Author: Keith Grant

Categories
Living Spaces Real Estate

Get with the Program

Have you ever been told to “get with the program”? Or maybe you remember a time when you were ostracized for not being up-to-date with society’s latest trends. With the overabundance of how-to books and Web sites, people can learn about the new and upcoming trends of nearly any industry they choose. When it comes to the home-building industry, however, why go out and buy a book or spend hours surfing the Web when you can see the latest developments in home building and interior design with your own eyes?

At the 2007 Mid-South Parade of Homes, which runs October 12th to 14th, 18th to 21st, and 25th to 28th, you can witness the newest ideas for kitchens, bedrooms, ceilings, floors, screened porches, technology centers, bathrooms, landscaping, home décor, landscaping, and more. Best of all, there are over 160 model homes in this year’s Parade of Homes, ranging from the $125,000 starter home to the million-dollar custom home. We have the perfect variety for consumers with a particular preference. Whether you are considering building a new home or remodeling your current home, you will find fresh ideas to help you succeed.

Maximizing space is becoming an increasingly prominent factor for new-home builders and remodelers. Large islands and an abundance of countertops are becoming exceedingly popular in kitchens and provide plenty of room for families to cook, children to do homework, or hosts to entertain guests. Ten-foot ceilings — or higher — with barrel-vaulted and wood-beamed effects make the home not only look but feel more spacious. Oversized windows are also becoming more common and create openness. Screened porches offer extra space for homeowners to relax with views of the outdoors, and some lead to an open deck area, perfect for summer get-togethers. Clearly, these new homes prove there are a variety of ways to make the most of your space.

Not only will this year’s Parade of Homes show you great ways to enhance space, you will also observe trendy ideas for spicing up your home. Hardwood cherry floors are popular, especially in the kitchen and living-room areas. Brick and stone accents around walls and fireplaces make the home distinguished, while double-door entries offer guests a friendly welcome. Crown-molded and multi-layered ceilings, two traditional trends, are gaining popularity once again in both “great rooms” and master bedroom suites. Decorated arched openings, the most popular trend of all, give formal distinction to spacious rooms. Regardless of the amount of space, areas should be tailored to give the home unique character.

Before constructing a new home, be sure to “get with the program.” Observe the clever use of space, unique styles, and other home-building trends at the 2007 Mid-South Parade of Homes. The innovative homes at this year’s event are definitely something you won’t want to miss. ■

Visit www.memphisparade.com for more information regarding the 2007 Mid-South Parade of Homes.

Keith Grant is president of the Memphis Area Home Builders Association.

Categories
Living Spaces Real Estate

Spend the weekend visiting open houses.

Look around. The grass is green, the sun is shining, and summer is definitely here. You can see the difference all over the Mid-South. People are outside enjoying themselves and doing all the things that are typical of summer: working in the yard, grilling outdoors, and scanning the real estate section for open houses.

The climate is right for buying a new home too. Interest rates are near historic lows. A 30-year fixed mortgage at around 6 percent is always attractive, but when you combine that with a strong economy, rising home values, and a projected demand for homes in Memphis well into the future, you’ve got a market that puts you in the driver’s seat.

And the driver’s seat is exactly where you belong. From there you can take the family for a nice weekend drive and explore the new developments in our area that are calling your name. Your ideal model home, lot, or condominium is waiting to be discovered.

As with any trip, it’s best to start with directions. You can map out your day by using A Change of Address magazine, found at the Memphis Area Home Builders Association, Schnucks, Kroger, Wal-Mart, Sam’s, and Blockbuster stores around the Mid-South. The magazine is a great way to learn what local builders and developers have to offer. Make a list of the subdivisions or model homes that appeal to you, and work from there. As you are driving, keep your eyes open for additional developments; you may be pleasantly surprised by what you see.

Take the time to tour a few developments so you can compare what each one has to offer. Remember that most developments have restrictions that will impact things such as the size of your home, its placement on your lot, and the materials used on the exterior. While these restrictions are designed to protect the architectural integrity of homes in the subdivision, and thus protect the resale value of the homes, they also can impact your building costs.

You should also keep in mind that condominium living is different from single-family-home living. The benefits of having someone else maintain the exterior of your home are great for those who are getting older or those who simply do not have the time to dedicate to a yard or a garden. Monthly association fees cover these costs and more.

Touring model homes and condominiums is much like visiting a car lot. You get to “kick the tires” by taking the time to evaluate the floor plan, the attention to detail, and the pros and cons of the house or condominium as it relates to the way your family lives. Only when you tour a model is there is a salesperson on hand who can educate you on the home or condominium you are touring. ■

For the latest copy of A Change of Address, visit one of the stores listed above or call the Memphis Area Home Builders Association at 756-4500.

Keith Grant is president of the Memphis Area Home Builders Association.

Categories
Living Spaces Real Estate

Your New Home: How Much Will It Cost?

Sometimes owning a new home instead of renting or living in an older home means adjusting our expectations to our incomes and dealing with hard financial facts even as we dream of the fantasy houses we see in glossy magazines. Many factors affect the cost of a new home, including financing, construction, and local regulations. But there are things you can do to help keep the price within your budget.

The down payment and monthly mortgage payments can often be the biggest hurdle new home buyers face, so shopping around for the right mortgage options can be an important way to save money. For instance, VA or FHA loans sometimes require no or low down payment. There are state assistance programs available for first-time home buyers. Sometimes, first-time buyers turn to parents or relatives for help with down payments. Also, adjustable rate mortgages can help keep monthly payments within your comfort range.

One way to keep the actual cost of a new home within your budget is to do some of the finishing work yourself. While structural construction is best left to professionals, some homeowners do their own painting and woodwork finishing. These jobs certainly are not easy but may be a way to create substantial savings. There is also a wide range of price levels for some materials, such as cabinets, carpeting, appliances, and bathroom fixtures. What people choose to put in their homes is as unique as each individual. The important thing is to weigh your options so your new home is comfortable, affordable, and meets your needs.

Another cost-saving tactic is designing a home so that rooms, such as additional bedrooms, can be added in the future. Some homeowners wait to finish their basement a few years after they move in, when it is financially easier to complete the work.

There are added costs for regulations that most homeowners never consider. Development fees and other construction charges can add more than $12,000 to the cost of a typical home. These fees include inspections and permits, re-zoning applications, wetland permits, access permits, grading, fire-retardant walls, setback requirements, and more. The costs vary from city to city, so the location of a new house may affect its cost.

With all these factors, the most important consideration is the quality of your home. It must be a sound structure that will provide years of worry-free living for you and subsequent owners. Finding a professional builder with whom you are comfortable is a basic requirement in building your dream house. Visit neighborhoods in which you want to live or where there are comparable houses. Talk to owners about their builders to see what their experience was. Professional builders are happy to supply references to prospective homeowners.

Every home buyer chooses the aspects of a new home that are most important to them. Having a home on a lake may be the dream of a boater. A traditional home with plenty of bedrooms and baths on a cul-de-sac in the suburbs: someone else’s dream. The excitement of easy access to the theater in the heart of a city may thrill another. Whatever your dream, thoughtful analysis of what is most important to your lifestyle and your budget will help ensure that the experience of buying or building your new home will be one of the most pleasant times of your life. ■

Keith Grant is president of the Memphis Area Home Builders Association.

Categories
Living Spaces Real Estate

Find your part in the American dream with a new home.

A home is more than just a structure where people take up residency. Owning a home means freedom, financial independence, and security. For many, owning a home brings a feeling of success, knowledge that they’ve obtained their own bit of the American dream. And, as for a home — according to Dorothy as well as millions of homeowners — well, there’s no place quite like it.

The advantages of today’s new homes are without parallel. Breakthrough technology has brought safety and energy efficiency in homes to a new level, and for conveniences and amenities, it’s hard to beat a new home.

Technology Brings Safety to the Forefront

Today’s homes are safer, because new homes take advantage of breakthroughs in building science. For example, hardwired and interconnected smoke alarms bring a new level of fire safety to new homes. If one alarm goes off in the garage, they will all go off, giving your family ample time to get to safety. New fire-resistant construction materials such as better electrical wiring mean less chance of a dangerous electrical fire. Tempered glass, now found in many patio doors and windows, means less chance of an injury should one break.

New Homes: More Energy-Efficient Than Ever

It is easier than ever for home shoppers looking at a new home to get access to energy-efficient construction. Builders nationwide are embracing new green building techniques designed to help protect our environment while saving you money. They also have an ever-expanding array of products and materials to choose from that enables them to make a house more resource-efficient and water-thrifty. Many participate in programs like ENERGY STAR, promoting energy-efficient appliances, and WaterSense, promoting water efficiency. ENERGY STAR-rated windows keep heat in during the winter and out during hot summer months, saving you money on heating and cooling costs. High-tech insulation ensures consistent temperatures throughout a new home while using less energy.

As more and more consumers demand a “leaner” home, builders are responding by returning to age-old practices, like siting a home to take the best advantage of sunlight and shade. Recent innovations like solar shingles (not just solar roof panels), light-conserving windows, and insulation made from recycled materials are also changing the market.

New Homes Offer Home Buyers Their Choice of Lifestyles

Today’s new homes offer more of what buyers want. Because of increased demands for larger socializing spaces in the home, larger kitchens are becoming more common. New homes also feature more bathrooms and more storage space. Consumers are seeking greater ceiling heights, walk-in showers with multiple heads, three-car garages, and outdoor entertainment spaces with fireplaces and grills. And builders are responding with new homes that provide these features.

So why do Americans like new homes? The answer lies in choice. People want to be able to personalize their home with their own tile, flooring, and appliance choices. In a new home, the consumer can select virtually everything down to the knobs on their kitchen cabinets. It’s all part of the American dream. ■

Keith Grant is president of the Memphis Area Home Builders Association.

Categories
Living Spaces Real Estate

Opportunities abound for the first-time home buyer

For many people, buying a first home is a rite of passage. It’s a foot firmly planted in independence and on the path to success, a true part of the American dream. But as many first-time buyers are coming to realize, it’s more than just the end-goal of a journey toward financial independence. Buying a home, particularly your first home, just makes good plain sense, now more than ever.

Potential first-time buyers may be intimidated by today’s changing housing market. Isn’t it just better to “play it safe” and keep renting in case home prices fall? If you buy now, will you be paying too much?

First, these are valid considerations. Even those who have bought and sold many homes ask similar questions. But the truth is that today’s economic environment makes it an excellent time to buy. Interest rates are low by historical standards, there are lots of choices, and sellers are offering incentives.

Perhaps, as a first-time buyer, you want to wait until prices drop lower. Actually, if you continue to wait, you may never be able to afford to get into the housing market. The truth is, even a small uptick in interest rates can wipe out any gains from falling prices.

Consider this example: If you decide to wait to purchase a home and the price were to drop $10,000 from where it is today, you could still end up losing money. How? If interest rates were to move up half a point during this period, the savings on the reduced home price would be more than offset by the higher monthly payment you would be making over the life of the loan.

Interest rates currently stand at about 6.5 percent and are extremely favorable for buyers. In fact, they are hovering near 30-year lows. But waiting to time the market is a dangerous — and losing — game. Even those who follow the market for a living can’t figure out when interest rates will bottom out. If they could, they would all be multimillionaires. Because interest rates are near historic lows, it is much more likely that they will head higher in the future as opposed to moving even lower.

Now consider the current rental market. During the past few years, many rental units have been converted to condos, resulting in fewer rentals on the market. Less supply, higher prices. Each year, your rent can easily go up 5 to 10 percent. Where is the economic security in that? When you buy a home, you’re also locking in price stability, knowing that you will pay the same monthly payment for the life of your 30-year fixed-rate mortgage. Plus, renting doesn’t get you the investment or tax benefits of homeownership.

The best way to build household wealth is to own a home. Once you do, you are able to take advantage of generous tax deductions, and your equity begins to build. Your home will appreciate in value over the years, and eventually you can use those gains to sell your starter home and afford to move into a bigger house. Remember, it’s called a starter home for a reason. With so many homes on the market to choose from, your best strategy may be to scale back expectations for your dream home. After a few years, you will be able to leverage this investment and buy a larger house.

The truth is, buying your first home just makes good sense. Housing is always a smart investment, and it is by far the best way to use a small amount of money for a big return. Interest rates are historically low, and the selection of homes on the market is plentiful. Do your research and you’ll come to this conclusion: In today’s market, the real risk isn’t in buying a home, it’s sitting on the fence.

Keith Grant is president of the Memphis Area Home Builders Association.

Categories
Living Spaces Real Estate

New Homes: Better Than Ever

As an unsustainably hot housing market slows down to “real time,” buyers are seeking answers to lots of questions about how to find the right home. And while the old real estate saying about the three most important attributes being “location, location, location” still has some truth to it, today’s consumers are more savvy and discerning. Location is only part of the equation: It’s also about conveniences and amenities.

And for conveniences and amenities, it’s hard to beat a new home. Today, new homes are safer, more efficient, and more packed with popular amenities than ever.

Safety

Technological advances mean that today’s homes are safer, because new homes take advantage of breakthroughs in building science. Homes now have advanced electrical systems, hardwired smoke detectors, and fire-resistant construction details. Windows in patio doors and near stairways have tempered glass, which makes them less likely to cause injury if they break.

Efficiency

Home builders also have an ever-expanding array of products and materials to choose from to enable them to make a house more resource-efficient and water-thrifty. Many home builders participate in programs like Energy Star, promoting energy-efficient appliances, and WaterSense, promoting water efficiency.

“Green” building is another new trend that’s getting legs as builders return to age-old practices, such as siting a home to take the best advantage of sunlight and shade, and recent innovations such as solar shingles (not just solar roof panels), light-conserving windows, and insulation made from recycled materials. Innovation and consumer demand are combining to produce a “leaner” home. Technology has changed, and so has the market.

Lifestyle

Today’s new home plans reflect what today’s homebuyer wants: larger kitchens for family gatherings, bigger closets, ample storage space, and more bathrooms. Consumers are seeking greater ceiling heights, more — and bigger — closets, walk-in showers with multiple heads, three-car garages, and outdoor entertainment spaces with fireplaces and grills. And builders are responding with designs that provide these features.

In fact, that’s a big reason why people seek new homes. Consumers want value, but they also want choices. They want to pick their carpet colors, their cabinet styles, their light fixtures, and other design elements that help make a house a home.

The decisions shouldn’t be about whether it’s a good time to buy a home, because home ownership remains the American Dream, despite occasional highs and lows in the market. The decisions should be about personal choice: finding the home that’s right for the buyer. Choosing a new home helps make it a perfect fit. ■

Keith Grant is president of the Memphis Area Home Builders Association.

Categories
Living Spaces Real Estate

Buyers Have a Wealth of Opportunity in Today’s Housing Market

Attributes of the current housing market such as low mortgage rates, a large selection of available product, and generous builder incentives bode exceptionally well for potential buyers who find themselves favorably positioned when it comes to making a deal on a new home.

Today’s home buyers have opportunities they haven’t seen in years. Gone are the days when dozens of bidders stood in line for a chance to purchase a home at whatever terms the seller dictated. Housing consumers should take advantage now of the low rates, competitive prices, and great buying opportunities in today’s market.

There is a variety of reasons that buyers are holding all the cards, including:

■ Prices have leveled off and even declined in some areas,

making homes more affordable for first-time and repeat buyers.

■ Houses are staying on the market longer, creating a wider variety

of choice for home shoppers.

■ Mortgage interest rates remain in a very favorable range,

near historic lows.

■ Many builders are offering discounted financing packages and

value-added incentives such as a major upgrade to close the deal.

■ There is a wide range of financing options available for consumers

in all price ranges.

■ The economy is solid, job creation is strong, and demographic trends

portend strong housing demand in years to come — all of which

bode well for long-term house-price appreciation.

To some extent, it’s true to say that it is always a good time to buy a home, given the equity-building opportunities and tax savings that homeownership affords and the fact that it’s a more solid investment than almost anything else you can think of.

But today’s market is special. It’s a much more relaxed atmosphere for buyers than it was when sales were booming. That means you can find the home you want and carefully consider all its attributes before deciding to go ahead with your purchase. This compares to the frenzied atmosphere that prevailed in many housing markets not too long ago, when buyers had to make a snap decision or risk losing their chance of having a winning bid.

Caution, though, to those who may be sitting on the fence waiting for the market to head lower. Those who try to time the market just right in hopes of buying at the very lowest point are likely to lose out. First, it’s nearly impossible to predict exactly when the slowing market will start to speed back up again, and in the meantime you’re liable to lose the home of your dreams to another buyer. And second, if mortgage rates head higher while you’re waiting, or some other aspect of your financing changes, you could easily wind up spending more than if you bought now.

If you want to have the most opportunities in your home purchase, now is the best possible time to go for it. Seldom has there been a more advantageous environment for home shoppers. ■

Keith Grant is president of the Memphis Area Home Builders Association.