What can I do to improve appraisal value while keeping building costs low?

[Webbed Feet]

Contradictions and lack of understanding

As long as you keep posting that you plan to build a "nice" house of a price range far beyond "medium" quality for your area, combined with some expectation that there is a nationwide magic formula for high appraised value versus low building cost, I predict you are not going to get many answers here. Saying "I want to build cheap and get high value" is a contradiction. It works only when "the market" is clueless what something really cost to produce and has no comparison to go by. Based on that, have your house built in China and shipped over here.

While I appreciate your question, it is clear you do not understand the concepts nor do you understand even the market you intend to build in. More, there isn't one out of a very large number of appraisers that could answer your questions in any sort of a reliable professional manner. Real estate markets are creatures in a state of flux. By the time you got something built, the entire market could have turned some other direction and "the answer" could no longer be applicable. This is the primary reason so many builders bit the big one and went bankrupt when the boom ended.

An "Appraisal" is an opinion of value. Cost is nothing more than a price, and costs change just like values change. Sometimes they do this in opposite directions at the same time.

 

[Lobo Fan]

Your question does not really have a good answer. Everything is market driven. For example features that are big deals here in the southwest such as viga ceilings and kiva fireplaces would not be so great in Missouri. If this is your "forver" house then I would build it to suit your personal tastes and needs.

No comps is a problem. You have to decide that there are no sales because people are not selling or because people are not buying. There is a big difference. I would be careful about the infrastructure, such as well, septic, and electrical capacity. If you start with a 1500 SF house and plan to expand to 4000 SF, you will want a septic system that can handle it.

I would also look at possible green features such as upgraded windows and insulation. I think that going green will become more and more important as time goes by. Recycled products and low emission carpet and paint are always good things and don't add that much to the cost. Just my humble opinion.

 

[Mountain Man]

As the market has tanked, the new trend is back to square basic homes. All we are building now are homes that give the same square footage, but are more square without fancy architectural corners or roof lines. Find a floor plan that has all the room you need, is a basic square and no fancy hip roofs. The more corners a house has the more it will cost to build. You can build a nice two story that is a basic square, dress it up with a little trim work, hire a decorator to pick the paint colors to fit in your neighborhood but doesn't look like every other house, and still be blown away with the end results. Don't go crazy with interior trim either, stick with a 5 inch or less baseboard, basic window and door trim, maybe a bit of crown molding in the formal rooms, but that is it. Trim work is where a lot of money can be spent with no return in value. Instead of layers of fancy trim, decorate with nice colors that match your life and furniture, framed photos, and personal items. Believe me, hiring a professional decorator is well worth it. My own house is the most basic of construction... square two story all hardy plank exterior with hardy plank trim, decorative hardy shingles in the gables, and basic interior trim. But with the help of our professional decorator, we get complements all of the time... our house was even featured in a southern living homes magazine.

 

[Restrain]

I agree with Mountain Man. Build a box, maybe add a couple of dormers for effect. Put the master on the first floor. If you are planning to live there "forever", build as if you are 80 and can't climb stairs. Don't overbuild on living area. You didn't comment on kids. Just remember that they will be gone if you have some. Plan your bedrooms so that you will have an office/hobby room later. Honestly, 1800 SF is more than enough living area for two-three people. As an example, I have a 2200 SF 4/2. I have about 400 SF that we don't really use, and the home is all on 1 level.

As to building for when you're 80, 1 out of 3 people will be mobility impaired at some point in their lives. Have a walk-in shower, 3' doors on the baths and downstairs bedrooms. No steps into the home, sloped ramps only. Set you light switches at 4' not 5'. Put levers on the doors instead of doorknobs. That's real easy to do at construction, a real PITA if you're retrofiting.

Finally, in your initial construction, put in quality cabinetry (not pressboard) in the kitchen, but don't go bonkers on appliances. Solid surface countertops are much less than granite and look just as good. Don't overspend on fixtures, tubs, etc. Shop around, especially at plumbing wholesalers. Some wholesalers have retail outlets. If you are your own primary contractor, you can purchase the stuff yourself and cut your costs by only paying for actual labor not add-on profit margins.

Good luck and we all hope it works out for you.

Finally, look at geothermal heat/air, possibly foam sandwich panel construction, etc as it will pay off in the colder climates such as Missouri. Cost is somewhat more, but you'll really make it back in utility costs, which are going to do nothing but go up.

 

[TEL2002]

A box is a great idea for keeping costs lower. If it is a house you plan to die in, then make the entire house handicapped accessible. Wider hallways, 3' doors, etc. Later you will be very thankful you did this. If you ever fall and break a leg or hip, you will be very glad you did this. Be able to access the house with minimal or no steps.

With a budget of $250K and you already have the land, I would think in terms of going as energy efficient as possible. Your savings will rapidly mount up. Things like...tankless water heater, lots of extra insulation, triple thick glass, etc.

There are some companies that design and make energy efficient homes. Acouple of them are....Deltech homes and TechBuilt homes (& I'm sure there are others). Both are energy efficient. Techbuilt was out of Cleveland, but will ship anywhere in the country. Their exterior walls are made of metal framed foam panels that are fire retardent, light weight, but very & structurally very strong. They can make any size home you can imagine. I have been in a 4 story condo building made with this stuff. Your heating/cooling bill would probably be less than $70 a month. Deltech builds homes that are sorta round. Really a unique & open concept. I spent the weekend in one of these and absolutely loved the experience. (You can find these companies and others on the internet.)

Then there are modular homes. I had one built in 1991 and just sold it last year. Mine was a cape COD, (1.75 story), full basement, 4 bedroom 2.5 baths, all oak trim, stairs, & cabinets and at the time it cost about 35% less than an onsite built home. This was not a manufactured home, it was a true modular...no metal frame, built to BOCA code, 6 inch thick sidewalls, drywall throughout, R40 in the attic and R14 in the sidewalls, thermopane windows, all carpeted and (in my case) all electric. It was very energy efficient. My heating/cooling/and other electric use cost me about $160 a month in northern Ohio. I really loved the home and hated to move.

My point is there are a lot of options for you. TAKE YOUR TIME. Research, research, research.