Posts Tagged ‘home’

8
Apr

Two + Two = Nine

   Posted by: Mike Garabedian    in Food For Thought, General, Picking The Right Builder

One of the hardest aspects of construction for home buyers to understand is how homes of similar size and room counts can have so many variances in their respective prices.

In one of my continuing education classes Steve Zbranek, our instructor, placed a very simple drawing on the board which helps illustrate the quandary homeowners face when reviewing pricing on their home.

Example

Please note the illustrations below.  They are not to scale but you can see the differences in the exterior dimensions of the two structures. 

Structure A measures 10’ x 10’ for a total size of 100 square feet in size.  This creates a total of 40 linear feet of wall space.

Structure B measures 2’ x 50’ and also has a total size of 100 square feet.  However it has 104 linear feet of walls.  This is over 2 1/2 times as much linear footage in walls than Structure A. 

If both of these structures are 8’ tall and were covered with bricks you would have approximately 1,600 bricks required to cover Structure A. However, even though Structure B is the same square footage in size, it will require over 2 ½ times as much brick (4,160 bricks) to cover Structure B’s exterior walls.

The Math

Assuming brick costs you $1 per brick (labor, material, brick costs, etc..), then Structure B will cost $2,560 more to have it covered in brick than Structure A.

This translates into an additional $25.60 per square foot of the structure for the additional brick.  Remember both structures have the same square footage.

Even if Structure A was 15’ tall and Structure B was still only 8’ tall, the numbers are still not equal.  It would require 3,000 brick to cover the 15’ walls of Structure A, which is still 1,160 bricks fewer than Structure B with 8’ walls.  Structure B will still cost an additional $1,160 or $11.60 per square foot.

This is why building higher can often cost less than building out (larger footprint) when designing and building a home.

Cost Variances

Brick is not the only costs associated with an exterior wall, there is framing lumber, carpenter labor, insulation, bracing, house wrap, windows, roof bracing, gutters, paint, siding and the like.  You will find that the variances we illustrated with brick will also hold same for these costs as well. 

Numbers Need Facts

We share these examples to help illustrate why comparing builders/homes on per square foot pricing is seldom an accurate reflection of the value and costs associated with each structure.  Designing and building a custom home is a very complex exercise and if some just throws you out a price without serious and detailed analysis of what you are hoping to accomplish, be prepared for surprises.  And I am not referring to the type of surprise that makes you smile.

When you interview a custom home builder, spend time on understanding how they work and guide your family through the process.  Their experience can help you understand how the design and layout of your home can create or save you on the costs of construction.

Real Life Example

One of the most illustrative examples I have shared with families is from two homes we built about 4 years ago.  They were both about 5,400 sqft in size and had very nice finish out.  However, due to the architecture, homeowner selections, floor plan and design elements, there was over $500,000 in price variance between the two homes.  This excludes the land costs.  That works out to $92 a square foot for homes of approximately the same size.

Small Changes Big Money

It can be frustrating for families to understand how small changes can affect the costs of their home.  Experienced builders will avoid giving you a firm price on your home until they have final plans, complete specifications and all the inclusions accounted for and priced out.

Small changes such as moving a wall, redesigning a roof or adding windows can add thousands to a home without ever changing the size of the home.  Even deleting some items can cost you more money, such as removing a wall that was designed to brace the roof.

Custom homes are very complex projects and although on paper a change or modification may seem simple, the reality can be much more involved.  Don’t become blinded by the price per square foot trap.  Give consideration to all aspects of the home, its amenities, location and design.

We were always taught that 2 + 2 = 4 but when building a new home sometimes 2 +2 = 9.

Thank You

I hope this has given you seemingly simple choices made early in the process can had significant costs to your home budget.  By working with your builder all the way through the process you will have opportunities to learn about these factors and make educated decisions.

If you have a question on how we can help you build a custom home, please feel free to email your questions to our offices.  Garabedian Properties is a full service building firm serving the Dallas/Fort Worth Metroplex.  We offer new luxury homes, premium remodels, green building/remodeling, home care services, storm/roof repairs and commercial building contracting.

Please feel free to leave your comments, drop us an email at mike@garabedianproperties.com or call our office at 817-748-2669. I also encourage you to visit http://www.garabedianproperties.com to see movies on our homes, hundreds of pictures and information on how we can be of service to your family or clients.  Or become a Facebook Fan.

If your family is not quite ready for us at this time, we will be at your service when you are in need or wish to request our assistance.  If you know someone we can help, we welcome and honor your referrals. Ģ

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9
Jan

You Don’t Have To Spend A Million Dollars

   Posted by: Mike Garabedian    in Food For Thought, General, Picking The Right Builder

You don’t have to spend a million dollars to have a custom built home.  One of the most common misconceptions about custom home builders is that they only build expensive homes.  The reality is most custom homes cost much less than a million dollars.

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 What is a custom home?

A custom home is when a family works with a builder to design the floor plan, select the site and designate the amenities and features of their new home based upon their own decisions and budget.

The plans can be designed from scratch or modifications of an existing plan.  The site selection can be in a neighborhood or a vacant site regardless if the builder owns the site or not.

Except for your budget, there is almost no limit to the features, colors, finishes, cabinets, flooring, etc… you can incorporate into your custom home.  There is no design center where you pick from 2 things on a wall.  You dream it, your builder builds it.

What does a custom home cost?

A custom home can cost $100,000 or $100,000,000.  The cost is a composite of the following factors; cost of the land (including preparation), the home size and the amenities & features of the home.

Which custom builder should I use?

The short answer is the one you can work with and trust.  Many custom builders are able to accommodate different styles and price points.  However, not all custom builders are able to manage their businesses as a business.  This is why you see so many builders go out of business after a few short years of building. 

Lowest bid has the most mistakes

In our industry there is an old adage, the lowest bidder is the one who made the most mistakes bidding your home.  This means you may decide to go with the lowest bid on building your home, however, the odds are you are going to pay for it one way or another in the coming years.

Find a custom builder who can accommodate your needs and desires while providing you a top notch home you can be proud to show to your friends and family.

Once you go custom….

Almost everyone who has built a custom home will tell you that once you go custom, you will not want to go back to buying a pre-owned (we call them used) or a tract home again.  Building a custom home will cost you a bit more, however, you are spending your money on the features that are important to you.  You will also enjoy the deep feeling of personal satisfaction of having conceptualized and building something from scratch that no one else (out of 6 billion + people on the planet) has.

Thank You

Custom does not mean spending a million dollars, custom means personalizing your families home so it meets your family’s needs and desires.  Make a list of what is important in your next home and visit with your area’s top custom builders.  You will quickly realize that building a custom home is much more obtainable than you had thought.

If you have a question on how we can help you build a custom home, please feel free to email your questions to our offices.  Garabedian Properties is a full service building firm serving the Dallas/Fort Worth Metroplex.  We offer new luxury homes, premium remodels, green building/remodeling, home care services, storm/roof repairs and commercial building contracting.

Please feel free to leave your comments, drop us an email at mike@garabedianproperties.com or call our office at 817-748-2669. I also encourage you to visit http://www.garabedianproperties.com to see movies on our homes, hundreds of pictures and information on how we can be of service to your family or clients.  Or become a fan on Facebook.

If your family is not quite ready for us at this time, we will be at your service when you are in need or wish to request our assistance.  If you know someone we can help, we welcome and honor your referrals.

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2
Jan

Ten Reasons To Start Now

   Posted by: Mike Garabedian    in Food For Thought, General, Picking The Right Builder

This was post was inspired by a local Realtor and friend, Mark Pennington, who did a similar list for why you should list your home for sale in December.  This is our top ten reasons to act now on your new home building project or remodeling/addition project.

Reason #10 to act now on your home building or remodeling/addition project. Interest rates WILL go higher and could go dramatically higher as the current rates are at historic lows and inflationary pressures are building in the money supply.

Reason #9 to act now on your home building or remodeling/addition project.  Bankers won’t let builders start any speculative homes so if you don’t see something you like the only way you are going to get it is to start from scratch.

Reason #8 to act now on your home building or remodeling/addition project.  Banks are under increased pressure to book loans OTHER than to builders/developers.  This means making more loans to homeowners who want to remodel or build their own homes.  The programs they can offer today due to the very low interest rates may not be available once rates start to rise.

Reason #7 to act now on your home building or remodeling/addition project.  Over half of all builders and subcontractors have been forced out of business.  The experienced ones who are left are the first to be hired back.  So if you wait too long, then you may have to settle for less experienced builder/contractors building your home.

Reason #6 to act now on your home building or remodeling/addition project.  The Texas Residential Construction Commission has been disbanded so there is no governing agency to oversee builders in Texas.  Many builders who were barred from the industry and others who have little to no experience will be opening up shop once activity resumes in the industry.  Buyer beware has never been more important than now.

Reason #5 to act now on your home building or remodeling/addition project.  New federal regulations being proposed by the President and Congress will add even more regulatory costs to construction projects if passed.  Which means you will get more for your money now. 

Reason #4 to act now on your home building or remodeling/addition project.  Building from scratch takes time to work on plans, make selections, secure permits, etc…  With fewer proven builders in the market and more detailed loan applications, the delays may make it hard for your family to get the current low interest rates.

 Reason #3 to act now on your home building or remodeling/addition project.  The best building sites will go quickly and there are very few new subdividions in the works.  Acting quickly can help prevent you from having to “settle” on a community that was not one of your top choices.

Reason #2 to act now on your home building or remodeling/addition project.  Current construction techniques can save you on your utility bills while giving you space for your family that they have been clamoring for.  You know your wife wants to move forward and if momma is not happy, you won’t be happy.

Reason #1 to act now on your home building or remodeling/addition project.  You have to start at some point so why are you waiting for higher interest rates, higher costs, and fewer choice  lots to chose from?  Procrastination is not going to get you a new home or more living space.  Procrastination is not going to give you the features you have been dreaming of.  Action will!  Calling a trusted builder tonight and start your journey to your new home.

Thank You

If you have a question on the steps to move forward in the process, please feel free to email your questions to our offices.  Garabedian Properties is a full service building firm serving the Dallas/Fort Worth Metroplex.  We offer new luxury homes, premium remodels, green building/remodeling, home care services, storm/roof repairs and commercial building contracting.

Please feel free to leave your comments, drop us an email at mike@garabedianproperties.com or call our office at 817-748-2669. I also encourage you to visit http://www.garabedianproperties.com to see movies on our homes, hundreds of pictures and information on how we can be of service to your family or clients.  Or become a fan on Facebook.

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