Should I talk with a builder or find plans first?
Where do I find my plan?
How do I select a custom home builder?
How do I analyze competitive bids on home construction projects?
How much does a new home cost to build?
How long will it take to build my home?
When can I start my home?
Should I employ the services of an interior designer?
Is Greystone Homes an Energy Star builder?
Is Greystone Homes a green builder?
How do I avoid overruns?
What is a change order?
Where does Greystone Homes build?
Should I talk with a builder or find plans first?
We can work with both scenarios, but here are some thoughts. Most home owners are working from a budget which must accommodate the home construction itself along with the lot, site improvements, etc.
A builder will not be able to give you an exact cost without a blue print and set of specifications, but he should be able to give you a cost range (usually expressed as dollars per square foot at this point) based on your concept combined with the builder’s past experience and the lot you intend to build on. This ballpark range of costs can help you refine your expectations for house size and amenities before you invest time and money in a blueprint.
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As a custom home builder, we do not have a canned set of plans that we build from. In fact we rarely build from the same plan twice - even for our “spec” homes. We do have lots of unique ideas for homes we’re dying to build as well as website links to some excellent architects and plan providers. Our list is not all inclusive and we would love to see and hear your ideas.
When evaluating a plan, give first priority to the floor plan and layout of the home. Give the façade a lower priority - most plan providers will modify their plans for a fee. This might include transforming a colonial facade into a craftsman, adding a basement, enlarging rooms, etc. We can also draw a custom plan to translate your ideas and sketches into your own working blueprint. When modifying a plan, enlarging a room here or there is usually not complicated. Shrinking a plan or significantly cutting square footage from a plan can be difficult or impossible. It may be obvious, but remember that house size is a significant factor affecting house price!
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A builder should earn his money by bringing value to the process and to the finished product. If he does not, look for a builder who does or build the home yourself. Value aspects might include: interior and exterior design, suggesting options that will yield a better product, energy efficiency, craftsmanship, service and attention to detail.
During construction, your builder will make judgment calls as a matter of doing business. When it comes to making those choices, you want your builder to choose as if it were his home or as if the safety of his family depended upon the decision. You don’t want him to choose solely based upon what will pass the inspection or worse, what will put the most money in his pocket.
Ultimately, it comes down to trust. Do not get involved with a home builder you do not trust, regardless of how attractive the price. Trust alone is not enough, but it is the starting point. You also want experience, competence, service, and value for your money. I recommend talking to past clients as well as seeing some of his past work first hand. Ask your potential builder tough questions. If you find a good builder whom you can trust, and he or she has a reputation for pleasing clients, being efficient and fair on pricing, this is the builder you probably want.
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Let's say you receive three bids for $230,000, $260,000, and $270,000. The first thing you want to do is make sure the bids are as close to “apples to apples” as possible. The problem is that every home builder has his own way of estimating and may use different categories than his competitors. Choosing a home builder should never be based on price alone. The more clear information you can obtain about how the bid prices were reached, allowances and materials, the better chance you have of making the right decision.
If you analyze most construction nightmares you will find a common theme: the consumer was seduced by a low bid. I’m not necessarily advocating that you choose the most expensive bid, but be wary of the builder who seems to offer a low price. In the above example, I would wonder how the first builder ($230,000 bid) is able to complete the home for $30,000 less than his nearest competitor. Are the materials and workmanship that he uses comparable to those from a higher bid? Does the builder have a reputation for satisfied homeowners? Are the “allowances” for things like flooring and cabinets equal across bids and are they sufficient for the amenities that you want? Is the builder perhaps offering a low initial quote only to make his money via upgrades and change orders tacked on to the contract price? Builder trust and reputation are intimately connected to price.
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I have to answer this question with a question. What do you want in the home and where do you want to build it? We can give you an approximate cost range with basic information – square footage, lot, siding, flooring, counter tops, etc. This estimate might be useful for budgeting and expectation setting before committing to one set of plans or another, but the final price is developed with the aid of a finalized blueprint. We then walk through that blueprint in depth with the customer in order to understand all of the details and develop a mutually agreed upon set of specifications.
We are sometimes asked if we can match a cost quote from another builder. We’ll first work with you as above to understand what you want in a home. If we believe the cost target requires us to sacrifice quality or otherwise cut corners, we will politely decline to meet their price while explaining the differences in materials and construction methods. However, we pride ourselves in being able to build in almost any price range while maintaining quality. For example, we seal and insulate a home the same way whether you’re building a $200,000 home or a $1,200,000 home. We can further work with you to impact the price through evaluating the amenities you want. Do you want granite counters in the laundry or will laminate counters do?
When comparing the cost to build with the price of an existing home, remember that a new home comes with a new furnace, hot water heater, appliances, roof, floor coverings, etc that are less likely to need costly maintenance or replacement. Today’s homes are also built to energy standards far superior to older homes. You should expect a new home from us to have lower monthly utility bills, compared to a similar size existing home, perhaps helping to offset a slightly higher mortgage payment.
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Most of our homes are built in five to six months from the time we break ground. The time of the year we start the home and Michigan weather can also affect building time. Remember that there can also be a great deal of time spent up front selecting or drawing the plan, finding the perfect building site, obtaining financing, etc.
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Michigan winters can have a limited effect on the ability to start a home including digging the foundation and pouring the concrete. We have, however, started homes in every month of the year. Many times we look to quickly complete the “shell” of a home so that work can carry on within the shell and independent of the weather. Our schedule can also affect timing for starting a home.
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Yes! The input and use of our on-staff interior designer is included in the package. The character and cohesive style of the home, both inside and out, can be greatly affected by the influence of a designer before and during the build process. This includes everything from siding and stone on the exterior to interior tile, cabinets and paint colors. Whether you have a file of magazine pictures and ideas collected over years or just a basic feel for what style you prefer, a designer working in conjunction with you and the builder can help bring it all together.
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Yes! We are an Energy Star partner. One of the best reasons for building a new home over buying a used home is the opportunity to build it right and make it energy efficient. Building practices have changed in response to escalating energy prices. Homes built today are sealed tighter and insulated better than homes built just five to ten years ago. A new home should yield energy savings as well as increased comfort.
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Yes! The largest portion of green home building is long term energy use as determined by insulating and sealing, appliance efficiency, furnace and AC efficiency and lighting choices during the building process. Choosing to use sustainable wood products, recycled materials like cellulose insulation, and minimizing landfill waste lessen the home’s impact during construction.
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The best way to avoid overruns is before you ever sign the contract. In particular, review the “allowances” and materials specified to ensure that they are sufficient for what you want. Again, don’t be seduced by a low bid with puny, unrealistic allowances. We pride ourselves on delivering bids with realistic allowances.
If you’re using a construction loan to pay for your new home, it’s unlikely that the bank will be willing to change the terms of the contract and increase the amount of your loan. Beyond getting the allowances right, you have to be disciplined. Set a budget. If you want to give yourself some room to splurge, include a contingency over that budget and adhere to it. Be sure that any changes you do agree to during construction are captured in writing via a “change order”.
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Changes orders typically involve an upgrade in materials or change from the plans and specifications after construction has begun. Some changes can be accomplished with little or no additional cost. Where there is an associated cost, we document the changes in writing with both the home owner and the builder signing to insure agreement. Be aware that a change order may also affect the building schedule.
Some builders bid jobs low, planning to make up the money on their change orders. Once you are captive to a builder who sees changes as a gold mine, you've got a problem. Obviously, the best strategy is to keep changes to a minimum and choose a reputable builder. It is important to explain in the contract how changes are going to be handled. Our philosophy is to accurately bid the job from the start and not gouge the customer via change orders.
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We can work with you whether you have your building site already or need some help understanding building site options in the area. We are primarily a Tri-Cities (Midland, Bay City, Saginaw) builder, but we have enjoyed building homes all over Michigan.
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