December 19, 2008
Developers normally offer additional build-out services to the people who buy their homes. Typically, though, it's not a big part of the company's business.
But these days, as fewer homes are being sold and built, and with more foreclosures offering better prices in the housing market, there is little demand for new home construction at any level.
Historically, most builders will finish basements, add decks and make other improvements to the homes they build, sometimes months or years after the original construction. But it has been just a small part of the business.
Today, however, builders find themselves with little to no work for their subcontractors. An opportunity to keep those people working is possible as homeowners find themselves making their current homes perhaps more permanent than they originally planned.
Aaron Sibly, vice president of operations at Monte Hewett Homes, said with the current slowdown in the home building industry, his firm is among those going back to home buyers to offer renovation and finishing services.
"Actually, quite a few people are interested," he said.
The company hasn't started any new projects yet, but it has offered bids on a few projects. Homeowners have been doing some pricing first, but Sibly expects them to wait until after the holidays to make their decisions.
He said the company has sent out flyers to people who have bought homes offering these services. But the company isn't limiting its services to Monte Hewett built homes.
"With the market the way it is, especially pricing, now is a great time to do it," Sibly said.
Most homeowners with whom he has spoken are realizing it's not going to be three or four years before the family moves out of the house. It will now be six years or even longer.
"They are coming to realize if they are going to be in the house that long, we are going to go ahead and do things we want to do," Sibly said.
People know about the declining housing market, he said and are thinking if they are going to live in their current home for six to 10 years, why shouldn't they enjoy it for that period of time?
With home prices and appreciation falling these days, Sibly said the value of these renovations will be hard to calculate.
Instead, he said a homeowner who finishes a basement, adds on a deck or hardscapes a backyard should consider that it "really depends on what value you put on spending time in those spaces."
Homeowners should expect good deals these days, as Sibly is getting a lot better prices from his subcontractors. And material costs probably are at a 14-year low, he said.
"Labor guys finally realized this is what it is," he said about the economy, and they dropped their prices.
Prices from four years ago — in the middle of the housing boom — have dropped 20 to 25 percent, using a total basement finish as an example.
When Monte Hewett was at its peak in 2003-2004, it probably closed 225 units per year.
"Of course, it's gone down since then," Sibly said.
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