Premium ContentMouse over Home then click on Premium Content for information.Maureen Stanton was entertaining the idea of becoming a homeowner, perhaps buying the house she was leasing.
Building from scratch seemed financially unfathomable to the 26-year-old Omaha schoolteacher — until she encountered a model townhome priced about the same as the rental. Within weeks, she sealed a $130,000 deal with Celebrity Homes, a new-home construction company known for keeping prices down by dealing in bulk and sticking to the model plan.
"They make it so easy," Stanton said. "They take the guesswork out of everything."
Trevor and Kathryn Brown, on the other hand, didn't mind splurging some on their move-up home. The couple — he's an Omaha firefighter and she's a nurse — saw an appealing model style, but wanted additions, subtractions, upgrades. Carson Custom Homes was willing to tailor to their tastes.
"It's more personalized," Trevor said. "You're only limited by your imagination."
And so goes the shop-around for a newly constructed house. Consumer options range from volume or production builders such as Celebrity and HearthStone Homes, both of which assemble hundreds of homes annually at lower price ranges, to higher-end custom builders who offer more detail and choice and may build just one house a year.
One of the area's most high-profile builders, HearthStone, has run into financial struggles and will change ownership. That has put a spotlight on the local industry, made up of more than 300 companies and individuals.
Only about half the companies and individuals who took out a single-family building permit in the 2005 peak year for homebuilding are still in business today.
No two homebuilders are the same, and each has aspects that have kept them building despite the Omaha area's six-year decline in demand for new single-family home construction.
Shades and tiers exist within the custom and production categories of homebuilders. Denny Van Moorleghem of Regency Homes, for example, describes his company as a "semi-custom" builder whose upper-end homes have gone for $700,000.
Still, the primary difference between those known for producing in quantity and the others who customize, Van Moorleghem said, is cost.
"It's a matter of budget," he said. "Production builders build a product (generally under $200,000) that is good for the first-time buyer."
Custom builders attract clients whose tastes can climb into seven figures.
Here are some examples of how the different processes work:
On floor plans
Volume builders offer prospective customers numerous model homes to walk through, each with different floor plans and structural designs that generally aren't open to modification.
Carson Custom Homes, on the other hand, invites customers to bring magazines, pictures and their own ideas to help come up with a desirable style, said Carson's real estate agent, Bill Black.
The Browns, for example, diverged from the standard master bathroom in Carson's model house by enclosing the toilet, enlarging the shower and discarding the whirlpool bath. They covered the porch, covered the deck and wired for stereo sound their under-construction ranch in Sarpy County.
If they seek further change, owner Keith Carson likely will meet the couple on site. "He's an old-school, hands-on guy," Trevor Brown said. "If you're coming up with a stupid idea, he's going to tell you about it."
Regarding add-ons
Volume builder Celebrity calls itself a "Yes! It's all included" kind of company, meaning common home elements and appliances are included for a base price. Colors and furnishing designs can vary, but some builder-selected upgrades are available, said sales manager Shawn McGuire.
The all-included concept, McGuire said, "allows our customers to utilize our buying power and get the features and amenities they want included into their purchase price."
Competitor HearthStone offers more choices and upgrades than the average production builder, said owner John Smith, who is in the process of selling the company. A wide selection of household staples, in categories such as flooring, lighting, bathroom and kitchen types, are displayed at the firm's "one-stop shop," called the Choice Studio.
When new homebuyers go with the alternative, the custom builder, they generally are given a list of preferred vendors and they go to each to pick out home fixtures, flooring and surfaces. Costs climb when the client spends more than allotted amounts.
Location
Volume builders commonly develop entire subdivisions or sections of them, allowing construction to occur in a more controlled and consistent manner, McGuire said.
"Rarely do you have vacant lots between homes for years and then one day ... a basement is being dug," he said.
Custom builders, however, go wherever they or the client can secure a lot.
The Browns think that allows for more individuality. While the couple enjoyed their first home, built by HearthStone, they decided to upgrade to more land, more inside space and a unique stone facade and wood garage that matched the front door and pillars.
"We didn't want a house that was going to look like all the other houses," Trevor Brown said.
Financing
Volume builders commonly supply financing to pay for construction phases, and the buyer (who has been pre-approved for a loan) waits to the end to secure permanent financing. That saves the homebuyer hassle and interest costs.
Conversely, many custom builders ask the homebuyer to obtain a construction loan to help finance the building process.
Some, including Carson and Regency, finance their own building, however.
For Stanton, the volume builder "made sense" for her biggest purchase ever.
"It felt like a good fit," she said.
Stanton said she'll have a say in colors, tile, counter and door styles, giving her three-bedroom, 1,600-square-foot townhouse a more personal touch than was possible had she bought an existing home.
She anticipates a spring move-in date for herself, 8-year-old son Bryce and dog Charlie.
The Browns, both 27, will move to their new house around the same time.
With the basement they plan to finish someday, there will be about 3,000 square feet of living space. Its price began at $230,000 but is climbing with upgrades. They're looking forward to an open floor plan, Keith Carson-built kitchen cabinets and the big yard.
"It's a lot of mowing," Trevor Brown said with a laugh. "We plan on being there a long time, so we'll landscape and make it real nice."
Contact the writer: 402-444-1224, cindy.gonzalez@owh.com
Copyright ©2012 Omaha World-Herald®. All rights reserved. This material may not be published, broadcast, rewritten, displayed or redistributed for any purpose without permission from the Omaha World-Herald.
