Getting your plans to come in on budget

First a Mortgage Update – from Michael Robertson with ABC Mortage Services
Rates are moving lower! This morning, the Fed and the Treasury announced a new program to purchase up to $500 billion in MBS, and MBS prices soared after the news. The goal of the new program is to lower mortgage rates, and the initial reaction certainly was a big step in the right direction.

Getting your plans to come in on budget

One of the most difficult portions of home building is getting the plans, selections, and budget all to come together. Many times we have people bring completed plans in for pricing. Sometimes they are pleasantly surprised when the pricing comes in within their budget. But many times it comes in over their budget. Then they are stuck going back to the architect to work on the design to bring the costs down, or scrapping the plan completely. We suggest working with us from the beginning, that way we can work on pricing during the plan stage, so the plans are drawn to work within your budget. We have been in the home construction business for 15 years, so why not allow us to provide input while the plans are being drawn? We can provide input on costs, and on incorporating energy saving/green building techniques in the design. The orientation of windows, overhangs, type of construction, many factors can help lower your energy usage. As discussed in the previous post on this blog, homes have become a complicated system. We can help go through the maize of budget, plans, systems, and selections. So do not be afraid to include us from the beginning.

Have a very Happy Thanksgiving everyone!

Houses are Complex Systems

Houses have become complex systems to build. Each decision can impact other factors in the construction process. Let’s consider spray foam insulation. Spray foam insulation is a great product, and seals the home much better than standard insulation. It then requires that outside air be brought in through the heating and cooling system for air quality. The heating and cooling system should be resized, because a smaller unit can take care of more space. Plus the roofer will need to know to leave off the ridge vents, because the attic is typically sealed. Also, radiant barrier roof decking does not work if the foam is applied directly against the back of it, so the radiant barrier is not typically used for this application. However, DuraVent can be used to provide an air space, allowing the use of the radiant barrier decking. If gas heat or hot water heaters are being used, different venting is required, again because the house is sealed. So the decision to use one product impacts the decisions on a variety of other products. There are some great products available helping to reduce our energy use, but they need to be considered in the complete building package.

Mortgage update – interest rates are down on permanent loans, but the market is still volatile, so rates will continue to jump around. According to Michael Robertson with American Bank of Commerce, "Financing is still available for qualified buyers. Banks like to see a little skin in the game - down payment - and the ability to service the debt. We are back to the basics."