Welcome!




Expand Your Education with These Courses from
Becoming a Successful Sales Professional: Skills for Sales Success: Part One.
A Consumer Advocate Approach to Real Estate & Mortgages: Courses 1 & 2.
Accredited Buyer's Representative.
Bundle 1: CIPS Core Course (US Version).
Bundle 2: CIPS Elective Courses (Non-US Version).

With Building Costs Down, Now is the Time to Build a Custom Home

Have a comment on this article? Share on Facebook!

RISMEDIA, Jan. 15, 2008-According to one company, one good thing has come out of the current housing slump. Less new construction has created less demand for building materials. As a result, materials prices have fallen sharply across the board. HomeCrafters’ co-owner, Troy Means, has noticed that building costs are down as much as $25 per square foot when bidding recent custom home projects.

“The first thing I always look at is the same thing our clients look at,” said Means. “I go to the very last page and look at the final number and the total price per square foot for the house. Lately, the number has surprised me. We’ll go through our bid five times over because the overall price is so much lower than two years ago.”

The decline in materials costs is mainly responsible for the drop in the overall price of custom built homes. Lumber, for instance, has dropped 36% since 2005. That makes today’s lumber prices, after adjusting for inflation, lower than they were in 1981.The cost of sheetrock, Means says, has fallen 30% in the past 12 months, and stucco is down 15%. He estimates excavation costs have fallen 20% as well, a surprising decline in a time when fuel prices have risen sharply. Additionally, as more insurance carriers compete for business in the construction industry, general liability insurance rates for general and subcontractors have fallen as much as 25%.

“If you are looking for a custom home to be built, now is a real good time,” said Means. “I think anybody who has been considering building a custom home should keep in mind that the architectural and bidding process could take up to 4 months, so I have been recommending to our clients to initiate this process now in order to take advantage of the current market prices. Even the new home communities, if you look at the incentives, the deals that are out there, what builders are offering and current interest rates, this is a pretty darn good time to buy.”

For more information, visit www.homecraftersreno.com or call 775-746-0808.

Want instant access to great articles like this for your blog or newsletter? Check out our 30-day FREE trial of REsource Licensed Real Estate Content Solutions. Need easy stay-in-touch e-Marketing solutions too? Try Pop-a-Note for 99 cents!
Join RISMedia on Twitter and Facebook to connect with us and share your thoughts on this and other topics.




Copyright© 2014 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com

Our Latest News >>