In today’s economy with the big downturn in homebuilding and construction hurting every builder, negotiating can be more effective than ever. But some methods of negotiating can be more effective than others.

Don’t overplay your hand. You might be holding all the cards right now, since every builder is very hungry for work. But pushing too hard can cause the builder to dig in and not want to negotiate no matter what. Effective negotiations should always leave both parties, the builder and yourself, feeling each came out well and didn’t have to give up too much. (more…)

Over the years, I have seen a strong trend away from wood-burning fireplaces toward gas fireplaces.

There are two reasons for that. First is the cost. Traditional, all masonry fireplaces are very expensive to build. The entire chimney must be built of masonry and the tall column of cement blocks, bricks, and terra cotta flue liner is very expensive. Plus, a true masonry fireplace requires a foundation to carry the weight. That adds more cost. Pre-fab metal units have taken over the marketplace for cost alone. Some pre-fab fireplace companies are Heatilator, Majestic, and Heat-n-Glo. These fireplaces have some limitations on the size of the firebox opening. If I need a particularly large opening, I turn to Isokern. This is a fireplace that is made of a special type of concrete block system, but it does not require the full masonry flue. So it is a compromise between the design freedom of the traditional masonry fireplace and the cost benefits of the pre-fab units. (more…)

I received a note from someone the other day asking how much it would cost to add a room to an existing house. She was interested in the “cost per square foot” for budgeting and planning purposes. She also asked what the best options might be. Figuring the cost of building a new house based on a cost per square foot is a tough thing to do because there are so many variables. Additions are even tougher to estimate. You could spend anywhere from $100 per foot to over $1000 per foot. It all depends on the complexity of the addition, the way it is built, the level of the appointments (finishes, fixtures, etc.), the construction materials used, and the location in which it is built.

Can you compare an addition of a simple room with no plumbing or special features with the cost of a kitchen addition full of cabinets, countertops, plumbing fixtures, and appliances? The kitchen addition could cost twice what the simple addition would cost based on the “cost per square foot.” What if an addition was to be built on flat land, clad in vinyl siding, and contained only a couple of simple windows. It would be much less expensive than an addition built on sloping land, clad in fieldstone, full of high-end windows, and included a soaring ceiling. Comparing the cost of these two projects would be like comparing apples and oranges. (more…)

     In these uncertain economic times, more and more builders find themselves faced with the problem of getting paid. When the work is complete, some homeowners are slow in paying the last bill. This could be for a good reason. There might be unfinished or improperly done work. Some items might be on back-order and the homeowner needs to hold some amount of money to guarantee the builder will come back to fix errors or install missing pieces.

     This is the correct thing for homeowners to be doing. But other times a homeowner might simply refuse to pay knowing that legal action by the builder will be expensive. The cost of suing might exceed the amount of money being held so it would not be worth it. The builder is forced to walk away from the money he is owed and the homeowner is unethically enriched. It’s truly sad when this happens. I wish there weren’t people in this world who would take advantage of hard working builders this way. (more…)

    The days of “Living Large” may be numbered. House design is changing. We might soon be bragging that we’re “Living Small.” With the current economic conditions, we are seeing our dreams and desires in a whole new light. High energy costs, environmental concerns, maintenance costs and the cost of the house itself are strong motivators to reevaluate one’s needs and create a house design that responds to those needs.

    I think the best way to reduce your living space is to write out what we architects call a “program.” This is the first thing i do when doing a house design. This is a list of needs and desires plus a target size for the spaces you want. It’s a good idea to multiply out the areas of these rooms, include hallways, closets, stairs, and other small spaces and add them up to get a total. Take that total and multiply it by 1.15 to add 15% for the area the walls themselves take up. You’ll end up with the total square footage your house design will need to include all that you want. If this total is too much, go back and reevaluate what rooms and spaces you included. Trim out the excess. I discuss this process at length in my book, Designing Your Perfect House. A good, well thought out program will become your road map to the right sized house design. (more…)

     I was asked this question recently. How do I go about determining the likely cost of building a new house without having to go through the expensive and time-consuming task of completely designing the house and creating the final bidding and construction documents (drawings and specifications)? If the price comes in too high, the design and documentation process will have to be done all over again. That will add more cost to the design services and, by extension, reduce the construction budget. So, how do you get a feel for where things are going on cost at an incomplete stage in the design and documentation? (more…)

     People tend to not place enough emphasis on the lighting in their homes. It is often taken for granted and as a result, it is poorly designed.  There are lots of things you can do to reduce your electrical costs, improve the quality of the lighting in your home, avoid construction cost over-runs, and make your house more “green.”

      Natural day-lighting is something that has been under appreciated and undervalued in recent decades. But the current renewed concern about green building and high energy costs have changed that thinking. A good architect can help you orient your house properly on the land to maximize the benefits of free day-lighting without resulting in overheating of the house in summer months. In a well designed house, you should not have to turn on your electric lights during a sunny day. Simply placing windows on the southern walls (in a northern hemisphere site) will gain significant daylight, but the costs to cool the house will soar as the house will overheat badly. You will give up more energy money than you will save. Properly designed overhangs are needed, deciduous plantings, and sometimes shutters or shades can be used to maintain control over the natural lighting in your home. Indirect, reflected daylight is best. Direct sunlight is to be avoided. In addition to the heat gain direct sunlight can give, fabrics and carpets can fade under the intense rays of direct sunlight. (more…)

      Do you want to control your homebuilding costs? Do you have electrical plans for your new house? Many stock plans show some electrical information, i.e. the location of switches, light fixtures and electrical outlets. Chances are this layout will not meet your needs, if you have a plan at all. One of the primary sources of homebuilding cost overruns is in the electrical work. If you do not have a well defined, complete plan that shows every switch, which lights each one controls, every electrical outlet, every telephone jack and every television jack, you will not have a guarantee that the contractor is planning on providing what you want in his contract price. I’ve seen people add numerous additional devices only to be shocked when the electrician tallies up the final total and presents the customers with a bill for the extras. Even if the cost is only $30 or $40 per device, they can add up fast and you’ll find yourself with thousands of dollars of homebuilding costs you never anticipated.

      Many electricians base their price on the number of junction boxes they install. Each switch, each electrical outlet and each light fixture counts as one box. So if you add an overhead light and a wall switch, this counts as two boxes. Usually, the location of the boxes does not matter. It is the number of boxes that is critical to your homebuilding costs. (more…)

    Now is a great time to build! Builders are hungry, prices of many construction materials are low, and the vendors are making deals to get business. If you have the resources, don’t wait. Build now and capture the savings. Right now, Warren Buffett is buying U.S. stocks because he sees them as a low-priced opportunity. Construction costs represent the very same opportunity. You can cash in big time if you act now. 

    I got a note from a prospective client recently asking for my advice on what construction costs might be for a new house. They were in the early stages of planning and wanted to get an idea of how much their new house might cost. Here is my answer:

    I have recently had a house price out at $170 per foot and another as high as $275 per s.f. There are a lot of variable that can affect the cost, as you can imagine. The formula I use is to include all of the “heated” square feet. I do not count the garage and/or porches. This formula is sort of the industry standard. For budgeting purposes, I would suggest using $200 per s.f. as the low end and $250 as the higher end. Of course, it is possible to go considerably higher. The variability of cost is due to different exterior materials, the shape of the house, the appointments within the house, and the site considerations. But above $250 per s.f., the added cost is attributed to particular items, like very expensive cabinetry or particular site conditions, and things like that. It’s hard to get more definitive than that until the house is designed and those numerous variables are known. (more…)