New construction remains a viable alternative

A couple has had their home on the market for months, and they wonder whether they will ever find a buyer. Then one day, a family looks at their house and falls in love with it and the charming neighborhood. However, the couple now needs to move within 60 days.

How is it possible for homeowners to purchase a new-construction house and move from their old one within that time frame?

In this scenario, an "inventory" home would be a good fit for the couple because they don't have time to wait six months for a new house to be built.

What are inventory homes? Inventory homes, quick move-in homes or "spec" homes (built on speculation of a future buyer) are either under construction or newly finished and are available for immediate sale and occupancy. They are so named because they are part of the builder's inventory, which means someone can purchase it and move in quickly.

These homes often include builder upgrades with higher-end fixtures, cabinets and flooring. Depending on the stage of completion, buyers may still be able to select certain features to customize the home.

Inventory homes are built to the same quality standards as the builder's other homes in the community and offer the same warranty. When you purchase an inventory home, you will still experience the wonderful feeling of owning a newly built home as you plant roots in a new community.

Many area builders offer inventory homes at their new-home communities with no construction schedules or delays for buyers. The home is move-in ready, or close to it.

"We offer inventory homes to give buyers the opportunity to buy a new home even if they don't have time to wait for a new home to be built," said Scott Ballard, director of home building for Plote Homes.

There are many advantages to shopping or buying an inventory home.

• There's a need

"Transferees moving into the area want to take possession of a home in 30 to 60 days, and we need to have something ready for them," said Ballard, referring to Plote's The Lakes of Boulder Ridge in Lake in the Hills.

Springfield Pointe in Bloomingdale offers two homes, one ranch and one two-story, for buyers who need a home for immediate delivery, said Julie Pelock, sales manager at the community. This builder also wants to be ready for those buyers.

"There's always a need for quick move-in homes," Pelock said. "Transferees, people that have sold their homes, and renters with a lease that is up - all need to buy a home and move in quickly."

Transferees make up a big percentage of inventory home buyers for Samuels Homes, said owner Jeff Samuels. And Allison Keifer, director of sales for the Chicago division of Toll Brothers, says many of its clients at The Woods of South Barrington are transferees with a relocation package, and it's important that the builder has quick move-in homes available for them.

• Ease of timing

Today, most people want to sell their current home before they make any financial commitment to buy a new one, Ballard said. "When they have a buyer that has signed a contract, they'll start looking. Then they feel pretty secure about the deal and don't want to wait six to nine months for a new home to be built from scratch."

This is also the situation for Samuels Homes. The builder offers inventory homes because it, too, has buyers who don't sign a contract for a newly built home until theirs is sold.At that point, it's urgent for them to have someplace to go.

Rich Bridges, Midwest director of sales and marketing for William Ryan Homes, echoes Ballard and Samuels. "A lot of our communities are geared for the second or third (home) move-up buyer or those moving down to an easy maintenance home," Bridges said. "Those folks selling a home, especially if they're using a portion of the equity, feel more comfortable in selling it before moving ahead with a purchase."

• Differing stages of readiness

"We try to have something available for buyers in different situations; thus we have homes at various stages of completion," Ballard said. "We'll hold one or two at dry wall so our buyers can still select finishes. When they choose flooring, appliances and cabinetry, they can still control the costs. Or with so many options available today, they can go crazy if they want."

"For our buyers where timing is important, they are also looking for great value," Bridges said. "So we need to offer some of our best of the best. We look at the demographic group that constitutes our buyers in a particular community and determine what features are most desirable to them. We simulate a buyer. We can say, we thought about you before we met you."

• Amenities in inventory homes

Ballard said Plote's inventory homes have features most buyers select when beginning the planning stage with a vacant lot.

"We keep our thumb on the pulse of our buyers," Ballard said. "We've built enough homes that we see what's popular and what people want. Everyone watches HGTV, and they want what they see on TV. We learn from them and they learn from us. That's what makes building homes so interesting; we see all the new trends."

Today, many buyers go for the grays, a tray ceiling in the master, painted kitchen cabinets, granite or quartz countertops, a tile backsplash, and luxury bath with large shower, Ballard said. "Ten to 15 years ago, it was all wood cabinets; now white painted cabinets are all the rage."

Samuels Homes has two units now for sale in a vanilla envelope without a lot of customization.

"Buyers can choose what they want; we don't offer an upgrade package. We will provide them with whatever they want," Samuels said. "They can upgrade to their pocketbook's limitations."