attention builders and subs. need advice >>

[Brucelee]

gonna ask the builders a question here.

2 story vs rancher

since the rancher has more roof than 2 story, is it a big money saver (as far as building goes) to build a 2 story and get more square feet for the same money?

understand what i'm saying?

and, should i select a home that has a simple roof as opposed to the roof with many pitches and valleys? the roofs with all the different pitches and valleys are attractive but must be a big expence over a straight gable roof tha goes straight across, right?

If both plans have the same square footage, it should cost about the same to build. Two story requires more structural elements, such as foundation, beams, floor joists...etc.

Ranchers tend to have more simple roof forms, easy to build, but attractive homes are sold quicker! GL

 

[MadJack]

Jack,

It is always recommended by building industries to hire a licensed builder for many good reasons, one is that they are insured, so if one of their worker is injured during construction, he's responsible not you. Also, there's 10 years workers gurantee on their finish product (check w/ local contractor law), they'll have to come back to repair/replace for the defects.

Whether you should build a single story or two, with/without basement, style, size...etc. it all depends on the market and what buyers want in that area, in order for you see if the project is worth while to do, but most importantly is whether there's PROFIT to be made.

I won't pre-sell the home, most buyers may want their custom finishes/paint colors...etc. you'll waste more time to satisfy them than to complete your project in time. My 2 cents.

GL in your investment:thumb:

i'm going to be that licensed builder and require that all the sub-contractors carry their own insurances. nothing wrong with that, right? plus, the subs will be responsible for repairs to their own work. i will be getting all the subs to sign contracts and will require that they provide proof of their licenses and workers comp and any other insurances they need.

is this logical or am i off base?

 

[Brucelee]

I see what you're saying. No, you're right! Since you have done this before, then you will save probably 10 to 15% to manage/supervise the project yourself!

GL

 

[MadJack]

I see what you're saying. No, you're right! Since you have done this before, then you will save probably 10 to 15% to manage/supervise the project yourself!

GL

don't know why but i thought there was a higher profit margin. 10% almost hardly seems worthwhile to me.

 

[Brucelee]

Not including the profit for selling the finished home though.

$30k property
2000 sf x $90/sf = 180k (say 10% you saved) 162k
8 months interests/permit fee/plans..etc. =10K?

Your cost=202k, sold 265K, profit before capital gain=63k or approx. 30% return?!?

I might be wrong...

 

[AR182]

i'm going to be that licensed builder and require that all the sub-contractors carry their own insurances. nothing wrong with that, right? plus, the subs will be responsible for repairs to their own work. i will be getting all the subs to sign contracts and will require that they provide proof of their licenses and workers comp and any other insurances they need.

jack....

i haven't been an insurance broker since 1992, so this may be out dated.....but you should ask the subs to make you an additional insured on their policies & then ask them for "certificates of insurance" forms which should list all of the pertinent info that you will need......then you should call & verify the coverage on your own because i have seen cases where subs have forged phony insurance papers......

also i don't know if this will pertain to you but i know people who have hired architects to help with building their house....

good luck......

 

[Looselugs]

I think these pre-fab houses should not be over looked .I helped set up the houses for 5yrs and there rock solid.We would come in in one day and set the house on crawl space or basement foundation,raise the roof put the shingles on and some trim work and we were gone.The only thing you were left to do was the brick work and landscaping.This saves alot of headache.This way all you`ll need is well and septic.We done everything from ranch to split level to cape code.I`d say half the ones we installed were spec houses.Its just a option I`d look into.

The last house we just finished the builder sold the house before we got it under roof.Huge mistake! She (the owner) changed room size (that we already had framed) ,paint color was never right,deck size was to small,shingle color did`nt match the brick.And so on and so on.She became a pain the azz.So I`d selling it after its completed for sure.

 

[dawgball]

One thing that my cousin just ran into with her condo. She bought a renovated condo about a year into it she was overrun with mold. The builder had her HVAC running directly into the external (non-livable space) storage units which also housed the pumps for the common pool.

Anyway, she just went through about a year and a half court battle and LOST. Basically, the first major hurdle (which is what I was initially warning about here) is that the builder repeatedly started and bankrupted companies, so tenants from past projects couldn't really sue him.

I'm no lawyer and not here to argue the details, but that is the basics of the story. It really sucked!

So I guess my moral is to also look at the history of the sub-contractors?????

 

[Agent 0659]

Jack you can shoot me information such as square footage and what not and I have all the replacement cost software in the world. When I built my house it was within 500.00 of what it cost me to build it. May give you some heads up on your osts once you narrow it down to 4 or 5 plans. You will undoubtedly be able to build it for less but its good info none the less.

 

[eman]

After thinking about this a little more don't put the house up for sale until you have backfilled and framed the house. This way the potential buyer can not ask you to change any of the layout. Other items that you may have to consider is leaving allowances availiable to the buyer for flooring and landscaping. After you have set an allowance, the buyer may want to change the flooring which is normal. Charge them a fee and if the cost run above what you have an allowance for they (the buyer) will have to cover the cost. Since you are considering being the GC you should make more than 10%. Industry standard for a company is 15 - 20%.

 

[freelancc]

2 story vs rancher

this is subjective.. you will get arguments on both sides of this issue.

the popular ranch style homes allow a builder to "trick-out" the ceilings more easily. Details such as; vaulted ceilings, exposed beams, soffits and coffered ceilings.

often these details will sell a house for the discerning buyer.