Wednesday, January 28, 2004
How to Shop for a Log or Cedar Home- Part 1
My experience in selling cedar homes for 16 years has taught me that clients are often confused about the various types of products, pricing and services that are available. They have a tendency to ask for the "price per square foot" - but then neglect to ask what that price includes. The idea of purchasing a "kit home" is so new to them, they don't know what questions to ask. I intend to use this blog to post helpful information for "kit home buyers." It stands to reason that buyers will make better choices if they know what questions to ask and how to interpret the answers.
"What is the Price Per Square Foot?" Be sure to ask for two prices. Ask for the "kit price" (for the unassembled materials package) and for an average "turn key price" (for the completed home including labor). Be sure to ask for a general specification sheet of what is included in the kit price. The only way to compare prices from various companies is to see what each company is providing in their package. At this point, it also doesn't hurt to ask ask what (if any) services are included in the kit price. Be aware that some companies are happy to sell you wall material (i.e. just the logs or timbers) - whereas other kits will include everything from the subfloor to the finished roofing.
The lowest priced home package is not necessarily the best deal - especially if you have to pay for the rest of the necessary components. The only way to really understand the value of a kit home package is to compare specification sheets side-by-side. Don't forget to compare services as well. Some providers offer a materials only package and others include site visits, permitting assistance, design consultation, project management programs, etc.
With regard to turn key costs - be aware that this figure will vary depending on: 1) if it is a contractor built home or an owner/builder home, 2) the time of year (contractors charge more money during peak building season), 3) the quality and quantity of amenities you include in your home.
In our area, it is not unusual for a contractor to charge 15-20% of the total cost of the home. A large percentage of this can be saved if the homeowner wants to project manage the home - or build it themselves.
Another variable in estimating turn key costs depends on your tastes in floor coverings, countertops, cabinets, fixtures, etc. Obviously, if you choose to have several fireplaces, in-floor radiant heat and granite countertops - your turn key costs will be greater than someone building an "average" home.
The good news is that you CAN estimate your costs (both package costs and turn key costs) by using a set of preliminary blueprints. Preliminary blueprints allow you to get estimates from the contractor or subcontractors and help you to stay within your building budget. Our motto has always been "no surprises" and blueprints are a means to anticipate finished costs.
"What is the Price Per Square Foot?" Be sure to ask for two prices. Ask for the "kit price" (for the unassembled materials package) and for an average "turn key price" (for the completed home including labor). Be sure to ask for a general specification sheet of what is included in the kit price. The only way to compare prices from various companies is to see what each company is providing in their package. At this point, it also doesn't hurt to ask ask what (if any) services are included in the kit price. Be aware that some companies are happy to sell you wall material (i.e. just the logs or timbers) - whereas other kits will include everything from the subfloor to the finished roofing.
The lowest priced home package is not necessarily the best deal - especially if you have to pay for the rest of the necessary components. The only way to really understand the value of a kit home package is to compare specification sheets side-by-side. Don't forget to compare services as well. Some providers offer a materials only package and others include site visits, permitting assistance, design consultation, project management programs, etc.
With regard to turn key costs - be aware that this figure will vary depending on: 1) if it is a contractor built home or an owner/builder home, 2) the time of year (contractors charge more money during peak building season), 3) the quality and quantity of amenities you include in your home.
In our area, it is not unusual for a contractor to charge 15-20% of the total cost of the home. A large percentage of this can be saved if the homeowner wants to project manage the home - or build it themselves.
Another variable in estimating turn key costs depends on your tastes in floor coverings, countertops, cabinets, fixtures, etc. Obviously, if you choose to have several fireplaces, in-floor radiant heat and granite countertops - your turn key costs will be greater than someone building an "average" home.
The good news is that you CAN estimate your costs (both package costs and turn key costs) by using a set of preliminary blueprints. Preliminary blueprints allow you to get estimates from the contractor or subcontractors and help you to stay within your building budget. Our motto has always been "no surprises" and blueprints are a means to anticipate finished costs.
