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ariescustom

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Sep 8, 2019
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South Carolina
Hi, I am a custom builder in South Carolina. Forgive me if this is something that is asked all the time or has been asked before. I am looking for some sort of cheat sheet maybe. I'd like to know what increases the value of the home itself not related to surrounding sales. Like if I add granite tops vs. quartz, luxury vinyl plank flooring vs. laminate, custom made cabinets vs. pre-built, porch vs. patio... and so on.
 
In my market there are some real estate agents who work with developers going spec. They participate in the construction process contributing ideas about design, style, finishes, etc. Probably want to direct your question at local agents who work with custom home builders / developers.
 
Market value appraisals are all about the market (what everyone else does). As a custom builder, you may wish to communicate what distinguishes your work from builder stock, assuming that is what is nearby. That is done in marketing your work.

Your projects should compete with other custom builders'. But back to the market--it is buyers who make the distinction. If most of the competition is nearby and they see all properties in an area as competitive, then you may be overbuilding for the market area or not yet making the case that your work is superior. Good luck. (No cheat sheet :giggle:.)
 
Like if I add granite tops vs. quartz, nope
luxury vinyl plank flooring vs. laminate, nope
custom made cabinets vs. pre-built, nope
porch vs. patio... and so on. maybe
There is no "book" on such and it all relates to an overall view of the quality. granite countertops in a starter home....well, that is an over improvement and invisible in the market, for example.

The individual customer, when allowed inputs, often have a lot of wants that may not be what others want. But if you keep the home true to its overall quality, then you get the most bang for your construction buck. And putting in some cost cutting feature that is out of place? Well, that likely isn't well received by the market but the appraiser might have a problem trying to adjust for same. I recall a house from a local builder where he had nicely done stained oak trim and solid wood doors. In the large living room was a nice brick fireplace. But 2 features stood out as really horrible. First, they built book shelves around the fireplace, about 5' on each side...painted white, not even matching the wall white color? Why would you not build them with that same stained oak? The second was in the middle of the den. A wood stove flue...??? The metal flue outside was at least 12' tall to be higher than the house roof, looked awful both in and out. Those will slow the sale of a house.

Luxury items belong in luxury homes.
Good custom items belong in good custom homes
Commodity grade items belong in the traditional "starter" home

Personally as an old geologist myself, I don't trust "granite" to be granite really, much of it is diorite or something else, and some of the composites look as good and are cheaper.
As for prebuilt cabinets, we have a lot of cabinet builders around here, and I'd pick a good quality one, and get some woman to tell you what the latest in style is. I cannot keep up with it. Women have a lot better eye for that than I.
As a buyer, I am more interested in a durable floor covering. I recently appraised a house built into a shop building, and the flooring was concrete that looked so much like wood, I had to do a double take at first. That's what I want and it looked really great. But wood seems a good choice in higher end homes. Crown molding is also good but don't get carried away with it.

The guy who built my home (may he rest in peace - committed suicide when the bust left him broke) used to say that a house needs a "special" feature that makes it stand out. He recommended a wood ("car siding") living room ceiling and matching mantle board for my fireplace.
Another item that seems to be a loser, but if a buyer, I would want, is energy efficiency. Encapsulated crawl space, super insulation, and geothermal heat pump. But the market here (NW Arkansas) seems reluctant to endorse these items even though they clearly pay off in the long run, and if energy cost spikes like it did in the 1970s, would be a godsend. However, passive solar designs and similar items are relatively cheap, low maintenance, and a good selling point. Super insulate with solid cellulose (foam in walls is OK but if you have a leak in roof, you might not find it for a long time.) Insulated the foundation, Marathon water heater, etc. are cheaper items to consider.
 
What is “Luxury” vinyl flooring?
 
Hi, I am a custom builder in South Carolina. Forgive me if this is something that is asked all the time or has been asked before. I am looking for some sort of cheat sheet maybe. I'd like to know what increases the value of the home itself not related to surrounding sales. Like if I add granite tops vs. quartz, luxury vinyl plank flooring vs. laminate, custom made cabinets vs. pre-built, porch vs. patio... and so on.
I am a Realtor and not an appraiser so my comments come from the sales POV.
IME there is no 'cheat sheet' for line item value adds to a home. Why? Because it depends on the perception of the item in the market in which you are selling.
For example: The neighborhood market has an expectation that your home will have quartz countertops because that is what is latest desirable countertop and you decide to put in granite. The market perceives it as a downgrade material. This makes your home slightly more difficult to sell and generally is discounted off the price because the buyer *has to* replace said granite tops with quartz. This is a silly but real example and is driven by the current market.
So the advice given earlier about consulting a Realtor for what drives purchases in the specific neighborhood and market is accurate. You could also check Houzz to see what cosmetics (in general) attract buyers.

My personal opinion: compete on good design and you will get a better ROI and a quicker sale.
Most builders today forgo good design in order to pack in disparate elements that don't contribute to actual design. Most of the new homes are a mishmash of materials that scream that old adage - throw it on the wall and see what sticks. A well designed house gives a feeling that is missing from the average home built today - even custom homes. Hint: it's not the price of the home that determines whether it has good design or not. Design starts from the flow and feel of the house - so rethink your floorplans and work with a great architect to see where you can differentiate yourself.
 
do what appraisers do. go to the competing sample houses, or look at every new construction MLS photos, when they are listed for sale. you will see a pattern. recently the color of the hardwood floors changed here. the millennials learned the black wood floors showed off dust exceptionally well. my experience is that certain realtors know those answers
 
Thank you all for taking the time to respond. As a custom builder in a fact track spec home mentality we really try to stand out yet not bite off more than we can chew. Thank you all again!
 
Luxury vinyl flooring is a made up term by flooring manufacturers to distinguish themselves from laminate. Its thick vinyl planks or tile that can be water proof with proper interlocking seams, does not click or move under foot like laminate, can be repaired mid field if damaged (laminate can't be without sacrifice), is structurally stable (no expansion or contraction) can be installed in basements prone to water issues , has an embossed texture that feels like wood, and a plethora of color options etc. I'll never put another piece of laminate in a house I own or am trying to sell and with dogs in the house would rather put down LVP or LVT (google it) than hardwoods. Its all the rage in new construction.
 
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