COST PER SQUARE FOOT: WHY IT’S A TERRIBLE WAY TO PREDICT THE COST OF YOUR HOME

“How much will my house cost per square foot”?  It’s a question that builders get asked a lot and it’s a fair question.  However, when a potential client asks this question without plans in hand, builders literally cringe.  It’s not that we don’t want to answer it, it’s just that there isn’t a simple answer and builders struggle to communicate  as to why there isn’t a simple answer.  In addition, it’s a terrible way to predict the cost of your home.

Imagine if someone called up a car dealer and asked how much it would cost for a car.  They tell the salesman that they are looking for a really nice car but not top of the line.  The dealer would have to have much more information in order to even come close to an estimate.  First of all, “really nice” is relative.  To some, a Ford Explorer might be really nice but to others, that might mean an Autobiography Range Rover.   Big difference in price.  And beyond that, do they want leather seats? A sunroof? What about the stereo system? 2 wheel or 4 wheel drive? Turbo?

Now extrapolate that out into a custom home that is many, many times more expensive, thereby exaggerating the price range differences.  In addition, there are far more options on a home with a very broad range of costs.  When you carry out all of the potential differences in all of the thousands of potential components in a custom home, the range is so wide that you might not even land in the ballpark.  We really have no idea how much your custom home will cost without seeing at least conceptual plans.

Curves are more expensive than straight
You can imagine the cost difference between a ceiling like this and a flat, 10′, ceiling.

A few months ago, a potential client was trying to figure out how much framing would cost, knowing that this has become the major cost in a custom home.  “Well you know how much it will cost per square  foot  to frame a house, right?”, they insisted.   No, we don’t.  Is the house going to be a simple rectangle or will it have angles or curves?  Also, did you know that it costs far more per square foot to build a long, shallow home than a big square home? That’s because the ratio of walls per square foot is much higher in a long rectangle than a square.   Is the lot flat or will earth work be required?  Are the walls 2 x 4, 2 x 6,  or 2 x 8 or a combination of these sizes? How high will the ceilings be (10 ft versus 8 ft makes a big difference in price) and will they be the same height throughout?  How many window and door openings, etc. etc. etc.  And that’s just the framing!

An area that impacts the cost in a huge way is that of finish materials.  Take for example an appliance package.  You can get an entire suite of GE Stainless appliances for $3,000 but just your Wolf Dual Fuel Steam range can set you back almost $20,000.00.  As you can see, there are so many elements can drive huge price differences, making a cost per square foot estimate

This Wolf 60″ Dual Fuel Steam Range will set you back almost $20,000.00

very unreliable.  To illustrate even further how difficult it is to give a cost per square foot estimate that will even be relevant…. we could build several homes with the same exact plans, on the same lot and the cost per square foot could vary from $165- $385-  just due to the variances in the finish materials selected!

Then add the fact that different builders quote cost per square foot differently.  It used to be that only air conditioned square footage was the number that was used (called livable square footage) but now some builders are including expensive non-air-conditioned space (non-livable), as well. Let me explain, back in the day the non air-conditioned spaces were relatively inexpensive shells: garages, patios, etc.  But many custom garages now have cabinets, epoxy floors, a sink, a ceiling fan, expensive garage doors, exterior architectural elements, etc.   Patios no longer just have the standard grey broom finished concrete.  They  have expensive flooring, outdoor fireplaces, and the same expensive roof over it.  If you have that expensive non-livable square footage being thrown into the livable square footage, it makes the cost per square foot in the a/c space deceivingly expensive.   Imagine if one builder is giving a cost per square foot estimate based on this method versus one who is quoting it based only on the livable space?  This would be skewed on the low side.  Think about it, an expensive garage has a far greater cost per square foot than a basic bedroom so by excluding this from the cost per square foot estimate, you are leaving out some major costs.  Something else to keep in mind when talking cost per square foot is that,  all things being equal, a smaller home will have a higher cost per square foot because expensive spaces; such as, kitchens and bathrooms, are a greater percentage of the overall space.

When a builder is pressed for an answer on cost per square foot , if he (or she) guesses too high, the client may not move forward with a home that actually would fit within their budget and if he guess too low, they may proceed and then not be able to afford the home.  It’s a real catch 22 and that’s why builders hate this question and struggle to answer it.  It’s not as simple as one might think.

Some things can you do to make sure that you don’t end up with a home you can’t afford to build

First of all, you can have your builder show you some plans, elevations, the finish material list and approximate cost of some of the homes they have built.  That way you can get a general idea about what kind of home  can be built in a certain price range.

The other is to get architect and building designer recommendations from your builder. Find one that’s a good fit,  then have everyone sit down to discuss the client’s expectations. If both the builder and designer think that this is doable, then you can proceed with confidence and if not, then you can decide where you go from there. If you move ahead, then you have a team who is well aware of the parameters in which they must work and the builder can check in with his trades and weigh in in real time.  In addition, if the owner is going to use an interior designer (highly recommend), then this is the time to bring them in, as well.

I can’t even tell you how many times people have come to us after plans have been drawn with an expectation of a certain price point based on a cost per square foot estimate and then are highly disappointed to find that the price comes substantially higher.  Often this is a result of the plans being designed with expensive architectural details or materials that aren’t easy to eliminate without going back to the drawing board.   Sad.  

I hope that this has given you a little more insight into why builders struggle when you ask them about cost per square foot.  They aren’t trying to hedge or be vague.  They just know that there’s a good chance that they will be wrong without more information.  Please feel free to share your input, questions or stories and let me know if there is subject that you would like me to address.

By Kimberley Cullumber Alexander, Partner,  Alexander Enterprises Construction & Development, Inc.

Disclaimer:  This content is proprietary and can only be shared as a link or if credit is given to the author.

INTERIOR DESIGN TRENDS – a Builder’s Perspective (Part III)

Now that we’ve talked about all these cool Interior Design Trends, let’s talk interior design mistakes and why you should use common sense when incorporating trends.

Right now, there is a huge issue in neighborhoods across the country (and even in my own neighborhood) with homes that were done in the trend of the day.  For example, the homes that went with the heavy Tuscan vibe back in the day are not getting much love.  To remodel some of these can run into hundreds of thousands of dollars.   Tayler Alexander-Perez , of Launch Real Estate in Scottsdale, AZ, says,  “Years ago, people didn’t mind buying something and fixing it up but now days buyers want a home that is move-in ready.  At some point these hot trends cycle out of favor so if a trend has been used with a heavy hand, at some point the owner will either have to invest  a significant amount of money to remodel, reduce the price accordingly, or find a buyer gutsy enough to take on a major project”.     I find this to be true, we get calls after a home has sat on the market and the owner wants to know what they can do to make it sellable.  In a million dollar plus home, this can run into hundreds of thousands of dollars. This is good for our business but it really hurts to see fabulous homes that have become irrelevant due to trends.   To avoid this happening to your home, try to incorporate the trends in things that are not that big a deal to switch out and keep the big ticket items more timeless.  If you do your entire floor in a trendy pattern or every counter top in the trend of the day, then ripping it out and re-doing it is a major expense.  For some, money is not an issue and they can go for it, enjoy it and call us down the road, but for most people this is an issue.

Although they were all the rage years ago, overdone Tuscans aren’t getting any love these days.

I like to think of Interior Design Trends like my wardrobe.  If everything is trendy in my closet, then I’ll have to spend a lot of money every time the trends change. But if I have a few cool, trendy pieces that I can put with a mostly classic wardrobe, then I am able to transition with minimal cost throughout the seasons.  If you are unsure about how trendy you should go, it can be worth every penny to consult with a designer who is able to strike the perfect balance between Trend and Timeless Design (and yes, I know of some great ones).

Hey, thanks for spending some time with me discussing Interior DesignTrends and let me know your thoughts! I’m interested!

INTERIOR DESIGN TRENDS – a Builder’s Perspective (Part II)

Current Interior Design Trends continued (Builder’s perspective in Part III).

CREAMY NEUTRALS… IS GRAY PASSE?

I am hoping that some design professionals might comment on this.  I’ve heard from a few designers that Gray is going away….at least as far as being the main event in a space.  I am told that in New York and L.A., creamy neutrals, taupes, and bones are “THE THING” and I also noticed that there were very few of the cliche all gray and white colorscapes in the recent ASID design awards.  I understand that Grays will be incorporated as more of a minor accent role to layer with neutrals.  I love the whole gray carrerra marble/white cabinet trend but those who have used this throughout their entire house may end up regretting it.

Builder: Alexander Enterprises Constr. & Dev., Inc. Designer: Amy Bubier, AB Design Elements

WHITE OUT

According to the most recent edition of Remodeling magazine, “Homeowners are ready to ditch all-white kitchens”.       Darker cabinets (even black) are making a comeback and they are being used on their own as well as being mixed in with lighter cabinetry (see photo above, as well).

Builder: Alexander Enterprises Constr. & Dev., Inc. Design by Kimberley Cullumber-Alexander

CONCRETE

This is one of the biggest interior design trends of 2018.  Whether it’s a concrete floor, countertop or a faux concrete look on the wall, concrete’s neutral color is organic, earthy, durable and low maintenance. Geometric concrete tiles are going to be a thing, too.  

Builder: Alexander Enterprises Constr. & Dev., Inc. Design by Kimberley Cullumber-Alexander in collaboration with other design professionals.  Concrete floors, copper fire surround, Porcelanosa concrete look wall tiles.

VINTAGE: Especially Lighting Fixtures & Bucket or Trough Sinks.

Think farm sinks and nostalgia.  I LOVE Kohler’s new Farmstead cast iron vintage farm sink !  We have some client’s looking at this one and I would love to see it in their kitchen!  Note the matte black faucet (matte black is another current interior design trend).

Kohler Co. design center

REDS, PINKS BOLD YELLOWS & TEAL

Builder:  Alexander Enterprises Constr. & Development, Inc. . A bathroom from one of our award winning projects. .

I’ve seen yellow being used on a large scale and I love yellow because it exudes happiness and confidence. Be careful, though. In too great a quantity,  yellow can create anxiety, but in small pops, it is powerful.

Pinks, purples and gold quartz tops- one of the most fun bathrooms we’ve done!  Builder: Alexander Enterprises Constr. & Dev., Inc.,

Hey, thanks for spending some time with me discussing Interior DesignTrends! Let me know your thoughts! I’m interested!

INTERIOR DESIGN TRENDS – a Builder’s perspective (Part I)

Me at Kohler’s Design Center, Clintonville, WI.

I would like to chat about some exciting Interior Design Trends.   I’ll discuss the “Builder’s Perspective”  in Part III.

I have gathered information on the Interior Design Trends that I’m discussing through my interior designer friends, our reps in the industry, and industry news.  In addition, as a guest of The Kohler Co. and Ferguson Showrooms for the First Look Tour that took place in Kohler, WI., I was part of a select group of builders and designers that were immersed in upcoming design TRENDS and products.   (A complete side note here-  if you’re ever in Wisconsin, do yourself a favor and stay at Kohler Co.’s, The American Club, the only 5 Star hotel in the Midwest.   And… their spa is incredible!  The Waters   is the best spa- hands down- that I’ve ever experienced!  Now, back to the subject.)

In  the 2018 Ashton Woods National Home Buyer Survey   ,which sets out to identify trends and owner preferences, there is some very interesting information.  Owners say:

  • They prefer rustic elements over industrial. I personally LOVE the Industrial vibe so a little Rustic /Industrial marriage could still work!
  • They prefer natural wood over white.
  • Their least favorite cabinet/countertop combo is dark cabinets/dark tops.
  • Their favorite cabinet/countertop combo is light cabinets/dark tops.
  • They prefer rustic & transitional interiors over contemporary and farmhouse interiors but they prefer  Ranch and Modern for the architectural style.
  • They are shying away from  the Bohemian, Coastal and Scandanavian looks.

I will be  discussing just a handful of the new Trends in this Interior Design Trends series:

COPPER ACCENTS, BRASS FIXTURES & MIXED METALS

 When I first heard of this interior design trend, I was appalled.  I still remember the old antiqued gold fixtures that sat right alongside the avocado appliances and orange shag carpet.   However, I have to admit that I’ve changed my tune.  I especially love the copper and rose golds.  I did my powder bath with copper fixtures and the ceiling in a rusted, copper metal, which I love.  The matte copper fixtures have an industrial flare, which I happen to love.  Interestingly, although the gold/bronze fixtures are trending, many surveys find that people still prefer brushed nickel and stainless finishes.  Some of the products you see in the photo below: California Faucets Avalon single handle wall faucet in weathered copper, custom metal cabinets, Kohler’s new matte black toilet (a gift from my fabulous Kohler rep),  and Kohler’s Artist’s Edition Antilia Wading  Pool sink   (which I love and have in my personal home).  (The photos look very dark because they are impromptu from my iphone just to show the coppery/rose gold fixture colors.  The cabinet is metal).

Builder: Alexander Enterprises Constr. & Dev., Inc.  Design by Kimberley Cullumber-Alexander, in collaboration with other design professionals.

BLACK & WHITE

I like adding some natural elements to a black and white kitchen, such as the brick backsplash shown here or some wood. We haven’t done a black and white yet so I borrowed this from the internet and have no idea who to give credit to.

Although this color palette is timeless, it is trending even stronger now in Europe, New York and Los Angeles.  Designers are incorporating black into the all-white kitchens, baths and main interiors of the past…..a black island, black tub , black plumbing fixtures and geometric black and white patterns in flooring.  I especially love it when the look is softened with wood and other natural elements and speaking of….

NATURAL ELEMENTS/ORGANIC

Greyhawk on Black Mountain in Arizona, designed by the iconic, award-winning Gerry Jones.

When I think of organic interior design, I think “Frank Lloyd Wright”.  This trend incorporates clean lines, lots of light, natural materials (wood, stone, plants) and is fresh and modern.  My husband and I attended an event at this home and it is organic design at it’s finest! Gerry Jones, the designer, is self-taught and revered in the world of architecture and master planning.  He was also an instructor with Frank Lloyd Wright’s Talliesin West School of Architecture for over 17 years.

Builder: Alexander Enterprises Constr. & Dev., Inc.  Design by Kimberley Cullumber-Alexander

GEOMETRIC PATTERNS

Designer: Kristen Forgione, The Lifestyled Company

In  2018,  the patterns have gone even bolder, more oversized and more dramatic.  No one does this better than my friend Kristen Forgione, owner of The Lifestyled Company in Gilbert, AZ (see photo).

Thanks for hanging out with me.   Feel free to comment and let me know what types of things you would like to know about in the building  and design arenas.  I’m interested in what you have to say!