Gibson HomeBuilders

Master Builder Show sponsored by the 1st National Bank of Weatherford. I am your host (Jim Gibson) President of Gibson Home Builders; Inc. A registered builder in the state of Texas, a Graduate Master Builder certified by the National Association of Home Builders. I am a current member of the U.S. Green Building Council, Texas Association of Builders, National Association of Builders and past President of the Parker County Builders Association.

My guests today are Don Laughlin, President of Laughlin Home Builders, Inc and Craig Chambers with New Day Homes.

This show is designed to educate and answer questions of the listeners on residential design, construction or anything dealing with building, remodeling, repairing and maintaining a home in the State of Texas.

We also have 4 gift certificates to give away in the amount of $25.00 each. We will be giving away one gift certificate before each break. There will be 4 trivia questions.

1st Question: How do you find out if your builder is registered?
2nd Question: How do you find a registered builder in your area?
3rd Question: What is SIP construction?
4th Question: What is ICF construction?

We will answer any questions you may have so call us on the Master Builder Show. The toll free number is (877) 341-8950 that's (877) 341-8950

To check out builders or a remodeler go on line to Texas Residential Construction Commission.
Or Call (877) 651-TRCC that's (877) 651-8722
Here you can find out if the builder or contractor is currently registered and if he or she has any complaints filed against them.

To get a list of registered builders in your area, you can also contact your local Building Association.
Parker County Builders Association is a chapter of the Greater Fort Worth Builders Association and they have a list of builders for the following counties.
Parker, Hood, Somerville, Palo Pinto, Johnson, Tarrant and Wise counties
Their Number is 817-457-2864 that's 817-457-2864.

Now for any questions on building, remodeling or maintaining your home please call us Toll Free at (877) 341-8950 that's (877) 341-8950

Today we are talking about the different building techniques and some of the choices you have when building a new home. One of the questions I am ask over and over again is (How much does it cost per square foot to build a house?)

When they ask me this question I usually respond with, (How much does a car cost per pound?). Then they usually respond, "I don't know". That's when I ask " do you want a Chevy or a Rolls Royce? You see, cars do not sell by the pound and when you build a house the price per square foot all depends on what kind of house you want. Price per square foot is used for existing homes. That price is determined by comparables. This is one of my pet peeves, because all houses are not built the same. They may appear the same on the outside but its what's behind the wall's and in the attic that counts.

The only way a builder can give you a price per square foot is if that builder builds the same house over and over again. Then and only then if material and labor cost have remained the same. He has to duplicate the house exactly, but it has been my experience that prices change from year to year and people usually want to customize their home to fit their needs. So price per square foot is usually different on each house in new construction. The price depends on choices made by the buyer. These days a customer has so many choices that cost for each house is estimated by the how they want it built.

I can build three houses side by side the same size and cost will be different on each one. Let me explain.

All three houses are built using conventional construction, framed with wood on 16-inch centers. The first buyer wants the house built as cheap as possible. So we do not use any of the energy saving type materials. No radiant barrier, cheap windows, enough insulation just to meet code, minimum requirements on the heating and cooling systems, cheap flooring, minimal porches, standard 2 car garage and the cheapest electrical and plumbing fixtures available. We do this entire project meeting all the codes and requirements of the area. We build this house and price per square foot works out to be $80.00 per square foot living area. The price of the house is $160,000 making it $61.54 per square foot total under roof. But the appraised value is just for air-conditioned living area.

The second customer wants the same house plan but wants moderate upgrades on the energy efficiency, flooring and upgrades all the fixtures. They say that the porches and garage are good enough, so they now want a price. The estimate comes back at $90.00 per square foot. This house has 2000 square foot of living area, so that makes it $20,000.00 more than the first house, which also had 2000 square foot of living area. The total square footage of the slab is 2600 square feet including the garage, porches and sidewalk. The price for this house is $180,000 making it $69.23 per square foot under roof.

The third customer wants it all. He wants foam insulation, tank-less water heaters, upgrades the heating & cooling system to the max, upgrades the flooring, upgrades all the fixtures, wants a large back patio and wants a three car garage. The living area remained the same as the first 2 homes but the total under roof area increased by 600 square feet. Making total slab 3200 square feet. When the estimate came back it was $110.00 per square foot of living area. The price for this house is $220,000 making it $68.75 per square foot under roof. This house is $60,000 more than the first house and $40,000 more than the second, but all three have the same living area. There in lies the problem of appraising a house by square foot of living area.

Call us with any questions at (877) 341-8950 that's (877) 341-8950

So how much does a house cost per square foot? The answer is; you design the house, pick out all of the particulars, and from inside the walls to final stage, then estimating can begin. The builder checks current prices and gives an estimate depending on prices from start to finish. If prices are not locked in at the time the contract is signed to start, then prices can go up, and the builder will be forced to make up the difference in cost. So most estimates are only good for 30 days.

Now lets talk about the appraisal process. The customer wants to build a home that will save them money on their utility bills and maintenance. They have their plans drawn, decide on a 19 SEER cooling system, with an outside air exchange unit. They pick out a tank-less water heater; use Energy Star appliances and fixtures. They pick out vinyl Energy Star windows and energy efficient exterior doors. They want the best insulation package offered and fiber cement exterior trim. These people want a home that they can live out the rest of their life comfortably with minimal maintenance. They take the plans to the bank to line up their financing. The bank hires an appraiser. The appraiser looks at the plans, looks at the total square feet of air-conditioned space, determines type of flooring being installed, type of cabinets, type of counter tops, how many bathrooms, type of exterior (brick or stone) and size of garage. Then he starts pulling comparables. They do not care how efficient the heating and cooling system is or what type and how much insulation is used. They don't take into consideration the type of exterior trim or how efficient the windows and doors are. They don't care what type of water heater it has; they just assume it has one. The comparables are not usually apples to apples. Unfortunately, to my knowledge, there are no written complete energy efficient guidelines for appraisers at this time. So the buyer has to come up with some of the extra cash it takes to do all of the upgrades they want. When all the buyer wants to do is cut their long term cost and conserve energy.

The FHA loan amount for energy improvements is $4,000 or 5% of the appraised value not to exceed $8,000. This doesn't go to far when you are trying to build a very energy efficient home.

Call us if you have any questions or comments at (877) 341-8950, (877) 341-8950

The appraisers have a line item to add upgrades on energy efficiency, but in most cases this brings up a red flag for the lenders. The reason is no long-term data on values of energy saving techniques and technologies. The appraiser can see upgraded counter tops.

They cannot see behind the walls. While the owner saves money on his or her utility bills, the lenders can't seem to put an added dollar amount on the property for resale. Even though the Department of Energy and the U.S. Green Building Council are pushing to conserve energy and resources. They have yet to come up with a plan to provide monetary value for making these improvements, which the banks will agree with.

The appraisers are controlled by a set of rules and have to be committed to resale for the lenders protection.

It has been my experience to build as "Green" or as energy efficient as you can afford. The more you can save each month on you utility bills and maintenance, the better off you are monetarily at the end of each month. This not only helps us as individuals, but it also helps our environment. Our houses today are 100% more energy efficient than they were 20 years ago, but our utility cost, have also increased tremendously.

Most builders that I know today build a fairly good energy efficient house. Normally they want to build the most energy efficient house around, but people can't see the energy efficient upgrades. They can see the cabinets, they can see the counter tops and they tend to judge a house by the way it looks on the outside. Just because it's a pretty house does not mean it is energy efficient. They need to ask the following questions.

1. What type and how much insulation is there in the walls and attic? What is the R rating of each? The DOE recommends R-13 in the walls and an R-49 in the attics' for this area.
2. What is the SEER rating of the cooling system? The minimum required by law in the state of Texas is 13 SEER. Remember the higher the SEER rating, the more efficient the unit. The ductwork in unconditioned space (the attic) should be insulated to R-8 and in conditioned space R-6.
3. What type of air handler? Single Speed or Dual Speed. A dual speed air handler usually increases the SEER rating by 1 SEER.
4. What type of heating system? Electric Heat Pump, Gas, Electric Heat Strips or Geothermal Heat Pump.
5. What type of water heater? Gas, Electric, or On Demand
6. Does the house have a radiant barrier, if the attic is unconditioned space?
7. What type of ventilation does the attic have? The rule of thumb for unconditioned space is 1 square foot of intake and exhaust for every 300 square foot of attic space.
8. What type of windows does the house have? Vinyl, Aluminum or Wood Clad and what is the U-Factor and Solar Heat Gain Coefficient for the windows? The lower the number on each of these means the more efficient they are.
9. Is the attic-conditioned space? On some of the newer homes being built, the builder uses the latest technology and conditions the attic. This allows your cooling system to operate at a cooler temperature than conventional methods, making it more energy efficient than unconditioned space.

Call us if you have any questions or comments at (877) 341-8950, (877) 341-8950.

The more energy efficient you can make your home, the less you will have to worry about your utility bills. It makes more since to spend the money up front when you build and lock in your monthly payment. Your house payment will stay the same but your utility bills will keep rising.

What Types of Construction are available?

You have more choices today than ever before. You can build a straw bailed house, underground house, passive solar house, structural insulated panel house, insulated concrete form house and so on. There are so many choices available today, which do you choose? What should you spend and where should you put your money to give you the most savings in the long run?

In my opinion you should build the house you want depending on your environment. If you are in a hurricane environment, you should build a SIP or ICS type house. If you are in a tornado type environment you should build underground. The question is, what can you afford? Build as much house as you can afford for the environment you live in.

SIP (Structural Insulated Panels) Construction

Every one knows about the conventional types of construction. Wood framed houses on 16" centers, although roofs have gotten more complex and steep over the past few years. Does everyone know what SIP construction is? SIP stands for Structural Insulated panels. This type of construction uses panels made from a piece of Styrofoam sandwiched between two pieces of OSB or plywood. They come in different thicknesses, from 4-inches thick up to about 8-inches thick. The panels are made in different heights and lengths depending on the house plan. This type of construction usually requires a crane to lift the panels into place so that they can be secured. SIP houses are usually 2 to 5 times stronger than conventional construction and are self-supporting, not using the interior walls to support the roof. SIP houses do not need any added insulation. The walls and roof panels are the insulation.

ICF (Insulated Concrete Forms)

This is probably the strongest form of building in residential construction. The walls are poured using16 inch depths around the perimeter of the house each pass and vibrated to settle with in the Styrofoam forms as placed. The walls are a mono-pour creating a structure that is the strongest of all residential walls, above ground.