The Comito Column ~ Custom Building Exposed

As part of our Design-Build process we focus a lot on value engineering the plans we design. The process of Value Engineering is closely looking at how a plan or blueprint functions in an effort to make the living space as efficient and cost effective to build while maintaining the overall feel and design of the home. In many cases simplifying the plan a little bit can save big money, in order to realize the benefit of Value Engineering it is important to have an experienced builder who has a handle on current construction costs on your team at the start of the design process. This is a great article with an example of how it is done.

Value engineering can save time and money on any size job, even a multimillion-dollar home. The key is to start early with a team that you trust and communicate well with, says Robert Hidey of Robert Hidey Architects in Irvine, CA. “We ask a lot of questions initially, trying to drill into budget issues and define the overall direction of the project,”

He recommends that construction costs be reviewed at the conceptual, schematic, design development, and construction document phases. “I’d say 50 percent or more of the time it’s not done that way, and we end up at the back end of a project when it’s very difficult to take significant dollars out. You can always dial back the finishes and minimize some of the ornamental detailing, but the sad part is you’re downgrading to hit a construction budget.”

To illustrate proven value engineering tactics for the custom home building market, Hidey put together this side-by-side comparison of two homes designed in 2002 (before VE) and 2012 (after VE efforts). The concepts include condensed program spaces (no living room or family room); simplified, functional outdoor spaces; a simplified roof structure; and the elimination of recessed and shaped window openings.

Example Before Value Engineering:

After Value Engineering:

The husband and wife team of Claude & Debbie Comito of Comito Building and Design are feeling good about the custom home building market in 2012. With recent home sales and building permits trending upwards, land costs at relatively low levels, now is the time to take advantage of the opportunity to build a new home.

Comito Building and Design has been designing and building high quality custom homes in the Pikes Peak Region for over 29 years, they have a proven reputation for excellence and an unmatched level of customer service. They utilize a unique design-build approach that takes on the process of building a home as a team, with an architect, a builder and a homeowner.  “When we take this approach, we hit our goal almost all the time of getting people what they want for what they want to spend” Claude Comito says.

Incredible Land Buys. The process starts with finding the right home site, and right now there are incredible land opportunities. Comito Building and Design is a great resource when it comes to locating a building site for your new home. They are experts in evaluating building sites and the advantages or constraints that each may present.  They currently have a handful of lots that are incredible buys in the District 12 area.

Once the home site has been selected the team works with you to design a home that fits the site, your needs and your budget. Construction costs are down 15%-20% and the team at Comito Building and Design doesn’t see that lasting much longer, again making this an ideal time to start the building process. Comito Building and Design is able to build homes from $650,000; with land prices where they are, clients are able to get Comito’s top-notch quality and thoughtful design for under $800,000.

Remodel. If you are looking to stay put and update or re-invent your current home, Comito Building and Design is available to remodel as well. “We feel we offer the best value of anyone doing what we do, because you know you are getting top quality and service at very competitive prices” Comito says.

If you are interested in obtaining additional information on the custom home building process or any of our Colorado Springs luxury home sites call us at 719.219.5421 or visit us online at Comito Building and Design.

As a homebuilder, I hear this question ALL THE TIME! “Is anyone really building in the current economic climate?”

 

My response, “Only the smartest ones.”

 

Are you kicking yourself for not buying stock or mutual funds in March of 2009 (the lowest point for stock indexes in the past 5 years)?

 

The same relative buying opportunity to purchase or build a new home at incredible value holds true today. Even new construction, which rarely experiences significant price drops, is a relative bargain. We’ve seen overall cost decreases of 15%-20% recently.

 

In a recent post by Financial analyst Dr. Steve Sjuggerud, True Wealth, Sjuggerud says “Right now, is the best time in history to buy a house in America.”  While many of us in the industry have been touting this for months, Sjuggerud uses century old financial facts - cold, hard facts to back up his claim.

 

Fact #1 MORTGAGE RATES ARE AT THEIR LOWEST LEVELS IN AMERICAN HISTORY: Investors only see a couple decades of mortgage rates on a chart but Sjuggerud accessed Global Financial Data databases that track real estate data going back centuries.  The charts show mortgage rates since 1900 and as you can see, today’s rates are lower than they were in 1900!

Fact # 2 HOMES ARE MORE AFFORDABLE THAN EVER: Based on a 40-year history of the Housing Affordability Index, Sjuggerud points out that houses are more affordable than they have ever been. Affordability takes into account:  home prices, personal income, and mortgage rates.  Sjuggerud explains this simply, “What people think about when they buy a house isn’t the price of the house …It’s the payment.  People think, “Can I afford this mortgage payment on my monthly income?”

 

As I said, home prices have dropped significantly – in some markets prices have fallen by one-third. And mortgage rates are at record lows. But, incomes (nationwide) haven’t fallen … which makes homes more affordable than ever. 

 

 

Additionally, land prices, which again rarely decrease, are phenomenal bargains. Steals in some instances such as distressed or bank owned properties. With this combination, along with some intestinal fortitude about the future, you can get in or upgrade into a new custom home in Colorado Springs with the latest technology and energy efficiency available today.

 

At Comito Building and Design, we believe RIGHT NOW, is the time to take advantage of an incredible opportunity to build the Colorado Springs Custom Home of your dreams.  But, industry experts say this opportunity won’t last long!  As we come out of this economic downturn construction crews are slim and building supply inventory is modest. Any uptick in demand will put pressure on prices - fast!

 

At Comito Building and Design we believe a great home at a fair price and a wonderful experience should be the desired outcome of your custom home building process. As a third generation Colorado Springs Custom Home Builder, Comito Building and Design has been designing and crafting award winning Colorado Springs custom homes since 1983.  Our luxury homes in Colorado Springs are synonymous with extraordinary design, quality, and innovation.  Our team creates homes that are a solid investment for our families who live in them and a testimony to our creativity and craftsmanship. We hope you will consider us as your resource to help you make your Dream home a reality.

 

If you are interested in obtaining additional information on the custom home building process or any of our Colorado Springs luxury home sites call us at 719.219.5421 or visit us online at Comito Building and Design.

 

The question I am most frequently asked these days is: How is the high end custom home building market ? The answer: Getting better -much better!

We are busy. Many people understand that current conditions (buyer's market, great deals, low interest rates) offer the best opportunity to buy or build a high-end home in many many years.

Our clients are choosing to build new because they realize that building costs may never be as low as they are now. We are able to build the same high quality homes today for 20-25% less than several years ago. Some lot prices have dropped as well, making building even more attractive.

Many people want new and the benefits that come with a new home; Spray foam insulation (something that was not available even a few years ago) is revolutionizing the energy performance of our new homes. Quality windows, low maintenance exteriors and the latest high efficiency heating and cooling systems are just some of the benefits our homeowners are realizing.

Call or contact us to find out more about the tremendous opportunities out there. I don't know how long conditions will remain this favorable but I know from experience that once things start heating up prices can change rapidly.

~Claude Comito

Change Order – those dreaded words. Change orders are probably the most misunderstood area of custom home building and definitely one of the most problematic for builders.

First, the definition of a change order. As I define it, a change order is any change, addition or deletion to the contract specifications and allowances. This would include upgrades, color changes, overages (or underages) to allowances, etc.. A change order doesn’t necessarily have to cost more, but most do. Some are actually credits to the contract price.

They can be problematic for builders because they can be requested by owners at any point during the construction process. Many require fast response (drop everything else we’re doing) and careful coordination to make sure the cost is agreed to and that all parties (builder, owner and subcontractor or supplier) are on the same page.

Many times I’m asked, “Why am I getting a “change order” for upgrades to plumbing fixtures (or appliances or lighting, etc.) and paying the extra cost plus a builder’s mark up when it’s roughly the same work to install?”

The answer is that, even though the upgrade may not involve more work, it still requires revised pricing, preparation of the paperwork, coordination of owner, supplier, field staff etc. and more risk for us if something bad happens. (I hate to admit to how many scratched microwaves I’ve replaced over the years.)

The other part of the answer is that if the upgrade were part of the original contract scope, we would have added our margin to that as well.

We can be flexible however. If a change order involves minimal work and risk we will add markup very minimally or not at all. If on the other hand a change order is requested that involves a lot of work and coordination but very little extra cost – we will have to change accordingly.

Nobody should fear change orders. They are part of Custom Home Building. You’ll be thankful that your organized builder or contractor lets you know, as you go, where the changes and costs are. Nobody wants unpleasant surprises and misunderstandings at the end.