Issue link: http://www.insightdigital.biz/i/125252
Residential Construction are built well, but the homes today are built much better because of upgrades in materials. The technology in the window business compared to 40 years ago is phenomenal. Back then they were just experimenting with this stuff." New homes are also routinely sealed with air-tight wraps like Tyvek. Mark Olejniczak, of Mark D. Olejniczak Realty in Allouez, says home sales are up and his firm is selling new construction, especially in the mid-range where Steve Brown builds, but also some homes costing $300,000 to $400,000. "I don't know that builders are rushing to spec-build homes in the $500,000 to $1 million range, though," he adds. Some of those builders had never experienced a market that declined 25 to 30 percent. Some of them are no longer in business. More builders are comfortable with new construction that can sell for under $200,000 where deals are more frequent and days on the market are fewer. "They still have to compete with existing inventory that went down 25 percent," says Olejniczak. "You can find a nice 20-year-old home with a lot more square footage than the same price will get you in a new home, but it may need new countertops, remodeling and upgrading." House styles have also changed, he added. New homes are apt to have features like a master suite on the first floor with the kids' bedrooms on the second, larger garages with rooms for all the toys people accumulate, in-floor radiant heat, sometimes even in the garage, more expensive tile or marble and wood floors. Finance Appraisals for new construction are a challenge, says Van's VandenHouten, because appraisers have to use existing homes to develop their comparable prices (comps). Since values of existing homes have dropped 20 percent to 30 percent, there's a gap between appraised values and new construction prices, although the gap is narrowing. "The finance side sucks, to use a technical term," says Brown. "The number of hoops I have to jump through is monumental because the banking industry got caught with its pants down. I have been fortunate, but some other builders can't get a construction loan to save their souls." The market in Door County is starting to wake up, says VandenHouten, both for vacation homes and retirement homes. "A few homes I am working on now are for people who plan to build now and use it for a vacation home for four or five years and then retire there." Business Lending At Its Best "The SBA loan provided by Community Bank & Trust has significantly improved our cash flow position and is allowing us to invest in the growth of our business." - Sean Whalen, Vice President Truss Systems, Inc. Little Chute Preferred SBA Lender up to $5 million! Why not work with the best? Member FDIC communitybankandtrust.com 34 | Insight • M ay 2 013 Call or Visit Us Today! 920-731-4440 920-849-8888 333 S. Nicolet Rd., Appleton 1265 E. Chestnut, Chilton w w w. i n s i g h t o n b u s i n e s s . c o m