Builders adapt, sell more show homes for Homearama

VIRGINIA BEACH

Builders these days are reluctant to construct a home without a buyer. That's true even for Homearama, the Tidewater Builders Association's twice yearly showcase.

Seven of the nine homes featured in the show that starts next weekend at the Eagle's Nest development in southern Virginia Beach already have buyers. And in the past few years, unsold homes in the show have become increasingly rare.

It's a far cry from the event held in nearby Ashville Park two and a half years ago. None of those seven homes were sold when the show started.

New-home sales in Hampton Roads last year hit the lowest point in more than two decades. That means for Homearana builders like Herb Watson, finding a buyer has become a prerequisite.

"Otherwise, I wouldn't have done any," said Watson, who has built two homes for the upcoming show.

"There's not a lot of spec building going on except for the stronger builders. We don't want to get into that anymore."

It took Watson more than two years to sell the home he built for the Ashville Park show in 2008, which featured houses listed for more than $1 million.

His newest show homes are priced between $600,000 and $700,000. Last fall, he began looking for buyers for the Eagle's Nest show, which runs May 28 through June 12.

"We were fortunate to be in the right place at the right time," Watson said. "Right now, customers have a lot of choices, and they want value."

Most buyers also have to be practical.

Mike Martz, 41,who purchased one of Watson's homes, sold his old home last fall before deciding to buy a Homearama house. He was drawn to the Homearama home, he said, in part because of the value. Many in the show include appliances and features that vendors sell for a discount to show off their wares.

"We have spent more than we had planned on," he said. "We probably saved $30,000, but we probably spent that much in the upgrades. Even a 50 percent discount on a high-end appliance is still expensive."

Some builders worked even longer than Watson to find a Homearama buyer.

Kevin Wallace, who purchased a home built by TCI Inc., met the builder last summer after requesting a quote for a pool house.

"I was thinking about selling the house I was in - either sell it or put a pool in," said Wallace, 49.

Mike Thompson of TCI pitched Wallace on the idea of purchasing a house in the show. So Wallace put his home on the market and sold it last fall.

"The only drawback is this part now. I'm going to have a stampede of people going through my house before I can move in," Wallace said.

While some builders are still putting their final touches on the show, others such as Les Ore, of Ore Builders, are already looking for buyers for the fall's Homearama at The Riverfront at Harbour View community in Suffolk.

Josh Brown, (757) 446-2318, josh.brown@pilotonline.com