Which Building Cost Data Service Is Best?

[Riick]

I wonder about validity of these services. I was in Dover, DE and dropped into some new construction townhouses.
They were selling 22-ft wide, 2,100 sf units, 3-sty, on slab, with 1st floor garage +1/2 bath+Den.
[ 7 / 3 / 2.2 ] Standard finishes included 42" cabinetry, granite tops, good ceramic tile baths,
big rear deck, etc. - Nice. $85/sq.ft. out the door.
Supposedly, you cannot build for that, forgetting about land costs.

 

[Terrel L. Shields]

Supposedly, you cannot build for that, forgetting about land costs.

Actually, if you read all the caveats in front you usually can. When I first got NBC, & subscribed to both Boeckh and M & S, I ran all three on my own house, and used the historical multipliers in M&S & NBC on my cost to build. All five were within a 10% range. The house was about 10 yr. old at the time

 

[KJames]

I tried using the Craftsman NBC Manual last year as an economical alternative to M&S but it was awkward trying to use it with the Cost Approach section of the URAR. I see on your example it shows "Number of stories", but in my book there is no reference to the number of stories, just GLA and the number of corners. In my experience, and according to local builders and Marshall & Swift, it usually costs more to build a 1,500 sf ranch than a 1,500 sf two story house. So I'm shopping for a new cost source now. M&S doesn't seem to show any prices on their website.

 

[Terrel L. Shields]

in my book there is no reference to the number of stories

NBC comes with a code number to get the program. Use that instead of the book. Under General Classification it asks for number of stories. In the book, it discusses wall height as well as the structure of the upper level.

 

[Doug in NC]

Do you get what you pay for with the NBC cost service? I've used the free buildercost.net site on many occasions, but it isn't as detailed as I would like. I assume the pay version offers better features and more opportunity for inputs of information than the freebie version.

 

[Dale Smalley]

I see the insurance people using xactimate for replacement costs.

 

[Terrel L. Shields]

Do you get what you pay for with the NBC cost service?

I think so.

 

[DJBanas]

I wonder about validity of these services. I was in Dover, DE and dropped into some new construction townhouses.
They were selling 22-ft wide, 2,100 sf units, 3-sty, on slab, with 1st floor garage +1/2 bath+Den.
[ 7 / 3 / 2.2 ] Standard finishes included 42" cabinetry, granite tops, good ceramic tile baths,
big rear deck, etc. - Nice. $85/sq.ft. out the door.
Supposedly, you cannot build for that, forgetting about land costs.

Riick - one of the things to keep in mind is that the builder is building multiple units so they can buy material in bulk for as many units as they are building and can usually leverage labor costs by having "low end" work done by "low end" hourly laborers. This greatly reduces the cost/sf of an individual unit, even adding in entrepreneural profit. The books and software are based on an individual unit being built.

BTW, I use the Craftsman National Cost Manual.

 

[Doug in NC]

I finally did try Dwellingcost.com. It is simple enough to use, maybe too simplistic. Anyway, I think it could be used in most instances when a cost approach is required by a lender, but I don't believe it will suffice on complex/unique building designs. I still like the online version of the Marshall & Swift service best, of the services that I have tried to use; but for the few times I would need to use it in any given year, per use cost is excessive IMO.

 

[Terrel L. Shields]

I still like the online version of the Marshall & Swift service best, of the services that I have tried to use; but for the few times I would need to use it in any given year, per use cost is excessive IMO.

Interesting. I do the CA on virtually 100% of my residential and farm assignments and probably 90% of everything else except mineral rights. Once I did my own house which I knew the costs on. I used the old Boeckh residential system (M & S bought them out about 10 years ago or more); NBC: R. S. Means, and M & S. Tried them all - one book or another.

The results were than using the multiplier for time the historical method (remember that? It's in most books) I came up with a fairly narrow range of values. No book has all the answers. But there was probably no more than 10% or so range of values. I just did a house here that was less than $80 per SF via the book (NBC). But if you were to ask 10 contractors for a price, guess what? They will probably offer pricing that is far greater range than the cost books. So which is "more accurate"? Cost books are "replacement costs" and a contractor bid is not reproduction cost so much as "production" cost. Size matters and the efficient contractor who has crews he can keep busy and not have to wait on them to complete a house can cut costs and time dramatically. The lone carpenter who is subbing out sheetrock, etc. often loses days of work waiting on the subs to arrive and do the work. There are inefficiencies in the process.

Another example. We have an old WPA era 2 room school house that we use as a community center. I am on the board of directors. We put a new metal roof on for $4800. We had another bid for $6,000 and another that wanted to remove the shingles and re-deck it bidding $8,000. A cost book will likely fall somewhere in the middle. There is something called the purity of application. It implies that so long as you use a similar method across the entire spectrum of you work, then the results should be credible. So if I use the book to make judgments about "costs" or even depreciated costs, and I apply the same metrics to my comparables (regarding quality, condition, etc.) then again, I should have a consistent product.

The $78 NBC book covers most things. There are things I wish it covered. One is gymnasiums. They are a PITA. But many churches, schools (private and public), YMCA, and even towns build "Youth Centers" or gyms for young people to congregate in a structured environment. But for the price, the NBC is a bargain compared to the incredibly expensive M & S. And Canative has linked to the cost book used by the California Assessors. It is a fairly good treatment and only needs a locational adjustment to probably provide some valid data. I suspect many state assessment coordination departments have such books.