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Homeownership is the Foundation of the American Dream

Kelly Anderson — Mon, 16 Apr 2012 19:43:34 GMT

Homeownership is the Foundation of the American Dream

For many people, owning a home is part of their American Dream. Homeownership builds stronger communities, provides a solid foundation for family and personal achievement and improves the quality of life for millions of people. It is truly the cornerstone of the American way of life.
Most Americans consider homeownership to be the single best long-term investment and a primary source of wealth and financial security. Countless generations of Americans have counted on their homes for their children’s education, their own retirement and a personal sense of well-being.
Yet, a home is so much more than an investment. In good times and in bad, the opportunity to own a home has been a cherished ideal and a source of pride, accomplishment, social stability and peace of mind.
Changing housing policy now to make owning a home more expensive is unfair and would hurt those that have played by the rules and made the sacrifices to get where they are now.

It would harm millions of Americans who are struggling to make their monthly mortgage payments and those who aspire to one day own a home of their own.

Homeownership is a Major Driver of the U.S. Economy

The nation’s housing and homeownership policies over the last century have contributed to the growth of the middle class and helped the United States become the most dynamic economy the world has ever seen.
Fully 15 percent of the U.S. economy relies on housing and nothing packs a bigger local economic impact than home building.
Constructing 100 new homes creates more than 300 full-time jobs, $23.1 million in wage and business income and $8.9 million in federal, state and local tax revenue.
A healthy housing industry means more jobs and a stronger economy. Home building increases the property tax base that supports local schools and communities.
Housing, like no other sector, is "Made in America." Most of the products used in home construction and remodeling are manufactured here in the United States.

More reasons why you shouldn't get a "free estimate"!

Kelly Anderson — Sat, 14 Apr 2012 01:04:41 GMT

Statistically if you select the lowest bid, you will most likely end up paying an amount closer to the middle, if not the highest bid. There is almost a 100% guarantee that you will not pay the amount on a “free estimate”.

Rapport should always be number one on the priority list and while it’s okay for your project to be budget-driven, price should never be higher than #2.

To learn more about a better way, call or click!

Kelly Anderson

Ironwood Custom Builders, Inc

Office 801-416-3131 Ext 101

Fax 801-386-5548

Kelly@IronwoodCustomBuilders.Com

Stringham Residence Kitchen & Bath

Kelly Anderson — Sat, 17 Mar 2012 17:55:19 GMT

See the before and after pictures of the Stringham Residence. Built in 1992, this Sandy, Utah home had all of the original golden oak cabinets with wall to wall wall paper and was desperate to be brought into 2012. This project was in the concept and design phase for about two months and then completed in 9 weeks.

Kelly Anderson
www.IronwoodCustomBuilders.com
2825 East Cottonwood Parkway, Suite 500
Salt Lake City, Utah 84121
801-416-3131 ext 101

Remodeling Through Color

Kelly Anderson — Wed, 07 Mar 2012 20:09:16 GMT

Did you know that the colors you select for your home have meaning and can set mood? Studies show that color can complement architecture, enhance or diminish the sense of space, create a particular ambience, and impact your daily moods. Color experts have studied how color is likely to affect you. Here is what they have found:

Blue, universally a favorite, is recognized for its tranquil effects. However, if too dark or used too expansively, it can have a depressing effect.
Red evokes excitement, and is an excellent accent. Often used in kitchens, it’s felt that red enhances one’s appetite.
Green is either loved or heartily disliked, so take care when making this selection.
Brown and orange are viewed as friendly and informal colors.
Yellow, generally perceived as a cheery color, may make children feel depressed, so use it sparingly.
Neutral colors can serve as dramatic backdrops for furnishings, collections, and accessories. Neutrals also add the flexibility to introduce new colors seasonally with throw pillows, artwork, and other decorative items.

When selecting your colors:

Select exterior shades that harmonize with the home’s surroundings—steer towards the earthier shades (i.e. a grey-blue vs. a bright royal blue).
Consider the style and era of your home—there might be some traditional colors associated with them—especially with Victorian and traditional Colonials.
When viewing paint samples, look at chip sizes proportionate to how they will ultimately be used (e.g., if a wall will be painted taupe with a red accent, view a larger sample of the taupe paint against a smaller sample of the red).
Less is more. Don’t overuse a color, especially in a small room.
Even though a color may be too strong for an entire wall, consider it for an accent color.
Most importantly, select colors that work for you and your lifestyle, not what’s considered “in” or “out” at the time. But don’t be afraid to color your world—you’ll find it will make a world of difference!

Kelly Anderson

www.IronwoodCustomBuilders.com

2825 East Cottonwood Parkway Suite 500

Salt Lake City, Utah 84121

801-416-3131

Don't select the contractor with the lowest bid

Kelly Anderson — Sun, 22 Jan 2012 20:56:00 GMT

When obtaining bids for home building or remodeling projects, virtually 100% of the time people select the contractor who provides the lowest bid, yet almost always end up paying an amount equal to or greater than the highest bid. While the price should be a factor, it absolutely cannot be the only factor when making a decision. Lots of references, punctuality, organization, personality, professionalism and an extensive portfolio are all equally important.

Kelly Anderson

General Manager

Ironwood Custom Builders, Inc

www.IronwoodCustomBuilders.com

801-416-3131 ext 101

Construction Contracts

Kelly Anderson — Sun, 16 Jan 2011 03:05:00 GMT

Learn the basics of construction contracts

Kelly Anderson
www.IronwoodCustomBuilders.com
2815 East Cottonwood Parkway
Suite 500
SLC, Utah 84121
801-205-2817

Air Conditioner Maintenance

Kelly Anderson — Mon, 05 Jul 2010 01:19:00 GMT

It's summer time again, so make sure you're keep your a/c properly maintained!

Kelly Anderson
www.IronwoodCustomBuilders.com
2825 East Cottonwood Parkway
Suite 500
SLC, Utah 84121

New EPA Lead Based Paint Regulations

Kelly Anderson — Wed, 12 May 2010 19:46:00 GMT

The Environmental Protection Agency (EPA) recently instituted federal regulations that affect remodeling contractors who work on homes built prior to 1978. The new regulations require that contractors be certified through the EPA to work in homes with lead based paints and finishes. The requirements are designed with the safety of the homes occupants in mind; especially children who are under the age of 6 years.

Lead based paint was used in paints and finishes as a color enhancer and hardener. It was discovered in the early 1900's however that lead is toxic. Lead based paint is attributed to causing ADHD and mental retardation in children who either eat the lead chips (from flaking paint) or from inhaling dust caused by renovation activities.
In adults lead poisoning causes severe joint pain, headaches, and loss of sexual desire just to mention a few.

The new EPA regulations provide that non-certified contractors caught remodeling homes that contain lead can be fined up to $37,500 per day until they either pull off the project or get certified. If they are caught and continue to work after they have been cited, the $37,500 per day fine will continue each and every day until they comply.

In Utah, only 1 in 293 contractors are EPA Certified Renovators. If you live in a home built prior to 1978 and intend to remodel or renovate, for the sake of the health of you and your family, please be sure to hire a Certified Renovator.

Ironwood Custom Builders has been certified by the EPA to perform renovations in homes that contain lead paint and also to perform lead testing. If you have questions about lead based paint, remodeling an older home, or about having lead testing done, please contact me and I'll be happy to help.

Kelly Anderson
Ironwood Custom Builders, Inc
kelly@ironwoodcustombuilders.com
www.IronwoodCustomBuilders.com
801-205-2817

Things to Consider When Hiring a Contractor

Kelly Anderson — Fri, 30 Apr 2010 23:36:00 GMT

Things to Consider When Hiring a Contractor

Hiring a contractor can be an intimidating, nerve wracking process. But there are a few things that when taken into consideration, can make the process of selecting a contractor, and the actual build process itself go much smoother. The general guideline is that you should get 3 bids for your project. The general guideline continues that you should throw out the highest and lowest bids and accept the middle. While these are good guidelines, they are just that “guidelines”. There are many other things that need to be taken into consideration, such as;

License and Insurance

Make sure that your contractor is properly licensed by the State of Utah and that they carry the mandated (by law) liability and workers compensation insurance. If they are not properly licensed and insured, they are operating illegally and if any damage or injuries occur on your project, you are personally liable. So called “contractors” that offer unusually low bids are usually doing so because they don’t have the overhead of licensing fees and insurance premiums. While it may be tempting to accept the lowest bid of an illegal contractor in order for you to get what you want for your prescribed budget, be assured if this is the route you choose, you will probably get much more than you bargained for!

Comparing “Apples to Apples”

It will be up to you to do the proper due diligence to make sure all of the bids you receive are actually for the same thing. But if you provided the same plans to all of the contractors, wouldn’t they all be bidding the same thing? Yes they should, but they’ll probably not. Generally there should not be a spread of more than 10% from the highest to lowest bid. If the lowest bid is more than 10% away from the highest, then the two contractors are most likely not bidding the same thing. The profit margins in construction are generally only a few percent so don’t be fooled by thinking that the $10,000 remodel bid has a $5000 markup compared to the $5,000 bid. Contractors usually provide what are known as allowances for things like plumbing fixtures, light fixtures and any other “finish” items because at the bidding stage, you usually have not selected those items just yet. Even specifying something like stainless steel appliances doesn’t narrow it down. The contractor could provide a $2,000 allowance for a stainless steel refrigerator or $10,000. So one bid for a kitchen remodel could literally be $8,000 higher than another based on just the refrigerator! If you haven’t told the contractors which particular fridge you want, they will either give you an allowance or include one that they’ve chosen, so it is up to you to make sure you are comparing the items included or the allowances provided in each bid.

How is The Contractor to Work With During the Bid Process?

Does he answer his phone promptly and if not, does he return your calls within a reasonable time frame?
Did he present his bid to you on the day he said he would and do so in a professional manner?
Is he on time to your meetings?
Does he seem knowledgeable about the things that you want to do and in construction in general?

If the answer to any of these questions is “no” this will most likely not change for the better once you tart the project. An unresponsive, unorganized contractors don't provide results that leave happy customers.

Do You Click?

If there seems to be any sort of personality conflict or if you are not comfortable with a particular contractor during the bid process, for whatever the reason, you should probably go with your gut. First impressions are often the right ones. You will become “best friends” as soon as you sign the contract and the last thing you want is to have to deal with someone daily for 6, 8, 10 weeks or even as many months, if you don’t have a good rapport. While the lowest bid isn’t always the one you should throw out, if you seem to have a good relationship with a contractor who is organized, shows up when he promises and generally does everything else as promised, when promised, then the high bid may very well be worth the extra expense.

Don’t Be Afraid to Ask!

If you have questions about a bid, or in particular about anything that the contractor is including, make sure you ask. Remember, the only stupid questions are the ones that you don’t ask! If you feel most comfortable with the contractor that has submitted the highest bid but he is over your budget, make sure to ask about what can be done to get his bid to within your budget. He may very well have included things that you either don’t want, don’t need, or can live without. Sometimes, very simple adjustments can be made to a bid proposal to get it in line with whatever your budget may be. But always remember that the old adage “you get what you pay for” is probably truer in construction than in any other business. So spending a few extra percent than what you may have budgeted for in order to get exactly what you want will be well worth it in the long run.

Check References!

This one is real simple. Your contractor needs to be able to provide some references. Online customer reviews are big right now, so check your contractor’s web site to see if he has an independent 3^rd party doing customer reviews for him. If he does, he is most likely proudly displaying them on his home page. If not, just ask to be able to speak to a few past clients and don’t be afraid to ask questions like “what would you do differently?” or “would you refer the contractor or hire him again?” A few simple questions should give you enough information to determine if that contractor is right for you.

Remodeling a home or building a new one can be a very rewarding experience; you just need to start off on the right foot by hiring the right contractor. To hire the right contractor, just take a little extra time to do some research and ask a few questions. A little extra time spent in the beginning will usually prove to be time be well spent in the end.

and always remember...

The bad aftertaste of shoddy work lasts much longer than the sweet smell of a good deal

Kelly Anderson
www.IronwoodCustomBuilders.com
2825 East Cottonwood Parkway
Suite 500
SLC, Utah 84121

How to Avoid Costly Plumber Visits

Kelly Anderson — Fri, 23 Apr 2010 22:28:00 GMT

Plumbers in Salt Lake City generally charge around $85 per hour and usually have a minimum charge of 1-2 hours. If a plumber has a 1 hour minimum and he is at your house for 15 minutes clearing out a clogged drain for you, you will get a bill for $85.

With that in mind, I wanted to talk about some easy things you can do to avoid expensive plumber visits. From my experience as a builder, I have found that there are three main reasons why people clog their drains: 1) putting things down the disposal that they shouldn't, 2) not running the water long enough after they've turned the disposal off, and 3) flushing things down the toilet other than what was meant to be flushed down the toilet!

The toilet one seems kind of obvious, but maybe the disposal one isn't as obvious. The rules for your disposal are simple: do not put stringy, starchy vegetables like celery or potatoes down the drain, or things like egg shells or meat. Your meat needs to go in the trash and the others can easily be composted if you don't want to throw them out. When you hear that the disposal has finished grinding up your food, simply continue to let the water run for about 15-20 seconds in order to completely flush the waste down the drain.

With regards to the toilet, nothing more than the obvious 2 things and toilet paper should ever be put in the toilet. Avoid flushing feminine hygene products, paper, or anything else for that matter down the toilet. And though it might seem obvious to you, educate your kids about flushing toys!

By simply following these guidlines you will minimize your chances of ever needing to pay a plumber $85 an hour!

Kelly Anderson
www.IronwoodCustomBuilders.com
2825 East Cottonwood Parkway
Suite 500
SLC, Utah 84121

Making Selections When Building or Remodeling

Kelly Anderson — Fri, 26 Mar 2010 18:06:00 GMT

As a contractor, I try really hard to run a tight ship. For me, there are all sorts of reasons why. But for you, well, you’re happy when I get your project completed on time. A problem that we contractors sometimes run into though is when our clients ignore deadlines for making selections for things such as lights, carpet, paint, etc. In order for me to complete your job in a timely manner, I need to have those things on the site precisely when the subcontractors need them. If not, we run into delays that cost us both money.

I recently had a client that did this exact thing; she completely ignored the dates that I gave her for when specific items would be needed. It delayed the project, and her house sat vacant, with nothing happening while we waited for her to make decisions. On another project I was working on about 2 years ago, it took us 6 weeks longer than promised for the same issue. The owners took their time making selections. Their attitude was that they’d get to it when they got to it, and it cost us money. But it cost them too- an additional 6 weeks worth of construction loan interest that totaled about $7,900.

Contractors often get a bad rap for not completing projects on time; however a big chunk of that responsibility lies with the client. If you’re going to build or remodel, there are going to be things that your contractor will need you to do. The bottom line is that you’re going to have to sacrifice some of your time in order to complete your assigned tasks, so we in turn can get your project done on time. So the next time you work with a contractor, make sure you comply with any requests he makes of you. You might be surprised at how much smoother things go, and I’ll even bet that your project gets done when promised

Kelly Anderson
www.IronwoodCustomBuilders.com
Kelly@IronwoodCustomBuilders.com
2815 East Cottonwood Parkway
Suite 500
SLC, Utah 84121

Last week was daylight savings, did you change your smoke detector batteries?

Kelly Anderson — Sun, 21 Mar 2010 15:36:00 GMT

One week has past since daylight savings time, so I’m sure that you’ve moved your clocks forward by now, but did you change your smoke detector batteries?

According to the U.S. Consumer Product Safety Commission, every year in the United States, about 3,000 people lose their lives in residential fires. Most fire victims die from inhalation of smoke and toxic gases, not as a result of burns. Most deaths and injuries occur in fires that happen at night while the victims are asleep.

So if you haven’t changed your batteries in a while, for the sake and safety of you and your family, do it now. Besides, Murphy’s law says that when the batteries do die and the alarm starts to chirp, it will be in the middle of the night…

Kelly Anderson
www.IronwoodCustomBuilders.com
Kelly@IronwoodCustomBuilders.com
2815 East Cottonwood Parkway
Suite 500
SLC, Utah 84121

Habitat for Humanity and the 2009 Blitz Build

Kelly Anderson — Wed, 02 Sep 2009 02:14:00 GMT

It's September again which means it's time for the annual Blitz Build! Every year the Salt Lake Home Builders Association partners with the Salt Lake City chapter of Habitat for Humanity to build a home for a low income family in less than 96 hours.

If you aren't familiar with Habitat for Humanity, it is a charitable organization that builds homes that are competely donated and sells them to low income familes that meet certain criteria at a discounted interest rate. Even though it is technically a charity, I wouldn't necessarily call it that because once an applicant meets Habitat's criteria and is selected, they must then work on a home or homes for other Habitat families for a minimum of 200 and often times up to 400 hours. So the great thing about the program is first that the family must work for the home and second, they do actually have to pay for it. Since all of the homes are donated, Habitat only needs to purchase and develop land which is where the proceeds from the low interest mortgage go.

So back to the Blitz Build. What's so special about this particular Habitat for Humanity house and why is called the Blitz Build? The Blitz Build is an opportunity for the local home builders, subcontractors, and suppliers to show off their stuff by constructing the home in less than 96 hours. You will often hear, as I have mentioned, 96 hours when you hear about the Blitz Build, but it's actually built in about 65-70 hours!

This is Ironwood Custom Builders 4th Blitz Build in the last 5 years. It's a fun time for everyone and of course it gives all those involved an opportunity to give something back to the community. We at Ironwood believe in Habitat for Humanity because it helps families realize the American Dream and as home builders that's what we're all about.

Watch for us on the news Monday morning September 21st, and of course I would urge you to support your local chapter of Habitat for Humanity. You can contribute either your time or your money, but I recommend your time. You don't need any home building experience to be able to spend a Saturday helping work on a home with the experienced Habitat staff. Click on the link below to get more information about Habitat for Humanity.

http://www.habitatsaltlake.com/

Kelly Anderson
Ironwood Custom Builders, Inc
801-205-2817
kelly@IronwoodCustomBuilders.com
2825 East Cottonwood Parkway
Suite 500
SLC, Utah 84121

In Order to Fix The Economy, If The Government is Going To Do Anything, They Have to Fix Housing First!

Kelly Anderson — Sat, 28 Feb 2009 03:25:00 GMT

The economy follows the housing market. It's a fact. So instead of giving potential home buyers a $7,500 tax credit (which is actually just a loan that has to be paid back), that no one wants or is even using, the government needs do something that will affect the housing market and in turn pull this economy out of it's slump.

It is also a fact that tax cuts stimulate the economy. It's really simple, if you are a small business owner and your taxes go down, your overhead goes down which means you have more capital, which will allow you to increase your marketing, increase your staff, or even expand. Each of these things lends to the increase of the others, which ultimately leads to more job creation, which leads to more people paying taxes, which leads to the government generating more tax revenue in spite of the tax cuts.

So taking these two things into consideration, we need tax cuts! Capital gains tax cuts so we're not penalized for selling our homes within two years of the initial purchase. Income tax cuts so we have more disposable income. And finally a reduction in interest rates to encourage those who may be sitting on the fence to finally make their move.

So if the current administration wants to REALLY fix this economy, they need to cut our taxes and lower interest rates. Taking the tax credit from $7,500 to $8,000 and the move to make the tax credit an actual credit as opposed to the original loan that it was is a step in the right direction. But we need more. I would encourage you to contact your Representatives and urge them to take the necessary steps to fix housing first. Once people start buying and building homes again, the economy will follow.

Kelly Anderson
801-205-2817
www.ironwoodcustombuilders.com
kelly@ironwoodcustombuilders.com
2825 East Cottonwood Parkway
Suite 500
Salt Lake City Utah
Builder Director Salt Lake Home Builders Association
Winner 2003 Parade of Homes "Best of Show"
Habitat for Humanity Blitz Build Project Manager
2005, 2006 & 2008

Thinking of Building or Remodeling? Do it Now!

Kelly Anderson — Tue, 17 Feb 2009 22:12:00 GMT

Whether it's to build a new home or renovate the one you currently live in, if you need financing, NOW IS THE TIME! Interest rates are at the lowest levels...ever! Financing can be obtained for interest rates in the mid 4's. That's an unbelievable rate.

Yes, lenders have tightened up their lending standards, but only to back where they used to be. Up until sometime around the mid 1990's, it was almost impossible to find a loan that required less than a 20% down payment. And yes, you do need to have a good credit score, generally one above 700. But that's okay; in order for our economy to pull out of this slump we need responsible homeowners who have some skin in the game. And lenders know that if you have at least 20% of your "skin" in their game, your not likely to default. Homeowners defaulting on loans that they should have never been given is partly what got us into this mess.

So don't be afraid to make the move. If you have good credit and a 20% down payment, you are what the lenders are looking for, and they will lend to you. Principle & interest on a $250,000 home, with 20% down will cost you $1,043.29 per month at 4.75% interest. $2,083.59 for a $500,000 home, and only $4,173.18 for a house that cost $1 million!
Need an equity line to fix up the home your in? A $50,000 loan @ 5.5% interest will only cost you $283.89 a month.

So whether you are thinking of taking the big step and building a home or just fixing up the one you have now, don't wait any longer, these rates may not last.

When you're ready to make your move, call me and I will personally come to your home to go over your project with you step by step. Ready to obtain financing? I recommend Marc Western at Access Mortgage- 208-5222

Kelly Anderson
Ironwood Custom Builders, Inc
Phone 801-205-2817
Fax 801-386-5548
http://www.ironwoodcustombuilders.com/
kelly@ironwoodcustombuilders.com
Builder Director Salt Lake Home Builders Association
Winner 2003 Parade of Homes "Best of Show"
Habitat for Humanity Blitz Build Project Manager
2005, 2006, & 2008

Building a New Home Part 3

Kelly Anderson — Fri, 30 Jan 2009 03:27:00 GMT

After you have selected your builder and made the offer to purchase a lot, it's time to proceed with obtaining financing. You will want to visit with a loan officer before you start the process of building a home in order to get an idea of the loan amount you will qualify for. But ultimately they cannot move forward until you bring to them the REPC (real estate purchase contract). At this point your loan officer will begin the process of getting funding for you. You will need to fill out an application and provide documents such as your last two W-2's. Once you have filled out the application and provided the necessary documents, your loan officer will take it from there. The underwriter may request additional information along the way, which is normal. But generally you should be able to close your loan at around 30 days from when you first started the process.

Once your loan is closed and the lot is now in your name, it's time to begin drawing the house plans. This can often times take several months or even longer on larger, more complex homes which we'll discuss next time.

In the mean time, call me with any questions!

Kelly Anderson
801-205-2817
www.ironwoodcustombuilders.com
kelly@ironwoodcustombuilders.com
2825 East Cottonwood Parkway
Suite 500
Salt Lake City Utah
Builder Director Salt Lake Home Builders Association
Winner 2003 Parade of Homes "Best of Show"
Habitat for Humanity Blitz Build Project Manager
2005, 2006 & 2008

Building a New Home Part 2

Kelly Anderson — Sun, 28 Dec 2008 04:21:00 GMT

Once you've selected your builder, it's time to find a lot to build on. Finding the right lot is a critical part of the process. Usually the lot location and size will be determined by the budget. Not only for the lot itself but for any special circumstances surrounding the lot that may cause additional expense such as a steep lot that requires retaining. Not to beat the point to death, but as I mentioned in Part 1, this is why you need to have your builder as a part of the team as early in the process as possible. Not knowing the right questions to ask when looking for your lot could cost thousands in unexpected costs when it comes time to build.

It's also a good idea to have a Realtor involved in the process at this time. Your builder most likely has an agent that he works with if you are not currently working with one. A real estate agent will have access to the Multiple Listing Service where all listed properties are compiled into a database for agents. Your agent will also be able to guide you through all of the legal documents and requirements. You should have some parameters in mind regarding cost, size, and location. Then your agent can select properties for you to see based on these parameters. When visiting the potential lots, your builder should accompany you to advise you as you try to narrow the choices down and ultimately make a final decision.

Once you've finally made the decision and made the offer to purchase, it's time to obtain financing and start on the plans. We'll talk briefly about financing next, followed by the process of designing a new home.

In the mean time, contact me with any questions, my information can be found below. Questions about real estate? I recommend Patrick Howells of Howells & Company. Patrick can be reached at 801-523-8900 or patrick@howellsandcompany.com

Kelly Anderson
801-205-2817
www.ironwoodcustombuilders.com
kelly@ironwoodcustombuilders.com
2825 East Cottonwood Parkway
Suite 500
Salt Lake City Utah
Builder Director Salt Lake Home Builders Association
Winner 2003 Parade of Homes "Best of Show"
Habitat for Humanity Blitz Build Project Manager
2005, 2006 & 2008

Building a New Home Part 1

Kelly Anderson — Sun, 09 Nov 2008 03:18:00 GMT

Building a home is a complicated process and the bigger and more expensive the home, the more complicated the process can be. There are many things to consider when building a home, so you need an expert. I want to talk about the process of selecting a builder, things to look out for, things to plan for along the way, and just generally outline the entire process of building a home.

Before you do anything you need to select a builder. The builder is the cornerstone of the foundation (pun intended) of the team of experts that will be assembled and that you will work with throughout the building process. To start you can ask friends and family who have recently built to refer you to their contractor (assuming they had a good experience). You can also go to the local Home Builders Association (HBA) and ask for referrals. Membership in the local HBA is an important criteria to have met because as members we are held to a higher code of ethics. Once you have narrowed it down to 2-3 builders you need to have a meeting where you can interview each other. Just as you would like to know more about your potential contractor, he too would like to know about you, so don't be surprised if he asks you some probing questions also. As far as the things that you should look for in a contractor, first would be references. References should include not just previous clients but should also include some trade references, and professional references (Realtors, mortgage companies, etc). Then you need to request that you be able preview some of the projects that the builder has recently completed.

When speaking to client references ask them a few questions like "how was the builder to work with?", or "how is the quality of your home?". You should also ask how the builder has responded to warranty claims. These are important things to know. Aside from feeling good about the answers you get to these questions you also need to assess your relationship with the builder up to this point. Do you get along well? Do you like the builder? Does he respond to calls and email in a timely manner. And lastly, even though your relationship with him is in the very beginning stages, has he done for you what he said he would do for you in the time frame established?

Once you have completed your due diligence you should be able to make a final selection. The builder may want you to sign a Professional Services Agreement (PSA) which is an agreement between the two of you where he agrees to spend a given amount of hours helping you find a building lot and meeting with the architect to contribute to the design process among other things. Most builders are going to charge in the neighborhood of $100 an hour for their time. The purpose of a PSA is for you to get the professional advice and guidance from the builder (remember he's the cornerstone) without actually committing to him to build your home. You need the builder on your team early in the game yet there can be months of lot searching, design, and obtaining financing before you are even ready to sign a contract to have your home built. So a PSA gets the builder on your team and compensates him fair market value while not yet binding the two of you together too early in the process for the actual construction of your project.

So when it comes time to select your builder, remember, get one on your team early in the game. Take your time in the selection process. Make sure you like the builder, make sure you like his work, and make sure his clients and professional colleagues like him. As long as you cover these bases you should have a successful relationship with your builder.

If you have any questions about this or any other home building or remodeling projects you may reach me at
kelly@ironwoodcustombuilders.com

Look for part two shortly.

Thanks!

Kelly Anderson
http://www.ironwoodcustombuilders.com/
General Manager, Ironwood Custom Builders
Builder Director, Salt Lake Home Builders Association
Winner 2003 Parade of Homes "Best of Show"
2007 Habitat for Humanity "Volunteer of the Year"

Why Buy A Home Right Now?

Kelly Anderson — Fri, 07 Nov 2008 19:23:00 GMT

Buying a new home from an SLHBA builder suddenly became, even better! Receive a tax credit up to $7500.

For aspiring home owners who find their goal stubbornly elusive, newly enacted legislation providing a tax credit of as much as $7,500 for first-time home buyers might just be the opportunity of a lifetime.But like so many of the good things in life, time is of the essence for buyers who want to take advantage of this outstanding opportunity. Only homes purchased on or after April 9, 2008 and before July 1, 2009 are eligible. Use the links below to learn more about the tax credit.

Tax Credit at a glance- http://www.federalhousingtaxcredit.com/glance.php
FAQ's about the Tax Credit- http://www.federalhousingtaxcredit.com/faq.php

Kelly Anderson
General Manager, Ironwood Custom Builders
kelly@ironwoodcustombuilders.com
www.ironwoodcustombuilders.com
Builder Director, Salt Lake Home Builders Association
Winner 2003 Parade of Homes "Best of Show"
2007 Habitat for Humanity "Volunteer of the Year"

Tips for Contractors To Save Money in A Tight Market

Kelly Anderson — Wed, 16 Jul 2008 02:26:00 GMT

As construction activities are dying off to just a trickle we are all looking for things to scale back on and ways that we can make a few extra bucks. There are lot of things that we can do. These things won't work for everyone and they won't generate thousands of dollars, but for most of us it's a start.

1) Scale back on the cell phone rate plan. You can switch to a lower plan now that your phone is presumably ringing less and switch back when things turn back around.

2) Tighten up on your takeoffs and materials ordered. Hold trades accountable for wasted materials. If a trade typically has a 5% waste factor work to get it down to 3% or 4%. Work with trades on this.

3) Return unused materials as soon as the trade using them is done. When the framer is done don't leave the last 20 sheets of osb and 15 2x6's sitting there to rot; send the excess lumber back and get the credit.

4) Turn your car off when you are sitting at your job sites. Gas is expensive and idling cars use a lot of gas.

5) This one isn't always the most pleasant thing to do, but cut the fat and the dead weight. If you have too may employees or employees that aren't carrying the load, let 'em go.

6) Meet with subs and suppliers to see what can be done on both ends to make your jobs more efficient and cost effective for both of you. Don't just ask trades to cut their costs, you get what you pay for. Don't beat them down and nickel and dime them or they'll do it to you. Make it a team effort.

7) Tighten up the production schedules. Would you rather have 50k in profit divided four months or five? There are always things that can be done quicker and more efficiently. Again, work with the trades on this and see what you can come up with as a team.

8) Get written bids on everything! And have sub contracts that hold the trades to their bids. They have to balance two things; making sure they make money without bidding the job to high forcing you to go elswhere. If they miss something that's their responsibility not yours. Use purchase orders also.

9) Have your jobs ready for the next trade when they get there. If the trim guys aren't going to be done Wednesday, call the painter and let himknow that you wont be ready Thursday.

And finally...

10) Most of us started in this business with a tool belt on. When times get tough, that sometimes means it's time to get back to basics and the basics are you putting your tool belt back on and pounding nails. It doesn't sound pleasant I know, but I'm trimming a house in two weeks and installing some tile. I probably won't be able to walk the next day, but that is as basic as you can get. That's where I started and for now, in order to keep cash flowing I'm doing whatever it takes.