Now is a great time

to build your custom home

in Traditions of Braselton

You’ve no doubt heard all the media hype about the current housing market. It’s enough to scare even the most level-headed buyers away from the closing table. But building industry professionals are painting a different picture. In fact, if you’re considering building your dream home, now may be the perfect time to begin. And if you’re building that home in Traditions of Braselton, you’ve made a smart and informed choice.

But I hear a gloomy financial outlook every time I turn on the news. How can this possibly be a good time to build?
“Most of the frenzy has been created by the media,” said Shannon Bradshaw, a mortgage broker at Brand Mortgage Group. “It’s a snowball effect. People get apprehensive.”

“Right now is a great time to build exactly the home you want,” said Andy Adams, an Atlanta financial analyst who recently built his own custom home. “Materials are less expensive, and builders really want your business. They’ll go the extra mile to get it.”

Ply Mart salesman Dennis Bonin has seen the cost of building materials plummet in recent months. “Right now, you could build your dream home for 10 to even 20 percent less than you could a year ago,” Bonin said. “The housing market is slowing down, so suppliers have a surplus of materials - from concrete to siding - that they really want to sell to builders.”

Scott Puckett, a third generation builder and owner of LPI Builders, Inc., agrees. “Right now, the cost of building materials is at an all-time low. We’re building houses for 10 – 15% less than we did even a year ago.” Puckett also predicts that by Spring 2008, the cost of materials will begin to rise again.

A great illustration of this supply-and-demand principle is the Hurricane Katrina tragedy. When rebuilding began along the southern coast of the U.S., the cost of building materials skyrocketed. The demand for these materials was much greater than the available supply.

The same principle applies to the cost of labor. Supply right now is greater than the demand, and that drives down labor costs. “It’s all a matter of supply and demand,” said Stokes Janney with Blue Nile Homes, one of the hand-selected builders in Traditions of Braselton.

“The housing business is cyclical, just like every other business. Right now, you can build your house while the housing industry is at the ‘bottom’ of its cycle. The bottom line is that you get the exact house you want for a lot less money.”

Isn’t it difficult to obtain financing right now?
It’s true that lenders have tightened up their parameters, but remember that they’re tightening what have turned out to be some pretty risky lending practices in recent years. Interest rates are still very low. In fact, according to Bradshaw, “Rates are still great. Long-term fixed mortgage rates are still as low as 6 – 6 ¼ percent.”

“All of these factors combined – lower material and labor costs and the fact that the Fed lowered the prime rate a half a percentage point in September – create a sort of ‘perfect storm.’ For someone who’s considering building their dream home, now is definitely the time to do it,” said Sonja Sanders with Sandstone Custom Homes, Inc.

Sanders also adds that there are ways to value-engineer your custom home as it’s being built, and there are several government rebates available for “green” or eco-friendly construction. “The bottom line is that right now is a great time to negotiate with the builders themselves.” Builders’ cost savings will ultimately be yours.

Another thing to remember is that when you build a custom home, the type of loan required is called a C2P loan, or a construction-to-permanent loan. Construction to permanent loans allow borrowers to purchase a lot, build a home using a full-time builder and to finance the home all in one loan closing. “The finance rate on a C2P loan is lower than a conventional loan, because the rate is prime plus a margin, usually 1 percent,” Bradshaw said. The Federal Reserve just lowered the prime rate and will likely do it again soon, according to industry professionals.

“Another good thing about a C2P loan is that you don’t pay any interest until you have a balance,” said Bradshaw. In other words, you don’t pay interest on money you haven’t yet used.

When it’s time to switch over to a permanent loan (near the end of the construction period), you can lock in an interest rate as much as 6 months out. “There are a lot of great features out there if you take the time to investigate,” added Bradshaw.

A slower housing market means more one-on-one attention
When business slows down – any business – the importance of each customer becomes that much greater. The same is true of the housing industry. When you decide to build a custom home, you decide the scope of the project as well who builds it. That builder will win and keep your business by adding value to your project and the building process.

“Look at it this way. While we’re in this low market cycle, builders can take the anxiety out of the process by devoting more time and attention to you, the client,” said Janney. “I know that we at Blue Nile Homes are working to be creative and provide more value to our customers.”

Builders are finding some very creative ways to give more personal attention to their clients, and that attention takes the anxiety out of the custom home building process.

Why is now a good time to build in Traditions of Braselton?
Here’s a good example: Several years ago, Christine Latona and her husband built a home in Chateau Elan. At the time, development of the surrounding area had not yet begun. Property was valued much lower than when commmercial development began about five years later. “If we were to try to buy the same house now, we couldn’t afford it,” Latona said.

So the answer to the question is simple. Why build in Traditions now? While Traditons of Braselton itself is steadily developing, the surrounding area is just beginning to grow. Traditions Walk, with its “old world” architectural charm and convenient shops, is coming along nicely. Constuction of the new Publix has begun, and a brand new elementary school will open this next school year – right next to raditions of Braselton. Now is the perfect time to get in on the “ground floor” in this area of Jackson County.

In fact, the latest census data shows Jackson County to be the fastest-growing county in the metro area in coming years.* According to Bradshaw, the property value will only increase with time. Right now, you can build more house for the money as opposed to waiting even another year to begin building.

To explore your custom building options at Traditions of Braselton, whether you are already a property owner or are considering buying a homesite, call the Braselton Land Team at 706-654-3606.

*Source: 2005 U.S. Census