There are no deals in new construction
The meeting was running right on time when I arrived at McSpadden Custom Homes. There was something different today though as there were clients everywhere! One waiting in the office waiting area, one downstairs at a lighting meet-up, one on the way for a landscape meet-up . . . . it definitely gave the offices a different excitement! And the talk today was about appraisals.
Doug explained that he is working closely with two clients right now where their home appraisals do not match what
it will cost to build their custom homes. And (Doug further explained) that is absolutely how it is: it cost more to build a custom home than it does to buy an established home. There are no deals in new construction – the cost for trades, for materials, for everything is just more than it used to be. The appraisers use comps (sale prices of comparable homes in the area) to come up with the appraisal values but that regularly leaves a gap that has to be reconciled between the homeowner and the bank. I could see that this is something that has to be dealt with on practically every custom home build!
Okay – enough of the background stuff. Let’s check in with the guys and see what they were up to last week!
Mike’ custom home project is well underway with lots of workers on site. The plumbers are working on rough ins, the electricians are working on rough ins, the drawings for the custom cabinets are hung for trades to follow and the framers are back to tighten up some loose ends. Mike also mentions that the job site is clean. This is another item on the checklist of the McSpadden Approach: A clean job site inspires cleaner more meticulous work from everyone. So that is what they do!
Mike also gave me some notes about what should happen next week: the mechanical starts, the skylights go in, the windows and doors go in, the fireplace is to be installed and the masons will start.
Travis’ job is still very permit oriented. We have received the building permit from Mecklenburg County, and have full approval to begin construction. We hope to break ground next week – which will consist of grading driveway, clearing footprint of house, installing rip rap ditch on left side of drive to sediment basin, silt fence and safety fence as identified on erosion control plan – duration for this phase approximately eight to ten days (weather pending; unforeseen acts).
We have tentatively scheduled for the following week to begin shoreline stabilization – duration for this phase approximately three weeks. Next will be the thinning of the 200’ buffer. Once shoreline stabilization and thinning is complete, we will begin moving dirt to build pad.
Travis says we will need to finalize the pool contract before breaking ground to begin permitting and secure schedule since the shell has to be installed prior to foundation starting.
More Blog . . .
- A day in the life of a custom home builder
- The McSpadden Approach
- A Home Builder and Trade Relationships
- There are no deals in new construction
- A cottage style custom waterfront home
- Breaking ground on a new project
- There was a constant hum of machinery
- The Client Meetings
- “the walls are in” and “the windows are in”
- Yes, Tile floors are being finished this week
- Something about Doug . . .
- Changes and Schedules
- A beautiful custom home.
- Expectations and scheduling.
- Rain and A custom home.
- Green home building
- Relationships are important, especially in home building
- a modern Arts and Crafts style
- “Gold Nuggets” of information
- Finishing on time?
Published Stories . . .
- Gaston Gazzette September 2012
- Charlotte Urban Home July 2010
- Lake Wylie Living Fall 2007
- Charlotte Place Summer 2007
- Today’s Charlotte Woman/July 2007
- House Trend Magazine – May 2007
- SouthPark Magazine – May 2007
- NC Boating Lifestyle September 2006
- Charlotte Business Journal September 2006
- Lake Wylie Living Spring 2006
- NC Boating Lifestyle April 2004
- Charlotte Place May - October 2003