Saving the best for last, amenities:
A long time ago the most common question my friends would ask is what how much can you build a home for? My standard answer was somewhere between $17 and over a $100 per square foot (1990 dollars). The response was always followed by some hesitation, then a smile and a request for an explanation. The basis was that the mobile home manufacturer could sell an 1100 square foot “home” for less than $19,000. At the same time, the sky is the limit when it comes to interior detail.
Items to consider:
Some items to consider are windows, flooring, cabinets, trim detail, appliances, plumbing fixtures, lighting and so on. Now how do they vary and what should you consider.
As a first example let us consider windows; an aluminum window can cost as little as $20.00 and is very durable, expected life span is virtually unlimited, and requires essentially no maintenance. The fact is however that we have never installed one. Why? The energy loss is about 1700 times greater than a wood window. If you have ever seen one installed, in the winter they can have ice formed on the inside of the home because of the condensation freezing due to the high heat loss. A better answer when cost is a key driver is wood double pane window with a ball park price of $110.00. At one time, this was a very viable option, but our studies have indicated that the durability in recent years has declined presumably due to the use of faster growing species of wood for production. The industry has addressed this issue with the mainstreaming of next vinyl (polyvinyl chloride or PVC) windows. These windows are costing in the $150.00-200.00 range. This is a good replacement material for the wood and has no chance of wood rot. PVC is the same material that plumbing pipes are made from and from a biological standpoint it is non-biodegradable. With oil prices reaching $100 per barrel, expectations are that the material costs are going to increase substantially as it is petroleum based product. Top of the line windows are made of a combination of materials, typically vinyl or aluminum exteriors for durability and wood on the interior for its natural beauty. These windows will run in the $300.00 to $500.00 price range depending on the manufacture. Now if you consider and average home with 35 windows, the cost can vary between $700.00 and$17500.00.
| Appliance and plumbing fixtures:
One of the first considerations on fixtures that will be utilized essentially everyday is what is the underlying quality of construction. It is easy to figure out that installing an inexpensive fixture that will have to be replaced in a few years is more expensive than the upfront cost and time value of money of installing a fixture of quality. This is one rule that should never be violated; adjust some of the other cost parameters first. As a simple example, consider a pluming fixture. There are three basic price extremes, $25.00, 150.00, and +500.00. The cost is a function of the construction quality, materials, and the “pretty” factor. The 25.00 fixture is that cost because it has a plastic valve body. It can however look acceptable for the move in date, even if it is a poor choice. The midrange will purchase a cast bronze fixture, the life expectancy can reach up to 30 years, and the appearance is one of quality. The top of the line is constructed with cast bronze and the added cost is due to surface finishes and often lower production quantity. The best value and quality is often those products that are in the main stream and have the highest production rates and produced in the millions. Our observation is that we have significantly lower warranty issues on high production midrange products than we do on lower production high value products.
A few years ago, it was not uncommon to spend $2-3,000 of appliances. In recent years, we have spent ten times that much on some homes. It is not that appliance costs have changed orders of magnitude; it’s that the desire and demand for top of line kitchens has soared. In the last couple of years, the good news is that exceptional midrange products have appeared. But if you want a subzero refrigerator, be ready for a 6-8000.00 price tag depending on the model.
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