05 Nov 08 Things Home Builders are doing to Stay Afloat and Sell More Homes

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Amid a market plagued by declining real estate prices, strict lending practices, low consumer confidence, foreclosures, short sales, and high inventories, selling new homes seems next to impossible. However, many home builders are hoping to increase sales by changing sales and production strategies. In markets across the nation, home builders are altering nearly every aspect of their businesses to increase sales and remain afloat during a U.S. recession and one of the worst real estate markets our nation has ever experienced. Below are a few things both large-scale and small-scale home builders are doing to sell homes.

Going Green - Increasingly, new home builders are going green by implementing green building strategies and using energy efficient products to build homes. Building a green home saves the homeowner money on their electric bill and reduces the carbon footprint that a home leaves. Products like solar-panel roofing may reduce a homes carbon footprint by as much as 48%, but combine that with energy efficient appliances, recycled insulation, water management faucets and toilets, dual pane low-e windows, CFL or LED light bulbs and any other energy saving product; and any homes carbon footprint and monthly electric cost  is drastically reduced. Green homes cost more to build but many consumers are willing to pay more for an energy efficient home and home builders are discovering that the “green” label pays off in more sales.

Asking Uncle Sam for a Little Help - In 2007, the construction industry as a whole employed 11% of America’s workforce and helped create income and jobs for professionals in several industries supported by construction. New homes are a crucial component of our nation’s economy; homebuilders’ stability is vital for our recovery. Recently, national home builders and the National Association asked the government for more tax incentives for home buyers stating that the $7,500 tax incentive passed earlier this year did little to stimulate new home sales.

Auctions/Short Sales - Many widely recognized national home builders have resorted to auctioning off their inventories. D.R. Horton and Lennar are two of the largest builders who have listed properties at auction. If auctioning a home, the builder must consider the cost of construction. The National Association of Home Builders in Washington has stated that the average 3,340 square-foot home costs $403,925 to build. That is $219,015 for construction, $45,507 for undeveloped land, $65,969 to prepare the land, $11,258 for marketing expenses, and $19,499 in sales commission. As you can see, much of the expense is in the purchase and development of the land. For those builders who have purchased land prior to the 2005 peak of the housing boom, auctioning a single-family home at 30 - 40 percent lower than the asking price may not result in a loss for the builder. However, John Burns, of John Burns Real Estate Consulting in Irvine, California, warns that price declines of as little as 10 percent might wipe out any profits.

Offering Smaller Homes - California-based KB Home is one of the first large-scale home builders to launch new developments mainly comprised of smaller less expensive homes. The move is designed to compete with foreclosed home pricing. Jeffrey Mezger, KB’s Chief Executive Officer, stated that the company had to shift to smaller, cheaper houses in order to compete with foreclosed houses flooding markets such as the Inland Empire region of California. A year ago, KB’s main focus was on building 3,400 square-foot homes with a price tag of $450,000, to building 2,400 square-foot homes selling for $300,000. And while Mezger has said this worked for a time, the company has now shifted again towards even smaller, less expensive housing - 1,230 square-foot homes for $200,000.

Tags: $7500 tax credit, cost of construction, dr horton, green home building, green homes, home auctions, Home Builders, house short sales, info: home builders, jeffrey mezger, kb home, lennar, new home sales, news: home builders

22 Aug 08 Brand New Real Estate in Arizona

If you are looking to buy a home… why not buy a brand new home? There are tons of benefits to buying a new home over an existing home. Let’s see, where do I start…? Well… first off, as the buyer of a new home you have the peace of mind knowing that your home is absolutely in tip-top shape. In other words, no worries about out-dated design features, appliances nearing their life expectancy, or insect infestation and damage i.e. termite damage to studs and rafters; especially if your new home is constructed of steel framing.

One such home builder in Arizona – Primary Systems Services Group (PSSG) – does construct their residential homes with steel framing. PSSG focuses on building quality custom homes, built to order, in the Flagstaff and Sedona region of Arizona. If you’ve never visited Sedona, or are planning on moving to Arizona, please go and experience what so many before you already have. Simply put… Sedona’s majestic views are a remarkable gift of nature.

Back to the benefits of buying a new home…

Maybe you’re one of those people who just wants to own a home that you know is your own, a home that no one has ever resided in before you. Please don’t get me wrong, this isn’t bad or even a slightly selfish wish for you and your family… it’s merely a common desire of home shoppers today. Many people find a genuine comfort in knowing that they are the first inhabitants of a new house. I mean, after all… you don’t have to worry about animal odors emitting from the carpet (or anything else for that matter) or, worst case scenario, a house previously used as a meth-lab. Let’s not forget that you don’t have to concern yourself with regular wear-and-tear from flooring, lighting fixtures, wiring, plumbing, ventilation (including the air-conditioning unit), appliances, and just about everything else fixed to the house!

Perhaps in today’s day-in-age, the biggest attraction home shoppers have towards a new home is the energy saving benefits that many new homes provide. That’s right! “Go-Green” is the mindset that many buyers are taking to heart when looking for their next home. The majority of newly built houses are equipped with energy saving appliances and fixtures. Some home builders even offer new home communities with houses that are certified “green”. Green homes will often offer features such as solar panels (Arizona may just be the state that benefits most from this!), dual-pane windows, water conservation and recycling, low flush toilets… and are commonly built out of recycled materials and products that avoid ingredients that produce green-house pollutants.

If the above reasoning isn’t enough to sway you towards buying new… I would strongly recommend visiting a few new-home builder’s spec homes before making up your mind. Once you’ve found the home of your dreams, I don’t think you’ll be surprised to realize that it was a brand new home in the end!

If looking to buy in Arizona, let me help you get started…

Valley-wide builders - Cachet Homes, Shea Homes, and K. Hovnanian Homes.

Up-north - Bison Homes, and PSSG.

Tucson region - K. Hovnanian Homes.

For more information on new homes for sale in Arizona, be sure to visit our main site: NewHomesSection.com.

Tags: arizona, Arizona Real Estate, energy efficient homes, flagstaff, green homes, new home buyers, new homes for sale, primary systems services group, pssg, sedona, steel framed houses

08 Aug 08 Shea Homes Provides Free Solar Power

Homebuyers at Shea Homes’ Victoria Gardens, in Rancho Cucamonga, California, will receive free solar power systems through August 31. The nationwide homebuilder is working with BP Solar, a global leader in solar energy, as part of their ongoing commitment to reduce greenhouse gas emissions in all Shea Homes Active Lifestyle Communities.

“By providing our buyers with free solar energy systems, we’re taking efficient energy use a step further by actually creating energy,” stated Jeff Gersh, Area Vice President of Victoria Gardens. “This provides both short-term and long-term benefits for our customers in the form of significant cost savings, and it also makes a positive impact on the environment.”

Victoria Gardens’ homes are already Shea Green Certified; however, with the BP Solar Home Solutions systems, electric bills are estimated to be reduced by up to 60 percent. In addition, the 3-kilowatt solar power system offers residents security against utility rate hikes and allows the homeowner to track how much power their system is producing.

“With the addition of solar in a home, we’re no longer just efficient users of electricity, we become producers. Integrating a solar system into a home during construction makes it more accessible and affordable than it’s ever been. Victoria Gardens’ homes pass the true test of a ‘green’ home by integrating a mix of energy-saving and energy-generating devices that deliver immediate and long-term benefits for our customer.”

The good news is that new homebuyers in Shea Active Lifestyle Communities in California, Arizona, Florida, and Washington will also receive free solar system upgrades through August 31. After August 31, homebuyers can add the solar system as an upgrade option to their home.

For more information on Shea Homes and Shea Active Lifestyle Communities new home incentives, visit them online.

Tags: active adult homes, bp solar, california green homes, energy efficient homes, green homes, jeff gersh, new homes, rancho cucamonga, shea active lifestyle communities, shea green certified, shea homes, victoria gardens