How much do you charge per square foot?
There is one question we get over and over. How much do you charge per square foot? We would like to suggest that this is the wrong question to ask if you are thinking about building a custom home. The question is always well-intended, but it is a frustrating question to try to answer because there isn’t a straightforward answer. If you were shopping for a car, you wouldn’t ask a dealer what the cost per pound is for the car. The brand, model, and features of the vehicle dramatically affect the cost. The weight of the car has very little to do with the overall price.
We could go through our past projects, determine the final cost of every home, and then average out what the eventual price per square foot came to. But, you would be making a mistake if you used that average number to make assumptions about how much it might cost to build your home. Every home build is different, and every homeowner is different. You might like a Craftsman style home with lots of wood and natural stone accents throughout. Or perhaps you’d like to go with a Craftsman home but want very minimal wood, larger windows and a basement. These are very different kinds of builds, which will have very different final costs. The cost per square foot to build one house will not be the same the build another house, even if they are similar. On top of this, the land itself will require different permits, grading, utility installation, etc. Additionally, material and labor costs are constantly changing, so using pricing from a month ago may be out of date.
So what question should you ask instead? During your initial conversation with Jordan Homes of NC, you should ask for a budget proposal. In the budget proposal, we will provide a good-faith estimate to build your home/remodel in the style, size, and finish level that you envision, on the specific lot that you intend to build on. The cost of homes built last year or even a few months ago have no bearing on what it will cost to build your home, especially if you are designing a completely custom plan. Instead, during the consultation, we will ask you to tell us your specific needs and wants, as well as the specific design criteria, restrictions, and requirements of your particular lot. This includes the number of bedrooms, bathrooms, garage size, etc., and also your expectation in terms of the level of finishes and kinds of materials you desire (exterior materials, outdoor living, HVAC system, trim, doors, windows, flooring, lighting, etc.). We will not be able to give you an on-the-nose price at this stage of the process, but with these insights provided by you, we should be able to offer you a good faith estimate of what your budget expectations should be.
It’s not all about price. It is important for you to hire a builder who will keep your budget in mind and provide maximum value when building your home. However, your decision should not be based on price. It’s about trust, communication, quality, the process, the team, and ensuring that there is compatibility in terms of design style, vision, and ability to execute your vision.
What about professional pre-construction fees?
Professional pre-construction services fees average 3% of the estimated budget of the home to be built. This is not the deposit. This fee is used as a retainer and deducted from the final contract price of the home. It is easy to see the work we build up out of the ground. What people don’t see is all the work that happens prior to groundbreaking. This period of time between the initial conversation with the client and the first work at the site is known as pre-construction. It includes all of the planning, cost-estimating, schedule development, bidding and hiring of subcontractors. All of the principals involved in the project work collaboratively to ensure the project is buildable within the established budget and will remain on schedule. Getting to the budget proposal takes time. We price each project on a case-by-case basis. There is no cookie-cutter project. The budget proposal includes all of the building’s components broken out as line items. It allows us to describe what we understand your project to be.
How long will it take to build our home?
Construction time will depend on the overall scope of the project, but our homes typically fall in the range of 8-18 months for completion, depending on weather, material availability, all selections made early and minimum changes.
Are your fees competitive?
Jordan Homes of NC works on a cost-plus contract. The adage of “you get what you pay for” has never been truer than when it applies to your most important and highest-priced investment. Jordan Homes of NC focuses on value vs. cost. Because we have tracked our projects over the many years we have been building and remodeling, we are able to narrow down costs while streamlining the building process.
How does Jordan Homes of NC Inc. get paid during new home construction?
The client obtains a construction loan/financing from a lender of their choice. Jordan Homes of NC Inc. is paid as construction progresses. A draw schedule (like a typical bank draw schedule) is provided. This schedule is based on the work completed to date. Percentage of work completed determines the amount of payment at the time of the draw. The lender will perform a site inspection (determining the level of completion only) and fund, upon your authorization, according to the progress of the project. If there is no lender, draw requests are submitted directly to you for payment.