Prudential Steamboat Realty

Building a custom home will be one of the most rewarding experiences you’ll ever undertake. It might also be one of the biggest financial and personal challenges of your life.

Your personal home is often your biggest personal asset and even though there is considerable satisfaction in creating your dream home, it’s important to treat the whole process like the financial investment that it is.

For example, lets take a 3,500 Square foot custom home being built somewhere within the Steamboat city limits. You start with a lot for say $400,000 (although it’s likely to be higher) and approximately $200 + per square foot for the construction. Therefore, your building costs are 3500 Sq. Ft. @ $200 /foot = $700,000. So, you’re in it for at least $1.1M and that’s not including contingency costs or the compounding interest bill from the construction loan. Wow, now it’s getting scary! SO let’s call the final number $1.2M.

The first question I’d ask €¦ Does the street or neighborhood support a home that would need to resell at over $1.4M? I would advise to find a location that meets this criteria – your broker can help you with that answer.

OK, so you’re moving ahead and now there is a myriad of options and decisions ahead of you. One piece of advice “don’t rush the process of planning as it’s the most critical part of making this project a success.

Here are some ideas of how to keep your project on track to meet your vision whilst remaining within budget:

• ASK YOUR BROKER what type of features are important to the majority of buyers in that area. Yes, it’s you custom home, but designing some of the most crucial features into your homes design will make all the difference when you go to sell it.
• HIRE AN ARCHITECT with experience in your style of construction. Remember, a pretty house with curb appeal and clever interior design are major components for resale. Be clear with your vision and demonstrate by showing photo examples. The more detail on the plans (including sample boards) the fewer headaches later in construction.
• CHOOSE A REPUTABLE BUILDER by gaining recommendations from friends or associates who have built their own home – someone who is reliable and has relevant experience. You’re looking for a track record of meeting budget, timeline and quality. Interview at least three and spend the time to see if you have a good “fit” and if they follow through on promises before signing anything.
• MAKE SURE YOUR BUILDER CAN USE EMAIL as while this may sound routine, it is surprising in this day and age the number of builders that don’t use email and other computer-based efficiency/budgeting tools. You will need to rely on these in the process.
• DON‘T SIGN OFF ON THE FINAL CONSTRUCTION BUDGET until almost every item has a hard bid. This will reduce surprises and future issues.
• MATERIALS “Don’t try and save a few dollars on aesthetic materials. In this price category, there’s no comparison between custom wood panel garage doors and standard vinyl doors, especially if they’re a significant part of your frontage.

If you want to build your home while making it a great investment, then consider these referenced above items. Oh yeah, start in early spring if possible!

After the construction is done, then simply enjoy that feeling of living in your own creation.

For more informaiton contact Darrin Fryer at Prudential Steamboat via email at darrinfryer@earthlink.net