1. Meritage Homes
Raleigh/Durham Market
Winter 2011
Downtown Raleigh
from
Wilmington St. Bridge

2. Business & Marketing Plan
Table of Contents
Subdivision Location
Meritage GREEN features
Major Employers
Who is Moving here, from where?
MLS radius map
CMA by Builder
Area Schools
Area Amenities
Marketing Ideas
Bellmont
Langston
Langston at the Park
Apex, North Carolina 27539

3. Subdivision Location
Future Project:
Bellmont
Langston
Langston at the
Park
Apex, North
Carolina 27539
Bells Lake & Optimist Farm (major cross streets)
Apex, NC 27539

4. Subdivision Location
Roughly 60 lots,
averaging 1/4
acre in size
(some lots 1/3
acre).

5. Meritage GREEN features

6. Major Employers

7. WHO is moving here?
“Transplants”
Relocated from
somewhere else
“Halfbacks”
Originally lived in
NE, moved to FL
and are now
relocating “half
way back”
I wasn’t born in NC
but I got here as
fast as I could.

8. MLS radius map
Searched
New Home
Subdivisions
within a 3.25
mile radius
of Bellmont,
Langston &
Langston at
the Park
Apex, North
Carolina
27539

9. Bridgewater
Overall I do not feel it compares in anyway to
Meritage planned product, this Garman Homes
subdivision is an entry price point for first time
buyers. Virtually no upgrades are included in
the cost to build. There is ONLY one spec
actively for sale and one lot left for new start in
detached single family home product.
Bridgewater is located within 6 miles from
subject location. Mailing address is 27540 zip,
with Holly Springs area schools.
Heavy use of
social media
and unique
promotions

10. Only 1 spec
actively listed
& 1 lot which
is currently
not active in
the MLS for
SF Detached
product
Other product
is townhomes
beginning in
the 120’s
Bridgewater CMA
Spec is listed for $229,900 for 3215 sqft, which is $72 sqft;
DOM is 56
SOLDS average 2980 sqft at $79 sqft with a DOM of 54

11. Carrington Estates
Overall I do not feel it is competition in anyway to
Meritage planned product, due to higher price points
it began at time of construction. I believe they may
have just sold their last spec. Re-sales are beginning
to regularly occur.
Carrington Estates is located within 4.1 miles from
subject location. Mailing address is 27540 zip, with
Holly Springs area schools

12. Carrington Estates CMA
Contingent Spec for $259,900 for 3046 sqft, which is $85
sqft; DOM is 258

13. Churchill Estates
Lennar is currently building higher priced homes
against Meritage planned product. Lennar
marketing strategy for several years has been
Everything’s Included but still does not compete
with Meritage’s included list.
Churchill Estates is located within 2.4 miles away
from subject location. Mailing address is 27539
zip, with Cary area schools.

14. Churchill Estates

15. Churchill Estates CMA
Actives
are
averaging
$389,590
for 3301
sqft, which
is $118
sqft; DOM
is 33
Contingent, 3300 sqft for $412,500 at $125 sqft; DOM 53
Pending, 4014 sqft for $469,315 at $117 sqft; DOM 58

16. Churchill Estates CMA
Closed Sales are averaging $371,659 for 3033 sqft, which is $123 sqft; DOM 203

17. The Park at West Lake
Park at West Lake is located within 0.9 miles away
from subject location. Mailing address is 27540
zip, with West Lake schools
Standard Pacific & Lennar are building on 70 lots
that they acquired after custom home building
demand dropped off, all other homes in The Park
at West Lake were custom built.

18. Lennar
Everything’s Included;
except granite and GREEN
The Park at West Lake CMA

19. Standard Pacific
•Master Down Plans
• 3rd floor attic avail
•Granite Included
The Park at West Lake CMA

20. The Park at West Lake CMA
Active listings are averaging $380,933 for 2910 sqft, which
is $131 sqft; DOM 256
Pending sale of $293,000 with 2738 sqft, which is $107
sqft; DOM 136

21. Sunset Oaks
Less than 60 lots left in detached single family home product.
Overall I do not feel it compares in anyway to Meritage
planned product, this 550 unit subdivision is much higher
priced for relatively same sized homes, without comparable
GREEN features. Only difference from subject site is Sunset
Oaks Neighborhood Amenities, pool, parks, etc.
Sunset Oaks is located within 1.9 miles from subject location.
Mailing address is 27540 zip, with Holly Springs area schools

22. Sunset Oaks CMA
Actives
are
averaging
$390,470
for 3008
sqft, which
is $130
sqft; DOM
is 121

23. Sunset Oaks CMA
Pendings
are
averaging
$399,950
for 3097
sqft, which
is $130
sqft; DOM
is 452

24. Closed
Sales are
Averaging
$371,659
for 3033
sqft, which
is $123
sqft; DOM
203
Sunset Oaks CMA

25. Sunset Pointe CMA
4.1 mile driving
distance
between
subdivisions
Mailing address
is 27539 zip, with
Holly Springs
area schools

26. Tuscany
This is a custom home builder subdivision, only
vacant lots are available to be built on within
specs of the covenants.
Tuscany is located within (next door to Sunset
Pointe) 3.7 miles away from subject location.
Mailing address is 27539 zip, with Holly Springs
area schools.

27. Most available lots are on market with signage, some willing to take trade to unload the
custom lot from their books. I saw no current home in construction phase.
Tuscany CMA
Active listings are averaging $404,975 for 2920 sqft, which
is $139 sqft; DOM 176

28. Woodcreek, John Wieland
Woodcreek is a Master planned community, actively
building is John Wieland and M/I Homes, Wieland is
building much higher priced homes that will not
compete with Meritage price point or GREEN
features. Community amenities will be something
Meritage will need to focus marketing against.
Woodcreek is located within 3.0 miles away from
subject location. Mailing address is 27540 zip, with
Holly Springs area schools.

29. Woodcreek, John Wieland
This JUST in…
Sales agent on Sunday told me
They were giving 40K off without
Broadcasting it anywhere – looks
They decided to increase amount
To $60,000 (which is needed to
make them even remotely
Competitive in this new market.

30. Woodcreek, M/I Homes
M/I Homes will be priced competitively against
Meritage but once again minimal upgrades are
included and any energy efficient features are
limited. They have just begun to sell from this
location and will probably be there for at least 18
months.
Woodcreek is located within 3.0 miles away from
subject location. Mailing address is 27540 zip, with
Holly Springs area schools.

31. Woodcreek, M/I Homes
M/I Homes current incentives

32. Woodcreek CMA
Actives
are
averaging
$379,704
for 3330
sqft, which
is $114
sqft; DOM
is 84

33. Woodcreek CMA
Contingent listings are averaging $339,900 for 3088 sqft,
which is $110 sqft; DOM 225

34. Woodcreek CMA
Pending listings are averaging $370,106 for 3456 sqft,
which is $114 sqft; DOM 108

35. Woodcreek CMA
Closed
sales are
averaging
$373,862 for
3483 sqft,
which is
$108 sqft;
DOM 66

36. Wrenn Meadow
Almost completed and virtually no comparison
to Meritage due to high price point, for relative
sized homes without GREEN features.
Wrenn Meadow is located within 3.2 miles
away from subject location. Mailing address is
27539 zip, with Cary area schools. It appears to
be almost complete, few lots left in detached
single family home product.

37. Wrenn Meadow CMA
Active listing is $399,900 for 3609 sqft, which is $111 sqft; DOM 34
Closed listing is $393,000 for 3483 sqft, which is $113 sqft; DOM 420

38. Showing Statistics
Stay within the 200-400K price points
to generate the most showings which
will result in contracts/closings.

39. Showing Statistics
The Park at West Lake (122), Sunset Oaks (87), Churchill Estates (85)
I would expect showings to be inline with these numbers if not
above them due to Meritage GREEN amenities

40. Showing Statistics
Subdivision is located in Area 9 – 670 showings

41. Area Schools

42. Area Amenities

43. Marketing Ideas
•Marketing needs to be based on benefits of Schools, Area Amenities
•Co-share Science Fair with schools hold judging on site, large prize/scholarship
•Event with schools to showcase meaning and NEED for GREEN product
•Essay contest after hosting field trips with ALL levels of schools
•Become involved with Resale agents promoting thru community events, visiting
offices, create unique GREEN ways to reach out – not usual broker opens, etc
•Using Social Media to promote community as allowed by Meritage
•Coloring contest for ‘shopping’ families children, or essay contests; “Preparing to
MOVE” coloring book
•Community Events, get involved in sponsorships of groups, networks, schools

44. Conclusions
After reviewing all sales data provided, and visiting each builder in person I would suggest
to a builder client getting ready to break ground in the subject location that they take these
Important points into consideration when pricing their new subdivision.
•None of the Builders are as GREEN as Meritage (and I didn’t expect them to be)
•None have a comparable level of upgrades INCLUDED
•Sunset Oaks is only location I am aware of with several basement homes avail in 1st Qtr
•Meritage will need to heavily market community amenities to offset some of the large master
planned communities like Sunset Oaks & Woodcreek; Buyers are paying a HUGE premium for
those neighborhoods that overtime they may not recoup.
•Buyers all want to feel like they made a GOOD investment, especially in this economy

45. Conclusions
Basements
I am regularly asked about basements and where buyers can find areas of homes where
basements were built or are currently being built – most of these conversations have
occurred at open houses.
After completing research for this product I am now aware how few basement
opportunities there are in MLS area 9i, I believe they will be in great demand. Sunset Oaks
has several basement homes set to break ground in 2012, inquiries are occuring.
I also understand that in most cases builders here only use basements if a lot requires one
for structural reasons due to slope of the lot. Mainly because the cost of building the
basement virtually has no mark up in profit to the builder. I have determined a price point
of $50,000 is probably your maximum allowable cost that a client would want to absorb.

46. Conclusions
•Meritage has already positioned themselves with unique one of a
kind GREEN home product, picked the best market in the nation and
placed subdivisions in high traffic areas.
Pricing needs to remain between $240,000 and $260,000 for entry
pricing of 2600 sqft product & stagger up according to size.
Yours to Count On,
Erika Madsen
The Madsen Team ~ Our Trademark is Communication
Associate Broker/Realtor ®, CDPE, CLHMS
Coldwell Banker ~ Howard Perry & Walston
919.467.1882 office
919.520.6612 cell
919.653.4821 fax