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

 

How To Choose A Builder For Your Custom Home?

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How To Choose A Builder For Your Custom Home?

 

 

Hi I'm Michael Mcguffie, President of Regal Classic Homes since 1988 and Licensed by the State of Florida since 1980.

Over the years I've found:

You can pay people to work for you but you can't pay them enough to give you their heart. They either have that capacity or not. Paying more for their heart only throws good money after bad. Select a Builder that will put their heart into constructing your dream home. 

Hiring a builder is like selecting a spouse. Why do good marriages and building relationships go bad? Is it because they are bad people or just a difference in values, communication and problem solving skills? 

Select a Builder that mirrors the attributes you admire. Your Builder is somebody you are going to spend a great deal of time with over the next year or years. Sometimes it takes months to develop building plans, a year to build your home, another year of warranty and more if you need help with a future issue. Having a good relationship with this person is going to be really important to you. 

Your first meetings are like dates, does your Builder: 

1. Show up on time? 
2. Take detailed notes? 
3. A good communicator? 
4. Follow up afterward with meeting notes? 
5. Do what he says he is going to do? 
6. Helpful or just focused on signing the deal? 
7. Is he patient? 
8. Is he somebody you want to have a relationship with? 
9. Is he married, in a long term relationship or is this his 10th marriage? 

 

Look carefully at his close building team: 

1. The Interior Designer, Architect, Realtor and Site Superintendent. This is the group you will be spending most of your time with. 
2. Who's really building your home? 
3. Does your builder construct your home or does he use a Site Manager? If he does, what is he like? Does he have the same skills you are looking for in a builder? Is the site manager even licensed? 

 

If your builder is also the same person that will be constructing your home and you like him, that's a big plus. A streamlined communication channel means a smaller chance of communication breakdowns. He sells you the home, builds it and follows up with warranty and service. If somethings not right you know who's responsible.

It's all about a relationship:

1. A period of many years. 
2. Your Builder will want to show your home to potential clients. 
3. You will want your Builders help with future home issues. 
4. Your Builder will want to use you as a satisfied client reference. 
5. It's about the win, win!

 

Many clients think the best builder is an "x" tradesman. I've found, they don't have the skills to manage the process successfully. Building a home is a complicated process. It's best to look for an organized, communicator. 

A Builder needs a solid team and an organized process. Stop by one of the builders jobs and speak with the trades on site. The workmen are loose cannons and will tell it like it is! They'll let you know if the Builder is a jerk, builds a quality home or if he hasn't been paid in months.

 

Look for: 

1. An experienced Builder. 
2. State licensed. 
3. Client references. 
4. Member of the Master Custom Builders Council or (MCBC). The top 35 Custom Home Builders in Central Florida. 
5. Supplier and Subcontractor references. 
6. Warranty. 
7. Member of the local homebuilders Association.

 

Thanks for taking the time to read my Blog post! Don't forget to check our our web site to learn more about Regal Classic Homes.

 

Have an awesome day!

 

Mike

 

 

www.regalclassichomes.com