Week 16

I met with my UBuildIt consultant last Thursday to go over the Opinion of Probable Cost.

In this blog, back in July, I discussed the Site Review done by the consultant. Then the estimate ("opinion") of what it would cost to build the house was about $24/sqft for land development and $118/sqft for structure - or $142/sqft total. This was reasonable and in line with what a market analysis of properties in our area shows to be the average values. Our house being 2731 sqft (back then, but now 3000 sqft) would then cost around $388K to develop the land and build the house. This doesn't include price of land - in my case $300K. So add on the UBuildIt fees and state sales tax which both amount to $63K. This gets you to $751K. If you divide that $751K by 2731 sqft you get $275/sqft - this is almost exactly what the "better" but not "opulent" home values are around here.

Fast forward now to December. The house size increased to 3000 sqft - 269 sqft increase. The OPC shows the land development is now estimated to be $196,625 and the construction costs $715,173 - or $911,798 total. Add on the land and you're at $1,211,798, and then add on the fees and sales tax and you are at $1,327,195. Divide this by 3000 sqft and you get $442/sqft. The average in this area is $278/sqft - that's what the average "better" quality home sells for. I'd be $165/sqft above the average; do you think anyone would ever buy a house that far above the average? This obviously would not be a good investment; the day I took occupancy I'd be about $494K behind.

So, what's wrong - that's the question. I meet with UBuildIt again tomorrow to go over the comparable analysis that I created and sent to them showing it was a poor investment, and didn't make sense. I will report back next week what I learn. You can see my analysis here (totally created by me, not UBuildIt)- I've taken out the UBuildIt details because they don't like that shared with people.

Last week I also started the barn design process. I sent Uncle Howard's Barns a $1000 deposit to get it started. I got into AutoCAD and drew up the main floor plan and the loft plan. They will draw up the plans showing placement of stairs, doors and windows and the exterior elevations. My floor plan designs are so they take into account how I eventually plan to build it out - of course it's subject to change, but knowing where I'd place walls will keep them from doing things like putting a window in the wrong place. You can see my layout here.

I also started working with Puget Sound Energy Construction department so that they can determine how best to run the power service to the property and what my cost would be. There's a transformer at the property edge, so they will have to run a line only about 90'.