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Meritage presentation December 2012
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Meritage presentation December 2012

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  • 1. Meritage Homes Raleigh/Durham Market Winter 2011 Downtown Raleigh from Wilmington St. Bridge
  • 2. Business & Marketing Plan Table of Contents Subdivision Location Meritage GREEN features Major Employers Who is Moving here, from where? MLS radius map CMA by Builder Area Schools Area Amenities Marketing Ideas Bellmont Langston Langston at the Park Apex, North Carolina 27539
  • 3. Subdivision Location Future Project: Bellmont Langston Langston at the Park Apex, North Carolina 27539 Bells Lake & Optimist Farm (major cross streets) Apex, NC 27539
  • 4. Subdivision Location Roughly 60 lots, averaging 1/4 acre in size (some lots 1/3 acre).
  • 5. Meritage GREEN features
  • 6. Major Employers
  • 7. WHO is moving here? “Transplants” Relocated from somewhere else “Halfbacks” Originally lived in NE, moved to FL and are now relocating “half way back” I wasn’t born in NC but I got here as fast as I could.
  • 8. MLS radius map Searched New Home Subdivisions within a 3.25 mile radius of Bellmont, Langston & Langston at the Park Apex, North Carolina 27539
  • 9. Bridgewater Overall I do not feel it compares in anyway to Meritage planned product, this Garman Homes subdivision is an entry price point for first time buyers. Virtually no upgrades are included in the cost to build. There is ONLY one spec actively for sale and one lot left for new start in detached single family home product. Bridgewater is located within 6 miles from subject location. Mailing address is 27540 zip, with Holly Springs area schools. Heavy use of social media and unique promotions
  • 10. Only 1 spec actively listed & 1 lot which is currently not active in the MLS for SF Detached product Other product is townhomes beginning in the 120’s Bridgewater CMA Spec is listed for $229,900 for 3215 sqft, which is $72 sqft; DOM is 56 SOLDS average 2980 sqft at $79 sqft with a DOM of 54
  • 11. Carrington Estates Overall I do not feel it is competition in anyway to Meritage planned product, due to higher price points it began at time of construction. I believe they may have just sold their last spec. Re-sales are beginning to regularly occur. Carrington Estates is located within 4.1 miles from subject location. Mailing address is 27540 zip, with Holly Springs area schools
  • 12. Carrington Estates CMA Contingent Spec for $259,900 for 3046 sqft, which is $85 sqft; DOM is 258
  • 13. Churchill Estates Lennar is currently building higher priced homes against Meritage planned product. Lennar marketing strategy for several years has been Everything’s Included but still does not compete with Meritage’s included list. Churchill Estates is located within 2.4 miles away from subject location. Mailing address is 27539 zip, with Cary area schools.
  • 14. Churchill Estates
  • 15. Churchill Estates CMA Actives are averaging $389,590 for 3301 sqft, which is $118 sqft; DOM is 33 Contingent, 3300 sqft for $412,500 at $125 sqft; DOM 53 Pending, 4014 sqft for $469,315 at $117 sqft; DOM 58
  • 16. Churchill Estates CMA Closed Sales are averaging $371,659 for 3033 sqft, which is $123 sqft; DOM 203
  • 17. The Park at West Lake Park at West Lake is located within 0.9 miles away from subject location. Mailing address is 27540 zip, with West Lake schools Standard Pacific & Lennar are building on 70 lots that they acquired after custom home building demand dropped off, all other homes in The Park at West Lake were custom built.
  • 18. Lennar Everything’s Included; except granite and GREEN The Park at West Lake CMA
  • 19. Standard Pacific •Master Down Plans • 3rd floor attic avail •Granite Included The Park at West Lake CMA
  • 20. The Park at West Lake CMA Active listings are averaging $380,933 for 2910 sqft, which is $131 sqft; DOM 256 Pending sale of $293,000 with 2738 sqft, which is $107 sqft; DOM 136
  • 21. Sunset Oaks Less than 60 lots left in detached single family home product. Overall I do not feel it compares in anyway to Meritage planned product, this 550 unit subdivision is much higher priced for relatively same sized homes, without comparable GREEN features. Only difference from subject site is Sunset Oaks Neighborhood Amenities, pool, parks, etc. Sunset Oaks is located within 1.9 miles from subject location. Mailing address is 27540 zip, with Holly Springs area schools
  • 22. Sunset Oaks CMA Actives are averaging $390,470 for 3008 sqft, which is $130 sqft; DOM is 121
  • 23. Sunset Oaks CMA Pendings are averaging $399,950 for 3097 sqft, which is $130 sqft; DOM is 452
  • 24. Closed Sales are Averaging $371,659 for 3033 sqft, which is $123 sqft; DOM 203 Sunset Oaks CMA
  • 25. Sunset Pointe CMA 4.1 mile driving distance between subdivisions Mailing address is 27539 zip, with Holly Springs area schools
  • 26. Tuscany This is a custom home builder subdivision, only vacant lots are available to be built on within specs of the covenants. Tuscany is located within (next door to Sunset Pointe) 3.7 miles away from subject location. Mailing address is 27539 zip, with Holly Springs area schools.
  • 27. Most available lots are on market with signage, some willing to take trade to unload the custom lot from their books. I saw no current home in construction phase. Tuscany CMA Active listings are averaging $404,975 for 2920 sqft, which is $139 sqft; DOM 176
  • 28. Woodcreek, John Wieland Woodcreek is a Master planned community, actively building is John Wieland and M/I Homes, Wieland is building much higher priced homes that will not compete with Meritage price point or GREEN features. Community amenities will be something Meritage will need to focus marketing against. Woodcreek is located within 3.0 miles away from subject location. Mailing address is 27540 zip, with Holly Springs area schools.
  • 29. Woodcreek, John Wieland This JUST in… Sales agent on Sunday told me They were giving 40K off without Broadcasting it anywhere – looks They decided to increase amount To $60,000 (which is needed to make them even remotely Competitive in this new market.
  • 30. Woodcreek, M/I Homes M/I Homes will be priced competitively against Meritage but once again minimal upgrades are included and any energy efficient features are limited. They have just begun to sell from this location and will probably be there for at least 18 months. Woodcreek is located within 3.0 miles away from subject location. Mailing address is 27540 zip, with Holly Springs area schools.
  • 31. Woodcreek, M/I Homes M/I Homes current incentives
  • 32. Woodcreek CMA Actives are averaging $379,704 for 3330 sqft, which is $114 sqft; DOM is 84
  • 33. Woodcreek CMA Contingent listings are averaging $339,900 for 3088 sqft, which is $110 sqft; DOM 225
  • 34. Woodcreek CMA Pending listings are averaging $370,106 for 3456 sqft, which is $114 sqft; DOM 108
  • 35. Woodcreek CMA Closed sales are averaging $373,862 for 3483 sqft, which is $108 sqft; DOM 66
  • 36. Wrenn Meadow Almost completed and virtually no comparison to Meritage due to high price point, for relative sized homes without GREEN features. Wrenn Meadow is located within 3.2 miles away from subject location. Mailing address is 27539 zip, with Cary area schools. It appears to be almost complete, few lots left in detached single family home product.
  • 37. Wrenn Meadow CMA Active listing is $399,900 for 3609 sqft, which is $111 sqft; DOM 34 Closed listing is $393,000 for 3483 sqft, which is $113 sqft; DOM 420
  • 38. Showing Statistics Stay within the 200-400K price points to generate the most showings which will result in contracts/closings.
  • 39. Showing Statistics The Park at West Lake (122), Sunset Oaks (87), Churchill Estates (85) I would expect showings to be inline with these numbers if not above them due to Meritage GREEN amenities
  • 40. Showing Statistics Subdivision is located in Area 9 – 670 showings
  • 41. Area Schools
  • 42. Area Amenities
  • 43. Marketing Ideas •Marketing needs to be based on benefits of Schools, Area Amenities •Co-share Science Fair with schools hold judging on site, large prize/scholarship •Event with schools to showcase meaning and NEED for GREEN product •Essay contest after hosting field trips with ALL levels of schools •Become involved with Resale agents promoting thru community events, visiting offices, create unique GREEN ways to reach out – not usual broker opens, etc •Using Social Media to promote community as allowed by Meritage •Coloring contest for ‘shopping’ families children, or essay contests; “Preparing to MOVE” coloring book •Community Events, get involved in sponsorships of groups, networks, schools
  • 44. Conclusions After reviewing all sales data provided, and visiting each builder in person I would suggest to a builder client getting ready to break ground in the subject location that they take these Important points into consideration when pricing their new subdivision. •None of the Builders are as GREEN as Meritage (and I didn’t expect them to be) •None have a comparable level of upgrades INCLUDED •Sunset Oaks is only location I am aware of with several basement homes avail in 1st Qtr •Meritage will need to heavily market community amenities to offset some of the large master planned communities like Sunset Oaks & Woodcreek; Buyers are paying a HUGE premium for those neighborhoods that overtime they may not recoup. •Buyers all want to feel like they made a GOOD investment, especially in this economy
  • 45. Conclusions Basements I am regularly asked about basements and where buyers can find areas of homes where basements were built or are currently being built – most of these conversations have occurred at open houses. After completing research for this product I am now aware how few basement opportunities there are in MLS area 9i, I believe they will be in great demand. Sunset Oaks has several basement homes set to break ground in 2012, inquiries are occuring. I also understand that in most cases builders here only use basements if a lot requires one for structural reasons due to slope of the lot. Mainly because the cost of building the basement virtually has no mark up in profit to the builder. I have determined a price point of $50,000 is probably your maximum allowable cost that a client would want to absorb.
  • 46. Conclusions •Meritage has already positioned themselves with unique one of a kind GREEN home product, picked the best market in the nation and placed subdivisions in high traffic areas. Pricing needs to remain between $240,000 and $260,000 for entry pricing of 2600 sqft product & stagger up according to size. Yours to Count On, Erika Madsen The Madsen Team ~ Our Trademark is Communication Associate Broker/Realtor ®, CDPE, CLHMS Coldwell Banker ~ Howard Perry & Walston 919.467.1882 office 919.520.6612 cell 919.653.4821 fax