Summer 2009 Update

It has been quite a while since I have posted. 2009 is proving to be a very interesting year in the custom home building business. We are currently working on two custom home projects with a few others on the radar.

The biggest hurdle I am seeing for many people wanting to build a custom home is in the area of lending. If you're paying with cash as some are (and they are getting some good deals) then lending is not an issue. For those that are looking for a construction-to-permanent loan, we are seeing banks that used to require 5% down now requiring 25% down. And some are requiring that a person's existing home be sold before a construction loan can be opened - and for good reason as we've learned in the past several months.

So, this post is primarily to let anyone that is reading know that Master Plan Homes is still building custom homes and we're looking forward to what the rest of 2009 holds.

Here is a picture clue of one of the projects we're working on right now. Its a first for us...


Any guesses?

Home Plans and the Home Planning Process

While the spring and summer are usually the busiest time of year for new homes to get started, the fall and winter are a great time to start the home planning process. Many people are overwhelmed with the number of choices that go into a new home and the array of possibilities for their custom home plans. The more preparation you do on the front end, the easier the process can be.


Your lot may provide multiple layout options. Perhaps you can make the most of a sloped lot by planning for a basement home. This works very well on sloped lake lots to increase views to the water. Then there are various styles to consider: craftsman, ranch, traditional, colonial, cottage, courtyard, etc. I am drawing house plans and would be glad to work with you to create your own custom home plan. My plans include elevations, floor plans, roof plan, foundation plan, electrical plan, and even 3-dimensional views and renderings. We can also save time by sending revisions out as PDF files for your review. This allows me to not only work with locals of the Columbia and Lexington SC areas, but also with individuals in other cities and states. Drop me a line if you want additional information.

For a smooth construction process, we encourage homeowners to make as many building selections as they can before construction even begins. This includes everything from brick & mortar choices all the way to towel bars in the bathrooms and everything in between. You might be surprised at just how many selections are available and some of them take time to make a decision on. Do these early and the actual construction process will feel more stress free.

Also, if you're considering going green, the best time to make that decision is before you ever break ground or get home plans. As a Certified Green Professional, I can help educate you on what makes a home and the home construction process green.

So if 2009 is going to be the year of your new home, consider beginning the planning process before 2008 ends. Of course I would prefer that you also consider Master Plan Homes for your house plans and/or as your builder of choice. But whichever route you choose, I'd still be happy to talk with you about it.

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Salim Khalil, CGP

SALIM I. KHALIL AWARDED

CERTIFIED GREEN PROFESSIONAL (CGP) DESIGNATION

Lexington SC, October 1, 2008 - Salim I. Khalil of Master Plan Homes Inc. recently became one of the select group of professional builders nationwide who have earned the Certified Green Professional (CGP) designation, identifying him as someone with knowledge of the best strategies for incorporating green building principals into homes.

The CGP program is administered by the National Association of Home Builders (NAHB) University of Housing and sponsored locally by the Greater Columbia Home Builders Association.

The CGP curriculum incorporates training by leading building industry practitioners and academics on a range of topics, including strategies for incorporating green-building principles into homes using cost-effective methods of construction, and how green homes provide buyers with lower maintenance and good indoor air quality. Techniques are also discussed for competitively differentiating your home products with increased indoor environmental quality as well as energy and resource efficiency.

Thanks For Stopping By

We get several visitors that stop by, or stumble upon, the Master Plan Homes Inc blog each day. Jon and I recently sent out a letter inviting several more to check things out. If you're here b/c of that letter, welcome! Thanks for taking a look and feel free to leave a comment. And if you have a new home construction related topic that you'd like to hear more about on this blog, email me.

On the right side of this blog you'll find a slideshow gallery of our pictures, a few useful links, this blog's archive, and a number of key word tags for this blog.

Here are a few of my favorite posts:

In The Field

Selecting a Lot to Build your Home

Picture It

Thanks again for stopping by. Bookmark this page and come back again!

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Picture It

This may be the best (and quickest) way to show what we've been up to lately...

If any of these look like things you're interested in, let us know. Give me a call at 803-260-7546 or send me an email.

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Where we build

We often get asked where all we build. The short answer is the "Greater Columbia" area.

Our current projects are in Blythewood, Northeast Columbia, Lexington, and Lake Murray (Lexington side). In the past we've also worked in other areas of Columbia, Lake Murray (Chapin side), and even Saluda.

When we are building in neighborhoods, we try to be mindful of the current residents. One way this is done is with silt fencing. Silt fences are used to prevent erosion and runoff from a property. They help our lot and any adjoining lots. Silt fences also help create a visual barrier for our trade contractors and suppliers to keep them on our lot.

When allowed, we post Master Plan Homes Inc. signage on the property along with the building permit so our suppliers, trade contractors, and inspectors can easily identify the lot.



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Getting Busy

This is my first post for the month of April. The main reason for that is things are starting to get busy again. Over the last two weeks we've had some good new activity:

• Signed two contracts for investor speculation homes
• Started the design/drawing process for a home we'll build on Lake Murray this year
• Bid on a client's home addition and garage
• Bid on another client's garage and room over
• Met an associate at their lot to discuss building their custom home

In addition to these new activities, the custom home we're building in Lexington right now is going very smoothly. In just 8 weeks we've completed the footings, crawlspace foundation, exterior veneer, framing, roofing, doors & windows, electric rough-in, plumbing rough-in, HVAC rough-in, and the drywall. All that and we had 4+ rain days that slowed us down! At this pace, the house will be done in a total of 4 months. We told the client it would take 5 to 6 months. That feels good!

You hear people talking about lower interest rates being an incentive for people to build or add-on... You also hear that many construction material prices are down... And with a supposedly "slow" housing market, you hear there are trade contractors competing with their prices... We aren't just hearing these things, we are seeing it as a reality with the recent flurry of activity in our business at Master Plan Homes Inc.

If you're on the fence about building a new home, give us a call or email and we'll talk about the possibilities.

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In The Field

As Jon says, "we like to divide and conquer". But there are times when we will work side-by-side for the benefit of putting two sets of eyes on a project. For us, this usually happens at project proposal meetings, site location meetings, construction rough-in walk thrus, final walk thrus, etc. We feel this is a benefit of working with two licensed residential builders.

Last week we had the opportunity of investigating a lot for someone. This is often a great time to ask questions in preparation for breaking ground. Selecting a lot and envisioning your house on that lot can be a difficult task, but it's one that we like to participate in.

We are Jonathan (Jon) Foster and Salim (Slim) Khalil. We build in Lexington & Richland Counties. We are Master Plan Homes Inc.

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The Truth about the Housing and Building Market

We've heard a lot about the housing market and new construction from the media. Much of what we've heard may be true in certain areas of the country, but each market is uniquie. The Columbia/Lexington area does appear to have slowed down, but it is not at a stand still. At Master Plan Homes Inc., we recently started on a new custom home in Lexington and we are working with another individual who is ready to build in Columbia.

The Home Builders Association of Greater Columbia's Buy Now Build Now web site offers a few "myth busters" that I would like to share.

Myth 1: The Sky is Falling.

If the truth be told, housing has always been a very cyclical business. In the mid-1970s and early 1980s and 1990s, housing production and sales dropped by more than 60 percent in a matter of months. During those cycles, we confronted and overcame many of the same problems we face today – large numbers of unsold homes, skeptical and reluctant consumers, tight credit markets and shortages of money for certain borrowers, declining home values, and prospective buyers who had difficulty selling their existing homes. The important thing to remember is that over time the market corrected and we rebounded to production and sales levels that beat or matched the records of the previous cycle. The message is that housing is a very tough and resilient industry. We will be back – stronger and better than before.

Myth 2: There’s No Mortgage Money.

If you believed the headlines or the endless drum beat about subprime lending on cable television news, you would think that the pot of mortgage money has dried up completely. Nonsense! The vast majority of our buyers are seeking conventional, conforming mortgages at or below $417,000. These loans are purchased by Fannie Mae and Freddie Mac and have the implicit guarantee of the federal government. While underwriting standards may be tighter for all loans, credit-worthy home buyers should have no problems in finding conventional, conforming mortgages at very attractive rates – slightly above 6 percent for fixed rate, 30-year loans. And with the latest moves by the Federal Reserve to cut interest rates and increase liquidity, the availability of money for jumbo loans has also improved for credit-worthy borrowers, although rates on those loans are about one percentage point above conforming loan rates and down payment requirements are higher. Nonetheless, getting the word out that mortgage money is available at a very attractive price for credit-worthy borrowers is critical to boosting consumer confidence and traffic of prospective customers.

Myth 3: Foreclosure Rates Are Skyrocketing.

While foreclosure rates have increased in the past year, almost all American home owners are making their mortgage payments on time and are in no danger of losing their homes. Most foreclosures are concentrated in the once super-heated markets in California, Florida, Arizona and Nevada, and the upper Midwest states of Michigan, Ohio and Indiana, which have been hit hard by job losses, plant closings and depressed local economies. In fact, in 34 states the foreclosure rate actually declined last month. We are concerned about the two million subprime loans that are due to reset over the next two years. That’s a major problem that needs to be dealt with. But it’s important to remember that 37 percent of all single-family homes are owned debt free – without any mortgage – and home owners nationwide have built up more than $11 trillion in equity that provides a good cushion against any decline in values. In addition, 97 percent of prime borrowers – the bulk of the market – are up-to-date on their mortgage payments. Also, a high number of defaults on loans to date have been among speculators or investors who were looking for quick profits and subsequently walked away from their investments when the housing market cooled.

Myth 4: Home Values Are in a Free-Fall with No Bottom in Sight.

Except for about 30 or so high-flying metro markets where home values doubled in four or five years, the correction in home values has been relatively modest. Over time, home values will stabilize and then edge upward with the next recovery. To argue that home values will continue to decline and will never recover, someone has to make a convincing argument that it will cost less to build a new home five years from now than it does today. That’s not going to happen.

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About Master Plan Homes Inc.

Let's get started out with a description of Master Plan Homes Inc.

Our company is owned and operated by Jon Foster and me (Salim Khalil). We both reside in Lexington SC and we both have offices in our homes. Having home-based offices allows us to keep overhead expenses down and therefore provide very competitive rates for our services. The primary service our company provides at this time is custom home building.

We typically work with people that have purchased a lot or land, either have or are working on house plans, and are ready to build their home. We have built homes across Lexington, Columbia, and Chapin ranging from under 2,000 square feet to over 5,000 square feet. Some of these homes have been in developed neighborhoods while others have been on private land.

Jon and I are known to be very honest men of integrity. When we build someone's house, it is very important for us to provide services with care and respect - it is going to be their home afterall. Often times our professional relationship with clients turns into personal friendships which we value.

If you plan to build a home in the area, feel free to contact us:

Jon Foster
803-331-8338
Jon@MasterPlanHomesInc.com

Salim Khalil
803-260-7546
Salim@MasterPlanHomesInc.com

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Master Plan Homes Inc.

Master Plan Homes Inc. now has a blog!


Stay tuned for more to come.


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