Quote:
Originally Posted by swamp snorkler
Serious Question,
How does the final appraisal cost of these homes factor into your build cost? For example, I know 2 people here recently who have built beautiful custom homes in Lafourche Parish and have both had to come up with a substantial amount of out of pocket money to pay the contractor because the bank would not loan them the final amount based on final appraisal. Are you seeing this in the Baton Rouge area?
Also, my nephew got out of HS last year.... he doesn't know what he wants to do for a living. I told him go to work for a General Contractor building homes and learn the business, in 15 year start your own company....... do you think that's a wise career choice?
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I don't worry about appraisal , I worry more about my customers budget that we set before the project, generally I tell them I "think " we can build it between ___ / sqft and _____/ sqft. ( best case/ worse case) if they agree I then begin to price the home and develope allowances / etc. once I complete pricing , sometimes it appraises but most times its higher than the bank is willing to lend so they have to come out of pocket . Not wanting to paint the picture of my clients having no budget or regard for cost because that's not the case . We have to deal with budgets/ allowances etc but they are usually higher than average . The main reason they hire us is because they know and trust we will follow the plans and specs and not cut corners , they spend upwards of 70-80k just on blueprints so they want to make sure they get exactly what the ar****ect drew and use the materials he specs . Most of our plans are 25-40 pages and some come with huge spec books that contain even more detail . Just for example we prime all of the backside of the door and window jambs before they are installed so there is no raw wood anywhere , all of our fascia is back primed before it's installed even if it comes "preprimed" from the factory .
As far as your nephew looking to choose a career path in residential construction . Since this industry has been ruined by cheap illegal labor , you really need either build a ton of production homes and use crap cheap labor or build high end homes with the best subs and be prepared to have to come behind even "the best" subs and fix some of their stuff yourself if you want it done right. Have you nephew call me