Friday, March 12, 2010

building a new home - tips and tricks

Today I want to discuss building a new home.

Now there are literally TONS of topics just in this very broad field, but I'm going to focus on a few basics you can use to save yourself time and money early on. Hopefully, you'll also gain some insight as to what additions are more cost beneficial up front versus doing later.

Typically, new home builders charge upgrades for each and every thing possible. Some are things you SHOULD do up front, some are just things you should do eventually.

When you first write your contract, you generally get to layout many of the upgrades and options you wish to have. Then later, you will get to visit their design studio in which you can spend many hours deciding on the multiple upgrades they have to offer. While many of these things raise the cost of the home (and their profit margin) significantly, it's difficult for the homebuyer to often know what is a critical choice and what is a choice you simply want to have.

1. Slab: Generally, there is little upgrade options available on the slab. However, if there is an option to pour a larger patio, a pool, etc, oftentimes these are most valuable if done in the initial "pour" of concrete. If you can envision the larger space being useful, this is a "must" upgrade initially. Slab work IS an additional value at sales time. If it's poured with foundations, it could be an invaluable upgrade later.


2. Insulation: Here is something that you can not go wrong with. The state standards are higher than they have ever been for insulation requirements on a new home. So what you get initially is fantastic. However, upgrading your attic and exterior wall insulation may be just a small cost in the construction phase, and save you a continual stream of expenditures in the future. Going from R14 to R16 insulation can shave quite a few dollars off your monthly electric bill, especially if you have a two story home. While the insulation may be a plus when selling, few buyers will be willing to pay extra for it when the home goes to resell. However, keep a notebook with all your upgrades. When you ever go to sell, and you go to justify your asking price, this upgrade notebook will blow away the competition....and help you get those extra sheckles!

3. Exterior modifications. (Elevations) Builders have a basic layout for a model home. For example, let's call this one the Astor. The Astor has three different elevations. Level one has two single windows in the front, then a large double sash window by the front door. All is stucco, with squared stucco columns. Level two costs several thousand more but switches the double sash window to a large bay window. The columns are rounded, and the upper part of the entranceway adds an additional "peephole" window above the front door. Level Three is the most expensive. It offers the same ammenities of the Level Two style, but stone facing is added on bottom of the columns and along the face of the house. The layout is also "flipped" so the master is now on the left instead of the right.

Each level is mainly just cosmetic changes, but consider the costs. If level 3 is only $7,000 over the cost of the Level one home, and you love the stone, keep in mind that it would cost you probably Twice that much to do yourself. On the other hand, while the upgrades may make the home more appealing when you go to sell, it will probably NOT give you any additional sales price. The second buyer of the home won't pay the extra simply because of the stone face. They may simply buy another home in another neighborhood that was a few thousand less than the price you may ask because you paid more for the stonework.

Interior upgrades / changes:

  • HDTV / CAT5: good choices in today's modern upgrades. see if these are easily upgraded to all the rooms, or if there's a way to make an easily accessible "hub" so you can expand it. Another key option is that if you can learn how to install it, sometimes the builder will allow you to put them in yourself during the "rough in" phase of construction. be certain to try to consider where you will want the connections for what rooms. Even if you may not want it in every room now, perhaps it could be useful to run extra wire to each room, and leave it accessible (in the attic or knotted in the wall) for easy installation later. Remember, getting inside a wall is easiest when it's not even covered.
  • Ceiling fans: these, in my opinion, are the least expensive but greatest benefit you can do in the rough in phase of work. if you're handy with tools, check with the builder to see if you can them in yourself. (this is usually best done by talking to the job foreman and NOT the man/woman at the sales office) once they say NO, you're done....so it's best to ask the one that is least likely to care. A regular light connection box is simply held in place by two nails. A ceiling fan connection box has much sturdier construction, and is connected by bars between the joists. These are EXPENSIVE to have a handyman put in after the fact, as it usually causes a sheetrock mess that will need patching, and is labor intrusive. Most builders give you an allotment, then charge extra for any additional ones. I ALWAYS recommend you go ahead and pay the extra or install the extra for all the rooms. Whether it's you or the next homeowner, I guarantee at some point someone puts a ceiling fan in that room....
  • Screen enclosures: depending on the size, layout, and possibly your skill level, this may be a project that you can wait on. Some builders want to charge $2000 or $3000 for a tiny screen enclosure. Any home improvement store now sells the entire supply list for doing it. And for the installation, you merely need to be able to measure, cut straight, and be able to use a drill and screw gun. My rule of thumb is this: if it doesn't require a screened ceiling, I'd do it myself. If you have to build and screen in the ceiling, let them do it, or hire a handyman later to do it for you. (you can buy the materials pretty cheap, and handymen work for peanuts these days)
  • Lights, electrical: again, if extra switches are added at no cost, then why not. same for outlets. try to imagine what you are going to use the room for, both now and several years in the future.
  • Plumbing / hose bibs: same as electrical. You don't need it until it's not there. Then you'll always kick yourself that you didn't put it in later. Nothing like finding out you don't have a hose bib near where you decide to plant your spice garden.

In conclusion, determine your use for the house. How long are you going to stay here? Are you raising a family here, what grades will they be in, what activities are you / will you be doing?

I once was hired to build a garage for a man in northern Virginia. His wife was an avid gardener, he was a car restoration enthusiast but worked creating designs and floats and displays for local schools. We poured the slab with several things in mind. We wanted water in at least part of it (in case a greenhouse was later added - which, by the way, it was). We added drains throughout so we could wash it down at any point if needed. We added electrical throughout the walls as well as some drop down access points from the ceiling. In addition, we added air hose lines piped in the walls with access points available throughout the garage. we extended the slab in the back to allow for a future expansion which was used for a large air compressor center to supply air through the building. Finally, we insulated the rooms differently depending on the applications we had envisioned for it.

When the project was completed, we utilized a barn door track, building a giant pocket door system. The garage was divided into four sections. In the front was an open garage area, with space to park a car, as well as an area that would fold down a gardening table, equipped with stoarage hooks on the wall, drawers underneath to hold pots and supplies, and running water and small sink. In the other front room, which could be completely closed off by rolling shut different doors, was a full woodworking shop. Cabinets surrounded the room, with large assembly area in the middle. Air hoses hung from the ceiling, with connectors every few feet along the wall. The room could be shut off entirely, so no dust would get to the other areas; yet, the dust collection system discharged to a large composting bin around the corner (for the garden). With the compressor in the other room, work remained quiet and peaceful in the shop.

By opening the doors, you could drive two cars into the back portion. One bay was for assembling or storing, the other was for painting. With extra ventilation and lighting, it was easy to sand out a fender, then paint it and dry it before assembling in the other bay.

All of these designs are not meant for the average house, but by following this example, you can see the benefit of planning ahead.

Perhaps you are a new family. You found a home near the schools you want the kids to attend. Your girls sleep in the same room now, but eventually they may want their own rooms. For budget reasons, you only bought a 3 bedroom for your family of 5. When you pour the slab for your foundation, pay the extra to make the patio slab thicker to support part of the house. That way, later on, you can just add the walls and enclose it....suddenly, you now have a 4 bedroom home! woohoo....wiring can run in the ceiling and down walls. Plumbing should try to be planned out ahead of time, just to avoid having to cut out concrete later on.

Sorry for the rambling. Hope these ideas give you some ideas as to what you can d0 when you are building a home from the ground up. As always, shoot me an email if you have questions! :)

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