Jonathon Custom Homes

NEWHOME Showcase

lineart_admin — Sat, 20 Aug 2011 01:36:11 +0000

Take a look at our latest video production where we show a tour of three of our custom homes and a few interviews of the builders.

The Savvy Homeowner’s Glossary

Jonathon — Mon, 28 Feb 2011 19:54:24 +0000

45 Indispensable Words Every Homeowner Should Know and Understand

1. Adjustable Rate Mortgage (ARM): A mortgage interest rate that changes based on an index over time.

2. Agreement of Sale: A sale contract.

3. Amortization Schedule: A schedule showing how the monthly mortgage payment is applied to the principal, interest, and the current mortgage balance.

4. Appraisal: An evaluation of homes within the surrounding area to determine the market value of the property.

5. Appreciation: An increase in the value of property. 6. Borrower: The person or persons responsible for the loan, also

called the mortgagor.

7. Cash Reserve: The cash balance a borrower has left after closing, available for the first one or two mortgage payments.

8. Certificate of Occupancy: A certificate issued by a governing agency stating that the building has been approved for occupancy.

9. Closing: Finalizing the purchase and financing documents and the disbursement of funds to all parties.

10. Closing Costs: All the costs associated with the loan and the purchase, not including the actual cost of the property.

11. Commitment Letter: Formal notification from a lender stating the terms of the loan.

12. Contingency: A specific condition to an agreement or contract. 13. Credit Report: A report of credit history used to determine an

individual’s credit worthiness, usually provided by a credit bureau.

14. Debt-to-Income Ratio: The percentage of one’s earnings used to qualify for a mortgage.

15. Earnest Money: A deposit given to a seller by a prospective buyer.

16. Easement: A right-of-way given to others to access over and across the property.

17. Equity: The difference between the market value and the outstanding mortgage balance.

18. Fixed-Rate Mortgage: A mortgage in which the rate of interest is fixed for the entire term of the loan.

19. Flood Insurance: Insurance for properties in designated flood areas by the government.

20. Hazard Insurance: Homeowner’s insurance. 21. Homeowner’s Warranty: Insurance that covers repairs for the

home for a specified period of time.

22. Lien: A legal claim against a property that must be paid when the property is sold.

23. Loan-to-Value Ratio (LTV): The difference between the mortgage amount and the value of the property. Example: Home Value = $1,000,000; Mortgage amount = $900,000; LTV = 90%.

24. Lock-in Rate: A written guarantee by lender for a specific rate of interest.

25. Mortgage Broker: A company that matches borrowers with lenders for a fee.

26. Mortgage Insurance: Insurance that is provided by independent insurers that protects the lender in the event of a mortgage default.

27. Mortgagee: The lender.

28. Mortgagor: The borrower.

29. Origination Fee: The fee paid to a lender for processing a loan, also called points.

30. Owner Financing: When the seller of the property provides all or part of the financing.

31. Plot Plan: A map prepared by a licensed surveyor depicting the exact placement of a house on a lot.

32. Points: One-time charge by a lender. One point is one percent of the mortgage amount.

33. Prepayment Penalty: Fees charged to a borrower for paying off a loan prior to the maturity date.

34. Pre-Qualification: Pre-determining a buyer’s financial borrowing power prior to a purchase. Pre-qualifying does not guarantee loan approval.

35. Principal: The total loan amount borrowed or the total unpaid balance of the loan.

36. Radon: A radioactive gas which, if found in sufficient levels, can cause health problems.

37. Refinancing: Paying off an existing loan with a new loan on the same property.

38. Settlement Sheet: The costs payable at closing to determine the seller’s net proceeds from the sale and the buyer’s required net payment.

39. Survey: A drawing showing the legal boundaries of the property.

40. Title: A legal document establishing the right of ownership.

41. Title Company: A company that specializes in insuring the title to the property.

42. Title Insurance: Insurance that protects the buyer and the lender against losses arising from disputes over ownership of the property.

43. Title Search: A search of legal records to ensure that the seller is the legal owner of the property and that any liens or claims against the property are identified.

44. Transfer Tax: State or local taxes due when title to property transfers from one owner to the other.

45. Underwriting: The process of evaluating a loan application to determine whether or not it’s acceptable to the lender.

Is Going “Green” the Way to Go?

Jonathon — Sun, 16 Jan 2011 19:09:48 +0000

The environment. With increased attention on the condition of our planet, “green building” has become a sought after choice for homeowners.
But what does green building mean? In its simplest terms, green building is making your home more environmentally friendly. It means increasing your home’s efficiency so it makes better use of things like water, energy, temperature control, and construction materials. It’s about using resources effectively so you reduce the impact of your home on the environment.
While building an environmentally friendly home sounds good to most people, they usually want to know two things: what can I do and how much will it cost me? Let’s address the last question first.

You may have heard that building green is more expensive. While that may be true in some instances, it doesn’t have to be. In today’s market some elements of green building can cost more initially, but many do not, and some even cost less. Factor in energy savings over time, and the increased durability of many of the green building products and any additional up-front cost becomes much easier to justify. Also, many mortgage companies now offer reduced mortgage rates to homes built green.

To answer the other question, let’s take a look at a few things you can do to make your new home more environmentally friendly.

HEATING AND COOLING EQUIPMENT: One of the most important things you can do to make your home more “green” is to carefully consider your choice of heating and cooling equipment.

The heating / air conditioning system should be built and installed with the highest SEER (Seasonal Energy Efficiency Ratio) rating possible. The greater the SEER rating, the more energy efficient your unit will be. The system should also be sized appropriately to effectively cool or heat your home without being oversized. In fact, it is often better to err on the side of being undersized by half a ton than oversized. (Note: A “ton” is a unit of energy used to measure output. Typically you need about one ton of output for every 400 square feet of your home.) Many builders don’t recommend that you oversize the tonnage of your home’s AC system. The most efficient homes often run on a system designed to be 10 percent smaller than typical installations. A good air system should also be installed with as few bends and connections in the duct work as possible so as to minimize the risk of gaps and voids.

INSULATION: If it’s within your budget, one great option is to have your home insulated with a foam product. When installed correctly, foam can be quite effective. On top of the good R-values (a term used to measure how well insulation resists the flow of heat or cold through it), foam can fill cracks and crevices in ways that traditional insulation can’t. If a foam product can’t be used, great care should be exercised to make sure the installation is done to eliminate as many gaps and penetrations as possible.

HOME ORIENTATION: ReflectiveKoolplywoodontheunderside of the roof decking will keep your attic 30 degrees cooler. To reduce energy loads, it’s important to design and position the house in such a way as to minimize exposure to the hot sun while taking advantage of cooling breezes. Whenever possible, the front door or the house’s longest wall should be set to within 5 feet of true south. It may also be important to landscape in such a way to create wind breaks for the home or create shade to increase efficiency. Good window placement can increase natural light while reducing the need for electric lighting.

WINDOWS AND DOORS: Windowshelpmakeahomebeautiful, but they can also waste a lot of energy if they let in heat in the summer, cold in the winter, and drafts anytime. To get more energy- efficient windows, select ones with good insulation values. Some have special coatings that can help repel heat. Others are double- or triple-paned which helps insulation. Some energy-efficient windows have non-toxic gas between the panes such as argon or krypton that provide better insulation than air. Even the window frames can effect how efficient they are. For example, aluminum frames typically provide lowest insulation level. Wood, vinyl, and fiberglass are better. Warm-edge spacers are even better. Certain window coverings like reflective blinds and shades can also generate incredible savings on energy usage. When it comes to doors, make sure they have a tight fit and use excellent weather stripping. Some new door frames include a magnetic strip that creates a tighter seal and reduces the amount of air that leaks out. Some of the best core materials for a door include fiberglass and foam. If a door has glass, it will be more energy efficient if double or triple-paned insulating glass is used.

ROOFING AND EXTERIOR PAINT: Consider using reflective roofing and lighter exterior paint colors. These two items offer a cooler home by reflecting the sun’s rays rather than absorbing them. Roof choices (reflective) and lighter paint colors can create double digit drops in exterior surface temperatures, which can result in greater energy savings.

BUILDING MATERIALS: Choosetouse“earth-friendly”products and building materials whenever possible. Typically, these include:
- products made with recycled content
- products that conserve natural resources
- products that avoid toxic emissions
- products that are rapidly renewable such as bamboo, cork and straw.

WATER SYSTEMS: Consider installing tankless and “point-of- use” water heating systems. These systems do away with the traditional standing hot water tanks and more efficiently heat water for the home. They are also more cost effective.

APPLIANCES: Considerinstalling“EnergyStar”ratedappliances. Energy Star is a program backed by the government that identifies products with high energy efficiency. These products often last longer and are more economical to operate than non-Energy Star rated appliances.

How Long Does It Take to Build a New Custom Home?

Jonathon — Mon, 06 Dec 2010 17:53:11 +0000

The amount of time it takes to build a new, custom home depends on
the size, complexity, and geographic location (what part of the country you
are building in).

The time it takes just to complete the architectural plans depends on
how timely you make decisions and your availability to meet with your
designer and builder for design meetings.
On average, developing a new set of plans that is ready for permitting
can take between three and six months. Add one more month for permitting.
For a home that’s approximately 3,000 square feet, anticipate about an
eight-to-ten month construction time, provided the market isn’t overly busy
and there is a timely response from vendors and subcontractors. If you’re
building a 6,000-square-foot home, anticipate a construction time of 12 to
13 months. If you have to prepare the lot by removing an old house or
taking out trees, add another 3-4 weeks. For a 10,000-square-foot home,
add two months to the design time and another six to eight months of
construction time.

These estimates assume normal market conditions, which allow for a
timely response from vendors and subcontractors.
Also please remember if your selectable items are not chosen on time,
this can cause multiple weeks of delays in construction. Change orders
will also delay your construction time.
It’s important to understand the realistic timeline you get from your
builder and the things that may delay a timely completion process. Beware
of a builder who promises an overly idealistic timeline just to get the
contract. In the end, you’ll be stuck with the reality timeline.

The Top Eleven Mistakes Made by Homeowners

Jonathon — Thu, 11 Nov 2010 20:33:09 +0000

1. Purchasing a lot that is “affordable.”

Solution: Remember: location, location, location. Purchase the most
expensive, valuable lot you can manage, even if it means waiting on
some finishes or amenities in your home. (See chapter 6 for more on
this topic.)

2. Trying to build a custom home without a professional builder.
Building a custom home is more complex than most people realize. It
takes skilled professionals years to learn the business and even then
changes in the industry, materials, and codes make it difficult to keep
up.

Solution: Find a competent builder you can trust. Negotiate a reasonable
fee for his services and hire him (see chapter 3).

3. Purchasing a ready-made plan thinking it will save you money.
Building someone else’s design or dream (especially one that was
designed for someone in another city and state) may not be the wisest
choice.

Solution: Have your home custom designed to fit your lot size and
your family’s lifestyle.

4. Choosing a builder primarily because of price. The expression “you
get what you pay for” applies to the homebuilding process. If you’ve
heard horror stories about people’s experience with their builder, it
usually can be attributed to someone trying to get a deal.
Solution: Your home is a major investment. Make an informed,
purposeful, thoughtful decision, and don’t be lured by the lowest bid
(buy our book and see chapter 17).

5. Biting off more than you can chew.In an appreciating market, the
rise in value can cover this mistake, but in a flat or declining market,
it can be disastrous.
Solution: Know what you can afford and stick to your budget (buy our book and see
chapter 23).

6. Hiring a builder when your gut instinct tells you not to.
Solution: After careful research and comparing builders, go with your
instinct, not the discounted price (buy our book and see chapters 4 and 28).

7. Making choices for your home that only you love, but everyone else
hates.
Solution: Get good counsel from your builder, designer, interior designer,
and real estate professional before you make your decisions (buy our book and see chapter
14).

8. Expecting workers to be on your job every day from 7:00 a.m. until
4:00 p.m.

Solution: Recognize that some days no work is scheduled at all because
inspections may be taking place or rain has caused a change in the
schedule (buy our book and see chapter 31).

9. Underestimating the importance of making all selections before
construction.

Solution: Make all selections prior to construction and enjoy the building
process (buy our book and see chapter 22).

10. Homeowners giving direction to subcontractors on the job.

Solution: Communicate only with the Construction Manager or builder.
The Construction Manager is the only person on the job who has all the
information related to your project. Subcontractors have only one piece
of the puzzle. You can visit the job site during scheduled appointments
with the Construction Manager who can answer your questions and
explain what you will be seeing.

11. Not understanding the “Change Order” process.

Solution: Discuss the builder’s Change Order process with him and be
sure you are clear with how it works. Cooperating fully with this process
will go a long way toward your enjoyment of the whole project (buy our book and see
chapter 36).

How Much Do You Charge Per Square Foot?

Jonathon — Fri, 15 Oct 2010 19:32:51 +0000

Building a custom home is a bit like buying a new car, right? Not
exactly.
If you asked a car dealer how much he charges per pound, you’d get
some very strange looks. Of course, there is some correlation between
the cost of the car and its weight, but not significant enough to prompt
that question. We all know car dealers don’t sell by the pound.
In the same way, I feel perplexed when someone asks me how much I
charge per square foot to build a home. It’s not the right question.
There are three factors that contribute to the cost of a home, regardless
of where it’s built: complexity, level of finish, and size and components.

1. COMPLEXITY: A home with more features and greater complexity
requires more labor, and therefore costs more to build. For example,
a rectangular house with four basic corners is less expensive to build
than a three-story home with 40 corners, angled walls, and steep roofs,
because the latter is more complex and takes more time to complete.

2. LEVEL OF FINISH: Obviously, vinyl flooring is much less expensive
than wood or stone. Formica countertops are less expensive than granite.
Twelve-inch baseboards cost more than six-inch baseboards, and a lot
of molding is more expensive than no molding at all. The level of finish
you choose for your home will have a significant impact on the home’s
final cost.

3. SIZE AND COMPONENTS: Size matters in homebuilding costs.
A 6,000-square-foot home will cost more than a 2,000-square-foot
home. A 2,000-square-foot home would probably include a two-car
garage, while a 6,000-square-foot home normally has three or four bays.
So not only does the larger home cost more due to the size of the heated
and air-conditioned space, but it also takes into account things like
garages, number and size of porches, whether the home has a pool, boat
dock, circular drive, and other costly components.

It’s a good idea to ask a builder what price range per square foot he
builds at, in order to know if you’re talking with the right builder.

Excellence or Perfection?

Jonathon — Tue, 14 Sep 2010 06:09:31 +0000

A prospective homeowner once asked me, “Will my new home be
perfect?” I told him there are two kinds of perfectionists: one who asks
for perfection, but realizes life is not perfect and is very pleased with 95
to 98 percent. The other type expects perfection and is never happy, no
matter how well a job is done.
If you are the latter, please don’t build a custom home. Life is too short
and too wonderful to take two years—or more—out of your life only to
be disappointed in people and processes that are not perfect.
People build custom homes. People are not perfect.
It doesn’t mean you can’t or shouldn’t expect excellence. Here are a
few ways that excellence differs from perfection:

Excellence is taking people and materials that are imperfect, and
executing a process to its very highest level.
Excellence is a home that’s done on time.
Excellence is what happens when something goes wrong and it’s
quickly recognized and corrected. (Trust me, when you build a
custom home, things will go wrong.)
Excellence is when your builder acknowledges his mistake and
promptly corrects it without pointing fingers.
Excellence is clear communication.
Excellence is a quality home built with straight walls, functioning
doors, and overall good quality.
Excellence is moving into your home and having your dishwasher,
garbage disposal, and gas grill all operational on move-in day.
Excellence is a phone call from your builder if something unexpected
comes up and the schedule needs to be modified.
Excellence is having a homeowner so pleased that when the topic
of homebuilding comes up he says, “Let me tell you about my
builder.”

Planning, designing, and building a new custom home for you and your
family can be an exciting, rewarding experience if you select a competent
builder who is committed to excellence and you have a clear understanding
of each other’s expectations. Homebuilding can be a miserable experience
if you are a perfectionist who is unhappy even if your builder builds to
excellent standards.

Pick Three Out of Four – Quality, Speed, Service, Price

Jonathon — Tue, 14 Sep 2010 06:03:36 +0000

Jim and Susan had six—count ‘em, six—separate flooring companies
at their home in a three week period providing estimates to sand and refinish
their hardwood floors. About a month later, an unusual sound came from
Jim and Susan’s house, loud enough that everyone in the neighborhood
heard it. There was an explosion of screaming and yelling that continued
for several minutes. A hardwood flooring van was parked out front; can
you guess what happened? The couple expected a beautiful, high-quality
floor, but what they got was what they paid for. They were not happy.
Jim and Susan had selected their hardwood flooring contractor based
strictly on price, but somehow they expected they would receive quality,
speed, service, and the best price. Sure, they probably got the lowest price,
but with it came a lot of heartache because they expected more and got a
lot less.
It’s no different than selecting a builder for your custom home. You
need to determine what you value and decide what’s most important:
quality, speed, service, or price. Of course, you want all four components,
but most often you will need to find a builder who can provide three out
of four. That’s reality.
Is it reasonable to expect that you’ll get a builder who will give you the
lowest price with great quality, great service, and a timely finish? Let’s
consider the merits of each:
1. QUALITY: A good company prides itself on providing a quality
product, especially in the custom home market. They encourage
prospective homeowners to look closely at the work they’ve done for
other homeowners and affirm they would be pleased with the excellent
workmanship the company provides. Comfort with quality, luxury with
outstanding craftsmanship.
2. SPEED: An on-time finish is important, but there may be times,
especially in a busy market, when a builder misses some deadlines. If
that happens, you want your builder to proactively communicate with
you, and, if possible, find a way to make up the time and get it done
quickly.

3. SERVICE: A builder with exceptional customer care will provide
good communication and attend to the homeowners needs before, during,
and after their home is completed.
4. PRICE: The best companies aren’t usually the cheapest, but consider
this: they’re probably not the most expensive either. Great companies
deliver good value. An honest builder charges at or below market value
for the level of service and quality product they provide. Very seldom
is the cheapest price the best choice for a homebuilder.
Don’t make the mistake of thinking you can have all four qualities in
one builder. A Lexus or a Mercedes is priced differently than a Pontiac.
If you pay Pontiac pricing (like Jim and Susan) and still expect a Lexus
or Mercedes level of performance, you are setting yourself up for
disappointment, conflict, and sometimes even a lawsuit.
Know what’s important to you and adjust your expectations. If cost is
your most important value, then choose the contract with the lowest price.
However, if you value quality, be sure you look for excellent workmanship.
You can get the results you want in a quality, custom home; just be sure
to select your builder based on what you truly value.

Forcing a Round Peg Into a Square Hole – Finding a Competent Builder

Jonathon — Tue, 14 Sep 2010 06:02:26 +0000

Jim and Linda were the kind of people who refuse to give up. Sometimes
persistence is a good thing, but there are times when pushing too hard is
unwise. This couple, for instance, were unwilling to listen to sound,
professional advice. They forced their opinions and ideas on a builder—
and it was like forcing a round peg into a square hole. It just didn’t work.
Even when they realized they had received inaccurate advice from their
architect designer about their homebuilding costs, they wouldn’t give up
their dream.
So they began to shop in earnest for a builder who would build their
home for the price they were told. Would Jim and Linda find a satisfactory
and skilled homebuilder?
Maybe. But the builder they seemed to want—one who would be the
answer to all their problems—would have been either a builder who was
desperate for work or one who didn’t know how to price a home.
Finding a competent builder can be challenging, but when you know
what to look for, you’ll get an accurate estimate and good advice. Many
builders won’t (or don’t know how to) price a home while it’s still in the
concept stage. If most builders can’t do this, it certainly makes sense that
most architect designers can’t either. After all, architect designers are
trained and skilled in designing and creating what they are asked to create.
Homeowners who don’t have a good handle on pricing will tell the designer
what they want and the designer will only do what he was retained to do.
I’m not blaming designers for not knowing about estimating accurate
costs; it’s not their area of expertise.
After dozens of exhausting interviews with many builders, Jim and
Linda got their homebuilding costs down to a price that was only 20 or 30
percent less than the initial estimate—still well over their budget. But they
didn’t want to give up their dream; they were willing to do anything to
bring their dream to fruition.
At this point, Jim and Linda had some choices to make. Instead of
cutting their losses and stopping the spending, they continued to pour more
and more money into a project that wasn’t suitable.

There are plenty of potential homeowners who receive bad advice from
a builder and find out one or two years later that their building project is
a disaster. Sometimes they begin frantically calling reputable builders in
the middle of a project, pleading for help because they finally realize they
have relied on poor advice and ended up involved in a lawsuit with their
builder.
Please don’t do this to yourself. Save yourself and your family the
agony of lost time, lost dreams, or lawsuits. Life is too short. It’s not
worth it.
Get good advice from a competent builder. Interview several first to
determine the right one for you and your custom home project. A competent
builder will explain the homebuilding process and all the steps along the
way. He can guide you through the entire process so you feel confident
and secure in your purchase decisions. His firm will have an excellent
reputation and be up-to-date on building codes, land, and procedures.
Check out the company’s references and previous projects completed.