Location, Location, Location

Location, Location, Location

If you are looking at a home’s cost per square foot and that cost includes the homesite, understand that building lot costs vary widely.

The location of your building lot encompasses several factors. Neighborhood amenities such as walking trails, public spaces, playgrounds, or a fitness center are costs absorbed into each building lot. Location, and proximity to schools, restaurants, shopping, health care, etc., will impact desirability, which will show up in the lot costs. And while the National Association of Home Builders found that on average 14.6% of your new home purchase price is due to regulations imposed during the lot’s development, that can vary greatly by neighborhood, too.

Of course, the size of the homesite generally correlates to its cost, at least within the same subdivision. Specific lots, such as a building lot at the end of a cul-de-sac or one that backs up to a small lake or golf course, may cost more. There can also be higher costs associated with lot specifics. For example, a sloping lot may require a costly retaining wall. Or the unexpected presence of rock when digging a basement foundation.

A loose rule of thumb is that finished lot costs represent 20%-30% of your new home purchase price. On average, $100,000 of a $400,000 new 2,500 square foot 2-story home can be attributed to the lot cost. Or $40 per square foot of the $160 per square foot overall cost of that home. But on the low side, an $80,000 building lot ($380,000 purchase price) nets you $152 per square foot, while a $120,000 homesite ($420,000 purchase price) works out to $168 per square foot.

Finally, though not directly a land cost, neighborhood covenants can impact your home’s cost. Restrictions prohibiting outdoor structures such as sheds encourage more expensive 3-car garages for that needed extra storage. Or maybe the garage door(s) cannot face the street. Side-entry garages are typically pricier due to added windows, masonry, etc., on the garage side that faces the street, plus the higher costs of a longer driveway.

Windows on a side-entry garage as seen on the Cedar Farm plan #42385W (top) vs. a front-entry garage as seen on the Cedar Creek plan #42340W (bottom) can have significant impact on cost.

#42385W Cedar Farm
Cedar Creek - #42340W

From landscaping requirements to exterior finish specifications, the same home design built in two different neighborhoods can have a very different cost per square foot!

Next time: Intangibles and hidden costs.

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What’s Included in the Price?

What’s Included in the Price?

Cost per square foot. Simple to calculate. Seemingly easy to understand. Until you realize what was included in the “cost” differs by builder!

On floor plans, dashed (as opposed to solid) lines often indicate options. In keeping with its focus on affordability, the Rivera Farm (plan #29391) presents several optional design amenities – dashes indicate the option of having transom windows in the entry/along the staircase as well as the option of a fireplace in the family room. And behind the dining area, an optional patio. Photos or renderings may show these amenities, but being options, likely they were not included in the cost that was used to come up with cost per square foot.

Rivera Farm - #29391
Rivera Farm - #29391

Similarly, floor plans may show alternate layouts for the same space. The base Jolene (plan #42334) shows three bedrooms, but also shows re-purposing Bedroom 3 as an office. The addition of stunning French Doors into the office could add thousands of dollars to the price of your home, increasing its cost per square foot.  

Jolene - #42334
Interior French Doors

Sometimes home builders will make purely aesthetic amenities shown on floor plans extra-cost options. Continuing with the Jolene plan there is a boxed ceiling in the owner’s bedroom – that might add $1,000. Ditto with the ceiling detail in the front entry. It adds drama and calls attention to this wider-than-expected space, but it adds cost, which increases cost per square foot.

Unless mandated by codes, builders can elect to build with either 2×4-inch or 2×6-inch exterior walls. Total square footage of the home will be identical, homes built with the 2×4-inch walls will have slightly larger interior rooms. Due to their added insulation, the homes with 2×6-inch walls, will usually be more expensive and therefore have a higher cost per square foot, but will also keep utility costs down and your home more comfortable.

Laminate or stone – what countertop material was included in the cost? Are appliances included? If so, which ones? There’s room for a sink in the laundry room. Was that included? Even if you take the same set of house plans to different home builders, the prices won’t necessarily be comparable. You specify Bruce® Hickory wood floors. Builder A figures the price based on solid wood and Builder B’s pricing was based on engineered wood.

From flooring to lighting to plumbing fixtures and trim work, as you tour most model homes, there are various upgrades shown that are above and beyond the base price used to calculate cost per square foot. It’s the same way in the auto industry. As advertised, the 2020 Lexus ES 350 starts at $39,900. That’s $10.93 per pound. But the ES 350 often tips the scales around $50,000 including options makes it $13.70 per pound.

You wouldn’t compare new cars on the basis of cost per pound. Why use cost per square foot to compare new homes, especially when it’s almost impossible to get an “apples for apples” comparison?

Next time: How building lots impact your cost per square foot.

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Which Square Feet?

Which Square Feet?

Outdoor living space. Two-story high spaces. Bonus rooms. Unfinished storage. Attics. Basements. Garages. Any attempt to come up with a “cost per square foot” for a new home begins with determining the home’s square footage. Sounds easy, right? Yes…and no. Yes, measurements exist. But which square feet are included may differ and have significant implications on the how the home “lives” for you.

We’ll use Design Basics’ Peony Grove (plan #42285) to illustrate the issues. The main floor comes in at 1,664 square feet. And the second floor is measured at 839 square feet. For a total of 2,503 total square feet. But there’s over 300 square feet of space on the second floor that is the two-story high ceiling in the Great Room. Should that be included? It’s heated space with walls and a roof atop, but it’s not “finished” – so it wasn’t counted. And how about the 342 square foot storage area over the garage? It wasn’t counted either, because it wasn’t “finished.” Does the cost per square foot you’ve seen advertised only consist of “finished” square feet? It would be relatively inexpensive to finish that storage area over the garage, which would bring down the home’s overall cost per square foot.

Peony Grove - #42285 UL
Peony Grove - #42285 ML

Garages typically aren’t included when calculating square footage, so the bigger and more expensive your garage, the higher the home’s cost per square foot. And garages have value – just look at how they impact your property taxes!

And that garage? It measures 851 square feet, but that’s not included either in the home’s reported 2,503 square feet. If the garage isn’t included in calculating the home’s square footage, size doesn’t matter, right? Except it does! The size of the garage has a very significant impact on the home’s cost, and therefore its cost per square foot as well as the home’s appeal to you!

Then there’s 158 square feet of covered front porch as well as 168 square feet of covered rear deck. Those wonderful outdoor living spaces make a huge difference in how you’ll enjoy the home, but they weren’t included in the 2.503 square foot number. And they’re not inexpensive – raising this home’s cost per square foot compared to a home without these outdoor living areas.

Building on a basement? What about that that lower level square footage? Typically, the portion of the lower level that is finished off as living space does get included in a home’s reported square footage. Like with finishing space in an attic or over the garage, finishing space in a basement is typically quite a bit less expensive than main floor square footage, so finishing off a lot of the lower level can bring the reported cost per square foot down.

Before comparing new homes on a cost per square foot basis, you must know which square feet have been included in order to get any sort of meaningful information. Still, that’s only one half of the equation.

Next time we address – What was included in the price?

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Entertaining: Planning for Fun

Entertaining: Planning for Fun

Some prefer to entertain formally; others thrive on deep, life-giving conversation with a few close friends; and some prefer topical get-togethers such as book clubs and study groups. But when it’s Friday night, after a particularly trying week, you really appreciate an invitation to a fun night at Maggie’s house!

Finally About Me“Maggie” is the name we gave to one of the four primary personas in our Finally About Me® design personas, which are uncannily accurate in identifying what people prioritize in their homes. Energized by being around other people, Maggies don’t tend to take life too seriously and are focused on fun, which is one of the reasons they’re so popular – they’re fun people to be with! Regardless of which of the four personas best describes you, we can all learn from Maggie when it comes to home design for fun-filled entertaining.

Where does the big-screen TV go? Maggies actually have a difficult time seeing themselves living in a particular home until this question is answered, because media-related entertaining is super-important for Maggie. More evident in modest-size homes, this can become a bit more important when you enter directly into the home’s primary entertaining space and the only pathway through the home involves interrupting viewers’ line of sight of the TV.

It could be the hottest must-see show or the Super Bowl. The Bloom (plan #29303) provides a traditional front entry hall to help direct traffic. Most people will put the big TV above the fireplace, though we sometimes hear complaints that such a viewing angle is uncomfortably high, inducing a sore neck.

Bloom - #29303 traffic pattern

Slightly larger in square footage, the Greenwich (plan #8621) provides space for your big screen TV alongside the fireplace in the family room. But by design, that family room doubles as a hallway, meaning everyone entering or leaving the home via the front door will interrupt TV viewers’ line of sight.

Greenwich - #8621 traffic pattern

A companion issue to where the big TV goes may be related storage for associated electronics, from sound systems to game consoles. Preferred by some home buyers, built-in storage may be open shelving, discretely placed within cabinetry, or a combination of the two. But due to today’s wireless technology, which do not require line of sight, audio/electronics closets have sprung up in many homes.

Then there are noise issues, whether your sound system is too loud, or other things in your home are too loud to enjoy that TV. If your island contains the sink and dishwasher, since there is no full wall for the dishwasher to back up to and help absorb its noise level, you may want to invest in a quieter dishwasher if that island is open to your entertaining space. If that TV and speakers/sound bar are mounted on the wall shared with your bedroom and your spouse wants to rest, you may want to talk to your builder about various soundproofing measures that can be taken to reduce sound transfer through that wall.  

Revenna Springs - #35079

The Revenna Springs (plan #35079) suggests built-ins on either side of the fireplace, a traditional approach when the TV will go above the fireplace. Or, the TV may be mounted directly above one of those built-ins. Notice also there is an audio closet off the hallway leading into the family room providing space for the necessary electronics, yet not necessarily right next to the big screen. And, that island sink and dishwasher are open to the family room. This is the time to spend more money to get a quiet dishwasher, so you don’t have to go elsewhere in the home to enjoy movies while washing dishes.

Finished Basements. In many households, and especially homes with an upstairs and a downstairs, two separate entertaining areas are essential. It could be a billiards room downstairs in a finished lower level and the great room on the main floor. It could be a finished room over the garage for the kids’ gaming, minimizing the noise interruption of your first-floor socializing. It could even be a separate main floor gathering area for your mom and her friends while you have neighbors over for a cookout.

The Tollefson V (plan #42155FB) is an entertainer’s dream! The main floor (below left) is wide open with spacious rooms to handle larger gatherings. Downstairs (below right), there is another full kitchen and eating area, which will likely double as your game table. The family room is spacious enough for air hockey and Foosball, or your kids’ video game tournament with all their friends. There is even a dedicated home theater, which can receive special attention when it comes to soundproofing. If building on a basement foundation, how much of that space will you finish off for entertaining?

Tollefson V - #42155FB
Tollefson V - #42155FB

Outdoor Audio-Visual. While outdoor entertaining was the topic last time, we want to touch on the fun of outdoor audio and video entertaining here. In case you haven’t kept up, there are numerous exterior solutions for big screen TVs, from all-weather cabinets to amazing weather-tight outdoor hi-def TVs in a range of sizes. Where, on your covered porch/deck/loggia/patio will you mount the TV to avoid sun glare washing out the picture? Outdoor TV brightness capabilities vary, all the way up to TVs that can be used in direct sunlight, but as of the time this article was written, an electronics store was selling 55” outdoor TV’s for $2,000 rated for “full shade,” while the same brand 55” TV rated for “full sun” was priced at over $5,700.

Some people are content with just having their favorite tunes playing. Is your preference to install speakers? If so, will power need to be run to those speakers? Or would you be happier relying on battery powered wireless speakers paired to your smart device?

Livability at a Glance™ is our proprietary color-coded floor plan system that highlights four different lenses especially important to women: Entertaining, De-stressing, Storing, and Flexible Living. Discover your Lifestyle Profile by taking our Livability at a Glance Quiz.

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Entertaining: Beyond Four Walls

Entertaining: Beyond Four Walls

We get it. Some people are all in on outdoor living, relishing being outside, even at home. Second, we know that entertaining is one of the primary lenses people look at when considering a home purchase. At the intersection of outdoor living and entertaining is the sweet spot that helps determine many a home sale. Whether or not those issues are high on your priorities, a home designed for outdoor entertaining shows up in noticeable, and not so obvious, ways.

Modena - #29372

The Modena (plan #29372) has an inviting covered porch wrapping three sides.

Murnane Manor - #42156

The Murnane Manor (plan #42156) establishes its own sense of welcome with its fabulous front courtyard, anchored by a water feature to the left and French Door pass thru to the formal dining room.

Outdoor entertaining spaces in front of the home beckon passersby. Still, most of the time when we think of outdoor entertaining, we think of rear patios and the back yard. It may be privacy and lack of distraction from cars driving by, the security of a fenced rear yard for kids’ play and decreased likelihood that a ball is going to get kicked in front of an oncoming car, or just the fact that your back yard is more spacious. As with indoors, how you like to entertain will help determine the amenities that make your outdoor entertaining area ideal.

Porches, loggias, decks, and patios. Porches, loggias, and decks are attached to the home. Porches and loggias always have a roof, decks may or may not be covered. Advantages of a covered outdoor living space include shade, being able to still use the space when it rains, and the fact that materials used such as cedar typically last longer when protected from the weather by a roof. Porches may also have walls with screens and sometimes windows. Loggias have a more formal feel, incorporating columns to the open side and sometimes arches. Consider however, that covered and especially screened-in outdoor living areas will reduce the amount of sunlight enjoyed by the adjoining rooms. Patios are built on top of the ground and while they might abut the home, they are not attached to the house.

Multiple outdoor living spaces adorn the Sinclair Terrace (plan #42424 shown below). Sliding patio doors at the back of the dining room access the 30-foot screened porch, so even large dinner parties can enjoy the gathering without pesky mosquitoes.

Sinclair Terrace - #42424
Sinclair Terrace - #42424

Note the skylights atop the covered porch in the Comstock (plan #2778 at right), providing added sunlight for the great room, which might have appeared a bit dark because of the porch roof blocking sunlight.

Comstock - #2778

How and where we access the outdoor living areas is a significant design consideration. The choice of hinged or sliding patio doors is often dictated by the adjacent interior space. If a hinged door would have to open into the dining area, potentially conflicting with the placement of table and chairs, a sliding door would be best. Can the transition to your outdoor living area be barrier free for individuals with limited mobility? That indoor/outdoor connection can also become congested when entertaining, so is there the possibility of two doors, providing dual traffic routes in and out? 

Gunnison - #50016

The Gunnison (plan #50016) offers doors onto its loggia from both the dining room and the great room, providing a circular traffic route with minimal congestion. Notice also, being framed by the dining room and owner’s suite, this particular layout offers maximum privacy from side-neighbors for your get-together. And there is a door off the owner’s bedroom, perfect for enjoying quiet sunsets and cheery mornings.

Sometimes overlooked or underappreciated is where the bathroom is located that your guests will use when you’re entertaining outdoors. You would prefer they not have to walk all the way to the front part of your home. Planning a swimming pool in your backyard? If that nearby bathroom has a shower that’s even more accommodating!

Rourke - #42082

The Rourke (plan #42082) has a 5-foot shower in the hall bathroom conveniently, but privately, located near the dining room’s door out onto the rear deck/patio. Also, notice the private grilling porch – separate from the outside entertaining area.

Connery - #42084

Because there is a Jack-and-Jill bathroom for bedrooms 2 and 3, the Connery’s (plan #42084) full guest bathroom serves splendidly as a traditional guest bathroom when entertaining indoors. Perhaps even better is when your party moves outdoors, as there’s a covered patio pathway to this bathroom’s direct outside access.

Outdoor Cooking. Seventy-five percent of U.S. adults own a grill or a smoker (Hearth, Patio & Barbecue Association). So, it’s only natural that our affinity for grilling out is a significant design consideration, beginning with where that grill will be located. Will it be the centerpiece of a full outdoor kitchen? A visible part of your outdoor entertaining space, or would you prefer a more private grilling porch? People who don’t want an outdoor kitchen but love to barbecue may fall in love with the Chill-N-Grill™ amenity found in several Design Basics’ home plans. If you plan on running a natural gas line to where the grill will be located to avoid lugging heavy LP gas tanks in and out of the car, up and down steps, plan also on an inside shutoff valve for that gas line, in case of emergency or severe weather. If possible, you’ll also want to run electricity there for a grill light. Overlook that, and you will find yourself grilling after dark, cutting into that steak you’re cooking and not being able to discern if it is medium rare or medium.

Cherry Gables - #42441

The Cherry Gables (plan #42441) suggests an outdoor kitchen at one side of its covered patio, right next to the eating area. 

Chill-N-Grill_Fiala

Don’t have or want an outdoor kitchen but love to cook out? The Fiala (plan #42281) positions its Chill-N-Grill™ conveniently just off the patio doors leading onto the covered porch.

Chill-N-Grill

Chill-N-Grill™ design concept, with everything you need for a great barbecuing experience! 

Kennedy - #42134

Our attraction to fire doesn’t stop at the grill. The Kennedy (plan #42134) showcases a traditional fireplace at the far end of its covered patio. Nestled between two arched openings and underneath a beamed cathedral ceiling, the fireplace is the focal point of this wonderful outdoor space and also the home’s great room. It’s so easy to imagine ceiling fans suspended from those exposed timbers, too! And did you notice there’s a door from the outside into the rear foyer with its adjacent wine cooler cabinet?  Perfect for outdoor entertaining!

The Evergreen Weekender (plan #42054) presents a decidedly more casual approach, inviting conversation and s’mores around its fire pit anchoring the uncovered portion of the home’s rear patio. Other amenities include powder bath access and double doors leading to storage for backyard furniture, activities, and games.

Evergreen Weekender - #42054

How you like to entertain will strongly influence your desired outdoor living amenities. Stringing lights can make the occasion fanciful or festive, where might you want/need power outlets? Your home faces east and you enjoy being out back in the evenings. Even if you have a covered deck, do you need to consider retractable awnings? 

A final reminder – outdoor entertaining space and amenities do not affect a home’s square footage, but they can significantly affect a home’s cost. Another reason you shouldn’t compare homes on a cost per square foot basis!

Next week: Fun-filled Entertaining

Livability at a Glance™ is our proprietary color-coded floor plan system that highlights four different lenses especially important to women: Entertaining, De-stressing, Storing, and Flexible Living. Discover your Lifestyle Profile by taking our Livability at a Glance Quiz.

For more resources on thoughtful design and products: