The Cost of Building a Custom New Homes

Ron Lee Homes in St. Tammany Parish is one of the elite builders in Covington, Louisiana, which builds fully custom new homes with spectacular finishes.  Inside or out, these new homes are built with intense attention to detail to make sure that every minute finish is construction with as much perfection as possible.  Many of the interior amenities of custom homes built by Ron Lee Homes are imported materials or custom built materials that are installed by specialty contractors.

According to the National Association of Home Builders (NAHB), this type of new home construction actually trends with national averages in that 29.6% of the cost of construction is spent on interior finishes.  The rest of the breakdown in construction costs are as follows: framing (18.0 percent), exterior finishes (15.0 percent), major system rough-ins (13.1 percent), foundations (11.6 percent), final steps (6.8 percent), site work (5.6 percent), and other costs (0.5 percent).

When calculating the cost to build a new, single-family home, the NAHB surveyed builders with its Cost of Construction Survey and found that new homes built on approximately 1/2-acre lots with 2,802 square feet had a sales price of $468,318.  61.8% of that sales price encompassed the cost of the construction of building the new home which is only .1% higher than the costs reported in 2013.
Interestingly, the cost of the lot and the cost of finishing the lot made up a large chunk of the expense of building in the total percentages spent of the sale.  Land in St. Tammany Parish has a premium price compared to more northern and western parishes in Louisiana as well.

At the same time as this data has been released by the NAHB, another analysis of construction spending says that total private residential construction spending for September increased 1.3% over August spending and 13% year-over-year.  The reason for this increase may also be the increase in the cost of materials as well. However, single-family home permits and starts are up as well, so the money put back into the economy in the form of materials purchases as well as employment is up across the board nationwide – a good sign for the real estate market.

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Bathroom Remodeling – Available in All Project Sizes

Remodeling a guest bathroom or master bathroom can change the entire look and usage of the room.  It can also change the functionality of the bathroom itself as well as the resale value of the house  Bathroom remodeling is one of the most popular choices of renovation projects that homeowners choose.  Nationally, today’s average price to remodel a bathroom ranges from $5,000 – $15,000, and some people spend as much as $20,000 on a bathroom remodel to create an oasis or paradise right inside their own home.

Whatever price you are able or willing to pay to transform your bathroom into a fully restored new room, there are many considerations of materials and projects to consider when beginning your renovation project.  One of the big considerations is to repair and refinish vs. replace the fixtures in your bathroom.  Fixtures can include lighting fixtures, plumbing fixtures, and carpentry fixtures such as cabinets and countertops.  If you need to stay within a tight budget, you might consider replacing faucets and sinks and then stripping and refinishing cabinets vs. tearing out and replacing the entire cabinet.  If you have a more flexible budget, and you decide to tear out and replace; you may also want to consider changing the floorplan of the bathroom to expand it and add new appliances such as a massage shower or a spa bathtub.

Increasing or changing a floorplan may take more time because you are getting into structural integrity as well as plumbing and electrical new systems or reconfiguration, so you will want to make sure that you budget your money and time accordingly. If you decide to increase your floorplan, make sure you used an Experienced Contractor who can help you make great use of all of your space and also make your new bathroom remodel as inviting and useful as possible.

If you are somewhere in between “sky’s the limit” and a limited budget, you may decide to replace old tubs and showers, tear out and replace bathroom cabinetry, and create an entirely new lighting package.  Depending on the scope of the project, this may cost you somewhere in the “middle” range of an average bathroom budget, but you will be surprised how just doing those minimal “invasive” tear-outs will transform your bathroom into looking brand new.

Ron Lee Homes Remodeling has a terrific team that is excellent about making recommendations that will fit within your job scope and budget to make your bathroom remodel the perfect renovation for your life.  We listen to our clients’ needs and then try to “squeeze the budget” as much as possible to exceed your expectations.  Working with a builder also has its advantages as we know how to get “in and out” of your home as fast as possible with as minimal mess, noise, and hassle of living with a remodel while it is happening.  Contact Ron Lee Homes Remodeling today to get a quote on your project.  Call 985-626-7619 or E-mail Info@RonLeeHomes.com.

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Downsizing to Garden Homes

Ron Lee Homes in St. Tammany Parish builds many new homes for couples that are considered baby boomer “empty nesters.” What this means is that we build many garden homes that have less square footage and either minimal or no maintenance on lots that either have a landscaping contract in place or are so small and built out with their own amenities that they don’t require much yardwork at all.  Some of these decorative amenities that we build on our garden homes are private courtyards, storage buildings, detached garages, and even fountains.

Building new garden homes is an art because the floorplan requires an economy in efficiency – utilizing every square inch of a floorplan to maximize the home’s space and usability.  We have built many custom garden homes throughout the 20+ years we have been in business, so if you have an idea of a floorplan or simply need a recommendation, we can design or modify an existing floorplan to suit your home buying needs.

When downsizing from a much larger home to a smaller, less maintenance garden home, you have to know what to do with all of the “stuff” you have accumulated throughout your lifetime.  There are several avenues to take – some include being able to sell valuable pieces while others include handing down the personal items that have family value.  Whichever option you decide, you should follow the tips below when deciding on how to dispose of belongings that will not fit in your new space:

Value Your Valuables: For those items you are interested in selling, you will want to either hire an appraiser or use the Internet to find out what the “going rate” is for your pieces. An experienced appraiser that you trust will be able to give you incredible insight in a timely efficient manner while doing it yourself may take more time.

Appraiser Efficiency: If you do decide to use an appraiser, you will want to accommodate them as much as possible by getting everything ready in advance.  Many appraisers charge by the hour, so you don’t want them to have to go “digging” through your stuff to find the items you want appraised.  Make sure your items are on display (out of boxes) in good light and accessible.

Photo Documentation: Once the appraiser has given you a list to work with for a sale, you will want to take pictures of the items showing them at their best for online viewing of Internet sales.

Inherited Items: If you decide that you want to gift some of your belongings to your children immediately, then you can go ahead and disperse these items.  If there are items that are going to be handed down later, at the time of your appraisal would be a very good time to put in writing those items that are going to be given to specific family relatives.

Giveaways: If there are personal items or important items that you cannot bear to see sold, you may be able to post the pictures of these items to close friends or acquaintances to see if they would like to have them.  Giving your belongings a “good home” with someone you trust will give you much peace of mind.

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Construction Work in Mandeville, Louisiana, in St. Tammany

New jobs in the form of construction work and employee hiring is happening in Mandeville, Louisiana, in St. Tammany Parish.  Florida Marine, LLC, currently located off of the west side service road between Fairway (Judge Tanner) Drive and Hwy. 22, is doubling its commercial construction space from 27,500 square feet to 55,000 square feet and is expected to cost approximately $7.2 million.  The move will bring in 40 new Florida Marine jobs and approximately 180 jobs in construction including contractors and sub-contractors.

As part of the nonprofit business retention program offered by the St. Tammany Parish Economic Development Foundation, Florida Marine has focused on retention and expansion of its business and services over the past 14 years in Mandeville, Louisiana.  It purchased the present office building which it is now expanding in 2004.

“We have been very happy in St. Tammany Parish and are pleased to be expanding our offices,” said Dennis A. Pasentine, owner and CEO of Florida Marine.

In addition to the much needed commercial work space that the expansion of new construction will offer, the new campus-style building will also have an outdoor kitchen and courtyard for employee and customer events.  In case of inclement weather, the buildings will be fitted and retrofitted to include backup generators to restore power. The project has been designed by Greenleaf Architects and is being constructed by Kent Design Build.

“We congratulate Florida Marine on their expansion,” Parish President Pat Brister said. “The maritime industry is woven into the fabric of our community, and this growth will provide job opportunities and positive economic impact.”

In addition to the commercial construction of office space in Mandeville, LA, in St. Tammany Parish, Florida Marine is also expanding its shipyard in Harvey.  This West Bank expansion will create 200 additional jobs as well.

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New Home Buyers Have More Selection in New Homes

Even though the housing market has been making incredible strides in its recovery since its low in 2008, one of the major obstacles that has been holding the sale of real estate back is the lack of supply for the growing demand of home buyers.  New home buyers especially have been stymied by a lack of inventory from local builders.  Builders themselves have been frustrated by the tightened funding requirements for construction loans from banks and lenders, so there is been a “stalemate” of sorts going on in the new home industry.

However, good news is on the horizon for real estate because single-family home starts have been on the rise and holding steady over most of the months of 2015.  Single-family home starts remained steady from August to September with 740,000 starts nationwide for both months.  Overall, housing starts (including multi-family housing) increased by 6.5% and reached the 1.2 million mark – the highest its been since October, 2007.

From a yearly perspective, quarter-over-quarter, single-family home starts are up 5.7% 3rd quarter from second quarter with a total of 746,000 home starts.  The numbers year-over-year show that single-family home starts are up 11% compared to 2014.

Another strong sign of new home real estate recovering is the number of housing permits for single-family home starts.  The number of permits for single-family homes went up 9.4% year-over-year and also remained unchanged compared to the previous month of August from September, 2015. Trends also show that money of the new home purchases are coming from “contingency sales” where a home buyer has a house to sell and wants to build or buy new which is excellent news for new home builders.

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Interest Rates Still Low for New Home Buyers

Real estate professionals have expressed concerns as to the state of the interest rate in today’s housing market because there are rumors that the interest rate is about to be raised by the Federal Reserve (The Fed).  Because of these fears, many homeowners have hurried up to refinance their homes with these historically low interest rates while home buyers have been “coming off the fence” more rapidly than normal to buy a new home.  These worries can be set aside for now as The Fed has decided not to raise interest rates during their last meeting citing a weak global economy, low inflation, and unstable financial markets.
However, there are some aspects to consider when deciding whether or not to buy a new home as soon as possible before interest rates “go back up.”  The first point is that even if interest rates do go up, they are not forecast to go up by much upon raising.  The increase in the interest rate will STILL be lower than any record of interest rate lows in the past.  This means that you will still be able to maximize the amount of money you use to buy your new home with lower interest rates.

The second aspect to consider is that the increase in the interest rate means that the U.S. economy and job market are getting better which means more and better jobs for home buyers interested in buying a home. Waiting until you have the right job and the financial ability to buy a home is a better choice than “squeaking by” to be able to buy a home at a lower interest rate with no stability in your financial future.

Finally, when The Fed does raise interest rates, this is good for investors and employees with retirement accounts because interest rates for these types of savings and money making accounts go up as The Fed raises the interest rate.

Even though The Fed’s decision is to not raise interest rates at this time, interest rates are expected to go up as soon as the end of 2015.  Whether they go up or not, now is the time to take advantage of the incredible financing offers to buy your home while interest rates are low, credit restrictions are easing, and down payment assistance has once more been established by the Department of Housing and Urban Development.

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Newly Built Home Sales Rose 5.4% From June

Just like summer in Louisiana is hot in July, the housing market nationwide heated up this summer with new home sales activity rising to 507,000 homes sold. The Census Bureau and HUD reported that newly built home sales rose 5.4% from June and 25.8% from July of last year. New home inventories were reported at 218,000 in July which is the highest level that has been seen in over five years.
This increase was also seen in the private residential construction spending where the highest amount spent was at an annual rate of $387 billion in July. This increase in spending verifies that the construction industry is continuing to experience strong economic growth. Single family homes have pushed construction expansion 15.8% on a year-over-year basis and multifamily new home construction spending is 21.2% higher than it was reported a year ago as well.

Developers, new home builders, and custom home builders are not the only ones that are seeing a positive growth, the National Association of Realtors (NAR) reports increase in existing home sales. Existing home sales increased in July 0.5% from June and 7.4% from July of last year. Completed transactions were reported at the highest since February 2007, which was the beginning of the downhill slide of the Recession.

Home buyer confidence stems from the strengthening economy overall with increased spending. The

Bureau of Economic Analysis reports that the Gross Domestic Product (GDP) grew to a strong 3.7% rate. These findings were based on several factors including investment, faster growth for consumption, government spending and trade components.

Now is the time for buyers to tap into the housing market. Sales are solid which makes the real estate market a stable vested interest. New home prices are continuing to strengthen making real estate a great investment. Interest rates continue to remain at record lows with the reluctance of the Fed to increase interest rates. The Department of Housing and Urban Development have rolled out new loan products which require a much lower down payment on FHA and some conventional mortgages. Best of all, there is a spectacular new home builder in St. Tammany Parish which builds new, custom home exactly to your specifications and design. These new homes are designed and built to withstand the test of time and elements with energy efficient green building techniques as well as the best, most quality components to ensure the strongest and best built new home in St. Tammany Parish. For More Information, Call 985-626-7619 or E-mail Info@RonLeeHomes.com.

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