Custom Home Guide Brought To You By

PRICING 101

FAQs RESOURCES

How Much Does It Cost To Build A New, Custom Home

In Boise, Idaho?

From The Desk Of Mike Dildine Boise, Idaho

I’ve been building new, custom homes in and around Boise, Idaho for over 12 years now. And before that, I spent time in California building multi-million dollar estate homes. As you might imagine during all those years I’ve talked with thousands of people that were “tossing around” the idea of building a new home rather than buying an existing home. Without fail, one of the first questions I hear is, “How much does it cost to build?” It’s a valid question! It’s one that deserves an accurate and honest answer from the builder. Which is exactly why I set out to create this pricing guide. As somewhat of an analytical personality myself I spared no detail when putting this guide together. In hopes that it would satisfy even the most analytical mind. In other words, I’m going to tell you what a lot of other builders won’t. You see, answers to pricing questions aren’t always black and white. But what I’ve done is taken the pricing waters from completely muddy to as close to crystal clear as possible. All in hopes that you’ll be armed with an accurate idea of what it would cost to build a new, custom home. I see it as my job to give it to you straight – the good, the bad and even the ugly. I’ve heard far too many horror stories of people that start the process with one price in mind and end with a price that’s nowhere near what they expected. For me, that’s unacceptable. And I think for you it should be too! I’ve put together some sections below to help us stay organized so let’s dive in!

PRICING 101

PRICING 101

The Good News

Building a new home is actually much more affordable than you might think! Some people are scared away from the idea of building a new home with the impression that it’s way too expensive. Simply put, that’s just NOT TRUE. I have actually found that building a brand new custom home can be just as affordable as buying an existing home.

Think about getting exactly what you want and not having to settle for anything. That’s sounds nice, doesn’t it? I’ve heard the conversations… “Well, we could just knock that wall out to make it more open.” Or “It’s okay if the kitchen is smaller than I wanted because I love the master bath.” Building new allows you to get exactly what you want and need – and to do it at a price that’s comparable to “settling” for something else.

The best news of all is that you’re reading this guide right now. By the time you’re finished you’ll have a much clearer picture about how custom home pricing works. And in an industry that’s traditionally filled with jargon and a huge lack of communication, this guide will be a breath of fresh air. In the next section I’ll tell you exactly what to look for, pricing questions to ask and explain the reasoning behind the dreaded “it depends” answer.

As you talk to and get to know multiple builders (I highly recommend you do) here are some things to look for that are tied to the pricing conversation:

1. If you ask a builder what his cost per square foot is and he gives you an answer right away….run!

a This is a recipe for disaster. Without knowing anything about the location, home size, etc. it’s very hard (if not impossible) to come up with an accurate price per square foot. Answering that question without details is exactly what horror stories are made of.

2. You’ll want to look closely at the builder’s process – this has HUGE impact on bottom line.

a You don’t have to know every detail about their business but you should know how the builder plans on tracking 3 key things:

o Time frame – how will you know if your project is on time or behind schedule? o Budgets – are they clearly defined? What if you want to make a change? How

can you see if you’re under or over budget? o Communication – Does your builder email? Text? How is important

communication tracked so nothing gets lost or forgotten? a It doesn’t take a genius to realize that the more “buttoned up” the process is, the more accurate the estimate will be. If a builder seems scattered and un-organized you should expect the same when it comes building time. If there are systems in place, you have a much better chance of getting an accurate price for your build job.

Asking questions about the builder’s process is one of the best ways to get a feel for how accurate the estimate will be compared to the final price of the home. Meet the builder in one of their homes, ask about specific finishes and if they’re included in the base cost. The more detailed you can be, the more accurate the estimate.

PRICING 101

What To Look For

It may not be the answer you want to hear when you ask the price to build a custom home but truth is it really does depend on a few factors. Let me put it this way – trying to price a house by the square foot is like trying to

price a car by the pound. A Ford and a Lexus might weigh the same but the Lexus is will be much more expensive. Keep that in mind as I walk you

through a few of the determining factors of pricing a home. And understand that you always get what you pay for.

PRICING 101

“It Depends”

A huge factor is the location of your home. Obviously if you’re looking to build on the shore of a beautiful lake or on 25 acres of prime real estate you’ll be paying more for the land than someone buying ¼ of an acre. As a quick side note, finding the perfect lot is often the hardest part of the whole process, and we’ve got all the tools in place to help you out – we’ll talk more about it in the FAQ section below.

Another factor in the price equation is the design of the house. As you might imagine, building a “box home” with nothing but 4 walls is pretty easy. Adding complexity to the layout and design makes things tricky and will add to the price.

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Does this mean you should buy a lot in the middle of nowhere and build a “box house” on it? Of course not. It just means that you should keep these couple things in mind when it comes to building a new, custom home. The truth is, price is very important but should be a secondary consideration when choosing a builder. First, you should understand the builder’s process and learn from those that have used them and know them. Now, I get it. You’re probably screaming at the screen right now saying something like, “just give me a number!!” So let me give you an idea. The majority of the homes that Highland Homes builds fall in the range of $115-$140 per square foot. Meaning a 2,500 square foot house would be between $287,000-$350,000. Have we built homes for less than $115 per square foot? Yes. Have we built for more than $140 per square foot? Yes. Taking lot improvements, upgrades and finishes, etc. into account is the only way to get an accurate price. In order to compare apples to apples you’ll need to understand from each builder you interview what is included in their price. One of the best ways to do this is to be inside one of their homes and have them show you exactly what is and isn’t included.

PRICING 101

The Nitty Gritty

In this section we’ve put together the 8 most common mistakes made by

people building a custom home. The timing of these mistakes varies from initial planning all the way through your first year in the house. Pay close attention to this list and you’ll learn some valuable lessons from others’

mistakes. Not having a good set of plans Mistakes can cost you dearly. Accurate plans=accurate estimates=less budget stress. Choosing The “Lowest Bidder” You know how the saying goes…you get what you pay for. It’s a cliché because it’s true. The lowest cost per square foot rarely means the best quality and best overall build experience. Hiring a “part-time” builder I see them everywhere. They have other jobs but build on the side. They come in promising huge savings because “it’s not their full time gig.” Well, you know what that means – their full time gig will always take precedence over your home. Not understanding the builder’s process From change orders to communication throughout the build, it’s vital to understand how and with whom you’ll be talking to and communicating with. How will it all be documented? Are your changes being written on a sticky note, or worse yet, stored in the memory of a sub contractor or project manager?

RESOURCES

Most Common Mistakes

Choosing a builder without seeing his work and talking to clients Ask for referrals and talk to them! Learn about the builder by talking with someone that has been through the process. The more recent the better. Thinking that sweat equity will save you tens of thousands It doesn’t. Unless you are in a special situation. Maybe you own a landscaping company or another trade company. Otherwise, you’ll end up ticked off that you didn’t just have the builder finish the job for you. Not utilizing an interior designer to help with finishes A beautiful house can take a wrong turn if the finishes are neglected. Every one of our clients gets personal 1 on 1 time with our on-staff interior designer to select the finishes that make your home you…all at zero extra cost. Letting someone tell you what YOU want At the end of the day it’s your house and it should be built to look and feel how YOU want. The builder and his team are there to make suggestions and to ensure quality work that’s up to code. Don’t let anyone talk you out of anything you want – you’ll likely regret it later.

RESOURCES

As you prepare to make what will likely be the biggest purchase of your life we thought it would be nice to share the builder “must haves” you

should be on the lookout for.

Before we jump in, I want to reiterate what was said in the previous section – meeting with the builder, seeing his work and talking to his past

clients is vital to having a great experience. Aside from that, be on the lookout for the following:

99% of the horror stories you’ve heard about building come from a lack of communication. You need to fully understand how and when the builder is going to communicate with you. Is there a project manager in charge of each job? Do they rely on “verbal contracts” or is there some kind of communication log/journal? Like any relationship, the one with your builder will be made or broken based on how well they communicate with you. From the very first meeting to the day you are handed your keys, there should be a clear and transparent way that the builder will communicate with you.

RESOURCES

Builder “Must Haves”

Communication

Be specific when you ask your builder about communication. Ask about changes that are sure to come up and how they’ll be handled. Ask exactly how you will do most communicating – is it via phone, text, email or another way? As you talk to past clients you’ll get a good feeling right way how well the communication from the builder was. You’ll be able to talk to someone who has been through the entire process and can give real life examples.

Ask every builder you talk to how long they’ve been building homes. You don’t want one of those “fly by night” builders. They tend to spring up when times are good and then move to something else during the down years. Get specific. Ask how long the company has been building in your area and if they’ve built anywhere else. An experienced builder means a lot. It means a builder with quality, reliable sub contractor relationships. It means a builder that knows how to handle most any curve ball that’s thrown their way. It means they build a quality home – if they didn’t, they wouldn’t last very long. Experience means a lot – especially when it comes to local experience.

Experience

RESOURCES

Reputation follows wherever you go – be it good or bad. Talk to people in your community, talk to past clients. A builder’s reputation will speak for itself. There is nothing worse than being locked into a contract with a builder and his team then realizing they don’t treat you with respect. Reputation is similar to experience in that if the builder didn’t have a good reputation he probably wouldn’t last very long.

Reputation

RESOURCES

We’ve been around the block…more than a few times. We’ve been asked just about

every question in the book. Take a look at these most frequently asked questions and if you don’t find the one you were looking for just shoot us an email at

info@HighlandHomesLLC.com

How long does a new custom home take to build? This largely depends on the size. For the most part we’re able to build a new custom home in between 4-6 months. As part of our commitment to staying on schedule we give each one of our clients direct access to the schedule so they can see what’s been completed and what is scheduled. Does my new home come with a warranty? Every home we build comes with a full ceiling to foundation warranty. After you move into your hew home we have scheduled warranty meetings during the first year to make sure we’ve got any warranty items on our radar and can get them taken care of. How are warranty items tracked? Our online system has a dedicated section for warranty items. All items are documented, tracked and marked for completion. It’s all about transparency! How many builders should I talk to before picking one? As the boom and bust cycle of real estate continues it makes sense to talk to multiple builders before deciding on one. Most important is to focus on the three things mentioned in the resources section of this guide (Reputation, Experience and Communication). Avoid “fly by night” builders and look for those that are consistently on time and on budget.

FAQ

Frequently Asked Questions

Who is my main contact throughout the construction process? Every company is different. With Highland Homes you are introduced to a dedicated project manager that will be your main point of contact throughout the process. The PM, along with help from other team members, will be dedicated to making your build process as smooth as possible. Can I know the price of my house before I sign the contract? Yes. Before you sign a contract with Highland Homes you are given a breakdown of the pricing and will know exactly what your base cost will be and what is and isn’t included. What is included in the base price? Again, every builder is different. The included features list is big – too big to include here. But we always have an available model home for you to come and visit to see what our base features are and what our available upgrades are. How are change orders handled/tracked? We know that changes are bound to happen. Adding style and character to your house is a process. We are 100% transparent about the change order process. Let us know what you have in mind for a change – we’ll price out (if necessary) and add that change to our online system for you to see how it affects the overall budget, and approve or deny the change. What doesn’t the final price include? Every builder is different and with a custom builder, every job is different. All excluded items (refrigerator, water softener, central vac unit) should be communicated up front. Can you help me find a lot to build on? I’m glad you asked! This is usually the hardest part for most people. Luckily, by working with a builder to find the perfect lot you have access to much more than what you can find on Zillow or Trulia. An experienced builder with a good reputation is able to explore options with other builders that own land and oftentimes get access to lots that were never even listed for sale.

Custom Home Guide Brought To You By

Thanks for taking the time to check out our Custom Home Guide. We hope it cleared some things up for you and got you excited to build the home of your dreams. Next, we should take some time to meet up at one of our model homes so you have a chance to see one of our finished products. You can get in touch with us using any of the options on the next page to schedule a model home visit. We have a models located in the Legacy Subdivision near Linder Rd. and Floating Feather in Eagle and in the Heron Ridge Subdivision near Chinden and Ten Mile Rd. See you soon, Mike Dildine Owner Highland Homes

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