As someone who went through the new build process in 2020 too, I was interested in this thread until I read that. OP, you're describing a situation/location that is not relevant to probably 95% of people on this forum |
I live in the Oakland terrace part of Kensington and we absolutely see one million dollar plus new builds going up in a couple months. Also, to answer another pp, many of the tear downs seem to sell for around 400k. |
I mean, if your world begins and ends in downtown Bethesda, sure. But for the many people that work/live in Howard, Anne Arundel, PG, or further out in Montgomery Counties this is within normal. |
Congratulations OP, I hope you enjoy your new home. A word of warning: this forum is filled with jealousy and pretense and around half of the posts will be mean and irrelevant. But there are still some of us who are interested |
You’re spending 1.4 building a house on a lot that cost 82k? Seems way off. |
These are not custom new builds with a homeowner involved making all the decisions and closely supervising. The big volume builders do it for sure though. No one around to catch anything or supervise the work. |
|
Interesting thread. I'm skeptical about the OP's plans. Fwiw we worked with the same architect as the OP on a major project. She is wonderful in every way.
But I'm still skeptical of the OP's plan. An architect doesn't design to a particular spending limit. We wound up spending about 3x on our project as much as we intended to at the outset. BTW we used the architect's recommendations to bid our project. Bids were all over the place in terms of costs. And the one we ultimately selected did some great work but also had some epic failures, big upcharges, and horrendous communications headaches along the way. And if you're doing all the fittings and fixtures through the builder, you're going to be paying a lot extra. |
OP wants to immediately lose 500k in equity on move-in day. DCUM is going to rip you apart OP, you should quit giving updates while you're ahead. |
Could you please elaborate more regarding the architect not designing to a particular spending limit and why costs are higher for doing fixtures and fittings through a builder? We're in the design phase with an architect for a major remodel and addition. Thank you. |
| Thank you, OP. I find this very interesting and hope you're not driven away by a handful of nasty posters. |
|
I’m a home remodeler more than a custom home builder. That said I have done new builds as large as 12,000 square feet.
I wish the OP the best of luck. On a good day with a good team it’s a tough process. I would recommend that the OP have dry gunpowder ($$$) and flexibility in his living arrangements. I could not finish a home in 4 months. At four months I’d be happy to be framing and working toward having a roof. The old adage - quality, price, and time - you can have any two is very, very accurate. My advice - pick the two wisely. |
OP spoiler alert--we are pretty substantially along in the process. So some of what PPs are skeptical of has already been accomplished. We engaged the architect first, but shortly thereafter engaged our engineer and the builder. The architect, builder and homeowners are really partners in this process. A budget is a requirement, just like the number of bedrooms, or whether you want a fireplace in the ktichen, or whatever other specs you dream up. Actually, they are all related. I can't imagine starting this project and NOT having a budget, and having your professionals manage the project with an eye on it. But, you do adjust as you go along. There are opportunities to save money and (many) to spend more money along the way, but starting out with a set of plans that fits your budget (or comes in a little under is where it starts. As one example: designing a home with 3 bathrooms vs 5 bathrooms, aside from square footage means buying 5 sets of bathroom fixtures vs 3. So there are budget implications to that. The architect understand this, and they also will help you make different choices if you give them a $2M dollar budget vs $1M. They can also give a reality check. We initially thought we could build our house for about 150K less--the architect and builder were really helpful in keeping us realistic about what we wanted vs what was possible within our budget. |
|
Could you please elaborate more regarding the architect not designing to a particular spending limit and why costs are higher for doing fixtures and fittings through a builder? We're in the design phase with an architect for a major remodel and addition. Thank you. I think this question is such a key one, and to answer it helps to talk about whether the home build is fixed price, or cost plus. Here's a good summary: https://lamontbros.com/fixed-price-vs-cost-plus-contract-whats-the-difference/ We did Cost-Plus--which is again, the road less traveled for how to build a house. Its more hands-on, because we're approving every single line item in the budget, including the builder's profit. The builder still recommends vendors/subcontractors. And a good builder is going to save you money a) because they're part of the trade and getting discounts that directly pass on to the homeowner and b) they'll help you find reputable providers, though you're free to use your own and the builder will vet them. The builder won't care if you spend $1,500 for a kitchen faucet, or $100 (although the bank is going to care-- a lot--because you've already submitted a budget to them and they are very motivated to not have a half built house because someone ran out of money. If you do a fixed price, the homeowner wont' really be aware of the prices for any single component. And it seems to me that under this system the the builder is going to really make sure the homeowner doesn't overspend, because that fixed price includes the builder's profit. I could see how with a less than ethical builder, that could even turn into cost-cutting or even quality issues because the less they spend on building the house, the more profit for them. But, fixed price does transfer risk from the homeowner to the builder. Either way, there will be several long, detail oriented meetings with the builder so they understand your preferences for everything from HVAC to sound systems. **They aren't making all of these decisions blind, if you tell them you want all foam insulation vs cellulose they will take that into account in getting bids. Once you sign the contract with the builder, they'll send you to their various vendors to make your selections (for example, Ferguson showroom for kitchen & bath) or, you can find your own. We mostly went with the builders suggestions because they know who does a good job--but we did find a few of our own as well, and our builder has been happy to work with them, or pointed out potential drawbacks we didn't think of. As a type A, control freak who manages complex projects for a living (albeit in a totally different industry), with a love of excel sheets and Trello, we went Cost plus and I have vendor receipts for every single faucet, toilet, lighting component, and heat pump that's going into the place. |
There's so little first-hand info on this process. Sharing things that we learned, and very interested in the constructive comments and suggestions, that hopefully help others. |
This is an adage? The obvious answer is you pick quality and price. |