Quad Cities Business News

Prescott, Prescott Valley, Chino Valley, & Dewey/Humboldt

You are here: Home / Archives for YCCA Hammer Time

YCCA Hammer Time

Considering Inflation, Return on Investment When Remodeling

By Leave a Comment

That information is very helpful for homeowners. It can help you decide whether to move forward with a project or not.

Welcome to “At Home With Tom & Sandy.”  We are here to give you the inside scoop and tips on everything A to Z for your home – and we love talking about the construction industry. Settle in, enjoy and have fun reading our column. We sure do enjoy sharing our words with you. Thanks for being such loyal and great readers.

Sandy:  Wow, Tom, have you been keeping up with the cost of everything these last few months? It is nuts!

Tom:  No joke there, Sandy. I can’t think of a single product that hasn’t gone up in the last year, with the exception of gas dropping from $4 a gallon by about 40 cents.

Sandy:  The construction industry is certainly no exception. Estimating and budgeting a project has to be a challenge for sure.

Tom: I am told it is. Bidding must be even worse.

Sandy:  Really, how can you anticipate the cost of an item like appliances or even paint when you won’t be buying it for six months? After you design, permit and start building, it will be at least that amount of time if not more!

Tom:  True statement. There are some guides out there that can help homeowners develop a reasonable budget.

Sandy:  Well, don’t keep our readers in suspense, where is this resource?

Tom:  Handley Wood publishes several trade magazines, one of them is called simply “Remodeling.” This group has nationwide distribution and as such, is in a unique position to obtain data across the continent.

Sandy:  I know about this group. You are talking about their Cost vs. Value report.

Tom:  Yes, I am. Not surprised you know about that. Handley Wood collects data from remodelers across the country and compiles that information into national and regional reports for about 22 different project types.

Sandy:  The report does more than relate the cost of a project. The report also presents information regarding the value a project will yield relative to the cost.

Tom:  That information is very helpful for homeowners. It can help you decide whether to move forward with a project or not.

Sandy: I know what you are saying. I receive calls all the time where people ask me if they are making an improvement that will add value to their home. My usual answer is maybe not when you look at the amount of money you will invest in the project vs. the value that project will add to your home.

Tom:  That is exactly what this report will tell you. That being said, time is a factor as well.

Sandy:  You are referring to turn-around time from project completion to a sale of the house, correct?

Tom:  Exactly. If you put in a new kitchen and don’t sell your home for a few years, the value of the home will likely go up. The remodel will help that.

Sandy:  Of course, the market you are in will help also.

Tom:  Oh my, yes. In fact, this report is so comprehensive, it tracks cost differences by national, regional, major cities in a region and by zip code.

Sandy:  Do they track Prescott?

Tom:  Well no. Thankfully, we are not a major city. They do track Phoenix and Tucson though.

Sandy:  Let’s give our readers some information. First of all, the 2023 report is not out yet, so the current report is for 2022. We already talked about how inflation is affecting the construction industry so the numbers will not be as accurate for 2023. That is why people can use this as a guide, and not a hard and fast fact.

Sandy:  Knowing that, which project has the highest return on investment?

Tom: That would be a garage door replacement. The national average cost is $4,041, with return on investment 93.3%.

Sandy:  How does that differ for the Phoenix average cost and ROI?

Tom:  For a garage door replacement in Phoenix, the average cost is close to the national at $3,994, with an ROI of 93.1%

Sandy:  So, if I wanted to sell my house and my garage door looked bad, this would be a worthy project to undertake. This information would be helpful for realtors also. It can help them guide their clients to appropriate decision making.

Tom:  It sure could.

Sandy:  Tell our readers which project has the lowest return on investment.

Tom:  That would be an upscale, master suite addition. The national average cost is $338,862, with a return on investment of 45.8%. The Phoenix average cost is $328,327, with an ROI of 52.7%.

Sandy:  Yeah, don’t do that if you are thinking about sprucing up your home for sale. I know that a report like this cannot predict what future home values would be, but having this information can help a homeowner budget realistically for a project.

Tom:  That is one of the report’s real strengths. Many professional remodeling companies utilize this report as a means to assist folks in establishing a very preliminary budget.

Sandy:  People need to realize, though, that these numbers are averages. That their operating budget will vary based on their choices for materials and design.

Tom:  Absolutely. Thank you for clarifying that.

Sandy:  So, while helpful, people will need to get their contractor to flesh out a project’s real costs.

Tom, we know the most watched indicators of the rate of inflation are the costs of various construction materials and the labor needed to install them. However, the level of construction activity has a direct influence on labor and material demand and margins and therefore on construction inflation, would you agree?

Tom: Yes, I agree. One of the best predictors of construction inflation is the level of activity in an area. When the activity level is low, contractors are all competing for a smaller amount of work and therefore they may reduce margins in bids. When activity is high, there is a greater opportunity to submit bids on more work and bid margins may be higher. The level of activity has a direct impact on inflation.

Sandy: I am a firm believer that regulatory costs, because they are increasing, go straight to the bottom line of what individuals pay for their homes. A clear regulatory code with a reasonable amount of restrictions will make the end product less expensive for homebuyers.

Tom: Sandy, this is another topic for another month – I know you are passionate about codes, zoning, requirements, fees, etc.

Sandy: So, I guess we are signing off. Until next month. P.S. I have had enough of Punxsutawney Phil – I know we need the moisture, but I am over shoveling my driveway!

Thanks for stopping in to read At Home With Tom and Sandy. You are in good company, and we love sharing educational, fun and important information with you. QCBN

Tom Reilly, Architect, Renovations, 928-445-8506 renovationsaz.com

Sandy Griffis, Executive Director, Yavapai County Contractors Association, 928-778-0040

Remember to tune in to YCCA’s Hammer Time every Saturday and Sunday morning 7 a.m. on KQNA 1130 AM/99.9 FM/95.5FM or the web kqna.com. Listen to Sandy and Mike talk about the construction industry and meet your local community partners. Hammer Time is a great way to start your weekend.

Diagnosing the Issue, Knowing Who to Contact

By Leave a Comment

The usual inquiry will go something like, “OK, Sandy, you gave me three names. Which one would you use?”

“Welcome to “At Home with Tom and Sandy.”

Tom:  Hi, Sandy. I have a topic that I would like to put forward for this month. You are always talking about the hundreds of calls you get from folks in our area, and I have always wanted to ask you, what are the types of calls you receive? Are you up for that?

Sandy:  Yes, Tom, that could be fun. I do get some strange requests for information.

Tom:  Great! Let’s get started. What is the strangest request you get the most?

Sandy:  OK, the most consistent call I get, at least the one that makes me smile and wonder why they called YCCA, is from families new to the area wanting to know when their trash pickup day is. I must get this call several times during any given year.

Tom:  That ranks right up there with things that make you go, “Huh?” What do tell them?

Sandy:  Well, I start by asking them which jurisdiction they are in. They need to know if they are in the City of Prescott, or if they have private pick-up in Prescott Valley or Yavapai County and then I give them the applicable companies to call. I live in Prescott Valley, so I have that pick-up day down pat!

Tom:  I can see where this sort of thing takes some time on your part.

Sandy: It is all part of our goal to share and educate. That is so important.

Tom: It is for certain. What other types of calls make you go, “Hmm?”

Sandy:  Well, a weird one is from people who want to know where I buy tires.

Tom: OK! That is a little out of the scope for YCCA, isn’t it?

Sandy: Yes and no. While not a construction related question, it does speak to the reputation YCCA has as a trusted place to turn to for everyday answers.

Tom:  YCCA outreach is ubiquitous for sure. Not a day goes by that I do not hear some manner of reference to you or the YCCA. Readers of this article, when I let them know that we write this, refer to me as, “You’re the guy with Sandy! You are famous.”

Sandy:  Well, I don’t know about that, but it is gratifying that YCCA is so well trusted in our community. I also get calls for the names of a seamstress and where I get my hair cut.

Tom:  And, you know a seamstress or two. Do you tell people where you get your hair done? Or is that a trade secret (pun intended)?

Sandy:  Well, yes, I do know a seamstress and not a trade secret as you put it, but no, I don’t let on where I get my hair done, who would want a head of hair looking like mine? LOL. Another call I get frequently is when people think they need a new roof when they do not have any symptoms.

Tom:  Symptoms, such as…?

Sandy:  No leaks, no broken tiles, no missing shingles, no mineral particles building up at the downspouts. And their roof is only five years old. They want three or four roofers to come out and inspect.

Tom:  I get it. What do you tell them?

Sandy:  Well, once I understand their concerns, I usually tell them they really do not need all that.

Tom:  It’s kind of like talking them off the ledge.

Sandy: Exactly. I usually get calls from people who do not necessarily understand the process they need to go through. They put the cart before the horse. I take the time to help them understand what they need to do and in what order of sequence.

Tom:  I imagine many people are grateful.

Sandy: They are usually grateful for the information. There is always a retired engineer that knows what needs to happen and just wants a name. I try to drill down a little, but they just want a name. I might hear from them again a month later wanting more assistance, which I willingly provide.

Tom:  Let us talk a little bit about the information and advice you give out. I imagine you get lots of calls for subcontractors and contractor recommendations, how do you determine the names you give out?

Sandy:  Good question. The usual inquiry will go something like, “OK, Sandy, you gave me three names. Which one would you use?” And I just don’t go down that rabbit hole. I just give them the names and tell them any one of those companies would be happy to assist.

Tom: Smart. So let’s get back to how you choose what name to give out.

Sandy: I spend time with the caller to find out more of what they are looking for. I try to understand their project needs and where they live. With all this information, along with knowing all my lovelies out there, I try to give out three or four names of who I think will fit their needs. If somebody calls me about a project in Paulden, I try to send them to businesses I know will go there. That is usually not somebody from Dewey-Humbolt.

Sandy: Another frequent call is from homeowners wanting a window company and window replacements. After talking with the homeowner, we find out they just need glass replacement and there is nothing wrong with the window, it does not leak, it operates great and all that is needed is new glass.

Tom: So, you must ask a lot of questions. And knowing you, Sandy, you do not blindly accept the questions and give information.

Sandy:  You are right, Tom. Sometimes it is like an analysis and synthesis of figuring out what the issue is and coming to the right decision on how to manage a problem or answer a question.

Tom: Serving the community, engaging in a partnership, moving obstacles, being relevant to the community, sounds to me like what YCCA does.

Sandy: And Tom, I receive a gazillion questions on mold, deck replacements, permitting questions, survey questions, square-foot price to build, and as you know the list goes on and what is even more exciting is that I have an entire treasure trove of contractors to call. For example, you have been my “lifeline,” my “call a friend” and my Wikipedia.

Thanks for stopping in and reading “At Home with Tom and Sandy.” You’re in good company and we love sharing educational, fun and important information with you. QCBN

Tom Reilly, LEED Accredited Professional, Architect.

Sandy Griffis, Executive Director, Yavapai County Contractors Association. (928) 778-0040

Remember to tune in to YCCA’s Hammer Time every Saturday and Sunday morning 7:00 am on KQNA 1130 am/99.9 fm/95/5fm or the web kqna.com. Listen to Sandy and her wingman Mike talk about the construction industry and meet your local community partners. Hammer Time is a great way to start your weekend.

YCCA Providing Learning Opportunities, Construction Updates

By Leave a Comment

Fall is here Tom. Schools are back in session and I see so many smiling faces on the school buses.

Welcome to another edition of At Home with Tom and Sandy. We are here to give you the inside scoop on real estate, the construction industry, what’s up, what’s down, what’s hot and what’s not. We will share real estate stats, home prices, building permit numbers, construction pointers and give you hints on renovations that will give you a return on your investment. We will talk about products, how to take care of your home and so much more.

Sandy:  Fall is here Tom. Schools are back in session and I see so many smiling faces on the school buses.

Tom:  We are getting into my favorite time of year. Speaking about school, I have noticed what I perceive as an increase in seminars and learning opportunities by the YCCA for our industry. Bravo Sandy!

Sandy:  Well, I do not know about more, I never really counted them, I just know that YCCA just puts the opportunity out there and loves sharing processes and education with the industry.

Tom: Some of the topics are quite important and germane to what the industry is experiencing. From legislative updates and code changes to permitting across the Quad Cities, YCCA seems to have a good handle on things.

Sandy:  Staying relevant is key to thriving, Tom. We have had a lot of updates to our permitting processes and our members appreciate the opportunity to stay abreast of these changes.

Tom:  Those seminars impart a lot of good information and can help to relieve a bunch of frustrated contractors and building department employees.

Sandy:  We have had a number of suppliers put on informative gatherings to introduce the industry to new products on the market and how some of these products might be better than what is out there now – and, of course, there are always new application methods.

Tom:  I remember going to those seminars when the cement board that looks like wood siding was introduced. I also recall YCCA putting on the Boot Camp a few years ago before COVID-19 hit. That was successful at getting young people interested in the industry.

Sandy:  That was a lot of work and included a large number of volunteers such as yourself. But we are not the only source for ongoing education and training. Many of our members also belong to other industry groups.

Tom:  I am familiar with National Association of the Remodeling Industry, or NARI. This organization provides hundreds of courses online and webinars.

Sandy:  I am familiar with NARI and would add the Association of General Contractors of America. As with NARI, they provide online courses and webinars.

Tom:  Both are great resources for us. The courses tend to be a bit longer and certainly go into more depth on a subject than do the webinars.

Sandy:  The courses are longer but cover a lot more ground. With the advent of online learning, one can tale courses offered from anywhere. There are a lot of schools that have a construction curriculum.

Tom:  The ability to learn remotely is truly a blessing. So many aspects of the construction industry can be learned without hard classroom time. Examples of what can be taught would be codes, basic structural information, scheduling and basic or advanced business practices.

Sandy:  Basic business practices are important and might be overlooked by too many in our industry. That type of course would be valuable. The other thing, though, is there are a lot of “How To” subjects that cannot be taught online.

Tom:  True, I think Zoom has helped with that. It allows the student to ask questions in real time.

Sandy:  I like that. YouTube is fine for some instructional videos, but I agree that Zoom can really help flatten the learning curve. Because construction is so hands on, it is difficult to demonstrate a process and learn from it without human interaction.

Tom:  Our readers need to know that we are talking about everything from two-year degrees where a student can gain knowledge and skills necessary to enter the industry as a seasoned apprentice, to higher degrees in construction management, to the ongoing opportunities for current trades and contractors to hone their skill level.

Sandy:  The possibilities and offerings are incredible. There are so many topics to choose from. I am always on the lookout for ways to help our members learn and improve their ability to serve the folks in our community. One of the coolest links for our industry is the International Code Council (ICC), which offers a variety of professional development and training options for every individual at any point in their career.

Tom: Yes, ICC Assessment Center provides nationally recognized credentials that demonstrate a confirmed commitment to protect public health, safety and welfare and participating in ICC education sure does raise the professionalism of a business and offer certifications.

Sandy: ICC also has a great Technical Training Program (CTTP) to welcome the next generation of leaders to the building safety profession. This program works in tandem with existing construction trades, construction technology and engineering programs to encourage colleges and trade schools to instruct students about codes and standards.

Tom: I will shout this from the tallest mountain. The building safety profession is an excellent option for young adults looking for a rewarding, high-paying career.

Sandy: Tom, I agree, the demand for skilled workers is up. Over the next 15 years, the building industry will experience a loss of 80% of the existing skilled workforce. This is an excellent career field for those looking for a challenging and enduring career.

Tom: It is never too late to learn. Thanks for stopping in to read At Home with Tom and Sandy. You are in good company and we love sharing educational, fun and important information with you. QCBN

Tom Reilly, LEED Accredited Professional, Architect.

Sandy Griffis, Executive Director, Yavapai County Contractors Association. (928) 778-0040

Remember to tune in to YCCA’s Hammer Time every Saturday and Sunday morning 7:00 am on KQNA 1130 am/99.9 fm/95/5fm or the web kqna.com. Listen to Sandy and her wingman Mike talk about the construction industry and meet your local community partners. Hammer Time is a great way to start your weekend.

What Inflation Means for the Cost of Construction

By Leave a Comment

Prices have gone up and there’s not much sign of coming down.

Welcome to “At Home With Tom and Sandy.” As I always like to say, “sit back, relax and enjoy.” We have had great monsoons, not many calls on roof leaks, lots of calls on weed removal. Tom and I are talking “inflation” this month.

Sandy:  Hi Tom, I must vent a minute. I just filled up my car and my tank fill was almost $100. This is crazy!

Tom:  Tell me about it. We just finished a road trip to South Dakota and almost spent $1,000 in gas. Inflation is real.

Sandy:  Yes, inflation is real. It is a nightmare and it is affecting everyone and every family.

Tom:  The construction industry is no exception. Prices have gone up and there’s not much sign of coming down.

Sandy:  I hope our readers understand the implications and interconnectivity that inflation is having on our industry. Plastics, metals, lumber, windows, bathtubs, energy, paint and everything else is costing more.

Tom:  It takes diesel and gasoline to get the raw materials prepared for building products such as concrete, masonry and asphalt, so energy prices are a big part of inflation.

Sandy:  It seems like everything is touched by the inflation monster. I am hearing all manner of complaining from both our contractors as well as our citizens. The frustration level is high.

Tom: I get it. But, Sandy, there is at least one positive aspect we are seeing in the remodeling industry, and that is the value of our homes has risen.

Sandy:  Boy, are you ever the optimist! But I suppose you are right; home values are certainly up.

Tom:  According to Zillow, between October of 2021 and October 2022 the value of an average home will rise by 14%.

Sandy:  Wow, if my math is right, that means $14,000 per $100,000 of value. That is a lot. So, with all the costs going up, tell me how you see this unseen benefit of yours?

Tom: LOL. Sure. The average value of a home in Prescott, according to Zillow, is $621,216. Given that, a 14% increase would add about $85,000 to that home.

Sandy:  Maybe a great time to sell, but then what? It will cost you more to buy and no value is realized.

Tom:  True, so true. Unless, of course, you relocate to a small town in Nebraska that does not have the same real estate pressures. Your access to amenities may be compromised, though.

Sandy:  There are days though!

Tom: So, given the value increase of a home, and let’s say you were considering an improvement project, you would have more leverage in getting a loan to fund your project – and $85,000 is a lot of value.

Sandy:  That could be a new master suite! OK, I get where you are coming from. A tiny unseen benefit, I will give you that. So, then Tom, what advice could you give to our readers about navigating any project in crazy inflation times like these?

Tom:  My first go-to in cost control is always planning. Spend the time before you start planning every detail you can about your project. In inflationary times, changes can be costly.

Sandy:  Most contractors are now having to order finishes, cabinets, windows at the signing of the contract because of supply chain issues. A change in some those items might be costly in both dollars and time.

Tom: Exactly.

Sandy:  Folks need to take a bit of extra care in selecting the company they will be moving forward with. We recommend they ask questions about what strategies that company has to deal with cost increases.

Tom:  Excellent. While no company is immune to price changes and no one can protect everything, the answers to that question alone will give the consumer insight to the level of professionalism the company has.

Sandy:  Good advice. We always try to council people to interview, interview, interview. Prepare your questions in advance and ask the same questions of each company you interview.

Tom:  Selecting the right company, especially in times of inflation, can make all the difference. But, all told, I would not recommend putting off a project while waiting for prices to come down.

Sandy:  We are not seeing much downward movement at all, and many people are wondering, will construction costs go down and, if so, when?

Tom: I have never seen such record spikes in the price of building materials like lumber and shortages of many other products because of supply chain problems.

Sandy: Last year’s high home construction costs resulted from several factors, and many of them were related to the pandemic. Staffing shortages were one factor, and we know that many people used the pandemic to remodel their homes, and the spike in demand meant that there often were not enough workers.

Tom: Families began ordering supplies in record numbers, and it has taken two years for the supply lines to catch up and we aren’t caught up yet.

Sandy: Labor shortages are going to keep construction prices higher – upwards of 40% of construction.

Tom: And then there is that word we talked about earlier, inflation. Inflation is on the rise, and that is bringing up the cost of everything from groceries to housing supplies. We are at the highest point in inflation since 1982.

Sandy: While the resulting price increases affect all commodities, it will certainly be a factor that keeps home construction costs higher than usual.

Tom: Of course, construction prices are also closely tied to supply and demand, so this is another reason the answer to the question of will construction costs come down is no, and it’s not looking likely for the early part of 2023, either.

Sandy: Increased construction costs are difficult to stay on top of and what I see with price volatility across the board, this is harder than usual for the industry to do. I see that quotes to customers are shortened and the validity periods are being adjusted every 10 days or even one week at a time.

Tom: I think homeowners should stop looking at price – there will always be companies that cut prices to the bone to get work, but they usually don’t last awfully long – so focus on the company that offers superior service, and can get the job done in a timely manner.

Sandy: I say the economy is a wave. When it goes up, it will always come back down again. When it comes to construction costs, the key for everyone right now is to float on top of the wave until things change again. Because they will, and we will see the end of all this at some point. Inflation will moderate but not reverse.

Together, Tom and I say, “Happy September to you.”  Until next month. Thanks for stopping in to read At Home With Tom and Sandy. QCBN

Tom Reilly, LEED Accredited Professional, Architect.

Sandy Griffis, Executive Director, Yavapai County Contractors Association. (928) 778-0040

Remember to tune in to YCCA’s Hammer Time every Saturday and Sunday morning 7:00 am on KQNA 1130 am/99.9 fm/95/5fm or the web kqna.com. Listen to Sandy and her wingman Mike talk about the construction industry and meet your local community partners. Hammer Time is a great way to start your weekend.

Considering the Cost Per Square Foot to Build a Home

By 1 Comment

Home construction costs vary widely based on the home’s size, design and materials used to construct it.

Welcome to “At Home With Tom and Sandy.”  As I always like to say, “sit back and relax.” We hope  you enjoy our column this month.

Sandy:  Hey Tom, winter is here, and our weather has been mighty splendiferous.

Tom:  I would agree Sandy. It’s my favorite time of year, without a doubt.

Sandy:  So, I have a question for you, Mr. Architect. I have been getting a mountain of calls from folks wanting to know the cost per square foot to build a home. Some have no plans but have a lot, some have no plans or lot and some have a lot and no plans. Let’s talk about how to answer their questions.

Tom:  Well, there is not a quick, succinct answer to that, Sandy, and no doubt with the growth in Yavapai County, I am sure the volume of calls you receive is increasing.

Sandy:   Tom, let us have a starting point for our readers to help them better understand why there is no exact cost per square foot to build.

Tom:  Agreed. It is kind of like asking how much a car costs!

Sandy:  Tom, it depends on the car, of course.

Tom:  Exactly. There needs to be some planning before any kind of budget can be established.

Sandy:  I suspect some people are just trying to figure out if they should build or buy. Either way they need to have a number/budget in mind.

Tom:  There are a lot of ways to get some notion as to what someone will need to spend to get what they want.

Sandy:  Let’s give our readers some of those notion pointers. The more informed people are, the better it is for everyone.

Tom:  OK. If you know the neighborhood you want to live in, look for homes recently constructed and ask the builder what home costs are in that area. The actual cost of construction for any home is not public knowledge.

Sandy:   The permit valuation, while not based on the contract amount, might give people some information as well.

Tom:  Yes, some idea, but as you know, they are not that accurate.

Sandy:  Realtors can play a part in helping with establishing a budget, also. They sell both new homes as well as preowned.

Tom:  Perfect. That was going to be my next go-to helpful person. Folks need to remember, though, that without a lot and no plans, any numbers you get will be way off what their reality might be.

Sandy:  I agree and am a huge proponent of planning. People need to get with an architect or home designer to establish a basic design that can help focus probable construction costs.

Tom:  Exactly. The more info you have, the more accurate the pricing will be.

Sandy:  I am asked about web-based home pricing tools like Zillow. Do you find these to be accurate?

Tom:  Well, yes and no. Zillow gives us likely value of an existing home based on algorithms that I am not smart enough to understand. Bottom line is that while helpful with existing homes, new construction is often more expensive.

Sandy:  So, if my home is next to a vacant lot and my home was built three years ago, the value of my home is not a good indicator of what it would cost to build a new home on the vacant lot. Is that the point you are making?

Tom:  Yes, exactly. Not always, but a good rule of thumb has been that you can buy an existing home for a little less than the cost for a new build.

Sandy:  Does that include the inevitable remodel?

Tom:  No, of course not. But not all older homes are candidates for remodels.

Sandy:   True. So, let us bring this subject to a recap. Home construction costs vary widely based on the home’s size, design and materials used to construct it.

Tom:  Yes, and the more planning folks do will increase the accuracy of any pricing model.

Sandy:  Tom, with everything you have said, here is my takeaway. With the rising prices of construction materials, especially lumber, the cost to build a home is based on a number of factors and can certainly be higher than for what one would consider selling their home. There is no standard cost per square foot amount and there are many key factors that have an impact on what it would cost to build a home.

Tom: Sandy, you are a quick study. Costs to build a home often differ from market values because of mortgage requirements, tax assessments and real estate appraisals and, of course, current building codes, current labor and, as you said, Sandy, material costs.

Sandy: Tom, you love math. Give our readers the math answer as to why there is no exact square foot price to build a home.

Tom: Square foot pricing is a ratio of the total cost of the project’s components divided by the size of the livable portion of a house in most instances. Since the components that make up a project can be so different from project to project, it is impossible to predict a price per square foot with any accuracy.

Sandy: What is the most expensive part of building a house?

Tom: The most expensive part of building a home is usually finishing the interior. Depending on the level of finishes an owner wants, they can spend about one-third of their budget on flooring, appliances, cabinets and other high-end touches.

Sandy: Tom, considering project components, there are many factors that will influence the cost per square foot. Some of the components to be considered are permitting fees, utilities, design fees, the location of the home, building materials and products selected, the major systems such as plumbing, electrical and HVAC. The size and type of systems will certainly affect the price. For example, are you considering electrical components such as smart-home devices? How do you want your home to be wired? Do you want traditional systems or do you want valued engineering systems? The foundation is a huge component. There are excavation costs, fill and soils reports. The interior finishes are also a critical component to costs. Countertop material, fireplaces, windows, doors, roof material – all these items and more add to the cost per square foot of building a home.

Sandy: Great information, Tom, and thanks for being our wise sage in the building arena. You are indeed a valued partner.

Together, Tom and I say, “Happy Winter to you.”  Until next month, thanks for stopping in to read At Home With Tom and Sandy. QCBN

Tom Reilly, LEED Accredited Professional, Architect.

Sandy Griffis, Executive Director, Yavapai County Contractors Association. (928) 778-0040

Remember to tune in to YCCA’s Hammer Time every Saturday and Sunday morning 7:00 am on KQNA 1130 am/99.9 fm/95/5fm or the web kqna.com. Listen to Sandy and her wingman Mike talk about the construction industry and meet your local community partners. Hammer Time is a great way to start your weekend.