Re: I have done both - Saab General Bulletin Board - Saabnet.com
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Re: I have done both
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Posted by cfishgo (more from cfishgo) on Mon, 13 Feb 2006 15:18:10 Share Post by Email
In Reply to: I have done both, Schu, Mon, 13 Feb 2006 06:34:38
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I agree with Schu that you need to save a lot for the extras. Typically I tell my clients to hold a 10% contingency fund to take care of unforseens on new construction, and 20% on remodels.

I do a lot of construction litigation work, and there are a ton of issues cropping up in new construction. I've yet to see litigation about poor energy savings, aesthetics, square feet, or bad floor plans; the things buyers look at, but pale against real problems that are so much more common. We're talking rot, molds, major cracks, and really poor craftsmanship; all the stuff installed behind the "face paint" folks like me look at. You would be wise to protect it and it's a lot cheaper to do it during construction, rather than after. At a minimum, I'd strongly recommend you hire your own professional to watch over the work being performed. Expect this person to cost probably about 3-5% of the construction budget for someone good with credentials. Sounds like a lot, but how much are you paying a realitor, and how exactly is that person protecting your future investment. A misconception is that the building department inspections are enough; they aren't.

I'd also avoid non-traditional construction methods without really talking it through with your insurance company and lender since you may end up being a "high risk" (and there went any saving you might of thought you were getting) or not being able to get the loan or coverage. There also may be a reason these methods aren't "traditional" as well (or definately aren't normal); research them as much as possible so you know what you are really getting into.....


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