Written by: Atlanta Decorator on August 29, 2010 @ 10:44 pm
The latest recession has impacted Homeowners, Lenders and Builders in fundamental ways that have changed everything from quality to affordability. The times of excess are over and any Builder who has not made drastic changes to their business model is either delusional or will be out-of-business…soon.
Hundreds of Builders have experienced unrealized projects over the past couple of years that have been thwarted by a lack of funding by Lenders; ridiculous appraisals based on foreclosures; and, unrealistic projects by Homeowners.
Choosing to remodel now means a Homeowner can take advantage of a down market. A recent story in The Wall Street Journal reported that consumers are paying up to 20 percent less for their home remodeling projects than they would have just three years ago.
How Can Homeowners Take Advantage of this Down Market?
First, you must help yourself by taking some very simple steps toward reaching your project goals by setting up a realistic budget.
If you have “no clue” on what your project will cost you can go to Remodeling Cost vs. Value Report site listed below. The most recent report is the 22nd Edition on the relationship between remodeling costs and resale value. On this site, you can compare national and regional averages for 33 popular remodeling projects. You can also download a PDF with project data for any one of 80 U.S. cities. Just keep in mind that this is a conceptual guideline and a prudent Homeowner should expect a 10-15% variance based on actual conditions of the proposed project.
Second, give yourself at least a chance for talking with responsible Builders. The stories are endless where Homeowners call in 4 or 5 Builders telling them each something different and are surprised at the variance in the estimates received.
Define your project in simply written specifications on a single sheet of paper. For example, if you are considering a kitchen remodel this specification should tell prospective Builders:
1) That they will do all demolition or you will do the demolition;
2) They should include an allowance for kitchen cabinets of $_________;
3) They should include an allowance for appliances of $________;
4) They should include an allowance for counter tops of $________; and
5) They should include an allowance for flooring of $________.
You have now given yourself a level playing field and have eliminated the large variances by defining approximately 60% of your project costs. Give yourself other alternatives by allowing your Builders to provide optional upgrades over and above the allowances you have defined.
Take Advantage of the Benefits a Design-Build Firm Can Offer
Consider using the Design-Build method for your project where there is only one firm responsible for both the design and construction of your project. A Design-Build firm can save the Homeowner money on the overall project if done correctly.
• Design fees are less than that of the traditional process (Design-Bid-Build) because the Builder has the advantage of absorbing these costs in construction revenue;
• Better communication transpires between the Homeowner and the Builder;
• There is only a single source for project delivery; and
• Your project value is enhanced by utilizing “reverse-engineering” in comparing different materials and their impact on the budget.
Today, Homeowners are concerned about cost efficiencies than ever before.
A competent Design-Build firm will help you with “curb appeal” and lot orientation; minimize material waste and implement advanced framing techniques by using CAD software; understand and comply with the latest building codes, review and report energy efficiency of varied products; provide total project estimates compared to budget during each step of the design process; and, provide mortgage help, if necessary.
Maximize every construction dollar you spend and hire a competent Design-Build firm
Remodeling Cost vs. Value Report http://www.remodeling.hw.net/2009/costvsvalue/national.aspx
Mike is a Certified Aging-In-Place Specialist (CAPS); Certified Graduate Builder (CGB) and a Graduate Master Builder (GMB). His company, Alternative Home Solutions, Inc. is a design/build home remodel and new home construction firm in the Chicago Metropolitan area http://www.althomes.com
Tags: design-build firm, great design-build plan, great remodeling, great remodeling project, project starts
Catogories: Remodeling