOME – Not to be confused with MODEL above, a Model Home is usually a furnished display home from where members of the Sales Team often work – and – use to let Prospects know the type of construction and the features offered by the Home Builder.  To set up a Model Home in MarkSystems, a special process must be followed for the software to recognize it as such.

• NEW HOME ORIENTATION – This is often referred to as the “Walkthrough” – and is an official meeting at the new home at the end of construction before the Homebuyer settles on the house and moves in.  It is meant to be a time when the Home Builder is showcasing the new home and educating the Home Buyer on the mechanical systems in the house, suggested tips for maintaining the house, and an introduction to the Warranty Department (and its procedures).  Often, a Punch List (see definition on this page) is created and mutually signed.

• OPTION – Extra items added to a house that was not figured into the original Agreement of Sale and/or Base Price of the Sales Agreement.  These are typically pre-priced (and pre-estimated) based on the type of house being built, and they are offered up in a list from which the Home Buyer can choose.  Often, these have prices (and costs) associated with them.  See also Custom Options on this page.

• PROFORMA – A quick snapshot of the expected profitability of a new sale – reviewing Sales Prices and costs at that moment in time.

• QUICK MOVE-IN HOMES – See SPEC Homes Definition on this page.

• RATIFICATION – This is the official process of accepting the Agreement of Sale (See AOS on this page) by the Home Builder.  This is done in the Budget Entry screen of the software and is the critical process by which the Prospect information in the Sales Office Design Center is tied together with the Accounting and Purchasing sections of the software.
• REPLACE FUNCTION – Found inside individual Material Lists, the REPLACE button allows you to find any/all instances of a Product in a Material List across all Companies/Developments and replace it with a new Product (helpful when old Products are discontinued).
• REPLACEMENT OPTION – This is a feature of the software that allows you to replace products in material lists with new products based on the Option created when Purchase Orders are created.

• SALES INCENTIVES – These are discounts, “free Options” and other ways to assist Salespeople with selling new homes.
• SALES OFFICE/DESIGN CENTER (SODC) – This is the MarkSystems program that is used by the Sales Team (Salespeople and Design Center Personnel) to enter Prospects and work with Home Buyers to select Lot (House Number), Model, Elevation and/or Options.  Agreements of Sale and Addendums are created for the Home Buyers in this program.
• SPEC HOME – A SPEC home is simply a new home that the Home Builder has financed and started to build without a Home Buyer.  When properly set up in the software, SPEC Homes can be sold to new Prospects through the House Number lookup button in the Sales Office/Design Center.  Other names used interchangeably for SPEC homes include:  Inventory Homes and/or Quick Move-In Homes.
• SUBCONTRACTOR – See TRADE PARTNER definition on this page.
• SUBSIDIARY ACCOUNTS – These General Ledger Accounts will require a Division and/or House Number when posting accounting transactions.  Primary Subsidiary Accounts are designated in System Configuration.  Users have the ability to name additional Subsidiary Accounts in the Subsidiary Maintenance menu item of the software.
• SYSTEM CONFIGURATION – This is a section of the software where system-wide settings are made.  Few people should have access to this part of the software – as a change made here will affect how the software is used for everyone.

• TRADE PARTNER – A Trade Partner is any one of the people or companies that are hired by the Home Builder to supply labor and/or materials to help construct the new home.  Alternate terms:  Trade Contractor, Subcontractor.

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