how to save on new construction

Question

I need some advice on what you do to save money on new construction and make the most money. Is it all about square footage or make your rooms even sizes (12x12 or 11 x 12) can I get tax credits for building a low E house and if so how do I get them.

Thanks

John Blackman · Answer

One way we stretch our existing budgets is to get attic exemptions. This may not apply to your market, but an attic doesn't really cost that much more to frame since you've already got the roof. So the $/ft area of a finished attic is much less than the rest of the house, but you can sell it as finished space.To lower costs, you standardize and buy in volume. The houses look more plain and less imaginative. That can be ok depending on your market. It's not what we do because we are building in a niche market where we have to stand out. Finishes and features that make a property unique really sell. It may cost a little more, but if your property has something that is unique about it compared to everything else on the market in that range, I guarantee you buyers will chose your homes first. Everyone wants to be a unique snowflake. It doesn't have to be the whole house, but having one stand out feature will keep your home in buyers minds. Things we do that 'stick out'J-Frame tamlin siding - it adds cost, but looks uniqueIrregular windows - see aboveNon conventional roof lines - see aboveInterior metal hand railings - see belowUnfinished concrete inside - Cheaper than drywall, its free!Unfinished Mother in law space above a garageA tastefully placed curved surfaceA little cedar in the entryway - see aboveIf you have high ceilings, you can do the industrial AC thingNow you don't want to do all of these in the same house, but each house has one that makes it stick out.I know this thread was supposed to be about saving money, and here I am showing you how to spend it. However I think the effect is the same. You want a good return on your investment, so ask yourself is what I am cutting going to detract from what a buyer wants? Is what I am adding really going to push a buyer over the edge to purchase? Does this make me stand out, or will no one notice if I make this change.

Walt Payne · Answer

@Chip Chronister Also, you get more bang for the buck by eliminating hall space as much as possible in the design. Hall space is wasted and costs as much to build, but a buyer's perception is a smaller house because they look at the useable space. It's hard to eliminate it, but reduce it as much as possible by open floor plans and smart design.As J. Scott said, open designs. Shared space between rooms makes better use of the space, appears to be bigger and saves on construction costs. In trying to get fancy, some architects ignore the obvious when designing. Look at efficient plumbing runs by keeping bathrooms and kitchens oriented properly (back to back or above/below). In moderate climates it doesn't matter, but it costs more to put plumbing on exterior walls in cold climates.

Jon Klaus · Answer

Good advice above. Before you even start, buy the lot right. I've made more by paying my price for the dirt, than by keeping construction costs down.

John Blackman · Answer

You're absolutely right Karen. That's why you will notice more boxy designs the further you get away from city centers because you are competing on cost. With urban infill where we are building, we have to keep the designs more modern. It's what sells. The exit difference between a plain box and a trendy design can be $20/sqft. On a 1500 sqft home, that is $30,000, much more than the cost of the roof lines. In a big subdivision each home is going to have a very firm $/sqft with little wiggle room so the extra design doesn't help you there.

J Scott · Answer

That's by-far the best piece of advice -- build a box.I'm certainly no expert, but here are some other things that I've learned about reducing new construction costs:- To reiterate from above, build a box -- reduces framing, siding and roof complexity/cost. - Use open space designs - empty space is cheaper than walls/doors and fewer rooms often mean fewer windows.- Build all the way up to your front setback - reduce driveway costs and sometimes reduce drainage costs.- Keep walls to 8 feet in height -- reduces sheetrock and paint costs. - Get your plumber and HVAC guys involved during the design phase -- reduces HVAC and plumbing rough-in complexity/cost. - No basement unless absolutely required -- concrete is expensive. - If you live someplace with stringent energy codes, consider insulation costs when framing (i.e., don't use 2x4 framing in places where you need R-20 insulation) -- this reduces your need for expensive insulation solutions.Also as Karen and others have said, buy materials that are decent but can be had inexpensively -- ceramic tile, carpet, less desirable granite slabs, etc.

Karen Margrave · Answer

@Chip Chronister How to save money? It's called, HOW TO DRESS UP A BOX! Seriously, stay away from a lot of cut ins and bump outs. Use standard sized windows, etc. Buy from Builders surplus or close outs if you have a chance. BUT, don't do things haphazardly, make sure things work together for the overall design. It does no good to cut costs if the place doesn't sell. Things like tile, laminate, etc. are always on sale. Use a lower roofline like 4/12 (high roofs mean more expense). Make sure the floorplan makes sense for how people live. Take advantage of things like building in niches in bathrooms, etc. if space is tight. W;hen money is really tight, you need to get creative!

Karen Margrave · Answer

@John Blackman Those are great homes, but I'm thinking they aren't examples of keeping costs down, with all those roof lines, varied materials, etc. :) I really like the style on those houses you're doing, and love the stairs, and exterior materials! Thanks for sharing.

Account Closed · Answer

@John Blackman A very salient point regarding attic space on a third floor or above a garage. Have you observed in your local market that discerning buyers may discount these spaces and not consider them as true GLA? These spaces are common in my local market. I agree it's cheap space and almost a no-brain er on investment value; however, it seems in my market a buyer is not willing to pay a full price/sq foot for the incremental space. For example, a market that commands $300/sq foot-- an astute buyer would not pay a full $90,000 for 300 sq feet of incremental space in a 3,000 sq foot house but assign a lessor value. I am curious if you have been able to make any observations or quantity what discount may exist if any.

Tyler Clark · Answer

@Chip Chronister One more thing, spend the money where it matters. If this is a spec, that would be kitchen, baths (particularly master) and curb appeal. If it's your personal residence, you can decide what areas matter to you.

Jay Hinrichs · Answer

@John Blackman thanks John once I click on that Icon how do I get the pictures from the MLS to here? Or off of my phone.. that is the challenge for this old dog...