Monday, Jan. 3, 2005 | 10:49 a.m.
Competition in the Las Vegas Valley's new housing market is prompting some builders to find creative ways to reach their target audience.
Lennar Corp., one of the nation's largest homebuilders and a large Las Vegas builder, is expanding its "everything's included" program that includes many features that are offered as upgrades by other homebuilders.
Going through a design center can often add thousands of dollars to the base price of a home. Through its program, Lennar hopes to give buyers a more standard and reliable price, said Pam Banaszak, vice president of sales and marketing for Lennar.
"Our goal is to make the home-buying process as simple and cost effective as possible by building the dream home right from the start," she said.
As part of the program Lennar includes everything from upgraded granite countertops and baseboards to appliances and fireplaces.
Before expanding its "everything's included" program, Lennar included an elaborate electrical package.
"We did offer some options to buyers; we're taking it to a higher level," she said.
Lennar's homes range from about $250,000 to $550,000. Varying product packages will be included at different price ranges and models, Banaszak said.
The company's U.S. home division will not take part in the program and will continue to have its design center, she said.
Lennar is not the only builder that tries to reach an audience looking to avoid surprises in the final price of the home.
Astoria Homes introduced its "100 Percent Home" in 2003. That program is currently offered in five of Astoria's communities and is geared toward the entry-level buyer. In those communities, the homes range from $200,000 to $275,000.
The program includes basic appliances that many first-home buyers need, such as washers and dryers, refrigerators, mini blinds and microwaves.
"What we found is that customers didn't own any of this stuff and they had to go and buy it," Tom McCormick, president, said. "Since they're going to need it in the home, we thought we might as well include it in the home."
Both companies said their respective programs add value to their product.
"It's more affordable in the sense that it has the value in it," Banaszak said. "If you were to walk into another builder and pay for these items, you would be paying a substantial markup for these items."
Dennis Smith, president of Home Builders Research Inc. said as the new home market becomes more competitive, builders will continue to search for ways to stand out from their competitors.
"You have to make the public aware of what your values are," he said. "When you do an all-inclusive program like that, it's got to appeal to some and not to others."
Smith said he doubts that many other builders would roll out similar programs, in part because design centers that homeowners go through to pick out everything from tile to paint are huge moneymakers.
"(Builders) don't have to compete on the price of options, they say, 'If you don't do it with us, go do it yourself,' " he said. "So builders have an advantage because people want it done while their house is being built."
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