Gerstad earns high marks in buyer satisfaction

The Chicago area boasts one of the best homebuilders on the continent with regard to customer satisfaction.

Gerstad Builders, based in McHenry, recently earned the highly-coveted AVID Diamond and AVID Cup awards in the category of Best Customer Experience in North America. The awards are presented by AVID Ratings, a customer loyalty management firm, and Professional Builder magazine. Winners were announced in November.

According to AVID's survey respondents, 98.6 percent of Gerstad's buyers would recommend the builder to their family and friends. In addition, the extensive survey revealed that Gerstad customers were very pleased with the cleanliness of their jobsites, the reasonable cost of upgrades, the quality of features like cabinetry and trim, and the condition and cleanliness of their new homes after closing.

AVID annually surveys customers of more than 400 home-building firms in the U.S. and Canada. Roger O. Gerstad, president of Gerstad Builders, is understandably thrilled with the designation.

"We're extremely proud to have been honored for our continuing efforts to give our customers the best quality and best value for their hard-earned dollar," he said.

"This award is also a testament to my father, Donald L. Gerstad, who founded the company in the 1960s and impressed upon us that homebuyer satisfaction if the key to future success. He believed that if you make someone happy today, they will tell other people and they will be your customers of tomorrow. We couldn't agree more."

Gerstad Builders seldom constructs spec homes. They company believes that in order for buyers to get their heart's desire in a home, they must have input into its construction.

"We believe that we build dreams for our customers, not just homes," Gerstad said. "And since we have built our business on lots of customization of our homes, we understand that those dreams carry with them lots of change orders."

The most common change requests, according to Gerstad, involve adding three-car garages, gourmet kitchen packages and special flooring, lighting and walls.

"That is why we put so much of our focus into dealing with our customers," he said.

Describe your dream home.

"I love the home I have, which is an English Tudor home with chalet accents that hearken back to my Scandinavian roots." It overlooks a lake in northern Illinois and the interior is a combination of country and modern.

What is your favorite amenity?

"I like those new indoor air quality changers, like the moisture-sensitive fans that keep a fresh air environment in the home."

Builder profile: Gerstad, the father of three, grew up in a home-building family. The company name changed several times when his father, Donald, eased into retirement. But it has been known as Gerstad Builders since 2000 and the majority of the firm's work has been done in the McHenry area since 1985.

Gerstad graduated from Bradley University with a degree in home-building construction management in 1979. The Wonder Lake resident joined his father's firm soon after graduation.

The details: Gerstad Builders currently has four active communities - Liberty Trails in McHenry, The Trails of Dawson Creek in Poplar Grove, The Trails of Pheasant Ridge in Richmond and Bailey Estates in Williams Bay, Wis.

In an average year, Gerstad builds 60 homes, but he admits that 2008 was a terrible year during which he only completed 10 homes. The company now focuses on single-family homes but it has built multifamily projects in the past and plan to do so again.

The homes the company is currently marketing range in price from $190,000 to $340,000 and in size from 1,200 to 3,500 square feet.

Who is your typical buyer?

"Most of our recent buyers have been empty-nesters who are downsizing from a larger home. We have seen some younger people shopping, but they are not buying yet."

Because so many of their customers are empty-nesters, Gerstad has incorporated wider hallways, larger doors and many other wheelchair-friendly features into all of its homes so that disabled people need only ask for a ramp to have their home completely accessible.

What is the best part about being a builder?

"I love watching each project evolve and develop and then turning over the finished product to a happy customer."

What are the biggest changes you've seen in the business?

"Since we are so attentive to requests from our customers, I have seen the biggest changes in product design and products buyers want. A few years ago everyone wanted the body massage showers and we had to make the showers bigger to accommodate them.

"But today's economy has changed what people see as desirable and affordable. For instance, granite countertops have become much more affordable, so they are still desirable. Living rooms are no longer highly featured, but people still seem to want formal dining rooms.

"Our main focus lately has been on green building. Everyone wants to be environmentally sensitive and if they can, they will buy green items. But sometimes building 'green' comes with a price tag. So we are being very careful right now not to spend a lot of money the buyer is not willing to spend just to make the home more green."

What are your future plans?

"I hope to maintain our four active projects because they are all excellent communities." And once the economy improves, Gerstad has a new project that is ready to begin marketing and construction in McHenry. It will feature a total of 550 units, 134 of which are multifamily.

In addition, since Gerstad Builders is also a land developer, the firm has enough unimproved property on its books to keep them building for the next 10 to 15 years, he said.

Contact: Gerstad Builders can be reached at (815) 385-4495 or at gerstadbuilders.com.