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The Builder Book

By

Jerry Parks

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Copyright Material The Builder Book

Published by Traditional Select Homes, Inc. Copyright © 2011 by Traditional Select Homes, Inc. Richardson, Texas No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fac 978-646-8600. Requests to the Publisher for permission should be addressed to the Permission Department, Traditional Select Homes, Inc. 2517 Custer Pkwy. Richardson, TX 75080. 214-244-7510, or online at jerryparksbuilder@yahoo.com. Trademarks: Traditional Select Homes, Inc. logo, The Builder Book logo are trademarks or registered trademarks of Traditional Select Homes, Inc. and /or its affiliates in the United States and other countries, and may not be used without the written permission. Traditional Select Homes, Inc. is not associated with any product or vendor mentioned in the book.

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Copyright Material The Builder Book

LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: THE PUBLISHER AND THE AUTHOR MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CONTENTS OF THIS WORK AND SPECIFICALLY DISCLAIM ALL WARRANTIES, INCLUDING, WITHOUT LIMITATION WARRANTIES OR FITNESS FOR A PARTICULAR PURPOSE. NO WARRANTY MAY BE CREATED OR EXTENDED BY SALES OR PROMOTIONAL MATERIALS. THE ADVICE AND STRATEGIES CONTAINED HEREIN MAY NOT BE SUITABLE FOR EVERY SITUATION. THIS WORK IS SOLD WITH THE UNDERSTANDING THAT THE PUBLISHER IS NOT ENGAGED IN RENDERING LEGAL, ACCOUNTING, OR OTHER PROFESSIONAL SERVICES. IF PROFESSIONAL ASSISTANCE IS REQUIRED, THE SERVICES OF A COMPETENT PROFESSIONAL PERSON SHOULD BE SOUGHT. NEITHER THE PUBLISHER NOR THE AUTHOR SHALL BE LIABLE FOR DAMAGES ARISING HEREFROM. THE FACT THAT AN ORGANIZATION OR WEBSITE IS REFERRED TO IN THIS WORK AS A CITATION AND/OR A POTENTIAL SOURCE OF FURTHER INFORMATION DOES NOT MEAN THAT THE AUTHOR OR THE PUBLISHER ENDORSES THE INFORMATION THE ORGANIZATION OR WEBSITE MAY PROVIDE OR RECOMMENDATIONS IT MAY MAKE. FURTHER, READERS SHOULD BE AWARE THAT INTERNET WEBSITES LISTED IN THIS WORK MAY HAVE CHANGED OR DISAPPEARED BETWEEN WHEN THIS WORK WAS WRITTEN AND WHEN IT IS READ.

For general information on our other products and services, please visit our website at www.thebuilderbook.net. ISBN: 13978-0-615-51136-8 Manufactured in the United States of America

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About the Author

Jerry Parks grew up in the home building and home remodeling construction business. From the time he graduated from school, he has always been self-employed as an independent contractor. Because of his love for the building business and his emphasis on the quality of his work, Jerry became a self-made millionaire by the time he was 35.

Jerry is a Custom Home Builder and CEO of Traditional Select Homes, Inc. He is a former director of the Home and Apartment Builder’s Association of Metropolitan Dallas. He is a member of the Home Builder’s Association of Greater Dallas, a member of the National Association of Home Builders and the Texas Association of Builders. He has built over 500 custom homes in the Dallas, Texas Metropolitan area. He has won many home building awards, including the Texas Star award for the best custom home in Texas. He has completed many homes ranging in price from $90,000.00 to $2,000,000.00. Today, he currently has $2,600,000.00 of custom home projects under construction.

Jerry has been in the home building business for forty years and never met a home he didn’t fall in love with (some more than others). For five years of his career, Jerry was as an independent builder who installed doors, windows, and kitchen cabinets for Home Depot, Inc. He represented more than four stores at a time and had a full crew installing products from the Home Depot, Inc.

Jerry also used his expertise to teach others at one of the largest private real estate training schools in Texas. He saw the need to have educated individuals in the Real Estate profession, so he purchased Commercial Real Estate College. As part of his duties at the college, Jerry designed and wrote the course materials and was a regular guest lecturer.

His extensive experience as a home builder combined with his love for teaching, lead to the writing of “The Builder Book”--which is the culmination of a lifetime of knowledge and experience building custom homes.

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Table of Contents

1. Where to Build Selecting and obtaining an affordable building site Footprint of the lot Zoning Deed restrictions Lot soil Retaining Walls Utilities Impact fees Trees City impact fees Bank loans Interim financing Closing

2. The Perfect Floor Plan Designing an Economical Floor Plan for Your Lot One story vs. Two story Floor Plan Designs City Requirements Construction Savings

3. It’s All in the Details The importance of Detailed Interior and Exterior Specifications Specifications New Home Construction Cycle Build Your Home “Green”

4. Be a Trendsetter

Paint Colors That “Pop” Be “Floored” with Flooring Carpet Selection Matters Kitchen Secrets Windows Fixtures

5. Save Money Like a Pro The “per square foot” Dilemma Cost and Expenses Sample of a Cost Sheet

6. Getting the “Green Tag”

Building Permits Passing Inspections

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Building Inspector’s “Red Flags”

7. Show Me the Money Financing Your Lot Inspection Reports

8. Who Will Get the Job Done?

Tips for Selecting Competent Sub-contractors and suppliers Finding Sub-contractors Who are not Sub-par. 10 Tips to Save Money on Sub-contractors

9. Avoiding Costly Mistakes Controlling Waste of Materials List of Materials Typically Stolen Top 11 Common Costly Mistakes Minimizing Theft

10. Saving Money by “doing it” Yourself

Use Your Construction Skills Top 10 Things to “do it yourself”

11. Preventing Problems and Avoiding Delays Plan Ahead Drainage Issues Foundations Issues Material Issues Top 10 Problem Areas Leaks

12. Building Your Home Step by Step The Construction Money Steps of Building Your Home Check the Weather 10 Common Tips to Avoid Delays

13. The Right Way to Pay Paying Sub-contractors and Suppliers Top 10 Tips for Paying for Labor and Materials

14. Finish With Flair

The Final Steps in the Completion of your New Home Punch List Items

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Chapter Two The Perfect Floor Plan

Designing an Economical Floor Plan for your Lot First, the floor plan or design of your home must meet your family’s needs and wants. However, more importantly, the floor plan must also be affordable, within your budget and must meet your hopes and dreams for your new home. Do you know which rooms are the most costly to build? If you guessed the kitchen and bathrooms, you are correct! These rooms are the most expensive rooms in the house to construct. So careful planning can save you thousands of dollars and still get you the kitchen and bathrooms you have always wanted. This second stage in the construction process is the perfect time to make changes in the design. You must make changes in your blue prints now and not wait until the construction has already begun. If you give careful consideration to drafting the layout of your home at this stage, you will avoid unnecessary delays and costly changes to the floor plan of your home. For example, your floor plan must meet the fire codes, building codes, deed restrictions and city building requirements. Please know that these requirements are mandatory and will add costs to the construction of your home.

The Inside Scoop: After the plans are approved, the typical builder would charge a fee of $150.00 per change plus the cost of the building change. In one instance, I had a home owner client spend over $4,650.00 for change fees alone.

Knowing what questions to ask and decisions to make during the design process will help you avoid time delays and frustration during this part of the construction phase. Below are some things to consider. One Story Home vs. a Two Story Home This question arises quite often from clients: Is a two-story home less expensive to build than a one story home? Cost Savings It may surprise you to learn that often a two-story home is less expensive to build than a one story in the following areas:

1. For the same square footage, the foundation footprint or area would be less and; therefore, the cost of the foundation would be less.

2. Less material and labor are used to install a roof for a two story home vs. one story with the same square footage of living area.

3. The lot could be smaller; and therefore, the lot cost may be less expensive to purchase.

4. The masonry exterior could be only on the bottom eight foot of the exterior walls and a less expensive siding could be put above it; therefore, saving

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money. 5. Insulation for the attic would be less because the attic square footage is

smaller. 6. Labor costs for the tradesmen are normally not any more expensive for a

two-story home.

Cost Increases: However, two-story home costs are more in the following areas:

1. The additional cost of stairs and the area the stairs take out of the living area of the home.

2. The air conditioning and heating system may be more expensive because of the extra heat load on the upstairs area.

3. The lumber cost for the silent joist systems will be more expensive than a standard joist system for a one story home.

Overall, you should be aware of the cost difference and select the style home that will fit your family’s needs as well as the lot foot print restrictions.

The Inside Scoop: In my career, I have built more two story homes than one story homes. The developer generally has a propensity to design small lots, and the economics of construction dictate building a two-story home to increase the total living area of the home.

Floor Plan Designs An existing floor plan design can be purchased through the internet for as little as $650.00 to $850.00. I have used some of these designs in the past and found them to be excellent. Prior to purchasing a plan, make sure that the dimensions of the home will fit the building foot print of your lot. Also, I have found there could be additional cost incurred in purchasing a set of plans in this manner, if the plans do not address the needs you have or the city building inspection requirements the cost may be prohibitive.

The Inside Scoop: At a rate of $150.00 per square foot for construction, make sure the floor plan you build has very little wasted space.

See a sample plan with little wasted space at www.builderbook.net. Sample of City Requirements Here is a list of what a typical city may require to issue a building permit:

1. Plans of the house on a disc and two hard copies of the plans; 2. A plot plan should be on a separate sheet of paper and have three copies; 3. The site plan, required by some cities, should show the location of the

portable toilet, the grade elevations, the top of the curb elevations, the elevation of each house on either side of your lot, silt fence locations, trash

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fence locations, entrance to lot location and trash container locations; 4. An engineered foundation and engineered second story framing drawings

of the home; and 5. An energy-efficient rating from an approved company and ICC3 rating

and/or energy star rating of the homes construction.

The Inside Scoop: I have had plans re-drawn two and three times on a project because the plans lacked all of the requirements of the city’s building inspection department.

Floor Plans A local designer or architect can design a custom floor plan for your lot that would meet all of the city’s need and your specific needs. A local designer or local architects can be found on the internet, a local university, city building department, local homebuilders’ organizations and referrals from friends and family. It is important the person or firm you select is a residential home designer and has a history of designs and plans in the area. You do not want to pay for educating the designer or architect. The cost of plans can range in price starting at $1.00 per square foot. For this example, if the living area of the home had 2500 sq. feet of living area, 500 sq. feet in the garage and 300 sq. feet of porch area, this would be a total of 3300 sq. feet of area under roof--and a designer fee of $3,300.00. Then, depending on your needs and specifications, the fee for the architect could be ten times higher. The number of sets of plans you need to build a custom home can vary. To be safe, initially have six (6) sets of plans drawn by your architect or designer. Then, when your building permit is approved, and the plans have the city’s APPROVAL stamp on the plans, have another six (6) sets copied. Providing a set of plans to some of the sub-contractors is important. Often, the plans that must stay on the job construction site “mysteriously disappear.” The cities require that the approved set of plans must be on the job construction site at all times. If the approved plans are not on the job site, the city inspectors will leave without even starting the inspection. And, they charge a re-inspection fee to come back to the site. The cheapest re-inspection fee I have seen is $25.00. Not only is there a cost involved for re-inspection, but it is also very frustrating and causes delay to the construction process.

The Inside Scoop: I have saved thousands of dollars by making a few minor changes in a floor plan and building it on another lot. So, you may want to find an existing floor plan and “tweak” it to fit your specific needs.

Construction Savings No matter how you obtain your floor plan, there are many secrets to saving money when designing your floor plan. Below is the inside scoop on construction ideas that can save you money:

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1. A floor plan with extreme angles and protrusions is more expensive to build than a plan with straight lines.

2. A 6” exterior brick wall will decrease your actual living area in a 2500 sq. foot home as much as 100 sq. feet. If the home was built with stucco or siding, you can pick up 100 sq. feet of living area in your new home.

3. Covered porches cost almost as much to build as the living area of the home. An appraiser generally bases his appraised value on the living area of the home and little importance of the amount of covered porch is designed.

4. Sub-contractors generally base their cost estimates on the number of square footage in the home, garages and porches. For example if the living area is 2200 sq. feet, the garage is 460 sq. feet and the porches are 370 sq. feet. That’s a total of 3030 sq. feet of building under roof. A framer might charge labor of $3.50 per sq. foot to build and frame your home. That total cost for labor cost would be $3.50 x 3030= $10,605.00.

5. Finger joint studs and engineered wood can be a large savings. 6. A cable tension designed foundation is about one third less expensive than a

pier and beam foundation. 7. A cable tension designed foundation is generally less expensive than rebar

steel designed foundation. 8. The hot water heater is designed to be installed in the attic with proper over

flow pan can save living area space and can be more centrally located for cost savings.

9. An inline hot water system can be mounted on the exterior of the home and take up no living area space.

10. When building a one story home, it is a great cost saving to have an exterior eight foot plate line and then increase the ceiling heights to ten or twelve feet on the interior of the rooms. It creates and nice ceiling design and treatment and is less expensive than building with 12’ plates and full ceilings.

11. Design rooms in even number lengths and sizes. The “waste factor” will be decreased a great deal and save you money.

12. The floor plan design elements such as room flow can add cost or decrease cost. The final cost has a direct relationship to the number of sq. feet of living area in the home and the size of the rooms. To meet your budget make sure you have no excess floor space in your design and the design has as little wasted space as possible.

See pictures of a post-tension foundation at www.builderbook.net.

13. Long hallways create additional unnecessary expense. 14. Steep pitched roofs add additional material and labor cost. A six twelve pitch

vs. a nine twelve pitch can save dollars today as well as roof replacement cost in the future.

15. Do not build a home with a flat roof. They will leak and you will have to maintain the roof for many years.

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The Inside Scoop: I spent $2,200.00 trying to repair cedar horizontal siding on the front of a home that leaked water through the “tongue and groove” joints.

The real secret is to design a floor plan to your custom home with everything you want in it and at a price that’s within your budget. Spending time with the design and specifications of your home early in the process can save you thousands of dollars, without compromising your vision.