Wisconsin foray successful for local builder
Three-quarters of the homes that Gerstad Builders of McHenry sells are ranches - many different styles of ranch - and they are selling the popular home plans to people of all ages, said Tom Roach, sales manager.
The well-respected and long-tenured home building company is known for "building the best home for the money that we can, including high-quality products in every home and offering lots of customization options," Roach said.
Gerstad Builders has been building an average of 15 homes per year over the past decade or so, but it hopes to increase that number to between 20 and 25 homes in 2016, he said.
It now has four single-family home communities underway. There is Liberty Trails in McHenry, Pheasant Ridge in Richmond, Dawson Creek in Poplar Grove and Bailey Estates in Williams Bay, Wisconsin. Bailey Estates is Gerstad's first foray into Wisconsin and Roach said sales there are going well.
"Bailey Estates is attracting full-time residents, many of whom are leaving Illinois to avoid high property taxes. Wisconsin's property taxes are half what the taxes are in Illinois and since so many people are working from home now, they don't have to worry about a long commute," he explained. Prices at Bailey Estates range from $239,990 to $320,990.
Pheasant Ridge, where homes range in price from $176,990 to $269,990, is attracting a nice mix of ages. Dawson Creek is primarily attracting young families. The prices there range from $173,990 to $267,990.
Liberty Trails in McHenry is most popular with empty-nesters and retirees and they are flocking there to build ranches in the $216,990 to $326,990 price range.
All lots in its Illinois subdivisions range between a one-quarter to one-third of an acre while the lots at Bailey Estates in Wisconsin are larger - a half acre-plus. The homes themselves range from 1,400 to 3,100 square feet. Bailey Estates, however, has square footage minimums so the ranches must be at least 1,800 square feet and the two-story homes must be no smaller than 2,200 square feet.
What is your background in the housing industry?
"I started selling new homes for Residential Development Group (RDG) in 1974. Roger Gerstad (now owner and president of Gerstad Builders) was the president of that company and I worked there for about 20 years. Roger left and started Gerstad Builders in 1985, but I stayed with RDG until 1994, when I went to work for Kennedy Homes. I sold for Kennedy until 2007 when the market fell apart and then I went back to working for Roger at Gerstad and have been with him ever since."
What are the biggest changes you have seen in the building business over the years?
"The energy efficiency of the homes we are building today is amazing. We include 96 percent-efficient furnaces, upgraded water heaters, insulated basements; low-E, double-paned windows; R-20 insulation in the exterior walls and R-38 insulation in the ceilings. We also caulk in all of our electrical plates so there is no air leakage. We do great on every blower test."
Besides energy efficiency, the biggest changes Roach has experienced during his many years in the homebuilding business are the vast selection of fixtures and other amenities buyers now have available to them.
"Builders used to put things in with the philosophy that the owners could change them later. That is no longer the case. Buyers have a tremendous number of selections and options for what they can do with their new home."
What is the best part of being involved in the building business?
"I love the look on buyers' faces when they actually move into their new home. It is an unbelievable experience for people."
Where do you see Gerstad Builders in the next five years?
"I expect that we will be doing the same thing in different subdivisions. We have more property in and around McHenry County that we would like to develop.
"We are a smaller, more family-oriented builder that has found its niche. We offer lots of customization and we like buyers to become involved in the building of their homes. We hope that five years down the road we will be building between 25 and 30 homes a year."
Gerstad Builders can be reached at (815) 385-4495 or visit www.gerstadbuilders.com.