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A mantra for the building industry could very well become, “Show me the savings.”

Tradition Homes, a new company developing a residential community in Winston-Salem, plans to do just that.

The Greensboro-based builder’s philosophy: Provide high-quality, reasonably priced single-family homes with Energy Star certification. A primary target: first-time homebuyers.

The high-quality refers to the products used in construction as well as the floor plans that range from 1,197 to over 3,000 square feet. A price range of $109,900 to $164,900 meets the affordable guideline.

The Energy Star model speaks for itself. Homes certified under the federal program include energy-saving features that typically make them 20 percent to
30 percent more efficient than standard homes, resulting in monthly utility savings. Utility company rebates and tax credits provide additional boosts.

And the company’s leaders expect the price range and a limited-time federal tax credit of up to $8,000 to help attract first-time buyers.

Executive vice presidents Van Smith and Sam Main and other investors formed Tradition Homes in February but began planning in November 2008, when the homebuilder the two men worked for, C.P. Morgan Co., announced plans to leave the Triad.

Tradition Homes held a grand opening Saturday in Summit Pointe, a community with capacity for 190 homes formerly developed by Indianapolis-based C.P. Morgan, which closed entirely early this year due to economic factors.

That’s a concern many in the building industry face. “We’re swimming against the current,” Smith acknowledged. But he also said: “People are still buying homes.”

There have been measured signs of improvement nationwide. Housing starts and permits posted gains in June, according to data released by the U.S. Commerce Department on July 17. Commerce reported a 3.6 percent gain in overall housing starts to a seasonally adjusted annual rate of 582,000 units and an 8.7 percent gain in permit issuance to 563,000 units.

And single-family housing starts rose for a fourth consecutive month in June, posting a 14.4 percent gain to a seasonally adjusted annual rate of 470,000 units, while single-family permits rose for a third consecutive month, posting a 5.9 percent gain to 430,000 units. Those figures show increases through the year, but they are still below 2008 numbers.

Tradition Homes wants to beat the odds with its business model, combined expertise and know-ledge of the area. The company has five employees and works with subcontractors on construction. In addition to Smith, who applies his expertise to contracts, and Main, who has a construction and operations background, there are three other full-time employees. Filling out the core team are vice president of sales and marketing J. Gary Hill, formerly with The McAlpine Co. and K. Hovnanian Homes, a field construction manager and a sales counselor.

“We’ve gotten the best of the best with the reorganization in the market,” Smith said.

The company has completed a model home at 4281 Oak Pointe Drive and has plans to start construction within the month on two homes sold to approved buyers. They say they’ve pre-sold around 10 homes already, but financing approval for buyers is pending. In addition to the model the company recently built, there are eight houses on site that originated with C.P. Morgan. The Tradition Homes model and all new construction will be Energy Star-certified.

The company leaders consider the change in direction significant with the current economy and the attention to energy resources prompted by tighter spending, higher fuel costs and concern about future sources for energy.

Main stressed that Tradition Homes offers “more than just a good cost,” adding that the building features necessary for Energy Star certification emphasize their commitment to customers and the environment. “We feel it’s just the right way to do it.”

Main realized the benefits the building techniques provide when he experienced the improved comfort level in the model before the electricity was even turned on. “Just feeling it made all the difference in the world to me,” he said.

Another piece of their plan is homebuyer education. “We want to do the right thing long term,” Smith said.

An orientation to be completed a week before closing would include information for buyers, some of whom may have never owned a home before, about maintenance needs and care of fixtures such as water heaters and heating and cooling systems. They want the buyers to understand that timely maintenance will save them money in the future.

They say they’ve built in value with the eight floor plans they created earlier this year. They tried to keep in mind homebuyers’ lifestyle needs, Main said, by incorporating multiple bathrooms, plenty of storage space and flexible spaces into the six two-story and two one-story options on nearly 1/5-acre lots.

The reaction to Tradition Homes’ offerings has been positive, Hill said, adding that prospective buyers often say, “Wow, I didn’t know I would get so much square footage” for the price.

They hope the interest translates into results. Main and Smith said the company’s goals are to build 36 homes a year in the first year, 56 in the second and 96 in the third.

The powers that be at Tradition Homes also plan to take their business model beyond Summit Pointe, where their efforts are currently focused, and expand to other neighborhoods. They already are working in Greensboro, completing three non-Energy Star homes in McAlister Woods, but they also have their sights on other options in the Triad.

“We’ve been looking for a while for the right opportunity,” Main said, and they want to be ready to find “that best next location.”

Heather L. Modlin may be reached at 373-7144 or heather. modlin@news-record.com.