Frequently Asked Questions
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Q. Other builders advertise homes for $75 a square foot. Is this a true number?
Answer:
Most builders, in order to get you in the door advertise prices that do not reflect the true cost of building a home. Their price is often based on building on your already improved lot.
Here is one scenario to consider…
- Builder advertises $75/sqft for 2300 SF Home
- 2300 SF X $75 = $ 172,500
Then you add in the cost of improving the lot:
- Generating Plans and Engineering =$2,500
- Permits = $5,800
- Soils Report, Perk Test, Lot Survey = $2,850
- Utility Hook Ups =$12,500
- Pad Excavation and Fill = $9,300
- Insurance=$800
This alone brings the cost of your home to $90 SF.
Then you add any upgrades in finishes and fixtures, which often are not included in the builders original price. Tack on additional standard builder services: Supervision, Overhead and Profit, Equipment rental, Sanitation services, Cleaning, etc.
You should plan to spend $100 to $130 SF, depending on your style and selections. If you do not account for those add-on expenses at the beginning in your construction loan, you will have to pay for them out of pocket.
Q. Is a smaller house less expensive to build?
Answer:
Not always. There are a lot of fixed costs when building a house. Every house, regardless of size, will involve the following:
- Permitting – Impact fees are applied to each house regardless of size\
- Utility hook ups are the same regardless of size
- Supervision is the same regardless of size
- Every home will have kitchen and bathroom facilities regardless of size
- Basic Systems including Heating and Air (HVAC), Plumbing, and Electrical are required for the home, regardless of size.
- A small house requires all the same subcontractors as a larger house.
Sometimes, however, by building a slightly smaller home, you can upgrade your fixtures and finishes and stay within your budget.
Q. What savings can be expected when using Energy Minded techniques?
Answer:
Your monthly utility bills can significantly be reduced by making your home energy efficient. You can also claim energy tax credits for using Energy Efficient Products for the year in which your home was constructed.
One example is Spray Foam insulation. Spray foam insulation more than pays for itself. The initial cost may increase your monthly mortgage by $15 a month, but decrease your monthly utility bills by $65, providing a net savings of $50 month in and month out. Clients who use this type of insulation can expect a 50% reduction in their heating and cooling costs.
Q. What other Renewable Energy Products are available in Southern Nevada?
Answer:
This is not a comprehensive list, but some options are Radiant barrier sheeting, Biobased spray foam insulation, Solar electric systems, Solar or Tank-less water heaters, Wind turbines, Skylights, Energy efficient windows, Low energy lighting, Heat pumps, Etc. There are also many other options we are willing to explore.
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