Builder Development New Home: Home Theater
7 years ago
last modified: 7 years ago
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What's the average % the builder makes out of a new home?
Comments (13)It's too low to get a good quality job with a comfortable profit for the builder. All of his overhead has to come out of that, and 15-20% on a moderate priced home is the more usual fee. Not always true. Ours is a quality custom home with a lot of special features and details. Our GC was a one man show. His office was his kitchen. He has no overhead. He usually is building one home at a time. He does crank up the next one as current one is being finished. He's been building custom homes for over 20 years and everyone only has nice things to say about him. We own commercial property and many of our regular subs know him. Another quality builder we received bid from had an office, an on site supervisor, a fleet of trucks, plus all the women in his office, etc. BIG overhead. In the end, we were more comfortable with the GC we selected. It wasn't all about the money. We were also allowed to do things during the build to help save on cost. We were able to use our own subs. I purchased whatever I wanted from wherever I wanted. DH's helper did all the clean up, they stained the beams before installation, etc. DH is knowledgeable and we were able to be very hands on....See MoreChoosing an architect/builder for a new home
Comments (41)As long as the OP is open and transparent about his motives and preferred approach, it's up to each architectural or design-build firm that is interviewed to make their own business decision about participation or not. The open question remains, however, as to the degree to which the OP understands how conceptual design works, and the extent to which the OP is willing to work closely with and pay each of the participating firms to move through initial conceptual explorations together and then to move to a more finite schematic design. To get to a "tangible" schematic design that is responsive to a consumer's needs and wants; site and jurisdiction constrains; budget; and is a creative and rewarding architectural direction means a series of initial explorations involving stop and start-over, refine and refine again to produce the following: 1) site plan; 2) floor plans; 3) key sections; 4) elevations or perspectives and a 5) roof plan. Architects don't simply pull a rabbit out of a hat. Unlike auto manufacturers, there are no "last year models" on which new fins and a tail light can be added to market as next year's appealing model. Or the next person's house who comes along. So multiply this situation by "X" number of architectural firms and design-build firms all working at the same time on the same project! This situation is the extreme opposite of many of the posts we see here where consumers moan about the cost of architectural services and refuse professional services thinking they cannot afford the services and they don't really need them. Hopefully the OP will let us know how his process works for him....See MoreBuilding a new craftsman style home. Builder wont fix major issues!!
Comments (63)Just to be clear, I don't see causation for the developer, it isn't that you and your attorney can't argue causation for the developer, feel free to sue him and roll those dice, but it is an expensive get. Your chances of winning are much less than they are against the builder, and you are unlikely to be awarded attorney fees on a negligence case with this many questions. You must show that the developer had a duty and but for neglect of that duty your house would not have these issues. There are many problems with this assertion, first, and hardest to overcome, is if you knew the approved builders before you bought the lot then you found them acceptable. You have to prove that the developer had a duty to the homeowner. Someone please tell me how selling a lot with certain covenants and restrictions creates a duty for him to fully insure the benefit of those covenants and restrictions that supersedes your acceptance of those covenants and restrictions. That is just one of the three things that you are going to have difficulty overcoming. Once you establish duty, you have to show that there was no reasonable action available that would negate the damage, noting that there are other builders available you would have to prove that they all have similar issues. Once you get past that, you have to prove that the developer actually neglected his duty, which since he has kicked the builder off the development is another tough get. It just seems like a tough win, that is going to cost more than you end up with. Sorry, but that is my opinion. ---------------- Along with my father I have developed several mixed use developments (homes, apartments and shopping), and I am currently a member of an LLC developing a small shopping/condo warehouse district development. I am not saying the developer will not want to help, I am saying as a developer, access is the leverage I have (the money that builders can make from me). Once the builder is removed he is going to tell me to go pound sand. I will happily testify on your behalf if need be, however, if I start paying for things to get done I am opening myself up to an argument that I accepted responsibility. As much as I want financing and publicity to be positive, that has to happen on the front end. I can't start paying for the mistakes that builders make without opening myself up to being responsible for every problem by every homeowner....See MoreQuestions to Ask a Potential New Home Builder
Comments (25)First, you need to determine if anyone is willing to take on your project as a custom build. With a budget of $350K to $450K including the lot--and, I assume the cost to design the home-- I suspect your choices of "custom" home builders will be limited. If you determine there are a number of candidate builders, I recommend you not waste your time and theirs asking about what kind of drywall they use, etc., because you're not purchasing a product. You're purchasing a service. Focus on the process of building a home. You want to understand how each would take you from design to completion. Ask process-relate questions: how would you approach my project? How do you determine the construction schedule and how do you manage activities to achieve it? How do you determine the construction cost? How do you ensure completion will be on-budget without the "surprises?" How do you manage changes and how do you price change orders? How much on-site supervision is there? How often do you update us on the project and how? What about on-site meetings? You get the picture....See More- 7 years ago
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