Why pay for design fees? I often find that clients are leery of paying for design services, especially when my “competition” does not charge for such services. If they are not charging for it, it is because the do not truly offer these services. “So what?”, one might ask. If I can have my project built and skip the extra cost of design, isn’t that a good thing? Well, if you are simply after the cheapest price you can get, sure. However, if you would like your project to run smoothly, meet your needs, turn out as you envisioned, and avoid extra costs and delays, then no.

The best example I can think of to illustrate my point is the eighborhood I grew up in. I grew up in a neighborhood of small 3 bed 1 bath brick ranches built back in the 50’s. While the market around Atlanta seems to simply tear these down and build new, the neighborhood I grew up in is more prone to remodeling and additions. A lot of these remodels and additions make me sick when I see them. Granted, being in the industry and having a wife/business partner who handles all my design and has
a degree in architecture probably makes us a bit of design snobs. I admit that, however, follow my logic for a minute. When we drive by and addition in this area, our typical response is “ewww that is
horrible”. Occasionally we find one where we think the contractor/designer did a good job and we are impressed. The jobs that we find sub-par, the average person (not in the design or construction
industry) may look at and simply think “eh, its an addition”. The jobs we are impressed with, the “average” person will probably be blown away by. Which type of job would you rather have?

So the question becomes, what separates these jobs from each other? In a word, design. I can almost promise you that the less than stellar jobs were done by a contractor with no designer or architect involved. Billy Joe Bob met the clients, sketched out a plan on a napkin at the dinner table and attached a price to it. How anyone can accurately estimate a project without a real set of plans has always confounded me…it just can’t be done, not without overpricing the job anyways. As construction proceeds, Billy Joe Bob runs into “unforeseen” problems (usually problems that could have been foreseen if the project had been thought through and planned properly). When these problems arise, he prides himself in knowing construction well enough that he can come up with a solution. An admirable skill to be sure, but one that should be reserved for truly unforeseen conditions. Then, either adjustments will be made to the original “plans” and the client is told “that is just the way it has to be” or worse case, the client is hit up with extra charges for the extra little details that weren’t properly thought out to begin with. Then when the project is finally done, the client ends up with one of those projects that is less than awe inspiring, costs more than originally projected, and doesn’t fully meet their expectations or needs.

On the flip side, with proper plans, there are far fewer “unforeseen” conditions. As a result there are far fewer extra charges, though the cost up front may be more to begin with, because many potential
problems and solutions have already been accounted for. Then when the project is finished, it looks like the impressive plans showed to begin with. The client then has a project that meets their needs, comes
in at budget and looks good (or sometimes even better, blends in so well to the original house that you can hardly tell anything was done).

So why pay for design? First, you actually get a professional design to build, not a sketch to work toward as a goal. Second, you avoid many “unforeseen” problems and charges with proper planning. Third, you
are more likely to wind up with an attractive project that you can admire and adds value to your home, not one that you cringe at when you see and have to learn to live with.

In short, while it isn’t smart to pay too much for too little service, it is also doesn’t make good sense to pay too little for too little service. When you choose to skimp on price and service, you often end up
losing, because the price you paid was incapable of covering the costs of doing what you wanted in the first place. Common sense says you can’t pay a little and get a lot. When dealing with the lowest bidder
with the least amount of services, it would be a good idea to add some to your estimated cost for the extra risk you are taking. By the time you do that, you might as well have saved yourself the headache
and paid for the better service to begin with.

~ Russell Ives

The federal government has made it less expensive to remodel via the American Recovery and Reinvestment Act of 2009. Granted, the savings come in the form of tax credits, but in the end its real money. To be eligible for the tax credits, remodeling needs to fall under one of three types of home improvements.

First: Home-shell improvements are eligible (insulation, caulking, windows, etc..).

Second: Heating, ventilation and air conditioning improvements (using more efficient newer models of course) are eligible as well.

Third, renewable energy technology is also available for tax credits. Example of items that fall in this category would be geothermal heat pumps, solar water heating, solar panels, and even wind generators. This category tends to be the more expensive of the three, but also has a longer time frame in which to qualify. While the other two categories purchases have to be made before Dec. 31, 2010, investments in renewable energy are eligible for credit through Dec. 31, 2016.

The American Recovery and Reinvestment Act of 2009 increased the credit from 10% to 30% of the cost of energy efficient windows, HVAC equipment and insulation, up to $1,500. Unfortunately, the $1500 is the maximum amount that can be credited, even if you do multiple qualifying improvements on your home. This credit also only applies to the cost of the components, not installation, with the exception of energy equipment installation.

The bar has also been raised for what will qualify for a credit. For example, just because a window is Energy Star rated, does not necessarily mean it will qualify for a credit. As to be expected from any government program, there are a lot of rules and regulations, but is definitely worth looking into further for an extra $1,500. Who wouldn’t like to have an extra $1,500 to add to their remodeling budget?

~ Russell Ives

“He’s drawn house plans on the back of a paper towel….”

Sickening. I found this quote in an industry trade magazine describing builder who shall remain nameless. I have no ill feeling toward the builder. I know nothing about him other than what the small article said, which was all positive, or at least meant to be. My issue is with the reporter, in a professional trade magazine, who touted that the builder has drawn plans on the back of a paper towel….and meant it in a positive way. Is this really the professional image that builders should be striving for? I try to stress to my clients that we DON’T draw your plans on the back of a napkin. We DO have an award winning designer and CAD software to ensure quality, detailed plans that not only look nicer, but have been thought thoroughly through to make sure the plans “work”. When bidding out jobs to sub-contractors or suppliers, which way do you think will get you the best price, a paper towel sketch of what the project will sort of look like with a few dimensions, or a complete set of plans drawn to the level of detail that different trade contractors and suppliers will need? If an issue arises over how a certain aspect of the project is supposed to work, do you want your builder referencing his paper towel, or pulling out a set of real plans? Like many builders, coming up in the industry I’ve built from some plans that were sketchy plans at best. I’ve redesigned homes on the hood of my truck. I’ve redesigned aspects of homes after they were built. I’ll admit, at times this can be fun, but most of the time it is just frustrating and rarely is it an efficient way of doing things. Potential clients should be looking for a builder with enough professionalism to be providing well thought out CAD generated drawings, not a sketch on a paper towel. Yes, the initial cost of paying an architect or designer for their services is more than Joe the builder is going to charge for his handy work on the back of a paper towel, but as the saying goes, “you get what you pay for”. If you want a professional job, hire a professional. The industry already has a perpetual black eye, because of shady “pickup truck” contractors. I don’t believe this particular contractor fits that stereo type, but the reporter’s portrayal of him as “that guy”, and meaning it in a positive way, because it helped keep his costs low, is not the message that needs to be portrayed about the building industry, especially not by the building industry.

~ Russell Ives

Energy Tax Credits for Remodeling

The American Recovery and Reinvestment Act of 2009 (or economic stimulus bill) has several opportunities for homeowners to save on taxes as well as energy by installing insulation, replacing inefficient windows and upgrading HVAC systems.

Some important changes have taken place that homeowner’s should be aware of.  The tax credits were previously effective for 2009, but have been extended to 2010.  The credit has also been raised from 10% of the cost of materials to 30%.  The cost of labor is not included with the exception for HVAC, bio-mass stoves, water heaters, solar panels, geothermal heat pumps, wind energy systems and fuel cells.  The previous credits that were for a specific dollar amount have been changed to 30% of the cost of materials.  The maximum credit has also been raised from $500 to $1,500 for all improvements made between January 1, 2009 and December 31, 2010.  Some improvements are not limited to the $1,500 maximum or to the tax payer’s principal residence, such as geothermal heat pumps, solar water heaters, and solar panels.  All products must have a Manufacturer Certification Statement to qualify for the credit.

To receive a credit for insulation, the installation must meet 2009 IECC and Amendments requirements.  For exterior windows, doors, and skylights, the units must have a U factor <=0.30, SHGC <=0.30  Please note, the requirements for this tax credit changed significantly June 1, 2009.  Storm windows can also be used for a 30% of cost or up to $1,500 tax credit if they meet IECC requirements in combination with the windows over which they are installed.  Again, the requirements changed June 1, 2009.  An often overlooked credit available is all Energy Star qualified metal and reflective asphalt shingles are eligible for the tax credit.

These credits provide a great opportunity for homeowner’s to affordably upgrade the energy efficiency of their homes now, and realize more savings in the future due to decreased energy consumption.

~ Russell Ives

On Ferbruary 17, 2009 the new economic stimulus legislation that was signed into law created an even bigger and better tax credit than already existed.  This credit combined with the current buyer’s market, creates an amazing opportunity for a first time home buyer to either buy a newly constructed home or take advantage of a re-sale and “instantly” have money to put towards repairs or remodeling.

The $8,000 credit applies to any first time buyer with a modified adjusted gross income less than $95,000 for single or head of household taxpayers or $170,000 for married couples filing jointly.  A first time buyer is described as a buyer who has not owned a principal residence during the three- year period prior to the purchase.  All homes apply, including newly constructed homes.

This is a true credit and there are not payback provisions as in the previous version, with the exception of if the owner sells the home within three years after the purchase.   The credit is also refundable, meaning if you pay less than $8,000 in federal income taxes, then the government will write you a check for the difference.  Credits can be applied to 2008 or 2009 tax returns.

The $8,000 credit is applicable for single or head of household taxpayers whose modified adjusted gross income is less than $75,000 (or $150,000 for married couples filing jointly).  Incomes larger than that still qualify for a partial credit, so long as they are below the $95,000/$170,000 mentioned earlier.

Please visit www.federalhousingtaxcredit.com for more information.

~ Russell Ives

Atlanta Custom Homes

With so many homes on the market today, what do you do as a up and coming homeowner? There are many options from condos to new homes. Depending on the the finance and the price you are wanting to buy at. However, did you know that buying a home in this market maybe more expensive than building your own custom dream home?

Things have changed. Prices are now increasing due to banks lagging on their paperwork. With so many homes in foreclosure, banks are having issues releasing homes to the MLS and Agents. So what does this mean to you?

If you are looking to buy a home, placing an offer on one may take longer than expected. Its as almost as if the banks are trying to make a down market into a competitive one. You could put three to four offers before getting into the paper trail of things.

Solution: Have you thought about building an Atlanta Custom Home to fit you and your family’s needs and wants. This gives you as the homeowner a real flexibility to have the dream home you have always wanted. Russell and his team are dedicated and experienced builders that will consult with you on the options you have. So you could just build your dream home instead of waiting for the banks to release it to the MLS.

~ Russell Ives

I’ve recently discovered a fantastic organization called “Homes for our troops”.  This is a non-profit organization that builds specially adapted homes for our severely wounded service members all over the country at no cost to them.  After what they have sacrificed for us, it seems the least we can do.  I am still looking into how to become more involved with this organization after attending an informational meeting a couple weeks ago.  Anybody who can afford a donation of time, materials, or services should check out www.homesforourtroops.org.  There are some worthy causes out there, and I believe this one is at the top of the list.

~ Russell Ives

Atlanta Custom Homes

In Today’s Market, there are so many good deals on buying a new home if your a first time buyer or an investor. With the rates that are unheard of in years why wouldn’t you take advantage of buying a home, right? Thats what the Real Estate industry wants to tell you! How about building your home? Has that ever crossed your mind?

Of course it has. Though then there comes questions of doubt and uncertianty. Can I afford it? How long is it going to take?

The truth of the matter is, your more likely going to enjoy your home more if you build your home the way you want it. With mortgage rates this low you would be crazy not look into building your own home.

Custom Dwellings would be glad to go over a free consultation on how, when, where, and why. Russell Ives and his team have built some of the most prestige homes in the South. Russell will be honored to sit down with you and take a look at your dream home. Custom Dwellings has said by many to be the best Atlanta Custom Home Builder in all of Georgia.

~ Russell Ives

Altanta Remodeling

The difference between a remodeling company and a custom builder is the precision of the type work to be done. The work that Custom Dwellings provides is not just your normal remodeling, Russell has built some of the finest custom homes in Georgia. With the current housing market, Russell has shifted his team to custom remodeling. So if your looking for Custom Atlanta Remodeling choose Custom Dwellings. Not only for the custom work you will receive but for the diligence Custom Dwellings is known for.

Atlanta Remodeling is what Custom Dwellings is devoted to only the best work in the the North Metro. For a free estimate call Custom Dwellings.

~ Russell Ives

The seemingly overly large and extravagant homes that many production builders were building at a break neck pace in recent more prosperous years have been coined the negative term “McMansions”.  Even some more modest homes being produced seem to be unnecessarily large.  Yes, some of this can be attributed to banks being a little too generous in their lending practices, allowing people to get into more home than they can really afford.  Some of these homes can be attributed to a buying market that has been preached square footage to the point that is the only question they know to ask a builder about a new home.  Truly though, the blame goes to poor design.

In an effort to build a speculative product as quickly as possible that appeals to as many people as possible, builders and designers have gone with plans that try to accommodate everyone’s needs and wants in a single floor plan (though even with extra square footage, adequate storage space is often overlooked).  This sounds ok, but the result is a lot of wasted space (and cost and waste of resources) for square footage that an individual buyer may not need.  Even if the buyer is aware they don’t need certain spaces, the products on the market leave little choice, but to buy too much house.

The only other option is fairly obvious, have a Atlanta custom home designed and built.  Many buyers shy away or flat out don’t consider this option as they believe it will be too expensive.  They are mistaken for a variety of reasons.  While large production builders tend to discourage change, often by ridiculous fees to make the changes they are willing to make.  This is just because they have a system down and don’t want to rock the boat.  In reality, changes, when made with proper notice, shouldn’t be overtly expensive.  Smaller builders are in a position where they are less burdened by corporate red tape and can adapt and change to their client’s needs more effectively and cost efficiently.  The cost difference for me to build a home to corporate set of standard selections every time versus building the home to the homebuyer’s personal selections is minimal.  There shouldn’t be an up charge to get what you want.

The only additional cost that is valid, is the time paid to a designer to custom design a home.  These fees often seem too high to be justified to a potential buyer.  Keep in mind though, that even on a production home, someone designed that home and the builder is paying for those plans, the costs are just hidden.  Without argument though, it does cost more to custom design a home.  However, if you can pay (hypothetically speaking) $5,000 to a designer to custom design a home, the result may very well be that you have a home that truly fits your needs without additional wasted square footage.  Assuming that you save only a measly 50 square feet of space, at a modest cost of $100 per square foot, you’ve paid for the design services already, not to mention that you wind up with a house that is truly yours and fits your lifestyle, not one just like the one across the street.

The recent economic downturn has many thinking that home design will be shifting back to more modest size housing, like many of us grew up in.  Good.  I have no problem building large homes for those who need and can afford them, but I hope that there comes a movement away from the production homes that have dominated the market for so long towards designing and Atlanta building homes for the individual buyer.  Like in an era in decades past, designers, homebuyers, and builders need to once again learn to work together to produce desirable, cost effective, and resource friendly homes .  The cookie cutter needs to go, and cost is not an excuse to keep it.

~ Russell Ives

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~ Russell Ives

While all of the DIY cable and TV show make undertaking (and condense into one hour) any construction project look easy (heck, they build a house in a week in some shows), the reality is that construction can be complicated and difficult, even for those who know what they are doing.  The experience and knowledge offered by a builder allows potential problems to never become problems, because he or she can see them coming.  Your budget will thank you for being proactive in minimizing problems instead of being reactive when they occur.  In addition, while it is true you are paying the builder for his services (and why shouldn’t you?), builders typically receive better pricing from sub-contractors and suppliers than “Joe Homeowner” is going to be able to receive.  The price you pay for a builder’s markup may work out to be a wash versus what “Joe Homeowner’ could have purchased the supplies and services for on his own.  I can personally think of several instances where a homeowner has said my price is too high for some specific aspect of the project and they wanted to shop around and “ask their (fill in the blank) contractor friend” what they would do it for.  Every single time, they have told me to go ahead with my trade-contractors and suppliers for my price.  The relationships that a builder has with inspectors and sub-contractors can also be a huge benefit.  Contractors and suppliers tend to be more responsive to someone who supplies them with steady business versus a client whom they may never hear from again.  As well, the trade-contractor is going o appreciate dealing with someone who “speaks the lingo’.  Using a competent builder will most likely result in less violations for an inspector to find to begin with, and when there are issues, a builder is going to not only have a better understanding of what the problem is, but the best way to resolve the problem and determine if it is something that should be remedied free of charge or not by any involved sub-contractors or suppliers.  While the article did mention that it is a good option  for busy people who don’t have the time to schedule and meet with the many trades involved in construction, it never touched on the fact that all of the trades may work separately, each other’s actions have to be carefully coordinated with one another.  A builder will know what to review with each sub-contractor when he meets with them, how to answer any questions or problems that the sub- contractors have and how to help them all work toether for the best end result.  In summary, yes I agree with the author that a builder is a good option for busy people, I would tak that a step further and say that a builder is a good option for anyone who is undertaking any project that requires the knowlege an dcoordiation of many different trades.  Contractors have been give a bad reputation over the years, but please don’t minimize the value of professional builders by suggesting they are only useful for saving time.

~ Russell Ives

I recently read an article (in an old issue of a magazine that shall remain nameless) that’s intention was to help one decide between hiring a general contractor/builder or handling things themselves.  The author proposes that the main advantage to using a builder is that the builder has  a history of working with his sub-contractors and designers.  As well, she proposed that the major downside is that you have to pay the builder for their services (heaven forbid!)  and you may lose the ability to hire your friends and relatives (not necessarily a good idea in the first place).  In short, the author concludes that hiring a builder is a good option for busy people.  Wow, while the points made are not necessarily wrong, they woefully underestimate the value of hiring an experienced builder.  A good builder is not only someone to handle the scheduling and meetings with trade-contractors, but is someone that has  avast amount of knowledge that the average person is not going to have with regards to construction.  This knowledge helps to ensure a project is done correctly and safely, as well as helping the project run smoother with less hiccups and headaches.  Many states now require builders to be licensed, which helps to ensure they have a t least a minimum amount of knowledge and experience, instead of anyone being able to hang out their shingle as a builder.  I’ve heard some complain that this is unfair, but by that logic, anyone should be able to call themselves a doctor or lawyer with out demonstrating any knowledge or competence in their chosen field.  (to be continued)

~ Russell Ives