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We have started framing the new Alliance Builders Inc. model home in Cathedral Pines. We are really excited about this home. The floor plan is designed and placed on the lot to take advantage of the Pikes Peak view, it has a huge garage ready for a motor home or a workshop, plus it has a great sun room with a fireplace.

There are a few trees in the view corridor. This summer we are going to relocate them to other places on the lot. Relocating the trees is part of our Green Building concepts for this home.

The sunroom will be great for entertaining family and friends or personal relaxation. However as we always say, “the customers have all of the good ideas”. Recently a customer suggested using the corner of the sunroom for growing cooking herbs. What a great Idea!

Posted by Brad Ausmus

In the past the prospect of building a “custom home” involved paying a high price and building a large home.

Two years ago I would have agreed because the high cost of lots in custom home neighborhoods set the basis for a large expensive home. However the current lower cost of lots, materials and labor have changed the custom home market. Recently Alliance Builders Inc. is helping more customers looking for homes with less square footage that offer uniquely practical floor plans with convenient lifestyle, low maintenance, appealing exteriors, energy saving construction and custom finishes at a reasonable price.

Building a custom home at a competitive price starts with finding the right lot. Recently we are seeing lots that originally sold for over $350,000 now for sale at under $180,000. We keep a current list of available lots to help our customers locate that special site for their new home.

The next component is labor and material costs. Some of our contractors and suppliers are bidding at prices comparable to our building costs in 2003. This allows us to offer incredible values.

The final key to keeping custom home building costs down is to design a floor plan that has what we call “value design and engineering”. We accomplish this by:

• Designing the home to match the dimensions of building materials to reduce cutting and wasted lumber
• Keeping the wall and roof structure simple to avoid the unnecessary costs of complicated framing.
• Designing rooms to match standard flooring widths and reduce flooring seams and waste
• Designing baths and kitchens to fit standard cabinet, plumbing fixture and appliance sizes
• Designing floor plans with less wasted space by reducing hallways and creating rooms that allow efficient furniture arrangement and multiple uses.

The current real estate market allows customers to build a custom home designed to meet their unique lifestyle with unprecedented affordability.

What are ways that you have found to keep custom building costs down?

Posted by Brad Ausmus

In our Alliance Builders model home we often have prospective custom home buyers ask: What is your construction cost per square foot? I struggle to give a fair answer because there are so many variables involved.

The first problem is defining square footage, because there are several different methods of measuring.

• Is it measured to the inside or outside of the exterior walls?
• Is it just the total of the room sizes?
• Does it include porches, unfinished areas, mechanical rooms or unheated areas?
• Are stairs counted on all of the levels?
• Is the garage included?

The second problem is defining what is included in the cost, because the cost per sq. ft. could or could not include:

• The lot or land
• Actual building labor and material costs
• Plan drawing and engineering
• Building permits and fees
• Getting water, sewer, gas and electric to the home
• Construction loan financing
• Builder’s liability and hazard insurance
• Garage
• Landscaping and site preparation
• Driveway
• Real estate commissions and marketing expenses

The third problem is comparing the differences in the quality of the materials included in the home because there is a big difference in the cost of things like:

• Tile roof compared to composite roofing
• Commercial style appliances compared to standard builder grade appliances
• Custom cabinets and compared to production cabinets
• Solid surface counters compared to laminate counters
• Insulation and energy saving construction

If home buyers are going to use cost per sq. ft. to compare value they need to make sure that the method of measurement, construction costs, materials and finishes are clearly defined. Cost per sq. ft. is not really a reliable method of comparing value. Things like location, livability of the floor plan, curb appeal, low maintenance and utilities costs are better methods of determining value.

Don’t be deterred by a smaller home that appears to have a higher cost per sq. ft. Smaller homes generally will have a higher cost per sq. ft. because the costs for things like utility connections, heating and cooling systems, driveway, landscaping, appliances and plumbing fixtures are about the same for a small home as they are for a large home. Some smaller floor plans can be much more livable and offer better overall value than other larger homes.

Comparing new home cost per sq. ft. is like asking how much a car costs per pound? Does a Bentley cost more per pound than a Subaru?

Posted By Brad Ausmus

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