Package Deals

Use creative options packages to attract buyers in a competitive market.

It’s official: The housing market has slowed for most of the United States. Homes are staying on the market longer, and home builders are experiencing decreased demand for build-to-suit homes.

But a weaker housing market doesn't mean home builders can't attract buyers; it just means they need to be more creative than they've been during the past several years. And, with margins squeezed tight, they need to do it without offering heavy price or amenity concessions.

Because so many homeowners consider kitchens and baths the most important rooms in the home, many builders are spending their design energies on these spaces.

Custom home builder Ashton Wood Homes in Houston has created a new design package to differentiate its business and attract buyers to its newest gated community, Terra Vista Estates. The package, which will be marketed as the "Cleaner Kitchen" and rolled out in December, features Silestone countertops, an upgraded water filtration system and air ventilation.

Silestone countertops, a natural quartz product, were previously available only as an upgrade, according to Terry Krenek, vice president of sales and marketing for Ashton Woods Homes. "We think our buyer demographic is one that will see the value in Silestone," he says. Plus, the builder is capitalizing on burgeoning consumer interest in health with the filtration and ventilation systems, which aren’t offered by other local builders.
Buyers will be able to choose Silestone instead of granite, which comes standard in all homes in Terra Vista. The community will have 54 homes ranging from 2,700 square feet to 4,500 square feet at build-out. Homes are priced from $300,000 to $475,000.

Krenek says: "The housing market in Houston is and always has been competitive. We think the 'Cleaner Kitchen' will give us an edge."

KB Homes' Charlotte, N.C., division has revamped the way it designs and markets its kitchens. The company is reworking the kitchen vignettes in its showroom to showcase the newest design trends and lure buyers away from the competition, says Darrell Childers, studio director with KB Homes in Charlotte. "We changed our marketing to stimulate buyers to purchase the entire package," he explains. "By having everything packaged, buyers are encouraged to purchase the whole ‘look’ rather than just picking specific pieces or elements."

Childers notes KB Homes' average buyer in the Charlotte market is a first-time buyer or move-up buyer who has never built a house before. "We put the kitchen packages in place to ease the selection process." The concept also allows KB Homes to take advantage of price breaks with manufacturers, and to better manage its construction schedules by avoiding time-consuming custom orders. KB Homes has 14 communities in Charlotte under active development. Homes range from 1,300 square feet to 3,400 square feet and are priced from $130,000 to $220,000.

Essentially, KB Homes has created three different kitchen finish packages — choice, select and premier — to help take the guesswork out of choosing cabinets, countertops, tile, appliances and fixtures, Childers explains. The premier package, for example, includes 42-inch cherry cabinetry with glass fronts, stainless-steel appliances, built-in wine racks, granite countertops and island, tile floors and backsplashes, and undermounted sinks.

Next month, KB Homes' kitchen vignettes will be rebuilt from floor to ceiling to woo buyers from other builders’ models. The select package vignette, for example, will be redesigned to feature a more casual, contemporary look with full overlay doors in a light maple finish and polished nickel hardware to coordinate with kitchen fixtures, Childers says. This particular package will offer a stained concrete floor, providing a metro, urban feel. "We're trying to attract buyers by showing them trends that haven't hit the Charlotte market yet," he explains.

Package deals are a subtle but sure way to lure buyers and keep profits strong during the current economic slowdown. And it sure beats following in the footsteps of builders who’re offering cars or other extreme promotional items to entice potential customers into buying one of their spec homes.