By Bob Barreto, President
Home Builders Association of Greenville
Home buyers have the choice of two types of houses on the market: resale or new. Home buyers planning to buy a brand-new house or town home often cite, as factors driving their choice, energy-efficiency, open layout, a warranty, and being able to select appliances, flooring, and paint colors.
But builders say that buyers can be drawn to a new house for reasons that are not as obvious.
Building a Community Together
A new home often comes with a new community. When families move into a new community at the same time, lasting bonds of friendship and neighborliness are formed right away. Nobody is the “new kid on the block.”
New communities generally offer popular amenities like pools, walking trails and athletic courts. Some new communities are geared toward residents in the same stage of life. Whether you have a young family, or consider yourself to be an “active retirees,” you can find a community that meets your family’s needs.
Throwing a party in an older home can be a challenge because smaller, distinct rooms make it difficult to entertain guests. Most new homes offer larger, open floor plans ideal for entertaining. We have all heard that parties usually end up in the kitchen. What better way to solve that problem than to have your kitchen in the great room?
A Clean Slate
Parking your car in a sparkling-clean garage, or being the first to cook a dinner in a brand-new kitchen, is part of the appeal of new construction. In addition, you will not have to spend time stripping wallpaper and repainting to suit your style.
Outlets, Outlets Everywhere!
If you have ever lived in an older home, you know the challenges of having enough extension cords, and the concerns of connecting too many appliances to the same cord. Home builders had no way of anticipating the invention of the modern technology that we enjoy today. New homes can accommodate advanced technologies like structured wiring, security systems, and sophisticated lighting plans, and can be tailored to meet your individual needs.
Consult a New Home Sales and Marketing Professional
Buying a new home comes with its own set of challenges. For starters, your new home may not even be built yet. However, the important advantage of buying a new home is that you can tailor nearly every aspect of your new home to suit your family’s needs and lifestyle. For that advantage, you may sacrifice immediate availability.
There is a group of professionals in the Greater Greenville area who specialize in connecting home buyers with Approved Professional Builders to make that dream of a new home a reality.
Members of the Sales and Marketing Council of the Upstate work directly with Approved Professional Builders. They are uniquely qualified to help you with your new home quest. For more information about the SMC of the Upstate, visit HBAofGreenville.com/sales-and-marketing-council.html.
Hire an Approved Professional
When buying a new home, in addition to consulting with a member of the Sales and Marketing Council of the Upstate, ask your Home Builder if he or she is an Approved Professional Builder. For more information about Approved Professional Builders, visit HBAofGreenville.com/approvedprofessionalbuilder.html.
By Bob Barreto, President, Home Builders Association of Greenville
President, GBS Building Supply
On average, regulations imposed by all levels of government account for 24.3 percent of the sales price of a new single-family home, according to a 2016 study by the National Association of Home Builders (NAHB).
Breaking down the total regulatory costs further, the study revealed that three fifths of compliance costs, or 14.6 percent of the final house price, is due to a higher price for a finished lot resulting from regulations imposed during the lot’s development. The other two fifths, or 9.7 percent of the house price, is the result of costs incurred by the builder when building the home after purchasing the finished lot.
In the Greater Greenville area, the study indicates that a new home is $67,424 more expensive as a result of the cost of complying with regulations.
These regulations come from many sources. They include new land-use controls that reduce the potential density yield of a parcel of land, which increases the cost of the finished lot. Other regulations include significant changes to the building code that has added thousands of dollars to the price of a new home. Labor-law changes also have had an impact. As well as significant increases in building permit fees, development compliance fees, and new sewer account fees. But the greatest increase in the cost of compliance has come in the form of new and increased environmental regulations to control erosion and stormwater runoff during development and construction.
When the 2016 study is compared to a previous study prepared in 2011, NAHB found that the cost of compliance with regulations increased by 29.8 percent in the five years between the two studies. That means the cost of constructing a new home in the Greater Greenville area increased by more than $20,000, in just five years, to comply with new rules imposed by government. Meanwhile, personal disposable income in the U.S. increased by just 14.4 percent during that same time period, meaning that the average cost of regulation embodied in a new home is rising more than twice as fast as the average American’s ability to pay for it.
According to another study by the National Association of Home Builders, 521 families in the Greater Greenville are priced out of Homeownership by a $1,000 increase in the cost of purchasing a new home. If you do the math, and I have, that means the increase in the last five years in the cost of compliance with regulations has priced out of homeownership more than 10,000 families in our community.
There has been considerable discussion and debate about affordable housing in our community. Studies by the City of Greenville and Greenville County are providing evidence of the problem. Many want to blame home builders and land developers for the problem. But a reading of the studies by the National Association of Home Builders demonstrates that at least part of the problem lies with well-meaning regulations that fail to take into account the impact on a family’s ability to afford a home.
Clearly, a portion of the solution to our community’s housing affordability problem lies in a thorough review of the cost of complying with our own regulations.
Your Home Builders Association of Greenville’s President Elect, Bob Barreto of GBS Building Supply, has recently been named to the Board of Directors of Habitat for Humanity. Since 1960, your Home Builders Association has always endeavored to improve our community and we are proud that our association leaders are also committed to the cause.
Richard Barreto, father of Bob Barreto, died yesterday. He lived in Charlotte. Bob Barreto is Associate Vice President of the Home Builders Association and Chief Executive Officer of GBS Building Supply.
We will update you when we know memorial arrangements.
GBS Building Supply Chief Executive Officer Bob Barreto was featured in Talk. He answered 20 questions about himself. Our favorite question (and answer)
What was your first car?
A 1967 VW Squareback, dark blue with a gray front fender and surfboard racks in the back. I’m a car guy and I’ve owned a lot of great cars, but this is the one I miss.
Find out about Bob Barreto in Talk by clicking here.