Obviously, these costs vary by size, style, area, overall conditions in the marketplace and a host of other considerations, but generally speaking, most home builders follow a version of this economic model. Builder Costs (21%) Sales Commissions Closing Costs Deferred Marketing Advertising Contingency General Administration Cost Profit Income … [Read more...]
The Dreaded Change Order
Buyer - "All we did was add a $100 ceiling fan?!?" Builder - "You didn't just add a ceiling fan." What really happens when you want to make a change? When contracting to build a new home it is very important to get all the upgrades and changes to the standard house plan agreed to up front in the initial contract. Once the building permit is received and … [Read more...]
Building a New House from A to Z and then back to D…..
Have you ever really thought about the steps it really takes to build a house? Here is a breakdown of roughly the 30 steps it takes to construct a new home. Clearing Rough Grading Stone installation for Driveway Footing Layout by Engineer Dig Engineered Footing Pour Footing Engineer Sets Brick Points Foundation Block & Brick Backfill … [Read more...]
Builder Warranties – Mandatory or Elective?
Virginia State Law dictates that a new home must be warranted by the builder that builds it. That is all well and good but a warranty on a home is far more complex than a warranty on a toaster and to understand what protections come with the purchase of new home, you need to do some reading of some fairly small print. Once you begin to do your homework, you quickly realize … [Read more...]
Track Versus Custom Builders
The most noticeable difference is price per square foot....but basing your decision on that metric alone is not going to tell you the whole story and if your Realtor (buyer’s agent) is telling you that the best value is the lowest square foot price, you probably should get a new buyer’s agent. The difference in price comes from the combination of materials, selections and … [Read more...]
