Buy A Plan or Custom Home Design? Read this before you decide.

Posted on July 5, 2012 by

Example of a Home Site plan.

Should you buy a ready-made plan for constructing your new home?

It depends.
If you have a large lot that doesn’t have restrictive setbacks, then finding
and buying a ready-made plan may work well for you. It’s important to
know that most plans you find in a plan book are designed for specific lot
sizes and regular shaped lots. If your lot is long and narrow and the plan
is designed for a lot that’s narrow and long (just the opposite), you could
have a problem.
Sometimes people will use the “cut-and-paste” method. A couple will
take a plan from a plan book and “cut-and-paste” it to make it fit their lot.
Be careful with this method. Judy was a woman whose cut-and-paste plan
didn’t work out the way she’d planned; it required you to walk through
one bedroom to get to another bedroom.
If you can find a plan that fits on your lot with little or no changes, it
may be a good option for you. However, very few people are completely
happy with a design they find in a plan book without making minor to
major modifications.
If you are thinking of buying a ready-made plan and just shrinking it, it
almost certainly will not work.
Most good, custom-home builders have successfully built homes from
ready-made plans. Typically they purchase the rights for the plan, make
any needed modifications, and proceed to build the house. When making
too many changes to ready-made plans, you may end up paying for a
brand new set. Be realistic and make changes during your first couple of
meetings and then let them go to work (price/speed).
Be aware that ready-made plans are copyrighted. Your builder can
purchase the rights for the plan, but be sure this step is not overlooked.
You can get in real trouble down the road if you shortcut this step.
For people who don’t choose a standard plan, some builders offer a
complete design/build package. Usually this process starts by evaluating
the shape of the lot; it’s important to take into account its positive and
negative features. The builder then takes the homeowner’s completed
list of their prioritized needs and wants and begins the design process. At
your initial meeting with the builder, it’s an important step to review the
design and to ensure the designer and homeowner have a complete and thorough understanding of needs, wants, and budget. Once the builder has
clearly identified your objectives, he can work with the designer to create
a unique, quality, custom home—the home of your dreams.
As a builder, I’ve found that it doesn’t necessarily cost any more (and
often we’ve discovered cost savings) by first focusing on and designing
what our homeowners most need while also taking into account what
they want. In doing so, we’ve found great success because the process
allows us to optimize the conditions of the specific and unique lot instead
of having to work from an existing design by enlarging or shrinking areas
in the home.
With clear objectives and a good plan, you can focus your energy and
resources on your unique needs for your new home.

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Are You Making The Most Common Mistake When Building A Home?

Posted on July 2, 2012 by

Don’t Even Begin Designing Your Home
Until You’ve Done This!

 

Custom home framing

Custom home framing (Photo credit: Brock Builders)

There is an ancient proverb that says, “Suppose one of you wants to build
a tower. Will he not first sit down and estimate the cost to see if he has
enough money to complete it?” I suppose it’s because I’m a builder, but I
can relate to this bit of wisdom. It’s a rhetorical question, of course. Who
wouldn’t first estimate the cost?
In reality, it sometimes amazes me to meet with people who are ready to
build a new, custom home but have no idea what they want or how much
they can spend. Stop right here! It’s crucial, before beginning the design/
build process, to determine what you can afford.
People who need financing assistance should talk to an experienced
professional mortgage lender who can help determine what they can
comfortably afford. This process will take into account your income,
expenses, credit, assets, interest rate, taxes, insurance, maintenance, and
utilities.
Sadly, people who begin the design process without first counting
the cost often design to their dreams, only to find out later they have
far exceeded what they can afford. They end up mad, sad, or extremely
frustrated. Instead, we first want our homeowners to realistically determine
what they can afford; then we work hard to design a quality, custom home,
a complete package that’s 5 to 10 percent below their target number. We
know from experience that changes may occur during the building process.
For instance, a homeowner may upgrade the finishes as the construction
process unfolds, or other variables may arise that would add to the cost of
their home. If we start with a number that is below their budget, we can
end up at the desired budget. It is best to pay for an accurate conceptual
number in the long-run.

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Part 2: Fixed Price vs. Cost Plus

Posted on June 28, 2012 by

Should I Use a Fixed-Price
or Cost-Plus Contract?

Silk Stocking District (Talladega)

Silk Stocking District (Talladega) (Photo credit: Wikipedia)

Part 2–Cost Plus
A cost-plus contract differs from a fixed-price contract in that it takes
the actual cost of building the home and adds a fee for the builder’s
overhead and management. This fee can be either a lump sum (flat fee)
or a percentage of total costs. Of course, neither you nor your builder
will know the exact bottom line for the building costs until the final
accounting is completed shortly after closing. A good builder will give
you an accurate cost estimate, but it’s exactly that—an estimate—until the
final accounting. With a cost-plus contract, you’ll pay the actual costs for
all labor and material, plus the builder’s fee.
A cost-plus contract can be advantageous when building larger, custom
homes with finish levels and other things changing during the process.
With the cost-plus basis, the homeowners know their actual costs on
an ongoing basis. They can then determine where they will appropriate
their funds early in the construction process and receive a full accounting
disclosure of all costs. If they elect to pull out a magnifying glass to search
for scratches in all the panes of glass, they can choose to have those panes
of glass replaced at their cost.
Usually, doing business on a cost-plus basis keeps the magnifying glass
in the drawer. It doesn’t mean the builder builds with less care or quality;
it just puts the homeowner and the builder on the same team. A cost-plus
contract provides the synergy of identifying problems and determining
win/win solutions that are in the best interests of the homeowner.
If you trust that your builder is competent and is working on your
behalf, and if you are comfortable not knowing your exact total costs until
the end of the project, then a cost-plus contract may be best for you. Your
final cost will depend on the choices you make. Your builder will charge a
smaller management fee on a cost-plus basis because he assumes less risk.
Both fixed-price and cost-plus contracts are successfully used in
building new custom homes. You can decide which one works best for you.

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Home Building Contracts: Fixed Price vs. Cost Plus

Posted on June 25, 2012 by
Contracts

Contracts (Photo credit: NobMouse)

When building a home, should I Use a Fixed-Price
or Cost-Plus Contract?

Part 1–Fixed-Price

A fixed-price contract is one in which the plans, specifications, and all
of the materials and finishes are fully determined (fixed) before you
start construction on your new home. A cost-plus contract takes all the
costs of the home and adds either a percentage of costs or a flat fee for the
builder’s overhead and management fee.
Either a fixed-price or a cost-plus contract can be used successfully
in building a custom home. It depends on what you’re most comfortable
with. The builder’s costs are the same whether he uses a fixed-price or
cost-plus contract. However, the price you’ll pay will differ because of the
risk associated with each type of contract.
Let’s start by looking at a fixed-price contract.
The advantage of a fixed-price contract is that the price you pay for your
home will be predetermined (fixed) whether or not the price of material
and labor goes up or down. The builder assumes full responsibility for
all risks associated with the cost of your new home. The downside is that
you’ll pay more for your builder taking on this risk.
On a fixed-price contract, the builder assumes responsibility for all
risks associated with the fluctuation in costs. Of course, costs are always
changing. From the time you sign your contract to the completion of the
work, the actual costs will change. Sometimes up, sometimes down. If
labor and material go down from the time you sign the contract until the
job is complete, the builder benefits. If the cost of labor and material go up
during the construction period, the builder absorbs the loss.
In general, people who do well with a fixed-price contract are people
who are not willing to risk price fluctuations. They are more comfortable
knowing their exact cost and are willing to pay a small premium for this
comfort.
In the next post, we will cover the cost-plus contract.

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Home Building Planning: Needs vs. Wants

Posted on June 21, 2012 by

Needs Vs. Wants
Home Building Planning: How to Use the Design Outline to Prioritize.

English: A living room of an apartment in the ...

English: A living room of an apartment in the historic Stafford apartment building (Photo credit: Wikipedia)

One of the best things a homeowner can do is to thoughtfully consider
the difference between needs and wants. It’s more difficult than it
sounds. For example, something that is considered a need to one family
member may not be viewed that way by another. Sorting between needs
and wants can sometimes be contentious. Take Tim and Sherri for instance.
They debated for 45 minutes on whether or not they wanted a formal living
room. Sherri, who was raised in a home that frequently entertained guests,
considered it a need. Tim, whose idea of entertaining guests was to take
them to the game room, did not consider it a need. In fact, Tim felt a formal
living room would be largely wasted space.
Discussions like these are far from unusual when building a custom
home. They are normal—even essential. I encourage couples and families
to have these discussions as soon as possible so that decisions can be
made before a lot of design work is done. But how can you have those
discussions and make them productive and even enjoyable? By using a
simple tool called the Design Outline.
The Design Outline is an excellent tool to help you define your needs and
wants in the home building process. This exercise takes less than 30 minutes
to complete, but it can save you countless hours and thousands of dollars.
Here’s how it works:
You and your spouse, independently of each other, each take a blank
sheet of paper and write down all of your dreams, wants, and needs
for your new home, in no particular order.
Then rank your items in order of importance, starting with #1, #2,
#3, etc. It’s not as important to agonize over whether item two goes
before item three, or three before two; sometimes wants or needs
can be equally important to you. What’s important here is that #3
and #28 are not reversed. Know what you want.
Once you and your spouse have independently ranked your items,
the two of you meet together to share and compare your lists. Then
create one combined list ranking your needs and wants in order.
This will become your master list.

The combined needs/wants list will save time, energy, and money when
you meet with your builder to determine the cost of your new dream home.
At some point, your desired budget will need to line up with your desired wants.
Your builder can review this combined list and your budget and let you know
what items your budget can afford. If you have items that are not included in
the budget, your builder can estimate a cost so you can make an informed
decision on whether or not you want to increase your original budget.
The Design Outline can be a tremendously effective tool to help you
determine costs long before you spend money on design or construction of
your new custom home. You can use the Design Outline with any builder,
anywhere in the country. When you begin the process by using the outline,
you’ll be way ahead of the game.

Home Building Planning List

Taken from James and Joe Halsell’s book “Building a Custom Home on the Central Coast”

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Kitchen Remodels: Do’s and Don’ts

Posted on June 18, 2012 by

Kitchen Remodels

Questions or comments about a kitchen remodel? Leave a note in the box below this article or contact Halsell Builders directly at their Santa Maria office at 805-928-8948.

English: Kitchen cabinet display in NJ in 2009...

English: Kitchen cabinet display in NJ in 2009. For use in Wikipedia article on Kitchen cabinets. (Photo credit: Wikipedia)

What’s So Important About the
Kitchen Anyway?
When a couple buys or builds a home, they always seem to pay a lot
of attention to the kitchen. With most couples, there’s usually one
person who loves to cook; most often it’s the woman. But for everyone,
male or female, young or old, the kitchen is one of the most important
rooms in the house. The kitchen is often the hub of the home, the center of
activity. Someone spends time preparing food, creating something fun, or
trying a new recipe in it. People tend to gather where there’s food.
So don’t miss this: kitchens are important!
Men sometimes underestimate the importance of this room. We love
our garages, grills, decks, and patios. But the kitchen? We can completely
miss its importance.
It’s important to remember when you are designing a home to consider
the resale value and design accordingly. A well-designed and functional
kitchen not only makes the cook happy, it also ensures a greater resale
value.
A person who loves to cook or create culinary masterpieces for family
and friends absolutely needs a spacious and well-appointed kitchen. On
the other hand, if a cook wants to spend as little time as possible in the
kitchen, then your design and layout can be simpler. Kathy doesn’t spend
much time in her kitchen, but she likes the spacious layout so she and
her husband can be there together. Kathy says the chopping and stirring
are more enjoyable with her husband there. Additionally, he likes the
organization of a well-planned room.
When selecting kitchen cabinets, look for quality. This is not the place
to be overly consumed with trying to save money. Well-made cabinets will
provide lasting pleasure and functionality for decades. Drawers (as opposed
to cabinets with doors) are more useful and efficient even compared to
cabinets with pullout drawers. In addition, choose hard surface, durable,
and high quality countertops. There are a variety of colors and selections
available. Granite is an ideal counter surface for the most important room
in the house.
What about appliances? Don’t skimp here, either. You don’t have to
purchase the absolute top of the line, but good quality appliances help sell
homes. Today it’s becoming very popular to have two dishwashers. Often
the cost of an additional dishwasher is only slightly more than the cost of
the additional cabinetry it replaces.
In order to make the most important room in your house spectacular,
consider adding some of these other features: warming drawers, double
ovens, convection microwaves, pot fillers, espresso and coffee bars,
hidden pantries, elevated dishwashers for easy access, vegetable sinks in
the island (in addition to the main sink), instant hot water dispensers, and
purified water faucets.
When you design your home, be sure the kitchen is given special
consideration and that its relationship to other rooms, functions, and
features are the best you can provide. It will make a difference for years
to come.

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Where Should I Spend Money On My Home?

Posted on June 14, 2012 by

Where Should I Spend Money On My Home?

If You’re Going to Err, Do It Here
Building a home is probably one of the biggest investments you’ll ever
make, so you’ll want to know where to put your money to get the
most value for your investment.
Here are seven areas to consider:

Money

Where should you spend money on your home?

1. Location: You’ve heard the adage “location, location, location.”
This is where to spend your money. You could build a home with
a great design with great features and finishes, but if you build it
in the wrong location or on the wrong lot, you could be in real
trouble. Consider purchasing the most expensive lot you can
afford. Historically, property with views of the ocean or mountains
experience stronger growth in value than non-view property. If you
like water and can afford near the ocean, build on waterfront. Your
long-term investment is more likely to be sound.
2. Design Services: You can add enormous value to your home
by investing and hiring the services of a competent designer and
an interior design team. Not only will you enjoy the splendor of
a fabulous home, you will find a greater return on the money you
spend for these services at the time of resale.
3. Kitchen: Most buyers don’t complain about a kitchen being too
large, too much counter space, or too many cabinets. Spend money
on the kitchen. We’ll talk more about this topic later.
4. Family Room: Oversize, don’t undersize, your family room.
Families tend to gather and spend most of their time in the family
room. If you were to oversize any room, make this room a little
larger (rather than smaller) than you think you need.
5. Master Bath: This room is the owner’s retreat, a place to relax
and unwind. Upgrade your master bath’s size and finishes. When
you sell your home, this will be an important feature and provide a
good investment return.
6. Room Size: Make sure your rooms are large enough to meet your
needs. It’s very expensive to come back after your home is finished
and add twelve or eighteen inches to a room because you’ve just
realized it’s too small. If you’re on a limited budget, it’s better to
hold off on some of the finishes than cut down the size of your
rooms. You can add finishes later, and the cost may only be slightly
higher than if you installed them during the initial construction
process.
7. Closets: Never underestimate the value of roomy walk-in closets,
linen closets, and laundry rooms.

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Building A Home? Pick 3 out of 4: Quality, Speed, Service, Price

Posted on May 17, 2012 by

Pick Three Out of Four
Quality, Speed, Service, Price


Jim and Susan had six—count ‘em, six—separate flooring companies
at their home in a three week period providing estimates to sand and
refinish their hardwood floors. About a month later, an unusual sound
came from Jim and Susan’s house, loud enough that everyone in the
neighborhood heard it. There was an explosion of screaming and yelling
that continued for several minutes. A hardwood flooring van was parked
out front; can you guess what happened? The couple expected a beautiful,
high-quality floor, but what they got was what they paid for. They were
not happy.
Jim and Susan had selected their hardwood flooring contractor based
strictly on price, but somehow they expected they would receive quality,
speed, service, and the best price. Sure, they probably got the lowest price,
but with it came a lot of heartache because they expected more and got a
lot less.
It’s no different than selecting a builder for your custom home. You
need to determine what you value and decide what’s most important:
quality, speed, service, or price. Of course, you want all four components,
but most often you will need to find a builder who can provide three out
of four. That’s reality. Is it reasonable to expect that you’ll get a builder
who will give you the lowest price with great quality, great service, and a
timely finish?
Let’s consider the merits of each:
1. Quality: A good company prides itself on providing a quality
product, especially in the custom home market. They encourage
prospective homeowners to look closely at the work they’ve done for
other homeowners and affirm they would be pleased with the excellent
workmanship the company provides. Comfort with quality, luxury with
outstanding craftsmanship.
2. Speed: An on-time finish is important, but there may be times,
especially in a busy market, when a builder misses some deadlines. If
that happens, you want your builder to proactively communicate with
you and, if possible, find a way to make up the time and get it done
quickly.

3. Service: A builder with exceptional customer care will provide
good communication and attend to the homeowner’s needs before,
during, and after their home is completed.
4. Price: The best companies aren’t usually the cheapest, but consider
this: they’re probably not the most expensive either. Great companies
deliver good value. An honest builder charges at or below market
value for the level of service and quality product they provide. Very
seldom is the cheapest price the best choice for a homebuilder.
Don’t make the mistake of thinking you can have all four qualities in
one builder. A Lexus or a Mercedes is priced differently than a Pontiac.
If you pay Pontiac pricing (like Jim and Susan) and still expect a Lexus
or Mercedes level of performance, you are setting yourself up for
disappointment, conflict, and sometimes even a lawsuit.
Know what’s important to you and adjust your expectations. If cost is
your most important value, then choose the contract with the lowest price.
However, if you value quality, be sure you look for excellent workmanship.
You can get the results you want in a quality, custom home; just be sure to
select your builder based on what you truly value.

 

 

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Home Energy Workshop In Santa Ynez Tonight! April 26th, 2012

Posted on April 26, 2012 by

 

A typical vineyard in Santa Ynez Valley, Calif...

A typical vineyard in Santa Ynez Valley, California. (Photo credit: Wikipedia)

Free Workshop And BBQ In Santa Ynez

 

Home energy upgrades, low cost loans, high dollar rebates, savings on utility bills and employing local contractors….if this sounds good to you, please join a free workshop and BBQ in Santa Ynez!

 

Thursday, April 26, 2012

5:30 – 7:30 p.m.

Solvang Veterans’ Memorial Building

1745 Mission Drive, Solvang CA 92463

 

 

Attend and enter to win a

FREE Flat Screen TV

Courtesy of CoastHills Federal Credit Union

 

Homeowners seeking to update features in their home, lower their utility bills, and feel more comfortable year round should join us to learn about a new County program aimed at helping add energy-smart upgrades to homes, and even go solar.

 

Please RSVP online by clicking here

For more information call:

(805) 568-3566

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Posted on April 3, 2012 by

San Ramon Chapel - Sisquoc, California

San Ramon Chapel

The San Ramon Chapel sits atop a little hill in Sisquoc. Although it is only 15 minutes east of Santa Maria, many people in our own city do not know that it exists. And of those that know about it, most know about it from the Rancho Sisquoc wine label. The chapel was built in 1875 and had suffered from years of neglect before a preservation committee was formed in 1975. There has always been a long list of things to do at the tiny chapel. Many generous people in our community have come together over the years to maintain the chapel and improve the grounds. The exterior siding, trim, and foundation have been on the list of “to-do’s” for many years, but funding was always a roadblock. Unfortunately for the chapel, there are some major repairs that can be ignored no longer. Insects, rodents, and dry rot have compromised its structural integrity. The work needed to begin immediately, and the chapel would have likely closed, if not for a generous donation of $125,000 from Steve and Marie Will, as well as several other donations, to complete Phase 1 of the project. This phase will repair the foundation, reframe the interior walls/ceiling, and install new electrical, heating system, and handicap access ramp. The entire interior will be reinstalled over the new framing and will look as it did when it was completed in 1875. The second half of the project consists of a complete exterior rehab of the siding and trim work, as well as some improvements to the chapel grounds. The preservation committee needs to raise an additional $95,000 to complete the final phase of construction.
Please consider a making a donation of any amount; and spread the word to your family and friends. Call me at 805-928-8948 if you would like more information.
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