Opportunities and incentives await the smart and savvy home buyer who decides to purchase a new home now.

With interest rates at an all-time low and a variety of new homes in local communities filled with amenities, home buyers have their pick of affordable houses for a lot less money.

“Because of the declining market, you are really getting a generous deal for your money,” said Amy Capista, vice president of sales and marketing for Phoenix Builders. “It’s very competitive in the existing markets and right now, you have to come down a little in your prices, so buyers are going to get a good deal. Interest rates are still competitive and are going to be good, they are still an awesome rate.”

“We have had steady and consistent sales for the last three months and our clients can see that integrity,” Capista said. “While some builders have totally slashed their prices, that has helped the current decline on new home values.”

“We value our communities and want to keep the value up, and our customers are not going to see the value of the house decline. Other builders may not care for the protection of the area, but for us, being home grown, we really have a value in our community. We live here and our goal is to see a build up in your homes equity and not a decline in your property.”

As many homeowner know, owning a little piece of the American Dream can make a substantial difference when it comes to tax time. Having a home not only allows for tax deductions each year when paying Uncle Sam, but equity in the house builds as well.

“There are several reasons it is always a good time to buy a home, but there is so much leveraging power you have when buying a home,” said Mike Venetis, vice president of sales and marketing for Bigelow Homes. “A house appreciates and most double in value every 10 years. Buyers should think of it as a main investment, think of it as buying stock.”

“We’re seeing the most aggressive pricing in years and there are a great supply of homes to choose from,” Venetis said. “The interest rate is at a historic rate and it’s phenomenal.”

“You never know when prices will change and the market will bottom out, so it’s a gamble,” he added. “But it’s a gamble for the people who want to wait for the market to bottom out.”

Even with low interest rates, many home buyers are treading with caution and some are afraid to make their move. With the subprime mortgage crisis still a frequent headline in the news, people were concerned. Changes in the housing market forced everyone to take a closer look at their financial portfolio and forced buyers and builders to become more creative.

Before embarking on a new home, buyers should examine their credit status and purchase only the home they can afford. They are encouraged to become more educated and knowledgeable and seek out reputable mortgage lenders. Builders have become more supportive, helping with potential buyer’s financial analysis and offering consultants to meet with the buyer.

A little hand-holding

“People are anxious right now about the market place and the way it is, and right now what the market place needs is confidence,” said Patrick Curran, president of West Point Builders. “It really is what people are doing right now.”

“Newer homes appreciate at a higher rate and it is a much better from an investment standpoint to do it now,” Curran added. “If you are moving in a couple of years, you can’t guarantee that the interest rate will be as low.”

“We are definitely seeing people a lot more nervous than before,” said Shannon Gibson-Giampa, owner of Gibson and James Properties. “Everyone is watching the news and looking at nationwide scenarios. We are seeing a more cautious buyer and a much more educated buyer, too. Everyone is dotting their i’s and crossing their t’s and doing their homework.”

“You try to reassure people that the floor isn’t going to drop and they can get a great product at a really great price and borrow money inexpensively,” Gibson-Giampa said. “The bottom line for buyers is that they can get what they want. They can create a wish list and be happy.”

Capista also sees customers who are interested, but likewise nervous.

“We do a lot of hand-holding,” Capista said. “They have a lot of concerns and we have to find out what their concerns are. We have our own consultants working within our offices and if they can put a name with a face, they are feeling more comfortable. There is a lot of trust involved and they need to trust us.”

“With some builders, you may never see who owns the company,” she added. “But the customers I see, I am going to see them in the neighborhood or at the grocery store. “It’s not in our best interest to lead people into a sale they are not comfortable with. Their customer concerns are important to us.”

“The prior market and some other builders may have given us a little more work to do, but we are determined to get that trust,” Capista said.

“What has happened in our market place, and the problem is, most in the position got here of their own accord by lending that is not from a reputable lender,” Capista said. “We give people plans to really realize what they are going to have to do, and with a lending market right now with tighter restrictions, it is kind of difficult to get a loan.”

“We put them on a plan and discuss it with them and if they have messy credit right now, we will put them on a six to nine month plan, depending on what their credit standing is,” Capista said. “It’s more of putting people on a course and we may wait another five or six months to take care of some financial issues. As a builder, we care about our people and it’s our goal to sell a home, but not at the (risk) of having a foreclosure.”

Capista describes the present market as “a rebalancing” and advises home buyers not to get caught up in spending too much and points out that the mortgage companies will be helping with that. “It’s still a good market, and we are just waiting for the balance and the adjustment to take place,” Capista said. “We have a mortgage situation that has taken effect and most people did it themselves. We are trying to work with riding out this wave and getting back to the norm.”

Great prices drive interest

Oakley Home Builders owner and president Steve Sobkowiak refers to the company he and friend Ryan Dunham founded in 2003 as “the new kids on the block.”

Located in the western suburbs of Downers Grove, Hinsdale, Naperville and Glen Ellyn, Sobkowiak said they are seeing a lot of success, building nine homes last year, with six of those being pre-sold.

“We’ve had our best year and the growth has been phenomenal, the cost of land is so much lower than in recent years and the interest rates are also phenomenal,” Sobkowiak said. “People really study the market, and at this you are buying low and buying land at 2005 prices.”

“We haven’t dealt with customers who are nervous. They are buying at such great prices and they have the financial means to do that,” he added. “If you are looking for an opportunity to build your dream home, this is the time.”

First-time buyers have one advantage over veteran homeowners in that they don’t have to sell their home before they can buy another. And while the housing market for used homes has also slowed, people are still buying existing homes in established neighborhoods.

“If someone is having a home to sell and they are nervous, the good thing about new construction is that they have a later delivery date and they have time to sell that home,” said Shannon Gibson-Giampa, owner of Gibson and James Properties.

“If you are looking at an existing home with new construction, it gives you a little bit of a breather. But I also always tell people to make sure their home is ready to sell before they put it on the market,” she added. “The homes that are selling are the ones that are ready.”

“We try to do our homework on that as well for the customer,” said Gibson-Giampa. “Many times we can find a home that just sold on their block, and that reassures them that homes are selling.” Curran said West Point Builders offers an extended delivery program that allows buyers the time needed to list and sell their present home.

“What we are doing to help that homeowner is a guarantee sales program to sell their current residence,” he said.

“If a customer knows they are going to buy a new home, there is a certain amount of time before that,” Curran said. “And if you have good solid credit or even if your credit is decent, there are ways you can get that fixed. If you carry high credit card debt, you can work to get that down. We concentrate on that during this next three months to get where we need to go.”

“We do get quite a few transfers or people from out of state and other clients wait until they sell their home,” he added. “We tell them you sell your home first, rent a couple of months if you have to, and then we’ll have your house done. This is the way we direct clients. We sell their house first and then as soon as that happens they call us and we start on their home.”

Taking that first step

Bob Nelson, president of Tanglewood Homes, which builds custom homes at Tanglewood Oaks in Aurora, feels any nervousness on the part of the homebuyer may just be “in taking the first step.” “The people I have talked to have sold their homes,“ he said. “But the fact is there is a little bit of exaggeration about how bad it is. Everyone has a feeling that the sky is falling, but I don’t think people are going to have as difficult a time selling their home as they think.”

“Our program is that you can put a deposit down that is refundable,“ Nelson said. “We get it processed and will do all the selections, we just won’t start to build until the homeowner says “go”. Our custom homes are built to specifications and we can get it all designed and then when the customer sells their house, we can start on it.”

“But I’ve seen traffic pick up since last week and it is a lot better now than early January,” he said. “There are buyers out there for (resale) homes just as there are for new homes.” Chalen Parrish, owner of Parrish Builders believes fair market value is why customers keep coming back to Deercreek Estates in Wilmington.

“Many of the houses are priced at what they should be instead of being inflated, and if someone gets in now, they will be able to get the same equity that someone got a few years ago,” Parrish said. “Some people are cautious but we are finding that they come in, go elsewhere and turn around and come back because what we give is a standard fair market.”

As far as homeowners having trouble selling an existing home, Parrish hasn’t seen it.

“I’ve seen some homes that are put out at market price and have sold in three weeks,” Parrish said. “It depends on where you are and the amount of traffic, we are seeing more people coming to take a look.“

In 16 years of business, Parrish admits he hasn’t seen the market this slow, but he’s optimistic that prices are returning to balance. “You have to remember that only 1 percent of the homes are foreclosed upon,” Parrish added. “There are 99 percent that aren’t. No one realizes the percentage of homes that haven’t foreclosed.”


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