Mar

Fewer Rooms Equals More House

Posted by: Mike Garabedian in Food For Thought, General, Home Functionality

Sometimes adding rooms can create a smaller home while having fewer rooms can translate into more space in your home.

We have observed a trend of families designing multiple specialty rooms into their homes. These rooms were usually dedicated to just one activity. Some of the more common ones included; theaters, wine cellars, craft rooms, exercise rooms, etc…

Specialized Rooms

I would first like to define what we mean by specialty rooms and multipurpose rooms.

Movie theaters (media rooms) are some of the most common specialty rooms. They can single layer or multi tiered. Often the only activity that can occur is watching movies/tv or playing video games.

Wine cellars have become increasing popular with cabinets, refrigeration, iron gates and they may be sunken down to simulate the effects of walking into a cellar.

Many families like to have designated craft rooms with cabinets, sinks and tables.

Exercise rooms with mirrored walls and rubber floors are often about the size of a bedroom.

An exterior element that we see many families request is the balcony. Balconies are great architectural elements, however, sometimes their location is more a factor of how it looks on the outside than how it is utilized from the inside.

Hidden Costs

Often homeowners forget to account for the hidden costs of these spaces. By adding rooms, you not only have the actual costs of construction but you have costs associated with ownership. These costs include the mortgage debt, insurance, property taxes, utilities, cleaning and upkeep.

An extra 1,000 sqft of space could add $10,000 or more to your ownership costs each year (excluding the house payment).

The Motivation & New Priorities

Often the motivator for including these rooms is not so much a “need” as it is a “want”. Homeowners like the idea of having a room similar to what they have viewed in model homes or their friend’s homes. For families who have the wherewithal, it was a comfortable decision and they were willing to pay for these new spaces.

However as more and more families begin to seek out reduced home sizes; we are seeing a greater struggle on how to balance the “wants” of all of these rooms and their “needs” in a home. This often results in families having to take away footage from the rooms that are used on daily basis so they could accommodate these new spaces. (kitchens, family room, bathrooms, etc…)

The answer is you may not have to omit anything. Instead consider allowing rooms/spaces to serve more than one purpose. By designing rooms to accommodate more than one activity/task families can maximize their housing dollars while still adding new versatility to their homes.

Space Utilization

Here are some of the most recent trends in multi use spaces;

The combination of media and game rooms into one larger space allows for watching movies while participating in activities with the family.

Craft rooms are incorporated into utility rooms.

Studies are being designed to accommodate two work stations.

Many families are forgoing the formal dining and choosing to oversize their nook area.

Sitting areas in foyers or over-sized studies/libraries are taking the place of formal living rooms in many homes.

Butler’s pantries can incorporate a wine station in lieu of a dedicated wine cellar area.

These are samples of how combining rooms can maximize a house’s space utilization while still preserving the functionality of your home.

Builders Have Feedback

Builders are able to offer feedback from families who have built homes with a variety of spaces and rooms. This feedback can give guidance on how spaces drawn on the plans may or may not perform as desired when they are actually built.

Lifestyles are fairly consistent. Our experiences and feedback from our families indicates that building a new room won’t change the way most people live in their new homes.

Please give thought to how you live now when designing a house, as that is probably very similar to how you will use your new home.

Thank You

I hope this has given you insight to how creativity in design can help maximize the utilization of your new custom home. By finding ways to make rooms serve multiple purposes you may be able to create a “bigger” house and still spend less money.

If you have a question on how we can help you build a custom home, please feel free to email your questions to our offices. Garabedian Properties is a full service building firm serving the Dallas/Fort Worth Metroplex. We offer new luxury homes, premium remodels, green building/remodeling, home care services, storm/roof repairs and commercial building contracting.

If your family is not quite ready for us at this time, we will be at your service when you are in need or wish to request our assistance. If you know someone we can help, we welcome and honor your referrals.

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Feb

Return The Favor

Posted by: Mike Garabedian in Food For Thought, General, Picking The Right Builder

Hidden Efforts

One of the lesser known aspects of this profession is how much time and energy a builder will invest behind the scenes to give a family answers to what are seemingly simple questions.

When you ask a builder a question he can make one of two choices;

1 – Throw out a number.

Although this may satisfy your desire to know, the odds are it is not a very accurate cost as there are tens of thousands of variables in pricing out a home. If a builder throws out a low number he risks angering you or wasting your time if the price rises dramatically as you proceed forward with the project. If he throws out a high number, he risks alienating you and scaring you off when the reality is that with some more information the home may not have cost that much. The builder is in a no win position.

2 – Take down the relevant information and conduct research on the options.

This can be a very time consuming process as a builder must research a host of variables to come up with pricing on a new custom home. Some of these ever changing variables include; material and labor costs (can change weekly), every building site has unique costs associated with the preparation and every city had different fees and requirements.

It may only take you 30 seconds to ask a builder a question but it could take him 5 hours (or longer) to get enough information to give you an educated answer. Once he assembles this information he needs to convert it into a presentation format which can be interpreted by a homeowner. This can add even more hours to the process.

Share Your Thoughts

Although it may take a builder 10 hours or more to prepare an answer to your question on building your home, it has shocked me how quickly families will come to a conclusion without fully absorbing all of the options.

For a majority of all families, a new home is the largest single purchase they will ever make. To see someone make a decision of this magnitude in a few short minutes has always been perplexing to me.

I appreciate how circumstances change or you feel like the information being presented is not in line with your expectations. However, instead of just shutting the builder down, give them an opportunity to hear your feedback and see if there are other options available.

Homes have tens of thousands of variables in them and it is not possible or desirable to present every possible different configuration during a presentation to a homeowner. Your feedback will give the builder direction on how to sift through the information to provide you alternatives.

One Call Means A Million

It may be after receiving the requested information; you feel a need to change direction. That is understandable and does happen. I would make one request (regardless of who you are working with), please take a few seconds and Return The Favor. Give a courtesy call or return the call to the builder and let him or her know where you stand. Return the favor of all of their hard work by giving them a call and letting them know where you stand in the process.

I would almost take a bullet for someone who returned professional courtesy to me EVEN if the answer was no. That call shows they appreciated the time and effort I put in on their behalf.

Thank You

In closing please be aware of the amount of work a builder will put in on your behalf often with no compensation is considerable. Please give return the favor for his/her efforts by giving them feedback so they can better serve the community regardless of how you decide to proceed.

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Jan

Introduction To Our Family

Posted by: Mike Garabedian in Food For Thought, General, Picking The Right Builder, Uncategorized

Introduction to Garabedian Properties and the Garabedian Family

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Jan

You Don’t Have To Spend A Million Dollars

Posted by: Mike Garabedian in Food For Thought, General, Picking The Right Builder

You don’t have to spend a million dollars to have a custom built home. One of the most common misconceptions about custom home builders is that they only build expensive homes. The reality is most custom homes cost much less than a million dollars.

What is a custom home?

A custom home is when a family works with a builder to design the floor plan, select the site and designate the amenities and features of their new home based upon their own decisions and budget.

The plans can be designed from scratch or modifications of an existing plan. The site selection can be in a neighborhood or a vacant site regardless if the builder owns the site or not.

Except for your budget, there is almost no limit to the features, colors, finishes, cabinets, flooring, etc… you can incorporate into your custom home. There is no design center where you pick from 2 things on a wall. You dream it, your builder builds it.

What does a custom home cost?

A custom home can cost $100,000 or $100,000,000. The cost is a composite of the following factors; cost of the land (including preparation), the home size and the amenities & features of the home.

Which custom builder should I use?

The short answer is the one you can work with and trust. Many custom builders are able to accommodate different styles and price points. However, not all custom builders are able to manage their businesses as a business. This is why you see so many builders go out of business after a few short years of building.

Lowest bid has the most mistakes

In our industry there is an old adage, the lowest bidder is the one who made the most mistakes bidding your home. This means you may decide to go with the lowest bid on building your home, however, the odds are you are going to pay for it one way or another in the coming years.

Find a custom builder who can accommodate your needs and desires while providing you a top notch home you can be proud to show to your friends and family.

Once you go custom….

Almost everyone who has built a custom home will tell you that once you go custom, you will not want to go back to buying a pre-owned (we call them used) or a tract home again. Building a custom home will cost you a bit more, however, you are spending your money on the features that are important to you. You will also enjoy the deep feeling of personal satisfaction of having conceptualized and building something from scratch that no one else (out of 6 billion + people on the planet) has.

Thank You

Custom does not mean spending a million dollars, custom means personalizing your families home so it meets your family’s needs and desires. Make a list of what is important in your next home and visit with your area’s top custom builders. You will quickly realize that building a custom home is much more obtainable than you had thought.

Tags: build, builder, custom, home, house

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Jan

Ten Reasons To Start Now

Posted by: Mike Garabedian in Food For Thought, General, Picking The Right Builder

This was post was inspired by a local Realtor and friend, Mark Pennington, who did a similar list for why you should list your home for sale in December. This is our top ten reasons to act now on your new home building project or remodeling/addition project.

Reason #10 to act now on your home building or remodeling/addition project. Interest rates WILL go higher and could go dramatically higher as the current rates are at historic lows and inflationary pressures are building in the money supply.

Reason #9 to act now on your home building or remodeling/addition project. Bankers won’t let builders start any speculative homes so if you don’t see something you like the only way you are going to get it is to start from scratch.

Reason #8 to act now on your home building or remodeling/addition project. Banks are under increased pressure to book loans OTHER than to builders/developers. This means making more loans to homeowners who want to remodel or build their own homes. The programs they can offer today due to the very low interest rates may not be available once rates start to rise.

Reason #7 to act now on your home building or remodeling/addition project. Over half of all builders and subcontractors have been forced out of business. The experienced ones who are left are the first to be hired back. So if you wait too long, then you may have to settle for less experienced builder/contractors building your home.

Reason #6 to act now on your home building or remodeling/addition project. The Texas Residential Construction Commission has been disbanded so there is no governing agency to oversee builders in Texas. Many builders who were barred from the industry and others who have little to no experience will be opening up shop once activity resumes in the industry. Buyer beware has never been more important than now.

Reason #5 to act now on your home building or remodeling/addition project. New federal regulations being proposed by the President and Congress will add even more regulatory costs to construction projects if passed. Which means you will get more for your money now.

Reason #4 to act now on your home building or remodeling/addition project. Building from scratch takes time to work on plans, make selections, secure permits, etc… With fewer proven builders in the market and more detailed loan applications, the delays may make it hard for your family to get the current low interest rates.

Reason #3 to act now on your home building or remodeling/addition project. The best building sites will go quickly and there are very few new subdividions in the works. Acting quickly can help prevent you from having to “settle” on a community that was not one of your top choices.

Reason #2 to act now on your home building or remodeling/addition project. Current construction techniques can save you on your utility bills while giving you space for your family that they have been clamoring for. You know your wife wants to move forward and if momma is not happy, you won’t be happy.

Reason #1 to act now on your home building or remodeling/addition project. You have to start at some point so why are you waiting for higher interest rates, higher costs, and fewer choice lots to chose from? Procrastination is not going to get you a new home or more living space. Procrastination is not going to give you the features you have been dreaming of. Action will! Calling a trusted builder tonight and start your journey to your new home.

Thank You

If you have a question on the steps to move forward in the process, please feel free to email your questions to our offices. Garabedian Properties is a full service building firm serving the Dallas/Fort Worth Metroplex. We offer new luxury homes, premium remodels, green building/remodeling, home care services, storm/roof repairs and commercial building contracting.

Tags: act, build, home, interest

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Dec

Trading Homes Is Easier Than You Think (Part 3 of 3)

Posted by: Mike Garabedian in Food For Thought, General, Picking The Right Builder, Trade In Your Home, Uncategorized

One of the largest hurdles families face in the search for a new home is what to do about the home they are currently living in. We hope this three part series helps illustrate how trading a home can benefit a family.

The first of this series discusses the most common hurdles families face when seeking to move to a new home. The second part discussed how a new home builder offering a Trade In Your Home program can help overcome these challenges. This third part of the series will discuss how the steps of a trade program work.

Where to start

As not all builders are able or willing to trade homes, it would be wise to research which builders do offer this option and then review their program and available homes. Once you have determined which builder, set a time to meet with him or her to discuss what you are seeking to accomplish.

What you will need to know

Your builder will want to know some information from you to do a preliminary evaluation. Here is a list of some of the items you should know;

The address and a description of your home including the room count, lot size, square footages and special features.

Condition of the major systems of the house such as your water heaters, appliances, heaters, air conditioners, roof, etc…

Disclosure of any items requiring attention such as leaks, foundation problems, etc… Remember you are legally obligated to disclose such items and being upfront will minimize these issues becoming a problem later in the process.

Your asking price on what you would list your home for with a Realtor and what you would expect to sell it for.

He will also need to know how much do you owe on your home as well as if you have any other resources you are able to use for a down payment.

Please be upfront with your builder. Every family I have worked with who has tried to be coy or not be upfront about their circumstances has had their trade fall through and they ended up not getting the house they wanted. This must be a win-win to work.

Can I Negotiate

Yes you can negotiate; however, take a step back and look at the big picture.

You are asking the builder to pay top dollar for your home but you want to buy the new home for a discount. The reality is the builder is doing you a favor in taking your home. If the builder was going to discount his new home to sell it, he could do that and not have to bother with taking a used home in trade.

The net effect is that if you want the builder to give you a fair price for your home on a net basis, you will need to use his asking price as the benchmark.

Another reason this is important is the builder will need to utilize his proceeds from the sale of his new home to use as the down payment on your old home. If he were to discount the price of the new home he may not have enough cash to move forward with the trade.

This has to be a win-win, if you are looking for a discounted price on a new home you will need to be ready to move forward without trading in your existing home.

The Evaluation

The builder will take your information and begin to research your home.

This will involve a host of different steps including; ordering a Comparative Market Analysis of your home, reviewing sales of similar homes in the area, physically inspecting your home, hiring a licensed inspector to inspect your home and other such similar items. This will give him the information he needs to assign a trade value for your home.

Next Step

Once you and the builder have come to an understanding, contracts will be executed. There will be two contracts, one for each transaction, which will both be contingent on the other contract being executed and closed.

The contracts will be delivered to the title company and the respective lenders. Once the lenders have completed their paperwork a closing date will be finalized.

During this time the builder will proceed with his traditional new homeowner orientation and walk through on your new home. He will also work to have his crews assemble resources for any needed repairs for your old home.

At Closing

On the closing day, all parties will meet at the title company and sign their respective papers. As most families will want some time to move, it is very common for a short term lease to be executed on the traded in home allowing time for the family to move out and clean up the house.

While this transition is in place the builder will often begin to work on scheduling the repairs and marketing of the traded in home.

Thank You

During down markets, trading home is a great means of moving without taking the risks and hassles associated with attempting to sell your old home. In a hot market, trading may offer a great means of being able to purchase the house you want before someone else beats you to it while you try to sell your old home.

Either way, if you are considering a move, look at all your options including trading. This concludes the three part series on trading in your home. To see the entire series visit our blog.

If you have a question on how to a trade program works, please feel free to email your questions to our offices. Garabedian Properties is a full service building firm serving the Dallas/Fort Worth Metroplex. We offer new luxury homes, premium remodels, green building/remodeling, home care services, storm/roof repairs and commercial building contracting.

If your family is not quite ready for us at this time, we will be at your service when you are in need or wish to request our assistance. If you know a family or client who may be in need of our services, we welcome and honor your referrals.

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Nov

Trading Homes Is Easier Than You Think (Part 2 of 3)

Posted by: Mike Garabedian in Food For Thought, General, Picking The Right Builder, Trade In Your Home

Education Program

The first of this series discussed the most common hurdles families face when seeking to move to a new home. This second part discusses how a new home builder offering a Trade In Your Home program can help overcome these challenges. The third part will discuss how a trade program works.

What Is Trading

Trading your home is when you trade (sell) your current home to a builder and then buy one of their new homes. This is similar to trading in an automobile, however it is done on two separate contracts instead of one document.

Both transactions will close at the same time at the same title company. Your equity in your old home can be used towards your down payment on your new home.

How Much Is My House Worth

The value of your current home will be determined the same way a real estate agent would determine what price to list your home for sale.

A builder will typically order a Comparative Market Analysis, inspect your home and order a real estate inspection. This will give him or her the information they require to determine a value for your house.

Once the builder is able to determine what improvements are required (paint, carpet, roof, etc..) if any and the price the home will sell a trade value will be determined for the home.

Our company offers a “net price” meaning that we deduct out real estate commissions, repairs, marketing fees and negotiation factors. Here is a case study on a recent trade offer.

Here is what this family would most likely net out if they listed with a real estate company;

Realtor Lists & Sells Home

List price $260,000

Negotiations (3%) & Commission (6%) ($22,932)

Home Warranty & Title Policy ($2,597)

Carpet, Paint & Repairs ($13,000)

Landscaping upkeep and grooming ($1,500)

Total Adjustments off of list prices $40,029

Projected Homeowner Net Proceeds $219,971

Here is what a family would most likely net if they traded in their home;

Builder Offered Trade Value

Retail value of home $260,000

Less Carpet & Paint (major items) ($11,000)

Less Seller Adjustments – 10% ($26,000)

Total Adjustments off of list prices $37,000

Net Value For Trade Credit $223,000

In this example the home owners are most likely going to receive a bit more net value for their home than trying to sell it themselves. Please keep in mind that every trade is different and individual circumstances will vary.

Repairs

All homes require repairs and updating to be ready for sale. When a builder takes a home in trade he has developed a plan to address those items and will be able have his crews handle the repairs once you have moved out of the home.

By conducting the repairs with his crews and in a vacant home, he is often able to save on costs versus what they would cost you to have the same work done. Builders are also less inclined to be worried about small cosmetic items which may make a typical home buyer nervous.

Benefits

The builder will often take your home in its current condition without requiring you to replace the carpet, do paint touch up or fix sheetrock damage.

You can avoid the trouble of negotiating a sale or dealing with odd buyer requests. You will not have to be ready to jump at a moment’s notice when a Realtor wants to show your home of have any pressure to keep the home in show ready condition all the time.

However, the biggest benefit is that you are able to move when you are ready into a home you want in a timely manner with minimal disruption to your life.

What Can You Trade

The best trades are when the property you are trading in is worth less than one half the price of the property you are seeking to purchase.

Most commonly a family will trade in their existing home. However, sometimes a family will offer a vacant lot or an investment property.

Thank You

During down markets, trading is a great means of moving without taking the risks associated with attempting to sell your existing home. In a hot market, trading may offer a great means of being able to move on the house you want before someone else beats you to it.

Either way, if you are considering a move, look at all your options including trading. The last part of this series will detail the steps of how a trade will work. To see the entire series visit our blog.

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Nov

Stay In Touch

Posted by: Mike Garabedian in Food For Thought, General, Picking The Right Builder, Uncategorized

Thank you to everyone who frequents our blog. If you would like to stay in touch with us in between posts. The links are on the menu to your right or you can become a fan on Facebook.

Please feel free to leave your comments, drop us an email at mike@garabedianproperties.com or call our office at 817-748-2669. I also encourage you to visit http://www.garabedianproperties.com to see movies on our homes, hundreds of pictures and information on how we can be of service to your family or clients. If your family is not quite ready for us at this time, we will be at your service when you are in need or wish to request our assistance. If you know a family or client who may be in need of our services, we welcome and honor your referrals.

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Nov

Trading Homes Is Easy (Part 1 of 3)

Posted by: Mike Garabedian in Food For Thought, General, Picking The Right Builder, Trade In Your Home

The first of this series discusses the most common hurdles families face when seeking to move to a new home. The second part will discuss how a new home builder offering a Trade In Your Home program can help overcome these challenges. The third part will discuss how a trade program works.

Hurdles To Moving (Part One)

Two Mortgages

Some families will move into a new home then sell their old home. This option does allow for a family to move at their own pace without being rushed however they do have the financial burden of two homes.

These costs can include mortgage payments, taxes, insurance, utilities and upkeep. In addition to the costs you must also work to clean up the old house and take care of all those unfinished projects that must be completed before putting the home on the market. Once all of that is completed, the selling ritual of pictures, Realtors, showings, negotiations, offers and counter offers begins.

While all of this is in progress, your family is still placing demands on you to help get settled into your new home. Then all those other pesky little aspects of life keep eating up your time, work, school, children’s events, etc…

Our family has tried this before and although it is convenient, I can attest that once you are about 99% moved out of the old house, the last 1% can be a drag. The work and time it takes to get the old house ready to sell WHILE you are trying to get your new home ready to live in can be stressful and it does take some of the joy/excitement from the move into a new home.

Two Moves

Other families resign themselves to selling their home first then moving into temporary housing (apartments, rent house, in-laws) and placing their belongings in storage until they can find a new home.

This method allows for a family to take their time in the search for a new home, however, the costs associated with a double move and storage of one’s personal items can add up. Often the temporary housing is smaller and less comfortable than living in true home.

We are also hearing from families that their children do become restless as they are not settled into a permanent environment. Once the families become restless the pressure to “just buy something” becomes intense and families may settle on a home or location that is not their first choice. Our family has done this option and it is only by God’s grace my wife did not kill me.

Sell & Search

The most common approach which we have witnessed is a family selling their home and then making a mad dash to find what they a new home once their home sells.

Often in the rush they have to settle for what homes are available in their budget. More often than not we find these families settling for a home and then spending tens of thousands of dollars to try to fix the home to get close to what they were hoping to find.

This rushed approach to finding a new home is always tempered by the stress and pressures of making sure the contract on their existing home settles up. We have heard stories of buyers who use the family’s contract on their new home as a tool to get greater concessions out of the family on the contract on their existing home.

Common Factor

The common factor in all of these scenarios is that the family is at the mercy of outside forces and either has to spend time and money to cover additional costs, put themselves under undo pressures, settle for a house that may not have been their first choice or all of the above.

The next part of this series will discuss how a builder offering a Trade In Your Home program can offer an easier less stressful path to your family’s new home.

Thank You

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Nov

Inflation Signs In Asia

Posted by: Mike Garabedian in Food For Thought, General

The weaker dollar is showing inflationary signs in Asia. When it comes to the states we will see our interest rates soar and pricesj rise. This will help fuel another real estate bubble that will fail once inflation is tamed again.

http://online.wsj.com/article/SB10001424052748704431804574540052282519972.html

Tags: asia, dollar, inflation, interest, rate, rates, weak

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Previous Entries

Garabedian Properties Blog

Fewer Rooms Equals More House

Return The Favor

Introduction To Our Family

You Don’t Have To Spend A Million Dollars

Ten Reasons To Start Now

Trading Homes Is Easier Than You Think (Part 3 of 3)

Trading Homes Is Easier Than You Think (Part 2 of 3)

Stay In Touch

Trading Homes Is Easy (Part 1 of 3)

Inflation Signs In Asia

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