Wynkoop Addition

Bethesda Charmer Built in the 1960s Ready for a Facelift

New Home Addition and Renovation in Bethesda

Bethesda home built in 1960s will look like new

Bannockburn home before PAramount Construction Addition

Existing home built in the 1960s

Homeowners Love Our Work

Another Happy New Home Owner

Arlington New Home Open House This Weekend

Join us this weekend and take a tour of our new home model
The Brookhaven.

This new home in Arlington was designed by our “genius” staff
architect Kevin Davis.

Come and see these cool new home features:

  • Hardwood Floors 1st & 2nd Floor
  • Wood-Mode Brookhaven Cabinets & Built-ins
  • Stone 2-sided wood-burning fireplace
  • Fully finished basement with wet-bar
New Custom Designed and Built by Architect & Home Builder Paramount Construction

Come to an new home open house and tour our Brookhaven Model new home in Arlington Virignia this weekend

6317 23rd Street A. Arlington, Va. 22207 – $1.5 Million

arlington homes for sale, mclean homes for sale, falls church homes for sale

An oversized front porch sets the tone for this inviting home. From the foyer your drawn past the dining room and into the spacious great room. A double sided fireplace turns a kitchen and nook into a warm a comfortable place to dine. The mudroom is conveniently located between the garage and the kitchen and includes a door to the rear yard. Upstairs the four bedrooms are complimented with three bathrooms. The master bedroom located on the rear of the house is showered with daylight from a wall of windows.

New Bethesda Home To Be Built on 9000 SF Lot in Whitman Area for Under $1.1M (Land & New Home)

Hurry – this new home for sale to be built is NOT listed in the MRIS…yet.
That means the Bethesda building lot price is about 6% (Realtor commissions)
lower than if the property ends up for sale in the MRIS.

Get in Early on this combination of a great home and great building lot for sale
in prime Bethesda!


The lot is in the Walt Whitman HS area and is in a neighborhood
near Whittier Blvd. The new Bethesda home for sale is our Marcey Home
Plan modeled after our award Winning Madison New Home Plan, but a bit smaller.

Here it is:

New Home on Great Building Lot in Bethesda

Great New Home Plan on 8000sf + Building Lot in Whitman School area



PAramount Construction announces new home in Bethesda for sale

New home for sale in Bethesda by Paramount Construction - 1st Floor Plan



Paramount Construction - The Marcey Floor Plan 2nd Floor

2nd Floor of The Marcey Home Plan




Call Now – 301-370-6463 and we’ll “walk you thru” The Marcey plan and give you a tour of the lot.


ANOTHER NEW HOME FOR SALE IN BETHESDA PRICED COMMISSION FREE – YOU SAVE!!!

Please let us know below on what you like and don’t like about
the floor plan. All comments are appreciated.

Prices Dropped By $100K Each on 2 Bethesda Building Lots For Sale

New Home in Bethesda Under Construction

Home Under Construction We Are Building in Bethesda Directly Across from the Building Lots For Sale



These two building lots in Bethesda – one 21,571 sf & the other 10,178 sf – have been
reduced in price by $100K each.

The property is in the Walt Whitman/Pyle school cluster. They are on a very quiet, pretty
street. These are priced to sell fast.

We are building a $2M new home (see photo) right now across the street from these lots.
The tear-down lot we are building on cost around $650K. I haven’t done and hard
real estate market research, but at prices of $549K and $449K they appear to be priced
to sell fast.

If you are interested let me know by calling me at 301-370-6463 or email me at
info@ParamountConstruction.net asap! These will not last long!

2 Bethesda Building Lots Prices Drop $100K EAch – Priced To Sell FAST

These two building lots in Bethesda – one 21,571 sf & the other 10,178 sf – have been
reduced in price by $100K each.

The property is in the Walt Whitman/Pyle school cluster. They are on a very quiet, pretty
street. These are priced to sell fast.

We are building a $2M new home (see photo) right now across the street from these lots.
The tear-down lot we are building on cost around $650K. I haven’t done and hard
real estate market research, but at prices of $549K and $449K they appear to be priced
to sell fast.

If you are interested let me know by calling me at 301-370-6463 asap!

New Mediterranean Style Home Plan From Our Paramount Portfolio of Homes

Here is a brand new red hot home plan we just created.

We’ll be building a 4600sf version of this custom home in Rockville
starting in the fall 2010.

This new home features:

  • 3200 finished square feet
  • high end finish package
  • stucco exterior
  • 5 bathrooms (optional 6th bathroom)
  • optional elevator
  • 10 foot ceiling heights
  • Mediterranean styling inside and out
  • Wood-Mode cabinets
  • additional service sink in kitchen
  • additional dishwasher for easy entertaining

Paramount Construction creates a new home plan

A New Mediterranean Style new Home Plan called the Parkedge 32 will be built in Rockville in the Fall of 2010

Call Now While Early Mover Special Pricing Is in Effect!
301-370-6463

The Madison Model Home Video

New Bethesda Home from our Paramount Portfolio of Homes Collection.
Take a video tour of this new home. We can build this same home on your lot
or one of our building lots.

We can also modify this home plan and customize it to your needs.

Home Builder in Maryland Is Nominated for 2 More Design Awards

Paramount Construction, a Maryland home builder, was nominated for
two home design and building awards. These awards are given by the
Maryland National Capital Building Industry Association.

Paramounts’ projects are a new custom home in McLean Virginia, the
Dulany Model and a huge and complex home addition and renovation
to a 1920 log home in Rockville, Maryland.

Here are photos of the Dulany Model new home and here are photos
of the 1920 log cabin.

Paramount Construction is a Maryland home builder and architect.

Gorgeous Lot with 1950's Rambler or We'll Build a New Home For Sale On 33K SF Wooded Lot in Bannockburn Neighborhood of Bethesda

Minutes from the Bethesda home for sale is the best shopping & dining Bethesda has to offer

Minutes from the Bethesda home for sale is the best shopping & dining Bethesda has to offer

This private wooded Bethesda home building lot is available
for sale on April 21.
The home for sale is located in Bethesda Maryland (home to be built). You’ll fall in love
with the walkable neighborhood. The streets are lined with trees and
lots of families and children live in the cluster.
The building lot and the existing home couldn’t be better located. It is in the very heart
of Bethesda (here is one of the potential homes which could be built for sale
on the building site
).The Bethesda home for sale is located across the street
from Walt Whitman High School and down the road from Pyle Middle
School. Kenwood Country Club is a mile or so down River Road.
And a shopping strip center further down River Road hosts a
Whole Foods Grocery.

You’ll have three metro subway stations that you could easily drive to.
The first metro station is the Bethesda Metro at Wisconsin Ave.
This station is about 2 miles away. The second metro station
is the Friendship Heights Metro. This metro station is also about 2 miles
from this Bethesda home for sale. And the third metro station
is in Chevy Chase, the Tenley-town metro. Here is a video of the
existing Bethesda home for sale
which would be torn down and a video
of the gorgeous wooded lot which is 33,000 sf — truly a rare find
in Bethesda.

Since the house for sale is located in downtown Bethesda, it
goes without saying that you could drive just a few minutes
to all the fine dining and shopping downtown Bethesda has
to offer. The Crescent Trail is a few minute bike ride away
and you can bike or walk to the Bethesda central
business district. You can also bike or walk to the canal and the
Potomac River near Glen Echo. Here is another home plan that
we could build on this Bethesda home for sale building lot
.

Once you get to downtown Bethesda you could just browse and hang out
reading books at the Barnes and Noble. Or if you’d like to take in a movie
there is a cinema right off of Bethesda Ave. And for those that love
computers and technology, the Bethesda Apple has all the new Apple iPads,
Apple iPhones or Apple MacBooks.

After you’ve caught a bite of food to eat at any one of
the outstanding restaurants Bethesda has to offer, you might just
get right back on your roller blades or bicycle and continue down the Crescent
Trail until you pedal into the Kennedy Center.

Check out the home for sale (to be built) in Bethesda Maryland here.

And if you need a Bethesda rental home to stay in during the time
your new home is being built you can choose one of these rental
homes in Bethesda.

New Custom Home Plan In McLean Reflects Owners Vision

This custom home was designed to fit naturally into the 3 acre wooded building site in McLean, Virginia. Our

goal was to meld the home into the natural wooded setting and to capture the phenomenal views on all sides of the property.

The home was designed so the owner could live and entertain on the first floor and have bedrooms for her

grand children on the 2nd floor. So we created a casual, yet elegant, open floor plan on the first floor.

We designed built-ins with an open feel to divide the dining room from the family room. And the

built-ins around the fireplace we were able to provide focal points and at the same time create and warm

and cozy feeling.

Rooms were laid and organized with the objective of maximizing the wooded views from every room.

This first floor is ideal for entertaining and convenient for the owner to retire to her bedroom suite off

the entry foyer.

The owner also wanted to have a special space just for her grandkids where they could play yet provide

privacy for her. So we created a second floor “kids-family room”. This space could be converted to a

fourth bedroom in the future.

We designed a custom marble curved sink in the powder room. The idea was

To create a unique touch that would set the room off and give it an elegant feel.

Woodmode cabinets in the this new home in McLean add special focal point

Woodmode cabinets in the this new home in McLean add special focal point

McLean new home has 8 foot exterior doors

McLean new home has 8 foot exterior doors




The homeowner was very involved in all of the decisions and materials selections.
Her sophisticated tastes and style are reflected through out the home. Here is n example of
this custom designed sink in the powder room.

Powder room with custom designed sink with marble top

Powder room with custom designed sink with marble top

Here are some of the Features and materials used in this new McLean custom home:

Transitional Style Architecture
Nichiha Sierra Premium Shake Panels
WoodMode cabinets
5 inch clear Maple custom stain color with tung oil finish
ergonomically designed vanity in powder room
Trey ceilings master bedroom, foyer dining room
Custom architectural millwork
10 foot ceilings
2×6 panelized framing
Zip wall system
Second Floor family room/Kids Lounge
Master suite on first floor
Expansive 360-degree views
PVC cornice

New Home for Sale in Bethesda in Walt Whitman HS Cluster on 33,000sf Wooded Lot

Looking for a great new home in Bethesda? We have a new home on a 33,000sf wooded lot in Bannockburn.
The home will be built soon and can still be customized. Take a look at the Bethesda building lot
and the new home features.

Rockville Log Home Nominated for Design Award

Family room kitchen home addition blends with the 1920s Rockville Log Home

Family room kitchen home addition blends with the 1920s Rockville Log Home

[caption id="attachment_774" align="alignleft" width="300" caption="Kitchen family room addition interior view looking out to the 10th hole of Manor Country Club"]Kitchen family room addition interior view looking out to the 10th hole of Manor Country Club[/caption]
New Kitchen with high ceilings and original back wall of log home

New Kitchen with high ceilings and original back wall of log home

[caption id="attachment_777" align="alignleft" width="300" caption="Prime views of Manor Country Club Golf Course"]Prime views of Manor Country Club Golf Course[/caption]We’re almost complete with out addition and renovation of a 1920s log home. The home is located
on the 10th hole of Manor Country Club in Rockville, Maryland.

This Whole House Renovation project was very challenging from a design perspective as well as a
construction perspective.

I first met our future clients at an open house they attended at another award winning project of
ours in Rockville. During our first conversation, the owners described how they had a very unique
home. They told us that house was a log house originally built in the 1920s with additions added
on over the years. And adding to the unique nature of the project, the home was located on the
10th hole of Manor Country Club in Rockville.

They went on to tell us about there long journey to find an architect that was up to the challenge
of creating a design that would blend with the existing 1920s log home architecture. And the
risk was high since the project would be highly visibly to every one that played on the golf course.
So their challenge was finding someone that could create a design that they’d be proud of and that so many
others would see while they were playing the golf course.

Not only were the owners a bit worn out trying to find an architect, but they also needed a builder
capable of handling the engineering required to modify a log home with huge timber walls and roofs.

Luckily, the project that they met me on was equally challenging, and they were impressed enough with
our work that they retained us to help them solve their design and construction problem.

So our primary design goal was to blend their new addition design into the existing architecture of the
1920s log house. And along the way, we wanted to create as many walls of glass to capture the breathtaking
views of the “back nine” at Manor Country Club as we could.

So we added a two story master suite and bedroom above as a wing on the left side of the house
and a one story family room and kitchen addition on the rear. The master suite addition also had a
new screen porch attached to it and the family room – kitchen addition had a new
single car garage built underneath. We also designed a beautiful stone patio with a bar-b-que grill
and a decorative water fountain outside of the family room – kitchen addition.

To capture the absolutely phenomenal views of the golf course we had to create some new, larger
openings in some existing log walls. We also designed a 20 foot tall bank of glass in the kitchen- family
room addition to create dramatic views of the golf course.

One of the challenges for us was finding a craftsmen that had experience patching log walls and
filling the joints between each log so it looked perfect. Since we removed so many huge bearing
interior log walls and inserted steel beams to hold up the structure, finding the right person
was critical to making the job look great. Luckily, we didn’t have to search too far because the
owners had been using an old craftsmen for years on their house. So he was happy to help us
out and I think he enjoyed the challenge dealing with more than the maintenance work he had been
doing in the past at the home.

We many structural challenges working with the log home that we had to overcome. And the design
we created creatively compliments the old style log house while bringing in a sense of modern architecture.

See more project photos of this major home addition and renovation here

Features:

Traditional style architecture
Carderock stone
Woodmode cabinets
5 inch clear cherry wood floors custom stain color
Custom architectural millwork
Master suite on first floor
Expansive 360-degree views
Hardiplank vertical siding with battens
Pella Windows

New Construction Homes in McLean Virginia – Another Award Winner

Here is a wonderful custom designed new home on 3 acres in McLean. The home design
was created to capture the tremendous views on every side of the home.

The master suite is on the first floor. The ceilings are 10 feet on the main level.
Five inch clear maple floors with custom wood floor stain are one of the many
custom features which set this home apart.

The powder room has a custom designed marble sink. The homeowner was deeply
involved in the entire design process and her refined tastes and sensibilities
are reflected in this custom home.

The structure was designed and engineered using panelized wood framing
techniques. The framing package was fabricated and the panels were assembled
in an indoor facility and then shipped out to the site and erected.

There are lots of custom WoodMode builtins which provide function and design
elements which add to the custom feel of the home.

Must Hear Interview – New Home Building Essentials: Saving Big Money Designing & Building Your New Home

Listen to home design and building tips that will save you money and headache if you are designing and building a new home:

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#1

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New Falls Church LEED Certified Green Home

Here is the front elevation of a new home plan that we are building in Falls Church Virginia.
This will be a LEED certified new home.We are incorporating green building designs and green building materials.

Falls Church LEED New Home

Falls Church LEED New Home

Birkhaven New Home Plan

Here is the Birkhaven Elevation

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Paramount Construction creates another new home plan

Paramount Construction creates another new home plan

Washington Not So Conservative Afterall…New Contemporary Home Plan (and it's affordable)

Hot off the presses (ignore the incorrect 2007 Copyright date)!
You asked and we delivered!

Paramount Construction creates another new home plan for you

Paramount Construction creates another new home plan for you


Washington DC is not as conservative as some people think.
We have seen a fairly large demand for contemporary or
modern style home plans. This is one we designed that has
3 levels and 4 bedrooms.

Call it a contemporary home plan, a modern new home plan
or some might call it Bauhaus architecture. Call it what you
like. We are seeing more and more demand for the non-traditional
new home plans. And we are responding to that need.

Kevin, our staff genius architect, has created over 90 new home
plans that fit perfectly into the Bethesda, Chevy Chase, McLean,
Falls Church, Potomac, Arlington neighborhoods.

These are no McMansions. You’ll love the new home plans
with the scale and massing that fit right in (your neighbors will
love it too).


This new home floor plan has been value engineered to be built very affordably
yet still give that ZING-head-turning curb knollwood-elevationappeal and
a great open floor plan. Plenty of windows in the rear
to capture all the views.
We can design this with 9 or 10 foot ceiling heights. And since
we have an in-house “World-Class” architect, customizing the
floor plan for your unique tastes and style is easy and smooth.
We can also customize the home plan for whatever topography and shape
home building lot you would like to build this on.


More good news – this new home can be built as a modular, prefab
or with panelized construction methods – Saving time and resources.
You can’t even tell these are modular homes and prefab new homes.
If you would like to see the floor plans call me at 301-370-6463 or email me at
info@paramountconstruction.net.

Here are the floor plans for this Bauhaus influenced new home plan:

Contemporary new home floor plan for Bethesda, Chevy Chase, Arlington, Mclean

Contemporary new home floor plan for Bethesda, Chevy Chase, Arlington, Mclean

Close Up Of Award Winning New Home Finish Details

This new home in McLean Virginia won Best New Home of The Year.
You’ll see that the design details are sharp, clean and crisp.
Take a look now:

Want to Know A Secret For Saving $3,145 on Your Next Home Renovation or Addition?

The closer you make the home renovation project to a new home the lower the price

The closer you make the home renovation project to a new home the lower the price

On your next large scale home remodeling project or major home
addition, follow these tips to save lots of time and money.

On a large remodeling or renovation job, the key is making existing
conditions of the work area as close to a new home as possible.

So if the home is empty; no animals, no kids, no people and no furniture,
in other words, as close to the condition the builder would face when
building a brand new home, the vendors and subcontractors will price
the job with lower prices.

This is because the hassle factor has been
reduced.

The vendors and subcontractors don’t have to work around the furniture and worry about
ruining it, they don’t have to worry about keeping dogs and cats in the
house when the workmen go in and out of the doors. They don’t have
to worry so much about safety of the little kids, they don’t have to make
sure the utitlities are on at the end of each day – the water, the electricity ,
the heating and cooling.

So when we can get this type of condition, we explain
to the vendor that they will be able to work faster and have fewer interruptions.

Plus the construction workers are always trying to be friendly to the homeowners and visa versa,
the homeowners want to be friendly to the workers. So what happens is that “hello”
in the morning can turn into a 30 minute chat about what the worker thought about
the Washington Redskins or Obamas State of the Union or about the pipe burst
at the Shady Grove Red Line Metro Station. And the cumulative impact is that the job
ends up taking longer.

Now you might say what about the cost of moving out and fining a place to stay?

Well you can rent a pod for I think $80 per month. Also, through good planning the
home builder may be able to set aside certain areas in your home that are not being worked on
and block those areas off by building temporary protective walls to move some furniture
and store it during the duration of the job.

Also, we have temporary homes that we put our clients in that we rent back to the
client for $1500 or so per month. These homes are in Bethesda, Chevy Chase,
McLean and Arlington (call and reserve these way ahead of time).

We have seen jobs that we estimated 10 months to complete but
where the client moved out and we saved 4 months of time.

So when you net out the 4 months of interest savings on a construction loan and the lower unit
prices from the vendors, against the cost of moving out, we’ve actually seen savings
of $3000 or more.

Plus lots of these homes that are being renovated were built prior to 1978 and have lead paint.
So if you have little kids you really don’t want them exposed to the dust particles and it’s
just a lot more pleasant not living on a “construction site” for 5 months.

I always joke and tell our clients that they’ll live longer if they don’t live on site!

So when you think about that, this tip is really priceless!

Thinking of selling our home? Call 301-370-6463 – - We Buy Homes.

We are now reserving construction starts slots for summer and fall 2010.
Don’t miss out on these low interest rates. Email me at rob@paramountconstruction.net
to get on our schedule.

Falls Church Home Owner Building LEED Custom Home

Watch Why PAtrick Chose us to design and build his LEED certified green custom home:

Maryland, Virginia & DC Homeowners: Check Out EPA's New Website For Green Homes & Slash Your Energy Costs

This is an article from Robyn Griggs Lawrence of Home Living Magazine

Looking to spend less heating your home this winter? You’re not alone. Now the Environmental Protection Agency’s
new Green Homes website can help. Whether you rent or own your home, Green Homes offers tips on reducing
energy consumption, waste generation and water usage while improving indoor air quality.
Check Out EPA Site Here

Falls Church Virginia New Home Client Loves Paramount

Listen and Watch this homeowner who has hired Paramount to design and build their new custom home in the City of Falls Church. We first met the owners at an new home open house we held about two years ago. We had just completed a new home on Oak Street in Falls Church and they stopped by.

Well a quick 2 years later and we are ready to break ground on their new home. This custom home will be constructed using the latest in panelized homebuilding techniques.

The home will also achieve a green home LEED rating.

Listen to what the Falls Church Virginia homeowners have to say about Paramount Construction and their staff of award winning architects and builders. They actually think that rob is “dreamy”. Have you ever hired a builder because they were “dreamy”?

AIA Reports That Residential Architecture Revenues Show Signs of Improvement

Business conditions stayed weak through 2009′s 3rd quarter for housing design architects, yet specific segments at the market’s lower end look ready for a 2010 recovery, according to fresh numbers from the AIA.

Since the billings for architects are usually a good prediction of future activity in construction, this could be good news for homebuilders.

Design work for affordable homes for first-time buyers jumped from -64 percent in the third quarter of 2008 to -2 percent in a year over year comparison, according to architects responding to the latest AIA Quarterly Design Trends survey. (Percentages indicate the number of respondents reporting sector ‚improving‚ minus the number reporting ‚ aweakening.‚)

The feeling towards the move-up market had an improved gain that traveled from -57 percent down to -29 percent within the same time frame.

Each market segment has been boosted through decreasing home costs and good mortgage rates. AIA cheif economist Kermit Baker noted the kick-start the affordable market received from such aid as the federal tax credit for those purchasing a home for the first time.

The third quarter of 2009 showed strong gains in remodeling activity, with 27 percent of architects reporting an increased demand for both renovations and additions, up from 13 percent in the year prior. Kitchen as well as bathroom remodeling jobs increased by a very large percentage, from approximately eight percent during 2008 to approximately twenty six percent during 2009, an increase of more than three times the percent for one year.

Additional market segments have not been as fortunate. The townhouse/condo market remained stagnant, with a score of -43 percent in 2009 vs. -49 percent in 2009. Interest in custom/luxury homes and second vacation homes remained extremely low, at -48 percent and -70 percent, respectively.

Through the third quarter of 2009, the AIA‚Äôs residential billings index rose sharply from a score of 20 in the fourth quarter of 2008 to 38 in the second quarter of 2009, but then remained flat at 38 overall. Individual scores not above 50 are indicative of negative activity, however “less bad” categories are those that show scores that are ten or above.

Moving from a score of 35 in the first quarter of 2009 to 47 in the second quarter, new project inquiries at architecture firms remained similarly meager last year, but inched closer to the halfway mark.

Geographically speaking, reports from architects suggest that recovery will be concentrated most heavily in urbanized areas. Some 69 of respondents in the latest survey indicated a rise in demand for infill development, up from 63 percent in 2008.

The source of this article is Builder Online.

New Custom Home in Arlington Virginia Under Roof

Here is a new custom home in Arlington Virginia that we designed and are building.
This home will have WoodMode kitchen and bath cabinets and builtins, stone fireplace,
stone veneer, panelized construction, zip walls.

Why Settle for a "Cookie -Cutter" New Home Plan? Get a New McLean Custom Home That Reflects You

Do Want A Custom Home That Reflects Your Lifestyle? Not Some Cookie-Cutter House
Plan You Can Find In A Magazine, But A Design That Truly Reflects Your Lifestyle? Check
Us Out – World Class Architecture Designed For You. This home has 9 foot ceilings, wood
floors, luxxury bath great yard – 13ksf Award Winning Architect and Builder Paramount Construction
Homes Starting at $425,000 on your lot – call 301-370-6463
s 9 foot ceilings, wood floor granite tops great design Several new homes under construction
- call 301-370-6463 for home tours go here for our homes for sale
Or if you already have a lot and you need an award winning architect to create a set of custom home
plans click here

Question: I Know You Design & Build Award Winning Homes. What About Large Additions & Major Renovations?

Check out our answer here:

Announcing The Winner of the Mino Flip Video Camera Giveaway – and the winner is….

Wheeeew…it’s over – - we had over 200 guests visit our Bethesda Open House yesterday!

I want to thank everyone for attending and I hope you liked what you saw.

First, I want to announce the winner of the Flip Mino Camera Drawing – the winner is…

…Mary H. (we’ll be contacting you today and sending out the
camera) – Congratulations!

Second, I apologize for not being able to meet with everyone individually and answer your
questions.

So I wanted to give you a quick FAQ below to answer some of the
most common questions and least technical (which I’ll answer in future emails – like,
does the $6500 tax credit apply to building a new home, can you really get tens of thousands
of dollars in tax credits with a tear-down and how do you obtain a “Green” LEED rated home?).

Here you go:

Q: Did we create the architectural design and perform the construction of the new home on Berkley Street?
A: Yes. We are architects and builders. Kevin is our on-staff, full-time architect.

Q: Is the home for sale or did we build it for an owner?
A: The home is not for sale, the home was built for the owner.

Q: Was the home design from our Paramount Portfolio Plan Book or was it custom designed?
A: When the owners were checking our references, they visited and met the owners of
our Belmont Model and fell in love with that home. However, given the owners unique needs
and wants and given the unique characteristics of the lot on Berkley, we created a custom design for
the owners.

Q: Do we charge a premium for creating a custom design vs building a home plan from our Paramount Portfolio
of over 80 New Home Plans?
A: Currently, we do not charge anything additional to create a custom home design.

Q: Was there an existing home on the property that was torn down?
A: Yes (we had many questions about the potential tax benefits of tens of thousands of dollars associated with the
tear-down, and a subsequent email will detail the benefits and how that works)

Q: What was the price of the Berkley home and what was included? What was not included?
A: Price was in the $600K +/- range and was all inclusive – demolition of existing home, excavation, permitting,
blueprints, engineering, surveying, utilities, custom selections, etc.

Q: Do you take on home additions and home renovations, as well as new homes?
A: Yes. Currently we have six projects of that type in process.

Q: Do you take on small remodeling projects – $50k to $200K?
A. No, but given the demand, we are considering accepting a few projects on a very limited basis.

Q: I want to build a new home but I don’t have land. Do you have land or lots? Can you help?
A: Yes, we have about 10 lots in Bethesda, Chevy Chase, Mclean and N. Arlington.

I hope this helped.

I’ll be sending out another FAQ in the next few days on some of the more technical issues brought up
and we’re working on a video series that will answer many questions at an even deeper level, which will
come out in the next few weeks.

Again, Kevin and I really appreciate your interest in what we do and please feel free to email me at
rob@paramountconstruction.net or Kevin at kdavis@paramountconstruction.net or call me at 301-370-6463
with any questions you have.

Bethesda Maryland HomeOwner Explains Her Process For Selecting an Architect & Builder

Happy custom home building client in Bethesda Maryland describes her process for selecting an architect and builder to design and build her custom home.

Lots of homeowners are trying to decide of adding on to their home is better than tearing the house down and building a new home. But where do you start? Who do you turn to?

Yingjie was faced with this dilemma. So listen and watch Yingjies story.

Yingjie first met with an architect. But the architect wasn’t much help. He was not able to tell her if adding on to the existing home or knocking down and building new was the best way to go.
Next, she met with a builder. But the builders home plans were unimaginative and looked like “one of those” homes that
so many builders put up – B-O-R-I-N-G!!!
Then, her life magically changed when she received a message one day from Paramount Construction.

Listen and watch Part 1 of her story here:

Here is Part 2 of Yingjies story and about her new Bethesda custom home building experience and how she went through the process of of selecting an architect and builder and what some of her concerns were:

Major Home Addition to 1920s Log Home on 11th Hole of Manor Country Club Golf Course in Rockville

Friends and clients always ask me if we’re working on any interesting projects
and I always say that all of our projects are unique and one of a kind.

But we haven’t had a project like this one for many years!

Take a Look at the original home here:

We met the owners, Dr. and Mrs. Mennitt, of this Rockville log home over a year ago at an open
house we held in Rockville.

The owners had a very unique property right off the 11th hole of Manor Country Club in
Rockville Maryland.

Not many homes are located off the 11th hole of Manor Country Club…but what
made the property a real “one-of-a-kind” is the fact that it is a log home built
in the 1920s.

We started creating a design in the spring 2009 and finally started construction of a two major additions
and a complete renovation of the home in September 2009.

One primary addition is a kitchen-breakfast room-terrace addition off the rear of the home.
The other major expansion is the two story addition on the side and rear of the home.
The master suite and screen porch is on the lower level and the upper level has another
large bedroom.

Click Here to See The Work In Progress

The owners presented us with a number of goals for the project but
one primary objective was to capture as many views of the golf course vista we could.
These views are gorgeous – Check ‘em out here.

As the project moves on we’ll report back to you with progress photos and
interviews.

View of Kitchen-Breakfast Room-Terrace addition

Original Log Home Bedroom + Foundation of new addition

Original Log Home Bedroom + Foundation of new addition

McLean Custom Home Nearing Completion

Another Custom Home in McLean Virginia is almost completed.

Another real new custom home beauty designed and built by our award winning team

McLean Custom Home Designed & Built by PAramount Construction

McLean Custom Home Designed & Built by PAramount Construction

Another Bethesda Home Owner Tells Why He Chose Paramount

This homeowner in Bethesda tells you why he chose Paramount to design and build their home

Gold Award First Place Maryland New Custom Home

Gold Award First Place Maryland New Custom Home

Read The Reasons why Bill chose Paramount Construction to
design and build his custom home
:

BILL: My name is Bill Adams.
I work at the Urban Institute.

INTERVIEWER: And before how did you make
the decision to go through the design and build process? What
was your process?

BILL: Well I think you know we were thinking
about do we need an architect first, do we, and we did. We talked to a couple of
architects, had them come out to our previous home and we were struggling
at the beginning with do we expand the house
that we have or do we tear it down and build a new one. And so we were looking
for a little guidance there. The first, or
actually more than one, a couple of architects we talked
to they didn’t give us that on the initial visit. And it was
going to
require us, you know investing some money. We didn’t feel
comfortable with that. So we kind of just you know, some time
went by, we went to a couple of open houses. And then one
time we went to an open house for Paramount Construction.
Paramount Construction was building a house in Falls Church.
And we were really impressed by the house. Very you know,
well make house, very good quality, well designed. And immediately we both felt that wow, these are really top-notch builders.
And we thought right then and there you know, this company is going to build our house for us.

And when we met with the Paramount professionals, they came out to our old house and we were, as I said we were unsure about
whether we should expand our old house or tear it down. And they went through a couple of different scenarios but in the end,
we trusted them and they had the recommendation of tearing down the old house and building a new house. And we felt very
comfortable after that conversation with them that we were doing the right thing.

INTERVIEWER: How did the whole process go? The design process with Paramount.

BILL: The process went great, very smooth. We would meet on a weekly basis with Paramount staff, with the architect and others.
And it was, it was very well planned out and we had at various times make decisions about certain features and we weren’t always
sure about what we wanted. And so we were presented several alternatives and you know after talking a little bit with the architect,
we were able to make decisions very quickly. And in many cases he was, the architect was recommending things that we hadn’t thought
of and suddenly a light bulb went off and said yeah, that’s what we want.

So it was, in that sense it was, it was a pretty easy process.

INTERVIEWER: And how about the quality of the workmanship?

BILL: The workmanship is superb. Just looking around the house, I mean the features are excellent, very detailed features. Very, you can
tell just looking at it, it’s very high quality work. And we’re just extremely happy with the way it came out.

INTERVIEWER: And you looked at like standard builder plans as part of your research.

BILL: We did. We looked at some model homes. We talked to a builder, another builder and we went to see one of the homes that he had
built. And it was, it was okay. It was nice but it just, it didn’t have that spark. Okay, it was basically a big box and had some nice features
inside. But what appealed to us about Paramount was the customized nature and the different features we could introduce into the home
to make it unique and to make it our own. And so you know, we did compare with other builders but I think none of those other builders
had what we wanted. But right away with Paramount, we knew okay, this is a company that I can handle customized designs, can handle
special features, and build it all into a home that we’d be happy with.

INTERVIEWER: Do you feel you paid any premium for that?

BILL: No, I mean I think we, it was really included in the baseline price, which we very much appreciated. Just the fact that we could have
an architect available to us at no cost, it was included in the whole package, we thought was tremendous.

FEMALE: Yeah, especially after we changed the plans.

BILL: Right, that’s true. Several times we had to make adjustments to the plan because of various issues that came up, in some cases out
of our control because the county had certain requirements about the footprint, the building space. And that’s one thing that impressed
us is that Kevin, the architect for Paramount, was able to really come up with some excellent alternative designs that met our needs.

INTERVIEWER: Were there any additional design fees with all these changes?

BILL: There were none. There were none. So we really appreciated that aspect of the whole project.

Survey Results: Buyers Want Energy Efficient Homes – How MuchAre You Willing To Pay??

Homebuyers want the benefits of more energy efficient new houses, but, are they willing to pay for these features?

Well, according to a recently conducted member survey of the National Association of Home Builders (NAHB) – Homeowners are not willing to pay that much for these features.

Only 57% of buyers were willing to pay more for “green
features” – 2% more, at most!

This is just more evidence that cost/benefit is a key factor in most buyers decision to GO GREEN.

Features that improve water efficiency were preferred more by home buyers in the west, while interest in using recycled materials is relatively higher in the Northeast, and rather low in the South.

Although only 11% of builders nationwide reported clients requesting environmentally friendly features, energy efficiency is still the primary motivation in the green building movement.
The NAHB said “In all, survey findings indicate that, as Congress continues to debate how to encourage more energy-efficient construction via new legislation, it must keep affordabilty in mind and look for ways to incentivize changes, not only to newly built homes but to the overall housing stock.”

Let me know how how important energy efficient and green features are in your new home plans. Send me an email at rob@paramountconstruction.net.

Also, you can send your questions to: MondayMorningQuestions@nahb.com.

Prices Of New Home Materials & Labor Are Low & Labor Quality Is High – It's A Great Time To Build A New Custom Home

Across the board (with the exeption of of a few vendors like appliances ) our vendors are reporting that their labor and material costs are relatively low. The pricing we have been getting for direct costs of new custom homes & large additions to homes in the Washington DC area have remained low for a few years now. However, we are noticing vendors getting slightly busier than they’ve been in the last year or two.

Here’s one of our excellent vendors, Glen Embry, of Metcalf HVAC, explaining what he thinks of the current market:

On Staff "World Class" New Home Architect Has Created Over 60 New Custom Home Plans

Our award winning staff architect has created over 60 new home plans in our Paramount Portfolio of New Homes that fit seamlessly into our Maryland, Northern Virginia & Washington DC area neighborhoods. You can choose from one of these new home plans, modify one of these new home plans or we’ll create a new custom home plan just for you. We’ll present an architectural rendering of the front of your new custom home and concept home floorplan.
Check out just a few new home plans here

Material Savings

You save when we pass our wholesale new home building material selection cost savings on to you. We are Wood-Mode Kitchen & Bath Cabinet Dealers. This means lower new home costs to you (plus a smoother new home design process)

No Hidden Costs!

Sometimes a building contractor may forget to include some construction costs in the initial stages of your new home design- this can be an unpleasant surprise once a custom home or major home addition project gets underway. With our proprietary approach, our staff architect & new home construction professionals work as a team from the start, this results in minimizing any unforeseen costs.

Free On-site Intial Consultation

When you build with Paramount Construction you may choose a new home from our Paramount Portfolio of Homes or we’ll custom design a new custom home just for you.  We also design & build large additions to homes & home renovation projects.

Save on Design Fees When Building with Paramount Construction

We are Architects & Builders. We design & build luxury new homes in the Metro Washington D.C. area. Working with our staff new home architect from the beginning of your new custom home project, our estimating department gives you accurate, fixed cost prices & you don’t have to spend thousands of additional dollars in architectural design fees.

Custom Home In Bethesda For Sale — Walt Whitman HS — Move In Now!

5500 Finished Square Feet In This New Custom Home For Sale In Bethesda – 13,000 Square Foot Gorgeous Lot In Bethesda With a Walk-Out Basement. All This Designed By Award Winning Architect & Builder — Paramount Construction.

Check This Home Out Here

"The Neighbor" Tries For A Free New Custom Home

This neighbor loves the new home we built and designed (check the new home out)
Check it out how “The Neighbor” positions for a free custom home in Bethesda:

Owner Loves His New Home – Even MNCBIA Judges Love The Home

Paramount Construction nominated for another MNCBIA Custom builder award.
Here’s a look at the inside and an interview of the homeowner.
The judges from MNCBIA loved the home too. They almost wouldn’t
leave. Click Here & take a look at this home we designed and built.
This is a great example of why owners come to us for design
and construction. Anyone can design a “plain-old-box” of a house.
Lots of builder around town basically design and sell the exact same plan.
You can actually get the plan at your local Giant or Safeway while you’re
standing in the checkout line.
We’ve discovered that the Washington D.C. area has many owners
with more discerning tastes and sense of design. Our plans are
designed differently.

These are not “cookie cutter” homes. Take a look here

Yet, as great as the design is, our pricing very reasonable.
When we present a home price the price is all inclusive.
Many other builders start at $85 per square foot over the phone.
The problem is that by the time they add permits, excavation, engineering,
dumpsters, driveways, upgrade the vinyl floor to wood, upgrade the vinyl
siding to hardiplank their over $200 per square foot. Plus it takes these guys
months of your time until you finally extract all the information out of ‘em.

Let me know what you’ve found in the market place as you talk with
building companies out there. I’d like to hear from you.

Paramount Construction Genius Architect Takes Another New Home Plan To Completion

Check out Kevin taking another concept in his mind to a completed new custom home
that was just nominated for another (2nd of 3) MNCBIA Custom Builder Awards.
This new home in Bethesda was completed in around 5 months. The happy
homeowners should be moving in any day now. If you would like a tour of any of
our homes call 301-370-6463 and ask for Kevin or Rob.
Check this video out:

Home Plan Design Meetings –Smooth, Easy & fun

Ever meet a stuffy architect? Think they’re easy to work with?
Think the home design process would be fun with one of those “big-name” architects?

Life is too short.

Our home design process is smooth, easy & fun.
No limits on how much design for your home.
No limits on how much time on your design.
Every design detail explored.
No ego on our side. We just want create the best
design for your home.

Here’s a sample design meeting:

Here's An Insight on Why New Home Prices Are Low & Home Quality High

Another reason it’s a great time to build your custom home –
home prices are low and work quality is high. Here is an electrical
contractor who works in the Montgomery County Maryland,
Fairfax County Virginia, N.W. Washington D.C. area and works
on new homes for area home builders:

Paramount Construction "The Madison" Home Plan Nominated for MNCBIA Award

Paramount Constructions’ “Madison” Home Plan has been
nominated for a Maryland National Capital Building
Industry Association Award. The category is
Best Traditional Home Award

The Madison House Plan by Paramount Construction Kitchen

The Madison House Plan by Paramount Construction Kitchen

Design Considerations

The owners’ intent was to build a new home for sale.

Our design goal was to create a marketable house plan
at a cost the owner could earn a profit.

We discovered that the lot was comprised of two
separate lots. The largest lot was large enough to
build a home on it. However, if we combined the lots
we could build a wider home with an elevation that
had more street presence.

After research and discussions with the county, we
concluded that the time and cost of combining the
lots was greater than the benefit, especially in a slow
market. So we designed a narrower home than we
could have designed had we opted to go through
the subdivision process.

The lot sloped front to back. The grade of the
lot made a walk-out basement plan a natural fit.

The lot is close to downtown Bethesda and the
homes throughout the neighborhood are Traditional
style homes. So we designed a Traditional style home
with cottage and shake accents on the exterior to
blend into the surrounding neighborhood.

We concluded from our market research and
understanding of our target buyer, that an
open floor plan
would be appealing.

Another major design consideration was
creating cost effective finished space to meet
the lenders’ appraisal requirements. Finishing
the basement and the third level achieved this.

Market research also drove us to place the
laundry room on the second floor.
This is a convenience the majority of the
target market prefers.

The best view of yard was the back of the
lot, so we placed the family room and kitchen
as well as the master suite on the back of the
home. All views from these rooms face out
to the rear yard. The results is a very bright
and open feeling.

Our goal was to make the home feel as spacious
and room
y as possible, especially considering
that it was a relatively narrow floor plan due
to the self imposed lot constraint. To achieve
this effect we widened hallways, we created a
open loft area at the second floor landing area
and we designed the dining room and living
room to be open to one another, with minimal
wall area.
Construction Details

We wanted a low maintenance exterior
so we specified Hardiplank siding and pvc
cornice. The siding was horizontal clapboard
siding with shake style Hardiplank accents at
the gables to add interest.

The finished third level was constructed
using room trusses. This saved money
compared to stick framing this area.

We gave the owner lots of free upgrades
because we wanted the home to show well
to our future prospects (and she is a nice lady).
One of the nice construction details we added
was the stone in the front of the exterior of
the home. We placed flagstone on the walkway
and laid a stone water table to accent the front
elevation. The wood floors were upgraded to
three inch oak from 2 ¼” oak.

Montgomery County required installation of
three drywells in the rear yard to contain water
runoff from the home. We used terne standing
seam metal roof on the front elevation to the
Traditional design character.
Specific Ways the house satisfied the client

The new home has a wonderful, bright, open floor plan.
It is a great plan for a family with a wonderful rear yard,
a walk-out basement with a ton of natural light,
generous room sizes and very close to all of the restaurants
and shopping downtown Bethesda has to offer.

The clients primary objective was to have house
that fit into the neighborhood and was a good value.
And a home that is marketable. The house was built
affordably and we incorporated design elements into
the home that didn’t cost a premium to build but
result in value. The is very pleased with the design
and the size of house we delivered.
Unusual problems encountered and overcome

Originally, the owner purchased the home thinking
she would remodel the 70 +/- year old structure
that was originally on the lot. We actually drew
a full set of plans for a major addition and had
obtained a building permit for the addition.

We quickly performed a “new home” zoning
analysis and created a new home plan that
worked within the setbacks on the one parcel
(so we could avoid the cost and time of a lot
combination thru Park and Planning). We then
pushed through permitting and obtained a
permit for a new home. All of this took only
a few months more time.

List of major manufacturers

Pella
WoodMode cabinets
Kohler Plumbing fixtures
Hardiplank
Certainteed shingles
Kitchen Aid appliances
Carrier heating and cooling
Hinkley light fixtures

Paramount Construction Improves Neighbors Home Values

Here is a neighbor living next store to one of our new homes going up in Bethesda:

Bethesda New Home Nominated For Award


Here is one of three of our projects that have been nominated for Design and Quality Awards from the Maryland National Capital Building Industry Associations’ 2009 Custom Builder Awards.

This is a brand new Traditional Home in downtown Bethesda.

Designing Your Kitchen in Your Custom Home or Major Addition is Easy

Choosing and designing your kitchen for your new home or major addition is simple, easy and fun…with WoodMode cabinets and Paramount Construction.

See what you think:

Even the Neighbors Love Paramount Construction When Building A Custom Home in Bethesda Maryland

Even the neighbors love us:

World-Class Architect Gives His Insights in Designing Custom Homes

Here’s Paramounts World-Class architect, on-site, live and off the cuff:

New Custom Home in Mclean – Owner Tells Why She Chose Paramount Construction

Here is a client explaining why she chose Paramount to design and build her new home.

We just started excavation on her new custom home in Mclean, Virginia last week

Washington DC is the 6th Healthiest Housing Market in the Nation

According to BuilderOnline.com, Washington D.C. made the top ten healthiest housing markets for 2009. Washington D.C. actually ranked number 6.

Here is what was written about the Washington DC housing market:

Washington D.C. showed signs last summer that it might be emerging from the downturn, then it turned south again. Even so, the area produces a ton of jobs—an estimated 35,000 in the last year—that fuel a vibrant housing market, the 11th largest in the country. Many of the jobs stem from contracts with the federal government. Washington D.C. remains a relatively unaffordable place to live, with a median home price of $332,700 in the third quarter of last year.

One prime reason the of the ranking is that the population in Washington DC area has grown around one percent each year for the past five years.

The home building patterns have changed as well. Many families moving to the area are demanding to be inside or immediately outside the capital beltway because the traffic is one in the nation’s worst. I live inside the beltway and I can get any where I need to go — from Washington D.C.  and the Virginia and the Maryland suburbs in 20 to 30 minutes. And if I travel during off-rush house times, it may be 10 to 15 minutes.

We are even working with new home building clients that are moving down to inside the beltway from Gaithersburg, Md.,  Culpepper, Va.,  and Frederick, Md.

The BuilderOnline section is courtesy of: Hanley Wood Market Intelligence.

Case is Wrong!! – Washington Post Article About Home Values and Home Remodeling

Anyone read the article in the Washington Post about Case Design Build?
I think they are wrong about the housing market in the DC area.

May I suggest an article idea?

We are home builders and architects and we have more business than we have had in two years.

There are many owners that realize that rates are low and construction costs are flat, and that real estate is a long term investment, not something that bounces daily like the stock market.

We are selectively pursuing many home building opportunities in this market place. This is a great time to be building as a builder because we are taking advantage of the cost of construction to maintain our profit margins and pass on the greatest value to clients since the late 1980′s and the early 1990′s (the last recession). This is a great time to build homes.

Washington DC real estate and home real estate in particular, is the best real estate on earth.

Tell me what you think?

Housing Stimulus Good For Home Builders – Is it Good For America?

New Home builders, big and small, would be among the winners if the $838 billion stimulus measure the U.S. Senate passes today.

The Senate bill seems to be more generous to home builders than the House was in the $819 billion measure it passed last month.

President Barack Obama, who spoke to the nation last night, has said he wants stimulus legislation signed by this weekend. President Obama is counting on the plan to help revive the economy. The economy has lost 3.6 million jobs since December 2007. This has caused the unemployment rate to soar to the highest level since 1992.

To quote a Bloomberg wire: “In a bill this big, there are countless private-sector winners and losers,” Rogan Kersh, associate dean of New York University’s Wagner School of Public Service was quoted as saying.

The Senate cleared the stimulus proposal yesterday by a vote of 61 to 36. There were three Republicans siding with Democrats.

It’s quite possible that U.S. home builders could see sales increase if consumers tap into the planned tax credit of $15,000, or 10 percent of the purchase price, whichever is less, under the Senate legislation.

Morningstar analyst, Eric Landry said “If someone’s going to give you $15,000 in free money it has to be stimulative”.

The proposed new tax credit does not have to be repaid. And it appears that all home buyers are eligible for the home purchase tax credit. This proposed home tax credit would replace the $7,500 tax credit for first-time home buyers that was passed sometime last year. In addition to the amount of the proposed home purchase tax credit, another difference is that the $7,500 home tax credit had to be repaid over 15 years.

Jerry Howard, president and chief executive officer of the National Association of Home Builders stated, “We’re pretty happy with the way the Senate bill is shaping up. We think it will entice a lot of those people sitting on the sidelines into the marketplace.”

As a home builder building new homes in the Washington D.C. area, I feel lucky because our area inside the Washington D.C. beltway is relatively strong. Values have held up and business is steady. So I can see real benefits to home builders, subcontractors and home building and remodeling vendors.

We also work with a large number of families and individuals that are just starting out and are looking for their first home to purchase. So it will be a huge benefit to individuals and families like that. But I’m not sure it is the best thing in the long run for our economy.

What do you think? Let me know your thoughts and comments.

Home Buyer Tax Credit Proposed in Senate Stimulus Amendment

This is some great news if it passes and is from a newsletter we subscribe to call

Builder Business Update:

Senate Adds $15,000 Home Buyer Tax Credit to Stimulus
Amendment to Senate version of stimulus bill provides the credit to all home buyers and doesn’t require repayment.
By Pat Curry

The U.S. Senate on Wednesday voted unanimously to approve a home buyer tax credit of $15,000 or up to 10 percent of the purchase price in its version of the stimulus bill. This proposed credit would be available to all home buyers and would not have to be repaid as long as a buyer lives in the house for at least two years. The amendment to the Senate’s economic stimulus package, co-sponsored by Sen. Johnny Isakson (R-Ga.) and Sen. Joe Lieberman (I-Conn.), offers the credit on purchases from one year of the date of enactment and could be applied to the home buyer’s 2008 taxes.

Isakson, who spent more than 30 years in the real estate business, proposed the tax credit because he’d seen it used effectively to jump-start housing in the 1970s.

“It is rare that we have a road map to success in times of difficulty, but this country has once before realized a housing crisis every bit as bad as the one we have today and economic troubles every bit as dangerous,” Isakson said in a prepared statement Wednesday evening. “We have a pervasive housing problem, and we have a historical precedent that works. I am proud this Senate has joined together, learned from history, and repeated a method that worked by adopting this amendment.”

Dwight Jaffee, a professor of finance and real estate at the Haas School of Business at the University of California, Berkeley, called the 1973-1975 recession the “classic example” of how a direct stimulus to housing demand impacted economic recovery. “Housing led us into this recession, and we really need a stimulus for it to lead us out,” Jaffee said in a statement released by the Fix Housing First coalition, a group of home builders, manufacturers, and others advocating for several housing-related measures, including the tax credit.

According to Jerry Howard, the NAHB’s CEO, the amendment’s provision to offer the tax credit for a year from the date of enactment “reflects Sen. Isakson’s in-depth understanding of housing. It gives the people who market housing a chance to ramp this up and put it in its proper perspective in the field.” Depending on the enactment date, it could make the tax credit available well into 2010. (In previous versions, the tax credit was only availble through Dec. 31, 2009.)

Howard also said Thursday that the NAHB’s staff is working closely with the Senate offices of Sen. Mitch McConnell (R-Ky.), John Ensign (R-Nev.) and Lamar Alexander (R-Tenn.) on additional amendments that the Fix Housing First Coalition considers crucial to solving the housing crisis. Those include low-interest mortgages for home buyers and additional measures to stem foreclosures.

The National Lumber and Building Material Dealers Association also issued a statement this morning applauding the adoption of the amendment and thanking the senators for their leadership. “We believe, if adopted in the final stimulus package, the tax credit could go a long way toward reviving the housing economy by encouraging more home purchases, creating new jobs, and restoring consumer confidence in the housing market,” said NLBMDA President and CEO Michael O’Brien.

The Fix Housing First coalition, which includes the NAHB and NLBMDA, continues to advocate for additional housing stimulus measures, including an amendment that would provide discounted 30-year fixed-rate mortgage financing for eligible home buyers.

In appearances on television news shows, several senators this week expressed support for such an amendment. “We have a 4% mortgage proposal where creditworthy home buyers could buy down their mortgages or save them on the average $5,600 a year,” Sen. McConnell said on Sunday on “Face the Nation.”

One disappointment for home builders in the bill is that this amendment does not include the ability to monetize the credit at closing, a feature in an earlier bill Isakson filed in mid-January. “Emails were flying back and forth this morning, asking ‘Can it be used for closing?’” says Michelle Smallwood, vice president of sales for Melbourne, Fla.-based Holiday Builders.

Pat Curry is senior editor, sales and marketing, at BUILDER magazine.Senate Adds $15,000 Home Buyer Tax Credit to Stimulus
Amendment to Senate version of stimulus bill provides the credit to all home buyers and doesn’t require repayment.

By:
Pat Curry

The U.S. Senate on Wednesday voted unanimously to approve a home buyer tax credit of $15,000 or up to 10 percent of the purchase price in its version of the stimulus bill. This proposed credit would be available to all home buyers and would not have to be repaid as long as a buyer lives in the house for at least two years. The amendment to the Senate’s economic stimulus package, co-sponsored by Sen. Johnny Isakson (R-Ga.) and Sen. Joe Lieberman (I-Conn.), offers the credit on purchases from one year of the date of enactment and could be applied to the home buyer’s 2008 taxes.

Isakson, who spent more than 30 years in the real estate business, proposed the tax credit because he’d seen it used effectively to jump-start housing in the 1970s.

“It is rare that we have a road map to success in times of difficulty, but this country has once before realized a housing crisis every bit as bad as the one we have today and economic troubles every bit as dangerous,” Isakson said in a prepared statement Wednesday evening. “We have a pervasive housing problem, and we have a historical precedent that works. I am proud this Senate has joined together, learned from history, and repeated a method that worked by adopting this amendment.”

Dwight Jaffee, a professor of finance and real estate at the Haas School of Business at the University of California, Berkeley, called the 1973-1975 recession the “classic example” of how a direct stimulus to housing demand impacted economic recovery. “Housing led us into this recession, and we really need a stimulus for it to lead us out,” Jaffee said in a statement released by the Fix Housing First coalition, a group of home builders, manufacturers, and others advocating for several housing-related measures, including the tax credit.

According to Jerry Howard, the NAHB’s CEO, the amendment’s provision to offer the tax credit for a year from the date of enactment “reflects Sen. Isakson’s in-depth understanding of housing. It gives the people who market housing a chance to ramp this up and put it in its proper perspective in the field.” Depending on the enactment date, it could make the tax credit available well into 2010. (In previous versions, the tax credit was only availble through Dec. 31, 2009.)

Howard also said Thursday that the NAHB’s staff is working closely with the Senate offices of Sen. Mitch McConnell (R-Ky.), John Ensign (R-Nev.) and Lamar Alexander (R-Tenn.) on additional amendments that the Fix Housing First Coalition considers crucial to solving the housing crisis. Those include low-interest mortgages for home buyers and additional measures to stem foreclosures.

The National Lumber and Building Material Dealers Association also issued a statement this morning applauding the adoption of the amendment and thanking the senators for their leadership. “We believe, if adopted in the final stimulus package, the tax credit could go a long way toward reviving the housing economy by encouraging more home purchases, creating new jobs, and restoring consumer confidence in the housing market,” said NLBMDA President and CEO Michael O’Brien.

The Fix Housing First coalition, which includes the NAHB and NLBMDA, continues to advocate for additional housing stimulus measures, including an amendment that would provide discounted 30-year fixed-rate mortgage financing for eligible home buyers.

In appearances on television news shows, several senators this week expressed support for such an amendment. “We have a 4% mortgage proposal where creditworthy home buyers could buy down their mortgages or save them on the average $5,600 a year,” Sen. McConnell said on Sunday on “Face the Nation.”

One disappointment for home builders in the bill is that this amendment does not include the ability to monetize the credit at closing, a feature in an earlier bill Isakson filed in mid-January. “Emails were flying back and forth this morning, asking ‘Can it be used for closing?’” says Michelle Smallwood, vice president of sales for Melbourne, Fla.-based Holiday Builders.

Pat Curry is senior editor, sales and marketing, at BUILDER magazine.

Question:
Do you think this is a good idea as a taxpayer?
If you are in the market to purchase a home, will this impact your decision to buy a home?

Home Remodeling Tax Credits Available

As of January 1, 2009, the federal government is making available up to $500 in federal tax credits for homeowners making improvements to replacement windows. insulation, non-solar water heaters, and certain high efficiency heating and cooling equipment. For more details and forms needed go to http://www.energystar.gov/index.cfm?c=products.pr_tax_credits.

New Home Sales Increase in December

The Wall Street Journal reported in yesterdays paper that home sale sin the U.S. had their biggest monthly increase, a 6.5% rise, in almost seven years.

Economists still warned that the spring buying season will probably be slow due to growing economic problems, like all of the layoffs reported recently.

However, the Washington D.C. area seems to be holding up fairly well. Especially in areas that we focus on, around and inside the Beltway.

One driver I think is the relatively low unemployment rate in the DC area – 4%.

We have seen a lot of activity the last few months. Rates are low and construction costs have remained fairly stable. Rates seem to be around 5%. I’ve had a few of my rates actually drop below 5% (one of my rates, an arm is at 3.875%).

In my view, real estate is a long term investment. So when you think about it, this is an opportune time to be buying, if you are thinking long term.

The supply of homes for sale is also a driver of housing prices. Washington D.C. months of supply has dropped to 5.8 months of supply. Compared that with 29.5 months of supply in Miami and this market sure feels pretty good.

But real estate values really due vary and fluctuate differently within each neighborhood. We are finding Bethesda and Chevy Chase are doing much better than Gaithersburg and Germantown, for instance.

If you are thinking of selling your home and it’s inside the beltway give me a call or send me an email at rob@ParamountConstruction.net

Tell me what you think of this market

Montgomery County Building Permit Notice Bill 15-08 For New Homes & Home Additions

This is from Raquel D. Montenegro, Associate Director, Legislative Affairs of MNC Building Industry Association:
The Montgomery County Council did not vote on the Building Permit Notice Bill today; the Action Item was taken off the agenda, following the announcement that Mr. Praisner, the 5th vote to support the legislation, would not be attending today‘s session since he is recovering from surgery.
The Council is scheduled to vote on the Building Permit Notice Bill 15-08 on Tuesday, January 27, after 2:00
Councilmember Duchy Trachtenberg, one of the Bill’s co-sponsors, has asked staff to report on the notice process in the Towne of Chevy Chase.
Since the Towne enacted its notice requirement two years ago, 45 property owners have been required to provide notice/meet neighbors; if you have gone thru the process, the Councilmembers are interested in hearing comments.
Comments can be sent by email to:

Insider Secrets To Successfully Finding, Financing, Designing & Building Your Custom Home

Here’s another of my “insider” strategy tips and secrets, that a head-shakingly few other “professionals” are even remotely aware of, for:

  • Finding your perfect “build-able” lot
  • Financing your new home or home addition
  • Designing your new home or home addition
  • Building your new home or home addition

So here’s my “insider” strategy for today:

One of the secrets to having a successful- on time…on budget…great design You love…high quality
workmanship…smooth and hassle free process – and fun home building experience,is putting together the right team of professional “partners” to guide you through the process.

Not many people even know this (I’ve been doing this for 20+ years and only a few savvy real estate developer/investor “types” have a clue), but the right team can make it “real estate heaven”, a process so smooth that you’ll be looking for another transaction to do as soon as you finish this one…

And the wrong team can turn the whole project into a nightmarish mistake that could be excruciatingly painful and and an ordeal that you’ll want to wipe from your mind immediately.

And since the process really starts way before the first shovel ever pierces the earth, I view the partner checklist in terms of Phases.

Phase 1 partners are needed to determine project feasibility:

  • Is the project a go or no go?
  • Can you afford it?
  • If you can, is this how you want to spend your money?
  • Does the piece of land work for your needs?
  • Is the land build-able?
  • Are there subdivision, zoning orsetback issues?
  • Will the home plan work for you?

Many of the Phase 1 partners need to stay involved in Phase 2… through out the life of the project.

Like a lot of partnerships, many of these relationships are inter-dependent; decisions and input from one partner are needed for another partner to complete their portion of work.

Phase 2 Partners are brought in only after the go/no-go litmus test is passed. Why spend money if you don’t have to?

And here’s a bonus for you, this is the actual checklist that we use on our projects…

Phase 1 Partners:

  • CPA/Tax Advisor
  • Real estate agent
  • Bank Loan officer
  • Property owner or landowner (if you are purchasing from owner)
  • Architect and Builder
  • Planning department
  • Design review committee
  • Building department

Key Point: You do not have to retain the entire team at the
beginning of the process… And YOU DON’T WANT TO. Only bring
in the partners that are appropriate for that section of
the job.

Phase 2 Partners:

  • Land Surveyor
  • Soils engineer
  • Well/septic engineer
  • Appraiser
  • Attorney
  • Insurance agent
  • Material suppliers
  • Structural engineer
  • Arborist
  • Subcontractors
  • Laborers
  • Building inspectors
  • Disbursement agents
  • Bank inspectors
  • Landscaper
  • Mover
  • Interior Designer

In my next “insider” strategy tip email I’ll explain the partner
roles in more detail.

I think you’ll be astonished at some simple-fix-steps, that if
assigned early on to some of the partners, could result in
huge economic windfalls or could give you a quick signal that
your project may not make sense in its initial form and you
need to re-purpose the plan.

Please keep the comments and critiques coming and let me know
what’s on your mind. And I’d appreciate if you could tell me:

  • What would you love to see during the home building process that would make your life easier?
  • What frustrates you the most aboutthe home design and building process ?

If you want more “insider” secrets to make a yo9ur new home a profitable investment sign up here for our special series

This Wall System Has a Built-in Water Resistant Barrier

Exterior walls have water resistant barrier

Exterior walls have water resistant barrier

This home has ZIP System® wall sheathing. This is a built-in, water-resistive barrier that eliminates the need for housewrap. We install the sheathing and tape the seams, and this becomes an all-in-one structural wall system and a water resistive barrier.

This wall system combines the stability and strength of a high-performing panel with the extra weatherability provided by the product’s water-resistive barrier.

We’ve found this to be a good system. One plus is that unlike housewrap, wind will not blow off the barrier during the construction process.

The manufacturer states that the panels “eliminate the risk of trapped water between housewrap and sheathing”. And the “built-in barrier controls drafts, which promotes energy efficiency and the barriers are specially engineered to allow the ZIP System walls to breathe”.

New Home is Under Roof in Maryland – We're Ahead of Schedule for a Spring Occupancy

Framing Stage of Construciton

Framing Stage of Construciton

We’re working hard with double crew sizes to keep the house ahead of schedule. We’ll have weekly meetings with the owners on the work site to answer any questions and keep the owners fully informed of progress and information.

Our staff architect is part of these meetings, along with our project manager. This team approach is the best way to execute the original concept architectural design and minimize any surprises. Owners feel comfortable knowing all efforts are focused on building a high quality home, on time and on budget.

New Transitional Style Custom Home Under Construction in Bethesda Maryland

This new home is in the framing stage of construction

This new home is in the framing stage of construction


Another New Home is under way in Maryland.

This transitional style home will be ready for occupancy in the spring 2009. The home features Pella insulated windows with a dark brown finish. The front elevation will be made up of stone veneer and Hardi-plank cement siding. The rear yard will have a private flagstone patio set in concrete. There will be a special loft space accessible from the second floor hall.

Bethesda Custom Home For Sale

Arts & Crafts New Maryland Home

Arts & Crafts Bethesda Maryland Home For Sale

This new home will be ready for occupancy in spring 2009. It features Wood-Mode kitchen and bathroom cabinets. It has 9 foot ceilings in finished basement, main level and second floor. There is also a finished third floor level.

New Home For Sale in Downtown Bethesda. Walk to Bethesda restaurants & shopping.
Walt Whitman High School. Close to Bethesda Metro Station.

Washington DC Real Estate Market is The Best Real Estate Market in The World!!

I came across a very interesting Reuters story this month.

In 2009,  the Association of Foreign Investors in Real Estate (AFIRE), a group of savvy real estate investors, plan to increase lending in U.S. real estate by 58%.

More amazing is that they plan on increasing equity investments in U.S. real estate by a whopping 73%!! That’s a huge number.

And are you ready for this? The premier market the group is targeting is … Washington D.C.

Washington D.C. is the BEST market in the world, according to this group.

This is consistent with what I see and experience in the Washington D.C. real estate market.

We have gotten a flood of new home starts in the last few weeks. I think the low rates don’t hurt (So please let me know if you are interested in selling your property).

Two other pieces that in my opinion have had an impact in the last month or so, atleast locally.

First, it sure seems (I’ve not done any analysis, just intuition, and anecdotal evidence from the flood of phone calls we have gotten) that the low rates have made starter home mortgage payments closer to the price of rental homes. And secondly, Montgomery County Maryland has alot of proposed legislation (as usual) that is making home building more restrictive and more costly to obtain permitting. There is a sping deadline for a vote on some of these laws. Give me a call or send an email if you want Park and Planning text of the proposals.

Sure seems to be pretty active new home real estate market from our client base.

Let me know what you think and see out there in the real estate world.

Bethesda New Custom Home – Foundation in Beats the Weather

Panels are up and concrete is formed in time to beat the weather

Panels are up and concrete is formed in time to beat the weather

31 Rules of Kitchen Design – Free Report

Here is the Free 31-rules-of-kitchen-design

HGTV Filmed Three Projects – Two New Custom Homes in Bethesda & A Large Bethesda Home Addition Project

This past Thursday was a whirlwind day for us. HGTV ended up filming three of our projects under construction. Originally they were going to film just two, but we mentioned that in addition to two new custom homes under construction n Bethesda, we had another large home addition starting up right around the corner.

The footage will probably be used at the Builders Show in Las Vegas this week. We’ll let you know if and when it is used for HGTV shows on cable.

Their coming back Monday to finish up filming…so I’ll keep you posted.

My view of the world – the custom home building process in a nutshell

With so many details to think about, where do you start the
custom home process?  While it’s easy to get overwhelmed, we
like to simplify the custom home process by starting out
just looking at only two things.

What are these two things?
I can’t tell you because that would give away our
competitive advantage.

All right. You twisted my arm. Here they are:

Our process starts with two things:  1) you and 2) your lot.
That’s it. Pretty simple.

So I like to start things off playing Columbo.  When we meet
I’ll ask you questions that fall into just a four
categories. Here’s a small sample of our routine:

A.    $MONEY$ category

-    How important is resale to you?
-    Is return on investment your number one motivation
or is it a lower priority and you just want to
make sure you don’t do anything someone else would
think odd when you sell?
-    How are you going to finance your new home?
-    If you are going to use a lender, is a construction
loan, new first mortgage or new second mortgage best for
you? Can you use collateral of other assets to improve
your options?
-    How much cash do you have to put into your new home?

-    How much cash do you want to put in to the new home?

-    Have you spoken with a lender (we prefer you use ours I’ll

explain some advantages in future post)?
-    What tax bracket are you in? There could be some tax benefits

related to the project that may apply to your situation.

B.    Lifestyle category:

-    How long do you think you want to live in your new
home? This usually factors in to energy efficiency
and “green” options and calculating the pay-back period.
-    Are you there for 5 years and then on to the vineyards
of Oregon or is this your last home and you want us
to design a master suite on the first floor or an
elevator to get to the 2nd floor?
-    When do you want to see the home started by? This
can be a big factor when jurisdictions like Arlington,
D.C. and Montgomery County are constantly changing
zoning and building codes. Montgomery County just
passed a law that takes effect in four months
decreasing height and density in many neighborhoods
& sprinklers will be required in all dwellings in
two years (I’ll verify the exact date).
-    When do you want to move in to the home?  – “by Christmas”
is always a lofty goal and as long as you don’t
mind me asking “which one?” (I couldn’t resist)
we’ll always hit it.
-    Where will you live during the construction
(we have sources for short term rentals, but ask
me early since they go fast)?
-    Do you plan on in-laws or relatives coming back
for any period of time? What bathroom will they
use? What kitchen will they use? We just finished
a home in Silver Spring with three kitchens – one
for the kids with 5 kids of their own, one for the
parents and one for Aunt Lee, who visits during
the summers.

C.    Your Future Home (and little bit about your
current home) category

-    What are the features and amenities that you must
have, or the project just isn’t worth doing?
-    What are the features and amenities that would
be nice to have?
-    What style home do you love?
-    What style home do you hate?
-    What bothers you about your current home?
-    What do you love about your current home?
- How important are energy efficient features?
-    How important are green features?
-    Do you like open plans with a ton of natural
light and views from front to back or would you
prefer something more intimate and cozy?
-    What ceiling heights do you want? How do you feel
about two story spaces?
-    Do you want a basement? If so do you want it
finished?

D.    And Last but not least – Your Lot category – this
is always a biggie, so big I’m adding these extra
few sentences before I get to the.

It always surprises and shocks me, like a slurp
of Red Bull, when people don’t call us prior to
buying a lot (I bet you can tell, it especially
upsets me).

There could be so many restrictions on lots, for
instance: easements, setbacks, alleys, lot coverage,
height, etc., etc., etc., etc., etc., which you
would never know just by looking at a piece of dirt
with your eyes.

We just completed two subdivisions, on two separate
projects, that probably added six (unexpected)
months to each project. And added thousands of
dollars in engineering and permitting fees.
In each case the owners were not aware of the
restrictions until we performed our zoning analysis.
And in each case they had owned the lots for many years.

So checking the “buildability” of your lot is one
of the very first steps we take.
IF YOU’RE PURCHASING A LOT, please call me before
you pull that trigger!

Here are some things we look at (this is so
critical I’m tossing out the regular bullets):

  • Zoning category
  • Public utility easements
  • Building restriction lines
  • Established front yard building line
  • Setbacks on all sides of the property
  • Floor area ratio
  • Year the lot was recorded
  • Is the lot a conforming or non-conforming
  • Specimen tree issues
  • Tree Save issues
  • Water Run-off
  • Wetlands

Due to the complexity of some of these issues,
complete research and answers may be a few steps
into our process. And to paraphrase a soon to be
ex-senator, this stuff is way beyond my pay grade,
so, Kevin, our excellent and unflappable architect,
handles most of this.

Well that’s a brief primer on how we start the custom
home process.  It all starts with you and your lot,
as it should be.

Next time I’ll give you an idea of what we do once
we get your answers. But it’s 12:08 a.m. and I need
to take out the garbage so I can earn my keep.

Please keep the comments and critiques coming
and let me know what’s on your mind. And I’d appreciate
if you could tell me:

  • What would you love to see during the home building process that would make your life easier?
  • What frustrates you the most about the home design and building process?

The Truth About Green Building

Building Green is something that we incorporate into our designs

Here's Another New Home Underway in Bethesda

t

There is a alot of new home activity inside the beltway of Washington DC. The values of residential real estate in a variety of zip codes in Montgomery County Maryland have maintained value. In fact, there are several zip codes that have probably increased in value. We find that mortgage interest rates are relatively low combined with excellent prices on the direct costs which go into new custom home projects, make this an ideal time to be acquring and building.

Real estate should be looked at as a long term investment. We do not try to purchase real estate and “flip” houses. We believe real estate is a long term investment. Our financial models hold the assets for a minimum of five to seven years.

With this approach, we think real estate in the Washington DC area is an excellent long term asset. An asset which you can create real long term wealth.

Why Not Build Your home Indoors?

BuildingGreen Names Top 10 Green Products For 2008

Products made from natural, rapidly renewable, or agricultural waste materials dominate annual list.

BuildingGreen, the publisher of the highly regarded GreenSpec Directory & Environmental Building News newsletter, posted their seventh annual list top 10 green building products for 2008.

Of the products on this year’s list, half have been deemed green because they are made from natural or rapidly renewable materials or agricultural waste. Such products, the Brattleboro, Vt.-based group says, require significantly less energy to manufacture.

“Our selections of the Top 10 Green Building Products represent a wide range of product types in many different application areas,” says BuildingGreen president Alex Wilson.

This Top 10 Green Products list has become an annual ritual in which the Vermont publisher picks the most exciting products added to its GreenSpec Directory in the past year.

An appearance on BuildingGreen’s list is seen by many in the industry as a significant event, as the company’s endorsement signals that a product is legitimately sustainable. “New products seem to be appearing all the time, making it a challenge for our staff to keep up,” Wilson says.

This year’s list includes the very first Forest Stewardship Council-certified and formaldehyde-free bamboo flooring, doors made with wheat-straw particleboard, a transparent finish produced from a byproduct of cheese making, and a compressed-earth masonry block. Three of the remaining products save energy, including a low-cost, solar water-heating system; a combination heating, water heating, and heat-recovery ventilation system; and a system for monitoring real-time energy (and water) use in buildings.

Last year’s list included LED downlights from LED Light Fixtures, Alpen fiberglass windows from Alpen Energy Group, Cube3 Ultra urinal from Caroma, and Bosch Evolution 800 Series dishwasher.

Another New Home Starts in Downtown Bethesda

What Slowdown? Why are there new homes still going up on just about every street in Bethesda, Mclean, N. Arlington, Chevy Chase, etc.?

Let us know your opinion………

Another Paramount New Home under construction in downtown Bethesda

Another Paramount New Home under construction in downtown Bethesda

Energy Star Tax Breaks for Building Green

Elizabeth Razzi, a writer for the Washington Post Real Estate section, wrote on October 19, 2008:

“There will be some attractive federal tax credits …. you can research them at www.Energystar.gov  “

Here is a partial list from her article:

  1. for qualifying exterior doors, storm doors, metal roofs, insulation the tax credit will be 10% of the cost, up to a $500 credit
  2. Windows, skylights, storm windows will qualify for 10% of the cost, with a credit capped at $200
  3. Central AC and heat pumps will qualify for $300 credits
  4. Top efficiency furnaces or boilers that go beyond the government’s Energy Star standard will qualify for a $150 tax credit. Some super efficient tankless or electric heat pump water heaters will qualify for a $300 credit
  5. for solar water heaters (except those used for swimming pools) homeowners can get a tax credit covering 30% of the cost, up to $2000

Leave me a comment and let me know what you think.

Why Home Renovation Financing?

Renovation financing gives you:

* More money to work with. The amount you can borrow is based on the expected increased value of your home, after improvements are made.
* Less Strain on Your Budget. You can pay for your renovation gradually and affordably, over the loan term of your mortgage.
* Less to Pay at Tax Time. Unlike other credit options, the interest you pay on funds used for a renovation may be tax deductible.
* Less Hassle. You’ll have one loan to apply for, one set of fees, one closing to attend, and one monthly payment to make.

Is Renovation Financing for You?
It is, if you have any plans for minor or major renovations to your home in the next six to 24 months. If you’re buying a house today and considering some home improvements next year, you may find it’s cheaper and easier to have the renovations done now with your financing for the purchase and the renovation all handled in one transaction.
All Kinds of Needs Covered
You should be able to finance any kind of improvement or repair to eligible properties.

Panelized Custom Homes are Similar to PreFab Homes & Share Many of the Benefits

Prefabricated homes are a relatively new concept in architecture and building. In fact one reason why prefabricated homes are currently not as popular as they should be is because there just isn’t alot of information out there.

A Panelized home is similar to a prefab home, but as its name implies, is built of panels, or sections of walls. The panelized sections fit together much like pieces of a puzzle.

A prefabricated home is a house that is built off site, and is assembled on site. A Penalized home is built the same way – off site. The panel sections and components that we use are built in a very large warehouse. The equipment in the plant is very high tech. The lumber is actually cut using laser guided equipment. So the lumber cuts are very clean and precise.

Another interesting feature of panelized construction is that design flexibility is just as great as stick framing. If our architect can draw it we can build it with panels. Prefabricated homes are almost as flexible design-wise as panelized construction.
In addition, panlized and  prefabricated homes are usually composed of environmental friendly materials, and compared to ordinary stick built homes, the amount of wood used is considerably less. And therefore, there is less waste.

And since the panels are essentially built in an indoor plant, weather does not adversely impact the lumber as much as it would if the home were stick built on the site. With stick built homes the piles of lumber sit out on site in the weather. Many times the lumber can become more warped and twisted when rain and moisture make contact with the wood.

Preapproval Bank Process for Financing a New Custom Home

No doubt about it, this is a tricky environment for funding a new custom home or major renovation project.

One way to get ahead of the curve is to get a preapproval from a lender. A Preapproval is your lender’s written commitment to finance your home purchase up to a specific amount. Getting preapproved is a smart move for serious homebuyers in this volatile credit environment and it shows sellers that you come to the negotiating table ready to complete the transaction.
Preapproval vs. prequalification
A preapproval indicates that a lender has taken a detailed look into your financial background and has committed to lend you a certain amount of money, pending specific property details. Because preapproval includes a credit check, it’s more powerful than a prequalification letter, which generally only estimates what you can borrow based on information you’ve provided.

What are the advantages of being preapproved?
Preapproval offers a number of advantages over waiting to apply for a mortgage until after you’ve found a home. It lets you:

* Shop for a home with the confidence of knowing exactly how much you can borrow.
* Take advantage of the preference many home sellers have for preapproved buyers.
* Find out about possible qualification problems early in the homebuying process.
* Avoid the hectic rush to find the right mortgage loan at the same time that you’ve found a house.

Who can benefit the most from preapproval?
Preapproval is a great advantage for anyone buying a home in todays environment. A year ago it was especially useful for buyers looking for their first home and those who are self-employed or work on commission. But today, even those buyers that on the surface may seem to be credit worthy – high incomes and great credit scores, may be surprised what lenders are requiring as credit is becoming scarcer.

* First-time homebuyers. Without a record of previous mortgage payments, sellers may see first-time homebuyers as less likely to obtain financing than a similar buyer who’s already demonstrated the ability to meet a monthly mortgage payment. A preapproval helps even the field by showing the seller that a lender has already run the numbers and is willing to proceed with the transaction.
* Self-employed buyers or commissioned employees. Because their incomes may fluctuate more dramatically, self-employed and commissioned buyers often lack the financial documentation of salaried employees, which can send up a red flag to some sellers. Showing that a lender has already considered these factors will help mitigate this risk.

How does the process work?
Before you begin shopping for a home, submit your financial information to us. We’ll review your loan application and then, if you meet the qualification requirements, we’ll provide you with a written preapproval for a certain mortgage amount, down payment, and interest rate, subject to the terms of the commitment letter. The loan commitment letter can be finalized after information about the property, including an appraisal, is submitted.

Getting Ready To Buy a New Home Or Build A New Home While the Credit Market Bounces Along

Thinking of Building or Buying A New Custom Home but not sure what to do in this volatile market? Are you on the sidelines waiting to buy a new home? Why not use this time to get ready.  Here are things that you should be doing now to position yourself:

Financial preparation is the first–and perhaps the most important–step in the homebuying process. Get ready for your purchase by taking a careful look at your savings, credit, income, and debt.
Down-payment options
Buying a home doesn’t necessarily mean having to make a large down payment. We provide a variety of loan programs that can help you buy a home using little or no cash.

If you have a down payment goal in mind that you need to save for, you’ll reach it more quickly if you stick to these simple rules:

* Pay yourself first. When you pay your monthly bills, the first check you write should be to your savings or investment account.
* Avoid unnecessary purchases. The less you spend on things that you don’t really need, the sooner you’ll become a homeowner.
* Set realistic goals. Take an objective look at your monthly income and expenses, and decide how much you can really put aside. It defeats the purpose of saving for a home if you fall behind on your other obligations.

Your credit
Responsible credit use is an important part of the mortgage equation, and your lender will take your credit history into account when deciding whether to approve you for a mortgage. If you have a strong credit record, do your best to maintain it until you buy your home. If you’ve had credit problems in the past, the time to reverse that trend is now. Follow these steps to put yourself in the best possible credit standing:

* Check your credit report. Report incorrect or outdated entries on your credit report. Each year, you can get one free credit report from each of the three credit agencies through www.annualcreditreport.com.
* Contact creditors if you have a problem. Many creditors are willing to work with clients to help relieve difficult financial situations. It’s always better to seek help than to let a problem go unchecked.

Income and debt
To determine how much you may be eligible to borrow, we’ll generally compare your income to your outstanding debt. Guidelines vary, depending on your loan program, your credit history, and other compensating factors. It’s best to avoid taking on new debt in the months leading up to your purchase.

But even if your debt expenses are high, you may still be able to get a mortgage. Our financing programs help make homeownership affordable for people from a variety of financial backgrou

New Home Mortgages Don't Have to Be So Complicated! Read This for some "Mortgage Clarity"

Mortgages can and the costs associated with mortgages can make your head spin! Here’s a real basic primer on mortgages that hopefully adds a little clarity.

Although each individual new home financing package has its own variety of features, the concept of a mortgage is really quite simple: a mortgage is a loan made to help you finance a home. Your lender advances you a certain amount of money, which you repay over a specified period.
Interest Rates, points, and loan fees
The total cost of your mortgage is determined by a number of different factors, most notably the interest rate, discount points, and loan fees.

* Interest rate refers to the percentage of your outstanding loan balance that you pay the lender each month as part of the cost of borrowing money. Your interest rate will be based on the current overall rate environment, as well as your financial profile and the specific features of your loan.
* Discount points allow you to “buy down” your interest rate at closing. One point equals 1% of your loan amount, and the more points you pay, the lower your interest rate will be, and the less you will have to pay each month. If you wanted to lower your closing expenses, you could also accept a slightly higher rate and pay no points.
* Loan fees are up-front charges to cover the cost of originating, processing, and closing your loan, among other things. An origination point is a loan fee that equals 1% of your loan amount.

When considering loan pricing, keep in mind that interest rates, points and fees should be considered together. The interest rate alone only tells part of the story. The expenses that contribute to the cost of your loan can be expressed as the annual percentage rate (APR).

The interest rate only tells
part of the story

Your monthly mortgage payment
Mortgage payments can generally be divided into four parts: principal, interest, taxes, and insurance. These are often referred to with the acronym PITI.

* Principal refers to the amount of money you borrow to buy a home, and to the outstanding loan balance at any point during the mortgage term.
* Interest is the cost of borrowing money. As noted above, the amount of interest you pay each month is determined by your interest rate.
* Taxes assessed by your local government will likely be collected by your lender as part of your monthly payments, and then paid annually or semi-annually on your behalf. This process is known as an escrow.
* Insurance, like property taxes, is normally collected by the lender in an escrow account. Insurance offers financial protection, and has two major components:
o Homeowner’s insurance, also called hazard insurance, protects you against damage to your property caused by fire, wind, or other hazards.
o Mortgage insurance protects your lender in the event that you fail to repay your mortgage. Whether you must pay mortgage insurance usually depends on the loan program and the size of your down payment.

Financing Checklist for New Custom Home

Here’s the kind of information you should have at hand when you apply for your construction loan. This is a general list:
Salaried Borrowers

* Pay stubs for the most recent 30-day period (including a year-to-date summary) for each of the borrowers on the loan
* Most recent W-2 statements for all borrowers
* Relocation letter on company letterhead, if applicable

Self-Employed Borrowers

* Complete signed tax returns for the last two years, including schedules and statements. If incorporated, personal and corporate returns should be provided
* A copy of an extension to file, if applicable
* Year-to-date profit and loss statement, if beyond June 30th

Deposit Verification

* All pages of checking and savings account statements from the most recent 30-day period
* All pages of asset account statements, including money market funds, mutual funds, stock accounts, IRAs, CDs, etc., from the most recent 30-day period. Please note that Internet screen prints are generally not acceptable
* Gift letter, if applicable
* Evidence of the sale of your previous home, if applicable
* Verification of large deposits

Miscellaneous Borrower Documents

* Any divorce decrees, child support agreements, or separate maintenance agreements if alimony or child support is either paid by any borrower on the loan or received by any borrower on the loan and is used as income
* Written explanations for any credit issues that appear on your credit report
* Copies of any leases and two years of federal tax returns on any rental properties you own

Construction and Builder Documents

* Construction plans and specifications
* Fully executed Purchase/Construction contract accounting for all work. This may involve separate bids and/or contracts if work is not included in the contract
* HUD1 Settlement Statement from the purchase of the land, if the purchase occurred within the past 12 months.
* Name, phone number and address of the builder
* Name and phone number of your preferred settlement agent (i.e., title company, attorney, escrow agent, etc.)
* Course of Construction insurance
* Certification for any private well or septic system
* Foundation survey (In most states, this can be handled by your title company).  Its cost is usually not covered in your closing costs.
* Verification of deposits to your builder and/or land seller, such as cancelled checks or a copy of a certified check

Ordering the Appraisal
The Lender will order a full appraisal of the proposed property based on the final plans and building specifications.

All conditions (such as debt reduction or additional documentation) for your permanent loan must be satisfied prior to the close of construction.
Usually your permanent loan commitment is valid for 12 months from the date your construction loan closed. If this loan commitment expires before your permanent loan closes, you will be required to update your application, which will require new documentation. Any change to your credit profile may negatively impact your ability to get a permanent loan.

7 Steps to Finance the Construction of Your New Home

Generally, there are seven steps for financing the construction of a new home using most construction/perm loan programs.
1. Initial Stage – Prequalify with one of our lenders
You’ve looked at some of our house plans on-line but have not had the first consultation meeting with our design team. Even though you don’t have much finalized, now is great time to start to get your financing in place. We’ll put you in touch with one of the lenders that we work with at this initial stage. This is the time to pre-qualify with our lender.
2. Application
While we are designing your home the plans are starting to solidify. And since we are designing and pricing in-house this happens very early in our process. The benefit to you is you’ll know the amount of money you’ll need early on. This allows you to start the formal loan application early on.
3. Approvals
Our lender will work with you to get your permanent loan approved. We’ll also get the final plans and specs so that the lender can order an appraisal.
After the lender has the appraisal and a fully executed purchase contract, they’ll submit the entire package for construction loan approval.
4. Construction Closing
After the lender has all the necessary approvals, they’ll close on the loan that will finance the construction of your home. A settlement agent will give you specific instructions about the amount you’ll need to bring to closing, and in what form. As soon as you close on the construction loan, we may begin building.

5. Draw Process
During construction, the lender will send out a construction inspector to inspect our work and to approve our requested draws from the construction fund for work that has been completed.

6. Completion of Construction
A final inspection will determine that the construction on your home is complete.  We’ll get a Certificate of Occupancy (or its equivalent) from your local authorities.
Then our lender will also work with you to ensure that you’re ready to transition into your permanent loan product. They’ll schedule a modification of the construction loan to the permanent mortgage.
7. Move In!

Choosing the Right Home Builder

There are several benefits to purchasing a pre-construction home. Brand-new homes do not come with repair costs since nothing in the home has ever been used and the structure has not been subject to the elements.

When you have a new home built, you have the opportunity to choose the look and feel of your home, and personalize it to suit your tastes. Some home builders, especially in hurricane prone areas like Florida, are now building homes above hurricane code with extensive safety measures to protect the homeowner in the face of severe weather.

But not all home builders specialize in high quality homes, or offer buyers the chance to personalize their home. That is why choosing the correct home builder is such an integral part of a positive home buying experience.

A tale of two builders: tract homes vs. custom homes

There are two very different types of home builders offering their services today. The first, and often cheapest, option is a tract home builder. These builders offer newly constructed homes at the lowest prices, and can be an affordable option for the buyer on a tight budget. Tract homes are not necessarily bad homes, but the materials used to build them are often of much lower quality than materials used by custom home builders.

Tract home builders can offer lower prices because they purchase materials in mass quantity. Because of this mass purchasing policy, they are not able to offer buyers decor options or choices in color scheme, flooring, etc. Tract homes are often referred to as “cookie-cutter” homes because they all look exactly the same. Tract homes are very seldom built above code, and do not usually include options such as safety glass, additional roof truss straps, or solid, poured concrete construction.

You get what you pay for

Custom homes often come with a higher price tag, but you can definitely see where the extra money goes. High-quality materials, custom decor options, and additional safety measures are just a few of the additional features custom home builders offer. Homes built by custom builders are usually much more luxurious in scale, and often include vaulted ceilings and bright, airy floor plan choices. Top of the line paint, appliances, flooring and fixtures may also be offered.

But there are also different levels of custom home builders, especially when it comes to hurricane safety. In states where hurricanes are a fact of life during the summer months, choosing a high-quality home builder is especially important.

Above code construction

One state where additional hurricane protection is especially important is Florida. In 2004, Florida suffered a series of direct hurricane strikes to both coasts. Even inland areas were not immune to the powerful storms, and homes throughout Florida suffered severe damage. Florida was also subject to extensive building code reform after the devastation Hurricane Andrew left behind in 1992.

Despite extensive reform in South Florida, only a handful of additional Florida counties have adopted the strict standards that are currently in place in Dade county (areas of which were devastated by Hurricane Andrew). In fact, the current building code in most counties only requires that new homes be built to withstand a Category 2 hurricane.

That is why a handful of builders in Florida have begun giving their customers an added level of protection. Above code construction is a term used by these builders to convey that their home construction standards exceed what is required by Florida building code. Some of these homes are built to withstand winds in excess of 140 mph, and offer superior protection for homeowners.

It’s all in the details

After deciding which type of home you are looking to have built (tract or custom, standard or above-code), there are a few more criteria you can use to narrow down your list of choices. First, select your top three neighborhood choices and thoroughly explore the housing market in each of these areas. Make a list of builders who have lots available in your target areas.

Personally visit each builder on your list, as you can get a good feel for the company by visiting their sales offices. Take note of your experience with each company. Is their office staff friendly and helpful? Do they have model homes to show? Do they offer a home warranty? What about builder financing? Do they thoroughly review the floor plans, custom features, and available decor options? Trust your instincts and go with the home builder you are most comfortable working with, and who you feel shares your vision of the ideal home.

Top Five Money Savings Tips for New Home Construction

Considering how fragile the economy is right now and how timid banks are to loan money for new homes I thought I’d share my experience with saving money on new home construction. It wasn’t that long ago when getting loans was really easy and building large homes was the trend. Today banks are less likely to fun new construction because of the premium costs associated with new construction.

In most real estate markets today you can purchase an existing home for quite a bit less money than a comparable new home. Because of this banks are much more likely to focus their loans on very good customers with plenty of equity (skin in the game!) and homes that will hold their value in this turbulent real estate market.

Having said that if you’re really set on building a new home there are ways you can keep the budget down and the banks more likely to fund your project. Here are my top five ways of saving money on new home construction.

1. Square footage is the name of the game. No matter how you slice it every square foot you add to the footprint of your new home is going to cost money. It affects every aspect of the construction from the foundation all the way to the finish coat of paint. I tell customers to start off with a floor plan that has everything they want and all the room they want. Then you need to take the time to analyze each and every room and see if you can make them smaller and keep the functionality. If you take a simple 30 foot wide home and remove 2 feet of length you can save 60 square feet. 60 sq. ft multiplied times an average cost of over $150 equals $9000. Now you might be saying $9000 is nothing….but I say that will pay for over half of your flooring. So if you want to be serious about keeping costs down then always keep the square footage to a minimum.

2. Choose a home that is 2 stories if at all possible. This concept is pretty simple yet some people never realize how effective it can be. Let’s compare two homes; home A is a 2000 sq. ft. ranch style single level home, home B is a 2000 sq. ft. colonial two story home. Both homes have 2000 sq. ft. so you might say they would cost the same. I would argue the opposite and heres why. House A has a foundation that is twice the size as House B. House A has a roof twice the size of House B. This simple example can easily save you $10,000 to $20,000 yet you end up with the same livable space.

3. Instead of having an attached garage you can save a large sum of money if your house lot topography will allow for a drive under garage. In this scenario you use a portion of your basement for your garage and you can easily save $15,000 to $25,000. Now this option won’t work well for level lots or areas of the country that build home on flat slabs but it’s still a great money savings idea.

4. Ask your builder if there are any simple, safe construction tasks that you could do to reduce the costs. Many customers end up doing their own painting, cleaning or even final landscaping. These tasks could save you anywhere from a few thousand dollars up to tens of thousands of dollars.

5. Another recent option is to consider using certain Energy Star appliances, furnaces and air conditioning units. By using some of these products you may qualify for substantial government tax credits that can help offset some of your construction costs. My only word of caution on this item is that some banks are still trying to figure out new technologies like geothermal heat or solar panels. So they may be less interested in funding these types of products.

There you have it my top five money saving ideas for new home construction.

Home Building – Bathroom – Bathroom Countertops

Clients always ask us about what their choices are when it comes to countertop materials. Well, when it comes to bathroom countertops there’s no limit to how creative you can be, because most countertops are custom-designed for each installation. There are hundreds of colors, patterns, and materials to choose from, but not all of them work well in the bathroom where water and condensation are a constant concern. Your best choices are marble, granite, ceramic or porcelain tiles, solid surface materials and cultured marble.

Cultured Marble is the most common and least expensive countertop material, by a considerable margin and is available in many colors. A nice feature with cultured marble tops is that the top and the sink bowl are one piece. This is called a top with an integral bowl.

Ceramic & Porcelain Tile are very versatile materials that you can use on your countertop to create a specific style or look. Contemporary, retro, traditional, rustic, country, and everything in-between is possible when working with ceramic tile. The only drawback to using tile is the grout lines, because nobody wants to invest the time and energy necessary to keep grout clean, especially in the bathroom. And don’t be fooled – tile grout requires regular maintenance and lots of elbow grease. On the flip side, the tile itself is easy to clean. Cost is between $50 to $80 per linear foot, installed. Plain-colored tiles cost from $2 to $40 per tile with hand-painted tiles running from $5 to $75.

Corian and Solid Surfacing is made of either a pure acrylic product or a polyester-acrylic mix. The most widely available and widely known 100 percent synthetic countertop material is Corian by Dupont, but other manufacturers including Wilsonart, Formica and Avenite also make it in a wide range of colors and textures. Some of the materials are solid colors, but most have flecks that give it a textured look that resembles real stone (that will run the cost up). Cost is between $75 to $150 a linear foot, installed.

Granite slabs are the most expensive of all countertop surfaces, but this is one product that holds its weight. The expense of granite will vary greatly, depending on the type, quality and availability of granite that you select, as well as the finished edge that you choose. If you just can’t resist the look of granite and your purse is stretched, try going for granite tiles. Cost is between $75 to $200 a linear foot, installed.

Composite Stone is the hot new surface when it comes to tops and a big rival to granite. It is a stone-synthetic composite made of about 90 percent quartz particles and 10 percent acrylic or epoxy binder. Some of the composites look like natural stone, but not one that you could identify. Others are so close to real granite that you’re left wondering if it’s real or not? Since the composites are man-made materials, they do not have the unexpected variation of granite or marble and they do not need to be sealed. The four major choices – Silestone, Okite, CaesarStone and DuPont’s Zodiaq – all use the same process. The only differences between them for the end users are the colors and textures offered. Taken together, the four companies offer more than 130 countertop choices. Cost is between $110 to $250 a linear foot, installed.


"Whole Building" Approach to Sustainable Design

The first sustainable solar community development in South Africa was one of 15 projects worldwide selected for presentation at the UN Global Warming Conference in Kyoto, Japan. It was chosen as an example of how developing nations can grow and prosper while minimizing emissions of greenhouse gases, and is known as a “no regrets” project because it created sustainable economic growth and stable, healthy communities while costing no more to implement than a conventional development.

The Solar Village development addresses the physical as well as the social and economic needs of the people. The community plan employed a participatory design process where future residents took an active role in community design. The plan incorporates cluster housing, shared garden space, footpaths and parks, and a town center. The town center accommodates the central business district, churches, schools, and public buildings, as well as a community soccer field. The town center is within easy walking distance of all 200 homes in the development. The homes are naturally heated and cooled and maintain comfort and good indoor air quality year round with no mechanical systems of any kind. All waste is composted, and gray water is used for irrigation.

Rather than using outside contractors, future residents were trained and hired to build the homes using housing subsidy money from the South African Government. This provided a relatively large infusion of cash that served to jump-start the local economy. To date, over 200 homes have been built in Kimberly and Cape Town, and a new Solar Village is being started in Ugie. Projects such as these provide economic opportunity and a large degree of self-reliance through the use of solar and natural energy flows and sustainable community design.

* Homes are comfortable year round with no mechanical systems or energy costs
* Homes are healthy and safe
* Homes are clustered in groups of six to share gardens, compost, and gray water
* Household sewage is composted on site and used in the gardens
* Gray water is filtered on site and used to irrigate the gardens
* The Town Center is within easy walking distance of all the homes
* The Town Center has: A village green and soccer field, a common village house for multipurpose activities, churches, schools, and shops and markets surrounding the village green

The homes are clustered in groups of six around a cul-de-sac. The six-home cluster facilitates the natural organization of a community unit and was a result of extensive discussions with community representatives. Each cluster shares a common garden area. The homes face the street and have good solar orientation toward the north (Southern Hemisphere).

The cul-de-sac street layout:

* Encourages community organization in natural, manageable groups
* Reduces the total road area when compared to a grid pattern
* Lowers cost
* Results in less disturbed land

At the center of the Solar Village is the village square. The village square is a large grassy area the size of a soccer field which serves as a gathering place for the whole village. To the south of the village square is the community center: a large, open building that can be used for meetings, events, entertainment, worship, training workshops, and community office space. On the other side of the green is space for one or more churches or places of worship. The concept of the village square is to create a focal point that helps give the village an identity. Creating and maintaining a strong sense of community is vital to the success of the village and the prosperity of the people.

The homes themselves are designed to replace the tin and mud shacks in which more than half of the people currently live. Since the majority of people in this community are unemployed and could not qualify for a mortgage, the basic home costs no more than the subsidy. The home is 570 square feet and contains two bedrooms, a kitchen, bath, and living room. The direct gain passive solar heating system provides 100% of the heating. Shading, coupled with good ventilation and thermal mass, keeps the home cool in the hot summer months. Cooking is done in a solar oven built into the north-facing wall. Passive solar heating and the solar oven helps reduce the need for traditional kerosene heaters and cook stoves, which emit dangerous levels of carbon monoxide. Optional passive solar water heating and PV systems are also available.

The insulation, mass, and solar window area were optimized using Energy-10 Version 1.2 energy analysis software, an 8760 hourly simulation program. Since hourly weather data is not currently available for South Africa, ASHRAE design data (maximum and minimum temperature and RH) were used for the location and compared to U.S. cities with the same latitude (north latitude) and the same design conditions. The closest match to Cape Town was San Francisco, CA. As a result, the winter and summer months on the plots are reversed for South Africa. The base house was run changing one building element per run. Changes were made exploring variations in wall insulation, roof insulation, thermal mass, and window size and type. The objective was to achieve comfortable indoor conditions (minimum 60° F [16° C] in winter and maximum 80° F [27° C] in summer) without a mechanical system and at the lowest first cost.

The resulting design is as follows:

* Walls are brick outside, 3-inch EPS foam and brick inside
* Roof is a structural panel of corrugated aluminum, 3-inch (72mm) EPS foam, 0.5-inch (13mm) OSB and 0.5-inch (13mm) gypsum board Slab on grade
* 542-foot (5812m) single-glazed north window
* 16-inch (406mm) north roof overhang

Additional features include:

* Local materials used in construction insofar as practicable. Candidate materials include soil cement blocks and bricks made on site and rammed earth.
* Well-ventilated for indoor air quality
* Passive solar heating. All homes are oriented to the north and have large windows on the north side. The homes remain warm all winter with no supplemental heat.
* Natural cooling. Homes are well shaded in the summer with a combination of overhangs, arbors, trees, and other shade devices. Most of the lots around the houses are shaded in the summer to create cool islands around the homes. All rooms have flow-through ventilation to capture the summer breezes, so the homes remain comfortable all summer.
* The house plan is easily expandable to adapt to growing family needs.

Optional features include:

* Solar water heating
* Through-the-wall solar cookers
* Waterless composting toilets and urinals

As the primary source of food, the gardens in the Solar Village play a very important role in the self-reliance and prosperity of the community. Because six families can agree and work more cooperatively than 600, the cluster concept divides the community gardens into groups of six homes that share one community garden. The cluster groups can then agree on shared crops, livestock, and composting.

Composting is an important component, not only of the productivity of the garden but also for the waste management system. Waterless composting toilets turn human waste into compost that returns to the soil to enrich the growing crops. The compost from the composting toilets can not be used directly on food crops, so it must first go through the outdoor compost pile. By recycling all organic waste through composting, the villagers will build very rich and productive gardens. As the yields increase, many villagers may start growing commercial crops to generate income. This system also dramatically reduces the per-household potable water requirements. Replacing the flush toilet with waterless composting toilets eliminates the need to use potable water to water the gardens. Thus, the central water purification plant size and associated costs are dramatically reduced.

Over 200 homes have now been through a full winter and summer cycle. The indoor comfort was as predicted, although a few houses that were not sited properly showed some overheating in the summer. This pointed out to the builder the importance of orientation. The Kutlanong community in Kimberly was developed as a sustainable community and has considerably improved the quality of life for its residents.

One of the most sustainable aspects of the project has been economic development. In most other subsidy projects, a builder/developer from outside the community comes in and builds the homes. By hiring members of the community and training them to build the houses, $3,100 per house went directly into the community. This represents an overall infusion of approximately $625,000, which in time could result in $1,875,000 in total economic activity for the community. The traditional approach would have resulted in zero economic benefit for the community. We have also eliminated most heating and cooking costs and created a much healthier indoor environment. The effect on the residents is obvious. They are healthier, they are gaining weight, crime is low, and local businesses are strong. This project demonstrates how solar energy and sustainable community development can not only improve the quality of life for people in developing countries but also for needy people worldwide.

By John Spears

Effects of Finishing Touches on the Schedule of a New Custom Home

Regardless of a home’s size or style, all construction follows a consistent pattern and pace. Excavation and foundation work will be followed by the framing phase, which will be followed by rough mechanical, electrical, and plumbing work. As soon as those stages are complete, insulation will be installed. These steps follow each other quickly and are easy to see. The progress is exciting!

But when our focus shifts to the interior finishes of your new home, the pace seems to slow down and daily progress is more difficult to follow. To the homeowner, it might seem that we are losing focus or paying less attention to the project. In fact, the opposite is true. The apparent pace of work has slowed because finishing work is much more detailed than the previous stages. We much be more focused and pay more attention to the finishing details.

For example, cutting, building, and fastening the pieces of a complex crown molding profile along the ceiling-wall joint of an upscale kitchen requires several hours of painstaking work by a skilled finish carpenter. Likewise, finishing newly built walls to a smooth, uniform surface is a process that takes multiple cycles of application, drying, sanding, and cleaning to accomplish properly.

There also are more products to install. The number of cabinets, faucets, light fixtures, door handles, and outlet and switch covers in a modern new house continues to increase as homes become larger and more luxurious. To get some sense of that task, count the number of outlets and switch covers in your kitchen and family room alone (or in the whole house, if you’re more ambitious), each of which must be installed by hand before you can move in.

Finally, finish work signals the last stage of the building process. Both we and our homeowners are anxious to finish the job after several weeks of anticipation and hard work, not counting the time spent planning before construction began. It is hard for homeowners to remain patient when the work appears to be moving slowly.

By the very nature of its exacting, hand-applied work, the finishing phase of homebuilding is necessarily slow. That does not mean that the work is being neglected! During this final part of your home construction, remember that we remain focused on the highest quality installation and application of your home’s interior finishes.

Home Additions: What you should know

By building an addition, you can make your home more livable, while increasing its value. It also allows you to stay in a home and neighborhood you like without incurring the expenses and inconvenience of moving. But before you start, there are many things you should know.

Find out about building restrictions

While you are still in the thinking stage for your home addition, find out from city hall if there are any local zoning ordinances that could affect your project, such as lot setbacks (i.e. the minimum distance required from the adjacent property lines or public right of way to the outermost portion of the structure) and height restrictions.

Additions come in all shapes and sizes

Home additions are becoming increasingly popular across the U.S. to accommodate aging parents (and, unfortunately, in-laws), or even as rental units to generate a monthly income. These additions can include a bedroom, bathroom, sitting room and a private entrance, although the most popular home additions involve adding an extra room onto an exterior wall. Sun rooms, garages and extra bedrooms are common additions, as well as living rooms, dining rooms and home offices.

You may want to consider building up instead of losing lawn and garden space, or building a two-story addition that will accommodate an office or bedroom on top of the garage to maximize space. Other additions, such as carports, porches and decks often require less disruption of your home, yet will still increase its functionality and value.

If you’re adding indoor space, make sure a heating and air conditioning (HVAC) professional is brought in to assess the increased demand on the present system.

Continuity works best

Something to think about with a home addition (and something we specialize in) is consistency – within your own home and with the neighborhood. First, you want your addition to “fit in” with the rest of the house, both inside and out. That is, you don’t want the addition to look like an “add-on,” either structurally or in terms of decor. Similarly, a huge addition to a house in a modest neighborhood will surely give you more space, but when it comes time to sell you may not get the return on your investment you were hoping for, as those who can afford a bigger house will likely look in a more expensive neighborhood.

Consider the costs

When planning your addition, remember that the less impact there is on your present structure, the more cost-effective the addition will be. For example, moving plumbing walls, radically altering the floor plan and making changes to the roof line will all increase your costs significantly.

Assess impact for heating and air conditioning

We will bring in subcontractors for specialized jobs, like electrical and plumbing. If you’re adding indoor space, we’ll make sure that a heating and air conditioning (HVAC) professional is brought in to assess the increased demand that the addition will place on the present system.

20 Considerations that help a project run smoothly

In building and renovation, few rules hold true all the time. However, a number of useful notions lead to predictable outcomes most of the time. Unfortunately, many of these notions are forgotten when we concentrate on making ideal decisions throughout the course of the work. We lose sight of how each decision relates to the bigger project picture.

The following is a list of some commonsense ideas that almost always have a positive impact on a construction endeavor.

Maintain the Right Attitude

  • Building anything is an act of joy and optimism. It’s also a learning experience. Anxiety is a normal part of that experience, but anxiety must not control the outcome of the work.
  • The only adversarial relationship that is productive on a building project is the one that everyone should have with the artistic, technical, and financial challenges that the work itself presents.
  • Excellent people make mistakes. Expect that they will continue to do so.
  • Building a house is not an industrial process. It is hand labor, at a site, involving dozens of components that have to work and fit together as well as possible. Expectations for the quality of the work should reflect these characteristics.
  • Choosing an architect and builder

    • When selecting a professional with whom to work, the first criterion should be character; the second, competence; the third, dedication.
    • Clients are in the difficult business position of dealing with people who know more about design and construction than they do. In this vulnerable situation, the best strategy is to choose professionals of unquestionable integrity.
    • To secure the greatest benefit from the knowledge that consultants and builders posses, allow them to do their work in the manner that their training and experience have shown will be most effective.
    • Clients who receive the best service are those from whom trust is ample, enthusiasm is overt, information is complete, and payment is prompt.

    About Project Costs

    • Accurate cost estimates are based on facts; inaccurate estimates are usually the result of guessing. Financial risk in building is reduced by developing as much specific design information as possible before construction begins.
    • The complexity of both design and construction work is often underestimated.
    • Many people believe that they know a good deal about architectural design. What they do not realize is how much more they need to know to do design well, with distinction, refinement, and grace.
    • Architects have the patience to plan. Builders have the savvy to improvise. Improvisation, however, is not a substitute for planning. The purpose of planning is to achieve predictable results. The purpose of improvising is to maintain work progress.
    • For construction to be done efficiently, most design decisions need to be made in advance of building. If made during construction, these decisions can interrupt the work flow and increase its cost. Late design decisions are also more difficult to incorporate into the rest of the design.
    • A construction project involves people with wide variations in skill, experience, intelligence, and desire. Effective project management optimizes the conditions that allow people to perform at their best.
    • Frequent, candid communication is vital to minimize construction problems.
    • Good people care. The end result usually shows why.

Green Building: Windows, Doors, and Skylights

Energy efficiency plays a central role in building any new home. Building a “green” home, however, requires energy efficiency and much more. “Green building” means taking a comprehensive approach to energy and resource efficiencies from design through construction and operation of the house. Certain components of a home’s construction contribute greatly to the success of such an approach.

Windows, doors, and skylights, in particular, have a critical impact on a home’s ability to conserve energy, reduce moisture intrusion, and keep utility costs low. Like the vent pipes in a roof, they are penetrations in the home’s structural envelope, only much larger and more widely distributed.

The average new house, in fact, has more than 20 windows and doors, each a potential avenue for outside air and water. In the past, windows and doors were not much better than open holes in the wall. They were designed to bring usable daylight into the home, provide views to the outside, and allow passive (or non-mechanical) ventilation in warm and humid climates. In order to keep their homes reasonably comfortable in cold seasons, our ancestors kept windows and doors to a minimum.

Fortunately, today’s windows and doors are designed to enhance a home’s energy performance. Through still relied upon for passive ventilation and views, windows and glass doors are now insulated in both their frame and glass design. High tech window construction and specially treated glass can reduce glare, unwanted solar heat gain and damaging ultraviolet radiation, which can fade rugs and upholstery. Windows and skylights can also be designed to increase passive (free!) solar heating, reducing the amount of costly energy needed by the furnace.

Energy-conscious home owners can now choose among a variety of options in order to precisely match windows and doors to the seasonal climate conditions of their home’s location. To optimize the seasonal climate conditions of their home’s location. To optimize the overall thermal performance of the house, windows and doors can also be selected according to which side of the house they will be installed. For example, south and west-facing windows can let in more solar energy than north and east-facing windows.

In addition to enhanced glazing options, new wood-based window and door frame materials are engineered to resist warping, thus minimizing the small gaps between the window or door and the wall that may develop over time. In better quality vinyl window and glass door frames, the hollow cavities are increasingly insulated to boost their effectiveness.

As professional builders concerned about the performance of your new home, we take care to select the best windows and doors for your new home. We also take care to find knowledgeable suppliers and trained subcontractors to ensure not only high quality products but also proper installation that will maintain the design performance values of the window and door products used.

Windows, doors, and skylights play an important role in any home’s appearance and overall performance. In a green-built home, they are critical elements in a range of integrated design and construction approaches that help reduce a home’s energy use and operating costs while increasing indoor comfort and air quality.

Remodel or Rebuild?

  1. Does building an addition to a house cost the same, per square foot, as building a new house?
    No. On a square foot basis, adding on usually costs considerably more.
    There are several reasons for this.

    • Adding on involves demolition, removal, and disposal of existing materials.
    • Existing spaces must be secured and protected from construction and from the elements.
    • A remodel may include a greater proportion of high-cost space (such as kitchens, bathrooms, and rooms with fireplaces or windows) than would a new house
    • While the overall scope of a remodeling project is smaller, the details may not be any fewer. Utilities must be both disconnected and reconnected. Permits still must be obtained. The same materials must be ordered and delivered, only in smaller quantities. The same subcontractors may visit the site the same number of times, only to perform fewer tasks per visit.
    • In new construction, everything is new. The only surprises on a new home site are under the ground. In a remodel, the builder never knows what he will discover when he dismantles an existing structure. There may be rotten wood, something built not-to-code, faulty wiring, plumbing or heating. Repairing these add to the cost.
  2. Is it better to remodel an old house or build a brand new one in a different location?
    There are pros and cons to each, and much depends on your individual situation.
    Some things to take into consideration are:

    • If you want to remain in your current location, or if you want to move to a neighborhood where there are no vacant lots for sale, it may be better to remodel, even if that requires tearing down an old house.
    • If the existing house has wiring, heating, plumbing systems or a foundation in poor condition, or if there is extensive dry rot, pest, water, or other damage, the house may not be worth remodeling.
    • If the existing structure is not big enough and there is not enough room on the lot to expand, remodeling may not be feasible.

    What are the difference in cost? Remodeling may or may not be cheaper overall than building new, depending on the situation.

  3. How can I decide whether to remodel an old house or tear it down and build new on the same lot?
    Compare the costs.
    For a remodel, the first phase of the project will be to remove all unwanted material, so that everything you have left will be part of the final house. This may involve removing just a few interior walls and stripping some old flooring, or it may involve removing everything but the bare bones of the frame and foundation. There could be so little debris that could haul it to the dump yourself, or so much that your need to rent a whole series of thirty-yard containers.
    For the tear-down alternative, compare the cost of demolishing the whole house and then building newly as much as is necessary to get to the same stage of construction as above.

Who Should Build a Custom Home?

Should you?

To buy all the parts that make up your automobile, you might have to spend upwards of four times the cost. And then you would still have to put them all together! Custom building a house is not quite as bad as that, but it still costs more than a ready-made builder’s product. So why build a custom home?

If you answer “Yes” to any of the following questions, you are a good candidate for considering a custom home.

  • Have you looked for a ready-made home, but have been unable to find one which fulfills your desires and preferences, your family’s needs, and/or your aesthetic sense?
  • Do you have very particular and specific desires about what you want in a home? When you look at existing homes, do you seem to want to change everything about them?
  • Do you have unusual requirements for a home, such as special-purpose rooms, a particular layout, built in major fixtures or systems, accessibility, an accessory dwelling, or out-buildings?
  • Would you like to make use of alternative energy sources, ecologically sound or non-toxic building materials, or any other fixtures, methods, or materials which are not generally found in ready-made homes?
  • Have you been unable to find a home which works for you in the right location or neighborhood?
  • Do you wish for a home with particular views, water frontage, zoning, or type of trees or vegetation, and have been unable to find an existing home that has them?
  • Are you in love with a particular piece of vacant land?
  • Are you already the owner of a particular piece of vacant land?
  • Do you own, or are thinking of buying, a divisible lot, with an existing home on one part? If so, you might build a custom home on the vacant part, and the sell the existing home.
  • Do you own, or are thinking of buying, a lot in a good neighborhood with an existing home in such disrepair that it should be torn down?
  • Do you own, or are thinking of buying, a piece of land with a mobile home? If so, you might build a custom home while still living in the mobile, and then sell the mobile.
  • Do you want to make sure that your new home is structurally sound and has been built under newer building code requirements, such as those which afford precautions for earthquakes, slides, floods, fire, or hurricanes?

There are many more questions to ask yourself, those are just some of the reasons why you would build a custom home.

Bottom line – If you’re looking at existing homes and you can’t find that perfect dream home – it’s time to think about a custom home.

Have it Your Way!

No two homes are the same, and every client is unique.

Our missing is to build a home for each of our clients that fits each family’s wants and needs. We work with our on-staff architect to carefully consider a client’s specific needs; the number of people in the household, the gender and age of every family member, and even their particular preferences and interests. We try to capture the essence of how you live now and make an educated guess about how you’ll live in your new house for years to come.

This “lifestyle profile” approach helps determine everything about your new house, from the simplest and most obvious, such as the number of bedrooms and bathrooms, to less common features such as personal and public entertainment areas, specialized storage space, and even the home’s physical location and architectural style. We’re dedicated to determining the specifics of your new home.

Before we meet with prospective clients, we encourage them to spend some time thinking about their current lifestyle, paying particular attention to how it might change in the future.

Plan with an eye to the future: In addition to a simple count (Don’t forget the pets!) of those living under your roof, consider how each person in the family uses the house now and is likely to use it in the near future.

  • A couple without children, for instance, might consider at least two secondary bedrooms (in addition to the master suite) that can serve as a home office, guest room, or a hobby space – or eventually, children’s bedrooms.
  • A young family might look for a home in which the secondary bedrooms are located on the opposite side of the house or on a different level. This plan will not only accommodate aging kids but can also serve different uses, such as a guest or game room, once the children leave the nest.
  • If regular visitors are a part of your lifestyle, you might consider a separate suite above the garage that could double as a hobby space or home office.

Mobility and Special Needs: Regardless of your age or current physical condition, remember that a temporary or chronic impairment might limit your ability to get around your house in the future. If bedrooms are on the second floor, even a pulled muscle can keep you from climbing stairs. A main-level “flex” space (especially one with semi-private access to a bathroom offers a comfortable alternative to a couch or cot in times of a temporary disability. This setup easily converts to a permanent bedroom on the lower level when stairs are best left to younger members of the household. Floor coverings, cabinet and counter heights, and appliance locations can be tastefully altered to make them easy to navigate regardless of your physical state. Consider, too, ease of access to and around the house from the outside. You might consider at-grade entrances and solid, hard surfaces such as continuous walkways instead of paving stones.

Interests outside the home: In addition to in-home needs and desires, consider outdoor activities as part of your lifestyle profile. If you prefer to take walks, run, or bike ride, ready access to a community bike or walking path might help target your choice of locations within a neighborhood. The opportunity to garden or do yard work may also be a determining factor in your search for a new home, while those who disdain mowing the lawn or repainting the house will be drawn to low maintenance materials and yard areas. Proximity to an amenity-rich community center might be a deal-maker for a young family, but less so to a time-strapped, travel-heavy professional couple.

As a builder dedicated to making housing dreams a reality, we are committed to providing homes that are best suited to the people who buy and live in them. Armed with a solid understanding of our clients’ particular wants and needs, we can pinpoint the right house and features for each one, delivering homes that suit their circumstances now and in the future.

Why Custom Design?

If you are planning to have a home custom built, you may be wondering if you should find a stock plan that you like well enough and have it built as drawn. Of course you would still specify the colors, fixtures, and materials. This can be done, and it would create for you a home that is custom built, but not custom designed. What reasons might you have for also having your home custom designed?

The design of a home begins with the approximate size, location, and layout of the spaces for living, cooking, sleeping, playing, entertaining, conversing, relaxing, studying, working, washing, and so forth. How these spaces are placed will affect how you and your family live every day.

  • Planning a short route from your car to your kitchen may save you more time and energy than an easy-clean bathroom counter surface.
  • Each square foot of a house adds to its cost, so you should be the one to decide whether to put that square foot into the bedroom or the living room.
  • If you are hunting for a stock plan for a narrow lot with a room-sized pantry and a sauna, but with only one bedroom and one bath, you may have a very long and futile hunt.

Next comes the design and placement of windows and doors, according to the way you will use the rooms.

  • Windows that have been placed to take advantage of your views might have a great effect on your family’s morale.
  • You may need doorways and hallways wide enough for a wheelchair, either now or at some point in the future.
  • You may want different kinds of doors. Swinging, bifold, bypass, French, atrium, or pocket doors each have their own spatial and structural requirements. They are not necessarily interchangeable.
  • You may want to make sure that upper-story window sills are high enough to protect children from falling.

Also, there are aesthetic considerations. If you grow tired of decorating schemes, wall treatments, fixtures or cabinets – you can change them. But, short of major remodeling, the design and overall shape of your home (both exterior and interior) is permanent. If you love the way your home looks and feels, you’re likely to feel happier when you come home.

Finally, there are the practical aspects of the home site. Many lots have characteristics which make it difficult to use a stock plan.

  • If your land has a severe slope right where you’d like the house to be placed for the best views, custom design is essential. The home must be fit carefully to the land.
  • Other examples are water frontage, easements, oddly-shaped lots, and areas with slide, flood, erosion, fire, wind, or earthquake risks.
  • For some sites, you will need engineering work done to satisfy the building department or to ensure the durability of the house. The plan needs to take the engineering requirements into consideration, without sacrificing livability.

What if you want some changes made to a stock plan? You may want more of your own personal touches. Or you may have special needs which will require you to commission extensive redesign and redrafting. You may want to make the house accessible, enlarge the garage, whirlpool bath, separate shower, or powder room. These kinds of changes require walls to be moved, layouts to be changed, and structural support systems to be redesigned. It might make more sense to start from scratch and end up with the home you really want.

The Key to Building Success…Communicate!

If there’s one thing you can do to help ensure a successful and satisfying homebuilding experience, it is to maintain regular and productive communication with your builder and his staff. Effective communication is key to reducing concerns and stress during the building process. Keep the lines of communication open at all times.

As you engage in the home buying process, gain a sense of how comfortable you are with each builder’s communication style during the sales process. These early communications often reflect how your builder will communicate to you during construction and after closing. In addition to imparting the sales message, builders who are effective communicators will encourage your input and provide satisfactory answers to questions you pose. Effective follow-up efforts that provide real information also help to establish a solid foundation for communication through the process.

As you reach a purchasing decision, make sure you are comfortable with how you and your builder will discuss the project and its progress. Many builders encourage periodic walk-throughs of the house at critical stages, such as during structural framing, electrical and plumbing rough-in, and once the interior walls have been drywalled. Find out about opportunities to conduct informal meetings or use other communication efforts (such as phone calls or e-mails), and ask how quickly you can expect a response from your builder when you have a concern.

You should also expect and talk through a detailed scope of work with your builder, which outlines the construction process along a time line or schedule. Use the scope of work as a guide that elicits questions about the construction of your new home to gain a better understanding of the process. The scope and schedule will also establish deadlines for key decisions you must make on time, such as selecting lighting, plumbing fixtures, and flooring materials.

An essential part of the owner-builder communication process is the “change order”, which is the procedure established by a builder for making changes after construction begins. Few projects are completed without some changes. You should be familiar with this process before the first dirt is moved. You should learn, too, the details of your builder’s warranty and service program.

Savvy and successful builders have a plan in place for communicating effectively with their home buyers throughout the sales, construction, and warranty service process. Respect that process, while taking appropriate opportunities to express your needs and suggest slight changes within it to better suit your situation, preferences, and comfort level. Once you’ve settled on a communication plan, stick with it! It is a key to a ‘safe and sane’ building process and providing you the home of your dreams.

Standard Features in a Custom Home?

When people look at homes to build or buy, the two biggest issues are usually cost per square foot and features or upgrades. Usually, these concepts don’t work well in the true custom building environment. When building a custom home, the client is more in control of the costs. Instead of just taking a preset price for a standardized model, everything is tailored specifically to the client. If the phrases “standard features” and “custom home” seem contradictory, it’s because they are. The “standard features” are set by the customer!

A true custom home is customized from the ground up. The floor plan should be designed specifically to take advantage of your lot’s unique views, orientation, and topography. But most importantly, the builder/designer team needs to understand how the client is going to live, and tailor the design for that lifestyle. A variety of elements, including fixtures, finishes, appliances, and type of heating and cooking are all choices that affect price, design, and style.

Many home builders use standardized floor plans with some variations. They offer options and upgrades, but this is not a true custom home. Many times, by the time a customer adds all the features they want, the cost ends up being more than going to a custom home builder in the first place.

Sometimes, people will first have their plans drawn by a home designer, and then seek out bids. Care must be taken that all builders are bidding the same amenities and construction methods. Even if the plans have a great amount of detail, there can be significant variations in what is included. Too many bids can be very confusing.

The best recommendation is to use a design/build firm where the architect that draws the plans works hand in hand with the builder. That way everyone is on the same page, and no surprises pop-up during construction that can increase your costs significantly simply because something wasn’t clear enough on the plans to begin with.

One of the biggest benefits of a true custom homebuilder is the level of attention clients will receive. No matter how much money someone is spending, it should always be clear who the customers contact is with the homebuilding company, and who is responsible to make sure all the concerns are addressed. Most unsatisfied customers can be traced back to a problem in this area. By choosing the right builder, a custom home can be one of the most rewarding purchases of a lifetime.

Home Equity Loans: Avoiding Fraudulent Practices

There are many scam artists eager to prey on unsuspecting borrowers. Don’t be one of them.

You can avoid the devastating effects of fraudulent lending practices by following the basic guidelines offered by the Federal Trade Commission:

DO NOT

  • Enter into a home equity loan if you have insufficient income to support it.
  • Sign any papers you haven’t read or any documents that have vacant spaces that are to be filled in after you sign them.
  • Allow anyone to pressure you into endorsing any document you don’t understand.
  • Agree to a loan that contains unwarranted credit insurance or other charges you don’t want.
  • Allow the promise of extra cash or lower payments cloud your good judgment about whether or not a loan is really worthwhile.
  • Deed your property to anyone. Consult an attorney or someone else you trust before considering this risky action.

DO

  • Request specific information if credit insurance is a mandatory condition of your loan. If credit insurance is not required and you don’t want it, and if there has been a fee added to the loan, ask that the charge be removed from the loan text. If you do want some sort credit insurance, take the time to shop around for the best rates and terms.
  • Maintain careful records of what you’ve paid, incorporating billing statements and canceled checks. Question any charge you suspect is inaccurate.
  • Check contractor’s references before you start work on your home.
  • Read and review all items carefully. In the case that you need any terms or conditions explained, talk to someone you can trust first. Weigh and consider all the costs of financing before you agree to a loan.

High Value Home Additions

When my friend bought her home 15 years ago, instead of choosing the largest of three bedrooms for the master bedroom, she picked the smallest. Despite its diminutive size, it had a corner fireplace, a small bathroom, and was a few steps from their 3-year-old son’s room.

But now that little guy has become a big guy. And though they love to hear his rock group practicing in the evenings, they’re beginning to yearn for a private retreat–a quiet master suite where they can relax, read, or luxuriate in a hot bath away from the household hustle-bustle.

And they’re not alone. Nearly every new house that pops up is built with an elegant master suite. Clearly, the builders know what the buyers want, and a beautiful master suite is usually near the top of the list.

But here’s her dilemma: If she adds-on a new master suite, will she get a return on her investment if she sells the house someday? This is an important question, one worth asking before launching into any remodel, particularly if the work is being done with a higher selling price in mind.

Real estate professionals and trade publishers offer up statistics each year that help in sorting out answers. One of my favorites is a “Cost vs. Value” study published each year by Remodeling magazine, a trade publication targeted primarily toward professional remodeling contractors. This study compiles and analyzes data gathered from real estate agents throughout the country to determine both national and regional average returns on investment for various home improvements.

In hot real estate markets filled with aging houses, returns-on-investment are higher than returns in slower areas-and they generally exceed the costs of improvements. Hot markets include Honolulu, San Francisco, San Diego, Seattle, Minneapolis, Boston, DC, Birmingham, and Garden City.

Certain kinds of additions do much better in particular places. Building a deck in San Diego is a solid bet. Adding a second floor in Washington, DC offer returns around 91 percent. Then again, almost any major improvement in Garden City returns more than 125 percent of the cost.

But which improvements return more than others? Minor kitchen remodels are always a standout, but the national average for cost recouped is only 88 percent. In other words, in higher-end real estate areas, if you revamp cabinets, change-out appliances, and recover your floors, you’re likely to get your money back–and then some. But in slow-moving areas, you won’t. Bath remodels and major kitchen remodels are a close second.

Improvements such as adding a home office or replacing windows or siding are chancier. Your results will depend heavily upon where you live. The average cost recouped in Cleveland for replacing windows is under 30 percent whereas its closer to 110 percent in New Haven.

Of course, certain improvements give a house more curb appeal or help it to sell more quickly. Replacing shoddy siding on a house in DC or Chicago, for example, will not only boost the price by more than 120 percent of the job’s cost, but will make the house look more appealing to more buyers.

Then again, if you intend to live in your home for years, short-term return-on-investment figures don’t really matter. The longer you stay in your home, the longer you enjoy a higher quality of life because of the improvements you make. And you can’t put a price on that.

New Home Bidding

Under a new house warranty, the builder is obliged to repair items when contacted (usually in writing) by the homeowner.

Ask about the new house warranty before buying–and be sure to get a signed warranty document.

In addition, be sure you receive a package with product warranties at settlement– the roof, appliances, and so forth– that are offered by the various manufacturers of your home’s materials.

If something goes wrong with these parts of your home, you must contact the manufacturer–not the builder.

Some builders offer an extended new-house warranty, called an “insured warranty.” This generally covers any systems– plumbing and electrical, for example– for a 2-year period.

It may also warranty the structure for up to 10 years. Insured warranties are actually issued by an insurance company; your home is covered even if the builder goes out of business.

What's Wrong with Competive Bidding?

Competitive bids are just that! If I shave labor or materials to get your job, is that the house you really want? There are hundreds of ways to lower the price of building, which often lower the quality and workmanship also. The best drawings and specifications don’t protect you from poor trade practices.

–The Well Built House, Page 23

The quote from The Well Built House sums it up well. There are plenty of ways to cut corners to create a lower price. Competitive bidding just rewards the lowest price, it offers absolutely no advantage to good workmanship and actually encourages cost overruns and completion delays.

In one survey of satisfied owners of completed projects, the most important personal attributes of a good contractor were:

  1. Honesty and Integrity
  2. On-time Performance
  3. Good Organization
  4. Good Scheduling
  5. Good Subcontractors
  6. Good Communication Skills
  7. The Ability to Empathize
  8. Long-term Relationship Oriented

Cheap price isn’t even listed! In the same survey of satisfied homeowners, here are the attributes listed as being present in good construction companies in order of importance:

  1. Quality Construction
  2. Clear Builder Specifications
  3. Good Company Organization
  4. Ability to provide price checks
  5. Ability to provide value engineering
  6. Company Responsiveness
  7. On-time Performance
  8. Fair Price

Price was only the eighth most important attribute customers considered important in a contracting firm, and even then, the word used was “fair” price, not “lowest” price.

Do you really want a contractor always trying to figure out the cheapest way of doing everything for the place where your family will be sleeping the week you are out of town? We prefer to do things the best way. “Best” means, in our opinion, the most effective combination of price to performance, getting the most “bang for your buck.”

A competitive bid does not let you see how a contractor works. Referrals do. A competitive bid does not demonstrate how Paramount Construction, as an experienced contracting company, can guide you through the process from beginning to end. We don’t feel that an estimate, driven by price, will give you what you really need.

We have one request: Select your contractor based on reputation not price!

Hiring a Contractor

Are you planning a major home improvement project in the near future? If your answer is ‘yes,’ you’re probably in the market for a contractor. Finding the right professional to handle such a project can be tricky. Trickier still is getting a great job at a fair price.

Here are a few important techniques:
When possible, choose a contractor through personal recommendations. Try to get referrals from friends or neighbors who have had similar work done.

After you’ve put together a short list, call and pre-qualify a few contractors. Be sure each person is licensed and insured for worker’s compensation, property damage, and personal liability. From each contractor, request names and phone numbers of a few satisfied customers. Call those references and ask to see the contractor’s work. Don’t be shy. Most people who’ve recently remodeled are proud to show off their homes and, if they like the contractor, they’ll go out of their way to help him or her secure another job.

From at least two contractors, request a formal bid based on exactly the same plans and specifications. Don’t automatically choose the lowest bid. If one bid is seriously lower than the others, be suspicious of inexperience or desperation (the latter isn’t necessarily a problem). Generally speaking, if a bid looks too good to be true, it probably is.

Chemistry with your contractor is critical–this person may be in your midst for several months, and there may be times when you have to haggle about difficult issues. Ask whether your job will be the only one on their plate or whether they’ll be managing multiple projects at the same time. Find out whether the contractor will be on site to supervise your job or hand it off to a foreman.

When you’ve made a selection, ask to see his or her contractor’s license and double-check insurance coverage.

At this point, you and your contractor should agree upon a written contract and both of you should sign it. The contract should include:

  • Both of your names and addresses and details of all work to be performed. Don’t forget to specify who will be responsible for demolition, cleanup, and trash collection. Be sure your plans are thought through completely. It’s fair for a contractor to charge you for changes and modifications that are not in the plans, particularly those changes that will require more work or more expensive materials. Charges for changes and extras can send your budget though the roof.
  • Materials. If you agree to a separate budget for items you haven’t selected yet, such as plumbing fixtures or floor coverings, be sure the budget figure is high enough to cover their costs. Do your homework; go to a home improvement center to price the fixtures and finishes you want.
  • Payments and dates. Be sure to include a completion date and details on when and how payments will be made. Never pay more money than enough to cover work completed and materials delivered to the job–it’s okay to request copies of invoices for the latter. Most contractors request a deposit before starting work. Make additional payments as the work progresses. This gives the contractor continual incentives and protects you from the possibility of a contractor disappearing after you’ve made early payments. Remember: money is your only leverage for getting things done.

Don’t sign a completion statement or make the final payment until the job has passed final inspection. Be aware that materials suppliers or subcontractors who are owed money by your contractor can place a lien against your property. You can protect yourself from this by adding a release-of-lien clause to your contract or asking for proof of payment by your contractor.

Be Prepared for Winter Storms

Winter weather can bring ice storms that may cause power outages as trees and branches fall on power lines.  Fortunately, there are some steps you can take to be prepared for such events:

  1. Assemble a “storm kit.”  Include a battery-operated radio or television, flashlight, a first-aid kit, battery-powered or windup clock, extra batteries, an insulated cooler, and a list of important and emergency phone numbers.
  2. Cover windows with drapes or blankets to minimize heat loss at night.  During the day, open blinds to let the sun warm the space.
  3. Dress in loose layers.
  4. Using candles for light may sound like a good idea, but be cautious that you never leave them unattended.
  5. Keep at least a 3-day supply of nonperishable foods and bottled water, and have a hand-operated can opener available.
  6. Check for medical supplies, prescription drugs, and any special health items, such as contact lens supplies or infant supplies.
  7. Use portable generators in a well-ventilated area.  Never run it inside your garage since the carbon monoxide fumes can be deadly.

If you do lose power, remember to call your power company.  Homeowners on medical support equipment should identify a location with emergency power capabilities and plan to go there in the event of a pro-longed outage.

Finishing Touches

Regardless of a home’s size or style, all construction follows a consistent pattern and pace.  Excavation and foundation work will be followed by the framing phase, which will be followed by rough mechanical, electrical, and plumbing work.  As soon as those stages are complete, insulation will be installed.  These steps follow each other quickly and are easy to see.  The progress is exciting!

But when our focus shifts to the interior finishes of your new home, the pace seems to slow down and daily progress is more difficult to follow.  To the homeowner, it might seem that we are losing focus or paying less attention to the project.  In fact, the opposite is true.  The apparent pace of work has slowed because finishing work is much more detailed than the previous stages.  We much be more focused and pay more attention to the finishing details.

For example, cutting, building, and fastening the pieces of a complex crown molding profile along the ceiling-wall joint of an upscale kitchen requires several hours of painstaking work by a skilled finish carpenter.  Likewise, finishing newly built walls to a smooth, uniform surface is a process that takes multiple cycles of application, drying, sanding, and cleaning to accomplish properly.

There also are more products to install.  The number of cabinets, faucets, light fixtures, door handles, and outlet and switch covers in a modern new house continues to increase as homes become larger and more luxurious.  To get some sense of that task, count the number of outlets and switch covers in your kitchen and family room alone (or in the whole house, if you’re more ambitious), each of which must be installed by hand before you can move in.

Finally, finish work signals the last stage of the building process. Both we and our homeowners are anxious to finish the job after several weeks of anticipation and hard work, not counting the time spent planning before construction began.  It is hard for homeowners to remain patient when the work appears to be moving slowly.

By the very nature of its exacting, hand-applied work, the finishing phase of homebuilding is necessarily slow.  That does not mean that the work is being neglected!  During this final part of your home construction, remember that we remain focused on the highest quality installation and application of your home’s interior finishes.