How Much Will It Cost To Build?
There are so many variables that to quote a square foot (sf) price just isn’t accurate and could even be somewhat deceiving. Some of the larger variables include the overall square footage, the heated square footage, the number of stories, the size of the footprint, materials used (e.g. brick siding verses cement board, etc.), lighting, cabinetry, etc., and even the amount set for allowances. I will not pressure you to buy or build, and you will not be pressured to sign a contract. Only after a pricing structure for the specific home you want has been established do we ever sign any paperwork. Here are the steps involved. They are intended to prevent expensive surprises at the end of the process:
There are so many variables that to quote a square foot (sf) price just isn’t accurate and could even be somewhat deceiving. Some of the larger variables include the overall square footage, the heated square footage, the number of stories, the size of the footprint, materials used (e.g. brick siding verses cement board, etc.), lighting, cabinetry, etc., and even the amount set for allowances. I will not pressure you to buy or build, and you will not be pressured to sign a contract. Only after a pricing structure for the specific home you want has been established do we ever sign any paperwork. Here are the steps involved. They are intended to prevent expensive surprises at the end of the process:
– Once we meet and I have a feel for your requirements, I will guide you on the type of lot, as well as
the size and type of home that will best fit your needs.
– You’ll then identify (not purchase) a house plan and a lot so I can provide you with a cost estimate.
Generally house plans are selected from a web site such as Dream Home Source
www.dreamhomesource.com or Eplans www.ePlans.com or are created by an architect based on
your specific needs.
– At that point, I will provide you with an estimate for the cost of the home and lot. This should
enable you to decide whether or not you want to go to the next step.
– In order to finalize and lock in the pricing, I will now have you purchase the plans, and I then take
them to my key sub contractors to lock in bids and the final price to build your new home.
– You then decide if you would like to move forward or not. If yes, we sign one contract for the lot
purchase and another for the construction of the new house. The loans can close simultaneously or
at different times depending on your personal situation. If you would like, I will supply the names of
loan officers who have done a very good job helping some of our other clients.
What Are The Two Contracts?
Assuming you are both buying a lot from and having Dragonfly Properties build your new home, there are two contracts involved. The first is the purchase of the lot and the second is for the building of the home. Based on these two contracts (if you are not paying cash), the bank will loan you money for the lot purchase as well as for the construction loan on the new home, and can typically package these loans together to make the process run smoothly.
Assuming you are both buying a lot from and having Dragonfly Properties build your new home, there are two contracts involved. The first is the purchase of the lot and the second is for the building of the home. Based on these two contracts (if you are not paying cash), the bank will loan you money for the lot purchase as well as for the construction loan on the new home, and can typically package these loans together to make the process run smoothly.
What Are Allowances and How Are They Set?
Allowances represent agreed-upon pricing between the homeowner and Dragonfly Properties on certain items that function as homeowner’s preferences such as lighting and plumbing fixtures. The allowances are set based on your initial input as to your preferences and then are adjusted based on actual purchases. Allowances are also set for items that can not be confidently determined in advance by either you or me. An example of this is the depth of a well. While the allowance that is established will be based on experience and averages from other houses in the immediate area, the depth of a well is somewhat of an unknown until it is drilled. It is very likely that the homeowner will go over on some allowances and will be under on others. As such, Dragonfly Properties tracks allowances throughout the building process and keep you well informed so as to enable the best possible decision making.
FAQ’s Section 2 -
