How Can Realtors Make Money With Custom Home Builders?

How Can Realtors Make Money With Custom Home Builders?: www.regalclassichomes.com Can A Custom Home Builder Help Realtors Close A Deal? You Betcha! How often have you worked with buyers that are looking to pur

How Can A Realtor Make Money With A Custom Home Builder

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What's The Best Way To Heat My Master Bathroom?

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What Else Should I Consider Before Buying A Building Lo

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What Master Suite Design Is The Best For A Custom Home

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What's The Latest On Roof Top Solar Electric For Reside

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Building A Custom Home- Who Should I Hire 1st, The Arch

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What Are The Top Universal Design Features For My Home?

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Should I Remodel My Existing Home Or Tear Down and Buil

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Custom Home Builders Charge More Than Production Builde

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How Do I Find A Builder That Will Let Me Use My Own Sub

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How Can I Save Money $$$$$ On My Electric Bill In 5 Min

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Home Building- Sure, LED Bulbs Save Energy But Do They

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Home Building- Should I Get Lightning Protection For My

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Home Building- What Should I Consider Before Buying A B

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What Type Of Front Door Is Best For My Custom Home?

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Do I Need A Realtor When I Build A New Custom Home or R

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Part 5- How Can Realtors Make Money With Custom Home Builders? Builders Are Investors Too.

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Part 5- How Can Realtors Make Money With Custom Home Builders? Builders Are Investors Too. 

 

 

Custom Home Builders are real estate investors. Perhaps, not in the way that is customary to most Realtors but they invest in real estate too. Normally, Builders buy lots and build speculation homes when the market is hot and construct pre-sales for homebuyers but that’s not all that they do. They are looking for opportunities to make money in real estate where ever they can. 

Perhaps, it’s a choice lake front lot that's just come on the market or a tear down in a hot location? Maybe it's a parcel of land that can be developed into an exclusive new community? Custom Home Builders are opportunists. They are looking for investment opportunities. Sometimes it’s building a spec home. Other times, it's a fix and flip or a tear down. Frankly, they are usually not too particular as to the type of real estate, only the possibility to make some money. 

Present most Custom Builders with an investment possibility that makes sense and they will be all over it! That said, they are savvy investors and know a great deal when they see it. The deal has to pass the smell test. Don't try and sell them something that will produce a commission for you but end up hurting them when it's time to sell. Remember, the adage, “don’t kill the goose that laid the golden egg”! A Builder that makes money with you will be back for more. 

Custom Home Builders are constructing homes for upscale home buyers. Buyers that have deep pockets and have developed a relationship of trust with their home builder that was forged over a period of years while constructing their home. It the Custom Builder doesn't have the available financing to jump on a great real estate deal, they have past customers that do. 

As you can see, Custom Home Builders can be a great potential customers for Realtors. It may take some thinking outside the box but many times, that's what it takes to be successful Realtor. 

 

Have an awesome day! 

 

Mike 

 

www.regalclassichomes.com

Part 4- How Can Realtors Make Money With Custom Home Builders?

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Part 4- How Can Realtors Make Money With Custom Home Builders?

 

Is there another way to make money when you have a Custom Home Builder on your team? You bet there is! 

Let’s say, you have been working with a home seller for the last 5 1/2 months and you just can't get a deal to stick on their home. The sellers are getting restless and you think “if I don't make something happen soon these owners are going to cancel my listing and hire another Realtor.” All your hard work is about to go down the drain. To your relief, you get another offer on the home and the inspection is all set for tomorrow. Great! 

Unfortunately, the home buyers inspector finds something wrong with the structure of the home and you need someone to provide an answer fast or the deal is going to fall through. The inspector says, it’s going to cost thousands and weeks to fix it. 

This is where having a Custom Home Building Buddy is going to pull your chestnuts out of the fire! You call up your Builder Buddy and he says, I’ll be right there! He knows you have sent him a few remodel leads and he owes you a favor. The Builder meets you at the home the same afternoon. He understands the issue immediately because he’s observed the exact problem on other homes and knows just the guy to fix it for you. 

Since the Builder knows you are in a tight situation with the closing looming he gets it fixed for you the next business day. He uses subcontractors everyday and has a lot of fire power in the market place. The sub’s want his continued business so they perform like “trained seals”. The issue gets fixed quickly and way under budget. You the Realtor looks like a hero and the closing proceeds as scheduled. 

Ka-Ching, another commission check hits your bank account!

One more example of team work that pays! The buyer on one of your listings just loves the sellers home but wants a home with an in-law suite. Unfortunately, you don't have any listings in the neighborhood the buyer wants but the lot looks big enough to accommodate an addition. You call up you Builder Buddy and he provides a deal saving estimate for you in 24 hours. That's a win-win for both of you.

 

 

Have an awesome day!

 

 

Mike 

 

www.regalclassichomes.com

Part 3- How Can Realtors Make Money With Custom Home Builders?

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Part 3- How Can Realtors Make Money With Custom Home Builders?

 

Below is an example of a Realtor/Builder lot marketing program. Frankly, it's a starting point. It can be modified for your local market.

 

Example of a lot marketing program: 

 

• This program is free of charge to Seller and Realtor.
• Seller will not be charged a commission on the sale of their Lot.
• Realtor, to receive a 6 % commission on the sale of the “house and lot” package to a prospective Buyer. 
• Builder will provide a proposed home floor plan and elevation for property (see example below). The attached home can be duplicated with a standard pool package for $950,000 or $231 per SF including commission. 
• Builder will post on the lot a color rendering of a proposed home elevatIon.
• Builder will provide pricing for the home to be built on the Lot.
• Builder will plot home on the seller provided survey, along with building set backs and driveway layout (see below). 
• Builder & Realtor place each of their business signs on the lot.
• Listing agreement with Realtor- 6 months.
• Construction agreement with Builder for 6 months. If the lot is sold to a buyer that wants to use another Builder, then Seller to pay Builder $5,000 for marketing costs. 
• Realtor to list lot under “Vacant land” section in MLS. Realtor to list lot and home package in “Homes For Sale” section of MLS. 
• Realtor to showcase lot/home package on top National Home Search engines;  www.Realtor.com and www.Zillow.com
• Realtor & Builder to market home/lot package to existing client list and future prospects. If buyer terminates agreement, liable for Builder & Realtor marketing costs. 
• Realtor will provide virtual tour of prospective home showing lot, exterior elevation, floor plan etc. (see below). 
• Seller to maintain the lot by mowing the grass and keeping the property clear of debris.
• Seller to list property at “reasonable, just market value.
• Sellers to have a “pencil appraisal” performed prior to listing the property (which is a cheaper short version of a full blown paper appraisal typically done for lenders … but still gives value). This is at sellers, expense ($150-$200, but can be transferred to a buyer at closing if they accept that appraisal). 

 

Samples of the marketing plan:

 

 

 

 

 

 

 

 

Virtual Tour, to see a virtual tour of the Corsica Model click on the link below:

 

 

http://dht1.com/tour/11719/The-Corsica-12849-Magnolia-Pt.-Blvd

 

 

Read More- The Realtor, Builder Relationship

 

Have an awesome day!

 

Mike

 

 

 

www.regalclassichomes.com

 

Part 2- How Can Realtors Make Money With Custom Home Builders?

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Part 2- How Can Realtors Make Money With Custom Home Builders?

 

Selling Building Lots- One of the toughest sells for a Realtor in an empty lot. The problem, it's empty! It takes a buyer with imagination to purchase the property. Sellers give agents the listing on the lot and it just sits there, month after month. After months without an offer, the buyer pulls the listing and gives it to somebody else after lots of wasted effort. Sometimes, building lots sit for years. What if the Realtor could get some help from a Custom Builder to move this property and what would that look like? 

• A site plan.
• Potential house design with an elevation. 
• Specifications. 
• Package price.

A site Plan- can make all the difference when marketing the building lot. A drawing of a potential home positioned properly on the site within all the required building setbacks. Driveway, sidewalk and all the site issues addressed. Suddenly, a potential buyer has the “light bulb” go on in their head. They can start to see the bigger picture. I can’t tell you what a difference this makes. I see the sparkle in buyers eyes, all the time, once they see a house positioned on a survey. 

Potential House Design With Elevation- to further enlighten a potential buyer we need a plan design that meets their needs. Perhaps the property has an unusual shape like a slice of apple pie or it’s a corner lot. Issues that give most buyers the “heebie jeebies”. Not to worry, your Custom Builder partner can solve all these issues for you and more. Custom Builders have access to 1,000 of plans for all kinds of lot circumstances. Long and narrow, pie shape, corner lots, slopes like Mt. Everest, no problem. Builders deal with this stuff all the time, it’s what they do. Buyers that now have a site plan with a house positioned on it can see traffic flow, room placement and furniture locations. 

Specifications- the next step in the process is a set of specifications for the potential home. Tile roof, budget allowances for cabinets, appliances, landscaping, paver driveway, plumbing fixtures, pool and all the pieces and parts that go into a new home. After all, buyers want to see what they will be getting with this lot and home package. This empty lot is starting to look like something a potential buyer can visualize. 

Package Price- the last piece of the puzzle is the price. We have a lot, plan design and the home specified now we need a price. The Custom Builder can sit down in front of his computer and tell you exactly how much he would charge to build this home on that lot for potential buyers. Can you see how having a Custom Builder partner working with you on this lot sale is going to make moving this property a whole lot easier? 

The next part is telling buyers what you are offering. Perhaps a sign on the empty property with a colorful front elevation along with the floor plan will generate interest? In some states you can even place the lot and home package in MLS as a home for sale. Think creatively! I didn't say selling an empty lot was going to be easy but with a little imagination and the right Custom Builder buddy it's doable. You might even turn a commission on a $100,000 empty lot into one on a $600,000 home and lot package! Are you getting excited? 

Let’s think outside of the box. You can even use this concept on a “tear down”. That’s another tough one for buyers to envision. A dumpy old house on a property in a great location with lots of issue that have to be solved. The Realtor needs some help putting this deal together, a builder buddy. 

Ok, I get it, it's not what Realtors are normally used to doing. They usually, sell something tangible. Give a Realtor a house on a lot ready to sell and their all over it. They know just what to do. Something less tangible, not so much. But Realtors are deal makers, that’s what they do all day long, overcoming objections and charging the hill. This is just a little different. If it were easy, everyone would be doing it! 

So, perhaps this becomes a new niche for you, something that makes you’re an expert in a new niche? If you don't already have one, find a Custom Builder Buddy. Like you, somebody that isn't standing there with their hand out asking, what’s in this for me today? Instead, looking at a mutually beneficial relationship that is going to put money in both your pockets for years to come.

 

Have an awesome day!

 

Mike

 

www.regalclassichomes.com

 

 

Part 1- Realtor/Builder Relationship- How The Right Custom Builder Can Put Money In Your Pocket.

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Part 1- Realtor/Builder Relationship- How The Right Custom Builder Can Put Money In Your Pocket. 

 

 

If you get Out of bed and ask, how can I put money in my pocket today, you’re not going to be successful in any business. I know it’s difficult to see past the financial demands of running a business and providing for your family but it’s not all about you, it’s about the customer. In fact, you might have a few different customers in your real estate business. Home Buyers, Sellers as well as Custom Home Builders. Try and think about your Builder Team Member as your customer. If you meet the customers needs the money will follow. 

The right Builder can put hundreds of thousands of commission dollars in your pocket over the decades. Actually, not only will you make money from your Builder customer but he’s going to tell all his Builder friends about you too! Let me provide an example of a Realtor/Builder, win-win. 

Builder Open House- is a perfect example how the right Custom Builder can put money in your pocket. Let’s say, your Builder Customer is constructing a pre-sale for a client that called him directly. You were not involved in the transaction at all and no commission is coming to you on this deal. Not to worry, all is not lost! Money is coming your way but you have to prime the pump first. 

The Builder is expecting to finish the home next month and wants to drum up additional customers that also want to build a home. The Realtor offers to host an open house for him and help put deals together. Pre-sale buyers are going to need a building lot and they also have an existing home to sell. The Realtor has an opportunity to meet neighbor's and others that are just curious to see what the new home looks like. Are you starting to get the picture? 

Additionally, the Realtor can negotiate a commission on any deal the Team puts together during and after the open house. As long as individual members don’t get greedy this open house is going to be fabulous for the Team! 

Parade OF Homes- Ok, now let’s take this to the next level. Suppose your Custom Builder Customer is busy building lots of new pre-sale homes and you are not involved with any of those transactions. Hang in there, payday is coming! The smart Custom Builder has already created a win-win with his pre-sale customer. They have agreed to enter their completed home in the yearly “Parade of Homes”in exchange for attractive pricing and additional home features.

The Builder paid a fee to enter the home in the event. The Parade of Homes generates hundreds of potential prospects. The Builder needs someone to staff the home with him and provide the same services as a normal open house but with lots more potential for Builder/Realtor business. 

I’ve seen Parade and Show home events with more than 1,000 visitors over 2 weekends. Sure, not all of the traffic is ready to buy or build but there is lots of potential. 

The key here is the right Builder/Realtor combination along with trust and big picture thinking! A relationship with a Custom Builder is something that has to be cultivated. If your walking around with “dollar signs ($$$$)” blocking your vision then you are going to miss out on a valuable business relationship. 

Call up a Custom Home Builder today and tell him your ready to help him make money!

 

Read More- Developing a Builder/Realtor Relationship

 

Read More- Are You Paying Your Realtor Too Much Commission?

 

Read More- Should I Ask My Realtors Advice Before Building A Custom Home?

 

 

Have an awesome day! 

 

Mike 

 

www.regalclassichomes.com

 

Custom Home Building- What You Don't Know About Septic Systems That Will Hurt You

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Custom Home Building- What You Don't Know About Septic Systems That Will Hurt You

 

 

You are out looking for a building lot and find the perfect one in an existing community. Your Realtor tells you the lot requires a septic tank and drain-field instead of a sewer connection. That’s not a problem as you've had a home in the past with a septic system and it was no issue at all. In fact, it saved you money over the monthly cost of County sewer and water fees. 

Driving through the community you notice some homes have “berms” or raised mounds in front of the homes and others do not. Your Realtor smartly advises the raised mounds are related to the septic drain-field but proper landscaping will mitigate any unsightly impact on the overall look of your home.There are a few empty lots in the community but you are interested in the one on the lake with the fabulous view. 

Your Realtor takes you to another community and shows you a lot with an old home already on it. Not to worry, the house is a “tear down” and can be removed inexpensively. In fact, the cost of the property is priced so attractively that even with the cost of removing the old house the building lot is still a deal! As you continue driving through the community you notice many older homes but few new ones. All of these homes are on septic systems so no problem. 

Continuing your search for a building lot, you look at other communities on your own and some with your Realtor too. You find another beautiful community with a fabulous lake and it even has some canals that homeowners can use that connect their property to that gorgeous lake. Wow, this is great! We’ve come up with three very attractive building lots. All of them are on septic systems and since homes were built on those lots there shouldn't be any issue with installing a septic system on one we select. 

Well, that’s not entirely true. The one overlooked factor in each of these instances is “changes in the County requirements for septic systems”. The truth is, every few years the requirements for designing and installing a septic tank and drain-field becomes more stringent. What was once acceptable may no long pass the County Code requirements. Just because neighboring homes have a septic system that functions without any homeowner noticeable issues does not mean you can build a home on the lot next door without any problems. 

In fact, based upon the size an design of your new Custom Home you may not be able to build on any of the building lots your Realtor presented or the increased cost of installing an on site sewer plant may be cost prohibitive. 

The missing ingredient in your building lot analysis is a Custom Home Builder. The right Builder will help guide you and your Realtor around the potential mine fields. 

Have an awesome day! 

 

Mike 

 

www.regalclassichomes.com

 

Custom Home Building- What Happened To The Soap Dish In The Shower?

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Custom Home Building- What Happened To The Soap Dish In The Shower? 

 

For years, every shower had a soap dish and a niche for shampoo bottles. Now they are no longer in style? The clean and hygienic look is in. I guess all this has come into play along with anti bacterial soap? 

When I was a kid the entire family used the same bar of soap and none of us got seriously sick. Now we've become germaphobes and everyone is allergic to something, go figure? I guess drinking out of a hose is a sure way to die? 

The soap dish has been replaced by a shower caddy that includes everything in some cases and in others, just a simple dispensing system. All that said, not everyone is convinced the conversion is the best idea? Loosing the bar of soap can be expensive and has additional drawbacks.

 

 

Read More.....

 

Read More- Millenials turning away from bar soap, sales plunge

 

Have an awesome day!

 

Mike

 

www.regalclassichomes.com

 

Custom Home Remodeling- What Kitchen Remodeling Mistakes Will Hurt Homeowners The Most?

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Custom Home Remodeling- What Kitchen Remodeling Mistakes Will Hurt Homeowners The Most?

 

 

Over the years,  Custom Home Builders see Homeowners make similiar mistakes over and over again. As a Builder I do what I can to guide and advise but many times, Owners are just determined to do it their own way no matter what an experienced Builder advises. I can recall one Owner that admitted, people have often called her "a bull head".  I suspect they were right! I couldn't stop her from "walking off the plank" no matter what!

Below are some of the more typical mistakes:

• Changing your mind in the middle of the project.
• Skipping the background check of the Builder and instead going for the cheap price.
• Open ended contracts.
• Forgetting functionality.
• Relying on rough sketches.

 

Read More.....

 

Have an awesome day!

 

Mike

 

www.regalclassichomes.com

How Can Realtor’s Build A Relationship With A Custom Home Builder?

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How Can Realtor’s Build A Relationship With A Custom Home Builder? 

 

 

Custom Home Builders are like other buyers and sellers in many ways but different. They need a Realtor for various things and the relationship can be mutually beneficial. 

Below is a list of items Custom Builders are looking for a relationship with Realtors: 

• Pre sales clients 
• Investors 
• Building lots 
• Sales presentation help 
• Access to MLS 
• Realtor office introduction 
• Sell speculation inventory 
• Staff Parade of Homes and open house events 
• A Realtor they can refer
• Loyalty. 

 

Pre sale clients- The life blood of most Custom Home Building Company's is pre sale clients. Sure, there are those that only construct homes on speculation but that only works in a really hot market. Every time I hear of a local builder that only builds spec homes it isn't too long before I hear that he changed his tune or is out of business. Many new builders start out that way but quickly find out the risk of building speculation homes is just too much to keep a business going. Successful builders look to the Realtor community to refer buyers that want to construct a custom home and builders don't mind paying a commission for that referral. 

Investors- It takes a great deal of cash and financial fire power to build homes on speculation or enter a closed community. A closed community is one where a buyers selection is narrowed down to only a handful of builders. Usually, developers require a huge financial commitment. A couple of lot purchases just for openers and an active or completed speculation home. That might be two lots at $500,000 each and a million dollar spec home. If the community actually takes off the Builder has to buy additional building lots or get frozen out of the community if others snap up the rest of the empty lots. That’s not even talking about furnishing a model and the interest carry on all that debt. Many Custom Builders are looking for a financial partner to carry some of that risk. Realtors are usually the first to hear of an investor that is looking to get into the building business. 

Building lots- Even if a builder has a client that is ready to build a custom home, many times they need a lot on which to build their dream home. Realtors are driving all over town and know where the empty lots or tear-downs are. A “hot home buying prospect” isn't any good if the Builder doesn't have anyplace to build their new home. 

Sales presentation help- after I meet with a prospect the first time, my next step is to introduce them to my building team. That consists of my Realtor, Interior Designer and Architect. That’s an impressive team with a great deal of firepower! Home buyers like that. The Realtor can provide a building lot, list their existing home for sale, provide expertise on features and floor plan as well as the target price range for the building package. After all, if the meeting works out the way it should, my favorite Realtor will be the one selling the Custom Home five years from now when the Owners are ready to upgrade. Realtors are showing buyers and sellers homes all the time. They know what the market wants and what’s hot. Their feedback on the new set of plans is vital to a successful experience. Many times, Owners have a great understanding of what they like in a home but have no idea what actually sells. The Builder can tell them “that’s a bad idea” but it doesn't have the same credibility as when it comes from a Realtor that works with buyers and sellers daily. The smart Builder enjoys having an experienced Realtor on his team to help guide the Owners in the right direction. 

Access to MLS- one of the tools the Realtor has at their fingertips is access to the MLS system. MLS provides a wealth of market information. What price are homes selling for in a particular neighborhood? How quickly are they selling? Frankly, I don't have to tell Realtors how powerful a tool MLS is because they use it all the time. There’s data the Custom Builder and pre sale clients need to make valuable financial decisions. Making sound home building decisions isn't going to be possible without the guidance of a great Realtor with MLS info. 

Realtor office introduction- Custom Home Builders need the Realtor community and Realtors need Custom Home Builders. That’s the basis of any relationship, mutual need. It doesn't cost a Realtor anything to ask their Sales Manager to schedule time for a Custom Home Builder presentation to the sales staff. Most Brokers are happy to accommodate. Builders have lots of information sales people can use to build credibility with home buyers and sellers. Just let the Builder know what topic the sales team would find interesting and he will be delighted to stop by the weekly sales meeting. 

Sell speculation inventory- Receiving a call from a Custom Home Builder asking to sell his new spec home is music to the ears of any Realtor. As a matter of fact, it makes $$$ signs magically appear before their very eyes! Smart Builders usually team up with a Realtor before they even think about building a home on speculation. Builders want to know what areas hot, size home, specifications etc. It doesn't make any sense to “build a home and they will buy”. The Realtor can provide a list of the things that will motivate a quick sale of a spec home. The right Realtor guides the Builder properly as they know the first call when the spec home is not selling is going to be to the Realtor that promised the quick sale if the Builder followed their advice. 

The sale of a spec home is an entirely different animal than an Owner occupied home that is listed for sale. The owner occupied home isn't costing that homeowners anything from month to month. After all, they have to live someplace. As soon as a speculation home is completed the clock starts ticking. It’s as though the Builder has slit both wrists and his lifes blood is dripping on the ground. He has to sell that house before he runs out of blood (money). If that home sits too long, the Builder doesn't make any money for months of effort or worse has to bring a check to the closing. Talk about a motivated seller!

I like to say, there is nothing more lonely than a Custom Builder sitting on a speculation home for sale. Each day 25 people ask, have you sold your home yet? The subs and suppliers have all been paid and moved on to the next job. Meanwhile the blood keeps dripping. After a few months, even the Builders mom won't return his phone calls as she thinks he wants to borrow money to stop the bleeding! The right Realtor can make all the difference! 

Staff Parade of Homes and open house events- Smart Custom Home Builders look for every opportunity to market what they do. Marketing a pre sale custom home is inexpensive compared to carrying a home built on speculation. Usually, the Builder provides incentives to their custom home buyer to allow their home to be entered into special events like opens houses, Parade of Homes or Street of Dreams. The Builder creates a win, win with their home buyer. This is where the Realtor steps into the picture. The home has to be staffed and who is more qualified than their favorite Realtor? Buyers that like the Builder’s work will require a building lot, someone to sell their existing home and other Realtor services. In exchange the Builder has a partner that is helping him put deals together. 

A Realtor they can refer- I know it may seem that behind every tree is another Realtor but Custom Home Builders need a great Realtor they can send to their friends, family and home building clients too. People ask Builders all the time for a Realtor referral. Builders are delighted to refer their favorite Realtor as he knows his Realtor has been treating him right on other deals and wants his friends to have a great buying or selling experience too. For the Realtor the best part, the Builder doesn't charge them a referral fee as he's not licensed.

Just today, I received a call from an out of state home buyer looking for an already finished, Custom Home. I don't have any existing inventory so I texted my favorite Realtor their contact information. I know that even if there's nothing in it for me this Realtor will reciprocate when I need some help. What goes around, comes around when you dealing with the right people.

Loyalty- Is something everyone can understand. When a Realtor gets a call from a Builder it’s music to their ears to hear, “I’m only going to be working with you”. I'm not going to call anyone else to help me find tear-downs or building lots. The same goes for Custom Home Builders. They don't want to be just one in a crowd of five Builders. They want a Realtor that tells a prospect, “Regal Classic Homes” is the only Custom Home Builder I refer. After all, there’s a lot of competition out there and profit margins are on the line. Providing a prospect the names of 5 Builders is going to make the Realtor look good to the client but it’s not going to help the Builder feed his family. Loyalty, is a two way street! If the potential custom home buyer is looking to shop around let them find a competing bid on their own. Remember, we are looking for a relationship here between the Custom Home Builder and the Realtor. 

Many times people talk a great deal about loyalty until there’s money on the line. Let's keep our eye on the big picture. A Custom Home Builder, Realtor relationship can last for decades, let's not be short sighted. The working relationship isn't about me, it's about we.

As you can see, there is a great deal a Realtor can use as a basis for a longterm relationship with a Custom Home Builder but like any great marriage it takes two willing partners, the right attitude and a great deal of work. Give a Custom Home Builder in your market a call and meet for lunch. Let him know what you are willing to bring to the table and see what he thinks. After all, we may be talking about a relationship that will be putting hundreds of thousands of dollars into your pocket over the years. 

All comments are welcome on this posting. If you are a Realtor, what do you bring to a Builder relationship that I haven't already mentioned?

 

Read More- am I paying my Realtor too much commission?

 

Read More- should I ask my Realtors advice before I build a new home?

 

Have an awesome day! 

 

Mike 

 

www.regalclassichomes.com

Custom Home Buidling- What Type Of Water Heater Should I Select For My Home?

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Custom Home Buidling- What Type Of Water Heater Should I Select For My Home? 

 

I recommend an 80 gallon, tank type, direct vent, water heater with an electric recirculating pump for almost instant hot water at every faucet. An 80 gal tank will never run out of hot water no mater how many teenagers you have!

Why a gas water heater? 

• Faster recovery time than electric.
• The price of gas is less expensive than electric in Orlando area.

 

Read More- Why You Should Not Buy A Tankless Water heater

 

Above- Indirect vent, water heater. Notice PVC vent piping, red timer for recirculating pump and hot water pipe wrapped with insulation to save energy.

 

Florida Architects are used to homeowners selecting electric water heaters so little consideration is given to their location. An electric water heater only requires water and an electrical feed. They can be placed almost anywhere in the home. The Architect usually positions them inside the garage. That can be a big mistake if the home is designed for electric and the Owner’s end up selecting a water heater that requires direct venting for a gas water heater. 

There are two types of gas, water tank, heaters, direct vent and the indirect type. With a direct vent the vent stack travels vertically from the top of the tank through the structure of the house and out to the roof. This water heater works fine as long as there is nothing positioned above the water heater, like a bedroom, bonus room or other living space. If that's the case, then a the only tank type water heart that will work is an indirect style. 

This type of water heater is designer with an electric blower motor positioned on top of the heater. The blower kicks on each time the water heater does so any exhaust fumes that are created are blown through the vent pipe to the exterior. This enables the water heater to be positioned almost anywhere. The indirect venting makes the best of a bad situation but the end results are not the best. This is what happens: 

• More maintenance is required. 
• The blower motor uses electricity so it's cost more to use than a direct vent water heater. 
• The blower motor is noisy. 
• This type of heater is less reliable.
• They are more expensive to buy.

The solution to this issue is hiring the right building team and making your decision to use a gas water heater known before construction while you are designing your home. The Architect can position your direct vent, water heater so that it can be vented directly above the tank. 

I have a friend that always says, “It’s easy when you know”. Now you know what type of water heater to select and why.

 

Have an awesome day! 

 

Mike 

 

www.regalclassichomes.com

Custom Home Building- Is Solar Power Only For The Rich?

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Custom Home Building- Is Solar Power Only For The Rich?

 

 

It seems like almost every time I turn on the news there is another story about how solar generated power is sweeping the land. Is that reall true? Not according to the latest reports. Solar power is still basically only an option for the wealthy but it's getting better.

 

Read More.....

 

Have an awesome day!

 

Mike

 

www.regalclassichomes.com

 

 

Should I Build A Bonus Room Above My Garage?

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Should I Build A Bonus Room Above My Garage?

Sounds simple enough doesn't it? Deceptively simple, I reply. 

Building a bonus room over a 3 car garage is easy. Doing it correctly is another thing! 

We've all heard that it's cheap SF, in fact it's almost free! Well, it's less expensive than kitchen SF but certainly not free. There is also the cheap bowling alley method and the more sophisticated, expensive method. 

Frankly, it depends upon the intended use of the space. Bedroom with a bath, office, playroom, teenager hang out room or home theater are examples of what the space can be used for. What makes this building space so challenging? 

1. There is attic space on 3 sides and a garage on the other. 

2. Providing enough daylight. 

3. The space is long and narrow. 

4. Attic ventilation is more difficult to achieve. 

5. Cooling and heating this space is difficult.

6. Strange design ideas. 

Let's take each issue, one at a time. 

1. Summer attic temperatures in Central Florida can exceed 150 degrees F. Unlike most parts of a home, bonus rooms have attic space on three sides. Additionally, due to truss configuration they are difficult to insulate with fiberglass batts. Special care must be taken when insulating. Though I'm not normally a fan of spray foam insulation, a bonus space over a garage is ideal for spray foam. Foam provides a high R value in a small space and normally you only have 4" in which to insulate, the thickness of the vertical truss 2x4 web. The floor of the garage bonus, normally has plenty of space to insulate with an R- 30 fiberglass batt but care must be taken to place insulation up against the bottom of the sub floor and not suspended below the floor sheathing leaving an unconditioned air space between the batt and the sub floor. 

2. Sure it's easy to position a single or double window at the far end of the room but that makes the room feel like a bowling alley. Other lighting options must be explored. The dreaded skylight that always leaks, dormer windows or some other light providing design. Doing it right is obviously more expensive. The very last thing you want to do is install double french doors with an exterior balcony at the end of a bonus space. That's a guaranteed leaker! Read More- Bad Design Ideas

3. The typical 3 car garage dimensions are 32' wide x 22' deep. When building a bonus room, the goal is to get maximum useable SF. Certainly not a ceiling height of 2' at the side walls but something reasonable. I've stretched to a 4' height at the extremes. The trick here is the interface between Architect, Homeowner, Builder and the truss manufacturer. There is a point of diminishing returns where the cost of engineering and providing a longer truss or closing the spacing between them exceeds the benefit. This is where hiring the right building team comes in. 

4. Attic ventilation is of particular concern with a bonus space above a garage. Most attic spaces are ventilated by air flowing into perimeter soffits, rising along the attic side of roof sheathing then exiting vents positioned toward the peak of the roof. Anything that blocks that air flow is a problem. Inexperienced framers do this all the time! An over heated attic space can cause a lot of issues from cooling of the interior bonus space to moisture removal. As soon as a Builder expects a tradesman to see an issue that is beyond his normal thinking, there is a problem. Expecting a painter to think "waterproofing", a framer to think "attic air flow" or a roofer to think "attic ventilation" there is going to be a problem. THE BUILDER IS THE ONLY TEAM MEMBER THAT SEE THE ENTIRE PICTURE. That's why hiring the right Builder that has years of experience is so vital. He knows from years of problem solving what to look out for. He knows because it bit him in the butt before! 

5. The best way to air condition bonus space is with it's own designated unit! It's difficult enough to condition living space that has attic space on 3 sides and a hot garage on the other, without tacking the bonus space air conditioning onto a system that is already cooling another part of the house. Even zoning the system isn't going to be adequate. If you don't want to have a hot bonus space, better make sure it has it's own HVAC unit! This is an area where the Builder has to bring the HVAC contractor into the the design early to avoid issues down the road. It's too late once the house is designed and the framing is complete. At that point, all the HVAC contractor can do is make the best of a bad set of options. 

6. Strange design ideas is another area of concern. I've seen dormer windows that are 2' wide drawn on plans by Architects. Why is that an issue you ask? A narrow dormer translates into a long unusable light-shaft in a bonus space. Depending upon the pitch of the roof, a poorly designed dormer can be a huge waste of space and an eyesore. Imagine a 3' wide space 10' long! I'm not talking about just one of these, picture 2-6 of these baby's! Now you get the picture! Big time ugly! A dormer can be designed in such a way to make it wider so it can be a space with a desk or other useable area not some ugly unusable light shaft. 

As you can see, a well designed bonus room is not just some after thought that is slapped on a home at the last minute. It takes a team of dedicated members lead by an experienced Builder to do this correctly.

 

 

Have an awesome day- Mike

 

www.regalclassichomes.com