I understand that undertaking a building project can be a bit intimidating, even for someone with construction experience.  The majority of my clients have never been involved with building something for themselves or have only done small projects on their existing house. Before building your first home, here are a few questions to ask yourself to get you ready for the process: 

• Where do I build?  Many factors go into choosing a place to build, including suitability for construction, cost, views, access to utilities and distance from amenities.  Other factors relating to the actual location of the property may also impact what you build or how expensive it is.  These include soil quality, number of trees, accessibility to public water or sewer, or if not, can a septic system perc there, is there a high-water table, or even does my road get plowed in the winter? A homeowner's association (HOA) can further complicate how you build. An HOA can dictate specific requirements for your build, such as the size, style, or exterior materials. Zoning can also become an issue. For example, most property in my area only allows one primary residence on a lot, so be careful if you're considering building a guest house- zoning may not allow it. Are you building for a year-round residence or a vacation home? If it's a vacation home, do you plan to rent it out? That can help defer some of the cost, but you need to consider when you want to use the property, and do you need a management company to take care of maintenance and rentals, or will you handle it yourself?  With such a big expense, it's normal to consider resale- can I recoup my costs immediately, or will I need to hang onto the property for a few years first? Before breaking ground, it’s important to know the answer to these questions before building on a specific lot. 
• How much can I afford to spend on property? This question requires a careful analysis of your budget and future plans, such as employment flexibility, college expenses or retirement plans.  Invariably, a construction project might cost more than you anticipate, so be sure you have an adequate cushion, at least 10-15% of the total cost, in your budget for unexpected construction expenses. There may be environmental factors, such as bad soil, that impact the cost of construction.  And, once again, you might run into zoning codes that impact your plans, such as a restriction on short-term rentals.  To avoid some of these pitfalls, it's helpful to contact a local professional, an architect or builder, and hire them to analyze the property for construction suitability and challenges.  I have worked with a number of people considering purchasing a piece of property and helped them avoid zoning and environmental challenges that could have been costly or caused disappointing setbacks. Though an architect or builder can't necessarily eliminate every surprise, qualified professionals have the experience to anticipate many problems before they come up and, ultimately, save you money when building on that property. 
• Am I ready for the cost and effort required to build a new house?  Sometimes, you might find that a renovation or addition would  be a better fit.  My husband and I purchased our second home, an "older charming" English Tudor in Downers Grove, Illinois, with the express goal of renovating the house.  The house, built in 1929, was not in great shape and required quite a bit of "sweat equity" to make it comfortable for the two of us.  The night we took possession of the house, we were already tearing out orange sculpted shag carpet and flocked vinyl wallcovering.  Several years later, we doubled the size of the tiny house to make room for two kids, but the maintenance projects and improvements didn't end until we moved in 2020, 30 years later.  I have helped quite a number of people reimagine their house through additions and renovations rather than bear the cost of completely new construction, but this choice, though usually cheaper, has other downsides. One downside is the difficulties of living in a building that's under construction (though it’s not impossible, as we found out). There may be unforeseen circumstances during construction to consider, including damage to the existing house due to leaks, or problems uncovered during demolition that could impact the rest of the renovation. But even completely new construction can bring surprises. A great example of this is when we purchased the property where we now live in 2016 with the long-term goal of building a new house, but it wasn't until 2021 that we actually broke ground.  There were some unique challenges we faced because of the pandemic. Still, we avoided some of these by planning ahead, such as purchasing plumbing fixtures, tile, and light fixtures in advance of construction to avoid delays.  Even so, we waited well over a year to get a dishwasher and had to reselect our refrigerator multiple times. I also heard horror stories from my subcontractors about essential pieces of equipment and materials that took many months or even years to procure. We don't seem to be facing the same level of challenges in construction now. Still, unexpected factors (tariffs? Lack of available products?) are something that a seasoned professional has faced before and can help you navigate.
• How do I hire the right architect or builder? Before you decide who to hire, it's helpful to see examples of a professional's work to see if they work in a style that appeals to you. There are nearly as many different types of homes as there are people to occupy them, and the key is to end up with a house that feels like home to you, in style and in quality.  You may want to talk to some former clients to see how their experience went with this architect or builder.  Budget should also be a consideration. Construction costs can vary dramatically by region.  Some builders are able to build for $400/sf, the low-end of construction cost in northern Michigan versus a more reasonable $200/sf in the Chicago area, and cost is always impacted by the size, quality and features you desire.  Other builders may only be interested in high-end construction. I have talked to builders in my area who have done custom houses that cost more than $1,500/sf to build.  The same is true for architects. Some may tailor their designs to fit a specific budget, while others cater to the client's wish list, hoping that enough money will materialize to build the house. Be careful not to get taken in by someone telling you what you want to hear as far as cost and scheduling go, without a realistic perspective. But also, be sure to listen to what the pro is telling you.  It's easy to get carried away when the house is being designed and wishfully think that the extra 200-300 square feet you added won't really cost much.  I know because I've been there myself! If your budget is limited, that extra 200-300 sf, or $80-120k may be enough to stop the project, especially if you're building with a construction loan. And little extras add up fast.  You should look for a professional you're comfortable with and who you feel is giving you a straight story on what construction will be like, particularly when it comes to the builder, since you will be spending quite a bit of time and money with them, so it's important to choose wisely.
• How long will it take? The answer depends on a number of factors- are you doing an addition or a custom house? How busy is the architect? How much of a backlog does the builder have?  There are many things that could delay construction, such as weather (how cold will winter be this year? Will it rain every week?), the availability of subcontractors, how long it takes to get permits, are there supply shortages, and a multitude of other details. I've acted as my own general contractor on several projects and learned firsthand how complicated lining up all the subcontractors can be and how the schedule can shift on a daily basis.  While I planned for construction of my house to take less than a year, it was 14 months before we moved in, and that was with part of the house not completed yet! As far as architectural drawings go, the design process depends somewhat on the architect but more often on the client. Client availability for meetings, timely feedback and a clear identification of what they want all affect how quickly the design is completed.  But the design phase is a critical part of the process of building a house or addition, and it's important to take the time to get it right.  It can also be helpful during the design process to involve the general contractor you're thinking of using for construction.  They can provide all kinds of useful input on cost, details, materials and schedule.  After the drawings are complete, they can be bid out to subcontractors in the area.  Here, it's best to get a contractor that you're not only comfortable with, but who has experience working in the area and who has relationships with quality subcontractors.  In general, I recommend that you try to plan for construction to begin at least a year out from when you get bids on the drawings, but this schedule can sometimes be accelerated. Getting permits can take months as well, and possibly much longer if you plan to build on the water and need permits from EGLE (Environment, Great Lakes, and Energy), the Michigan State authority that governs construction near lakes and wetlands.
• The BIG QUESTION. Will it be done by Christmas?  Unfortunately, I've seen this scenario too many times to answer yes with any certainty.  Ultimately, you will be living in and enjoying your new abode for many years, so try to relax and enjoy the journey, no matter how tough it may be!

It’s essential that, before building a new home, you ask yourself these questions to avoid any unnecessary costs and surprises. The great thing is that you don’t have to work through all these questions on your own! With the right team and expectations, building your new home or renovating your current home can be a fun and rewarding endeavor! 

As someone who built their own home here three years ago, I understand the dilemma.  It’s a beautiful area and many people want to live here, at least when the weather is nice! As far as the construction costs go, I’ve generally heard from builders a starting point of $400/sf for a custom home, which seems like about double the cost of building in urban centers like Chicago and Detroit.  Unfortunately, with potential tariffs looming and uncertainty in the market, the cost of construction is unlikely to go down anytime soon. 

In talking to local builders, I’m aware that some clients have decided to sit tight for the moment rather than wade into the uncertain waters of market forces.  However, waiting until next year is no guarantee of saving money.  Beyond the price increases for a range of materials, there’s also the challenge that bids from many suppliers are now guaranteed to be good for only weeks. One builder told me that he expects construction costs to be up a minimum of 5-10% next year. Despite all this uncertainty it doesn’t appear that construction is slowing much. In fact, I can hear hammers going and heavy equipment moving around on three projects within a half mile of my house.

The fact is that the greater Traverse City area is a very desirable destination, and once people have spent a little time up here the thought of having a place of their own is not far off.  But there is a fairly high bar to jump for entry in terms of property costs.  In my own little stretch of Leelanau County I saw the price of a piece of property comparable in size and location to my own jump over 2 ½ times in just over five years.  Even with all the lakes up here, water-front property is a highly sought-after commodity and a rising tide lifts all boats, so even inland properties are increasing in cost.  And the lack of affordable housing has been a local challenge for years.  The pressure of property investors building vacation rentals and people wanting seasonal homes drives the construction costs higher for everyone.

Part of the equation is scarcity of construction workers.  Reported in the latest issue of Traverse City Business News, “Michigan lost 800,000 jobs between 2000 and 2009, and was still 250,000 jobs shy of its pre-recession levels a decade after the 2008-2009 financial crisis.  Those numbers bear out in the state’s home production statistics, which have never recovered from the Great Recession.”  This is consistent with conversations I’ve had with contractors who often struggle to hire people.  I’ve also had discussions with local suppliers who have great difficulty finding employees that can afford to move up here, principally because of housing costs. With over 10’ of snow accumulation this past winter, it’s not surprising that construction slows down, and not everyone wants to work in these conditions.

So now that you know why it’s so expensive to build up here, what’s the solution?

• Temper expectations. Perhaps owning water-front property isn’t the highest priority, especially given the accessibility of lakes via boat ramps and marinas.  There are many opportunities for lots with a lake view and a rented slip at the marina on your favorite lake can complete the picture of summer fun up here.  Many people relish the quiet of a house in the woods, and it’s amazing how quickly you can get away from the congestion of Traverse City into the surrounding idyllic farmlands and quaint tourist towns.  Having lived here for a few years now I have really come to appreciate the amenities of Traverse City, including excellent restaurants and shops.  But, having lived in the Chicago suburbs for 30 years I’m also extremely happy to be rid of the crowds and traffic.

• Be prepared. If you’re determined to build, despite all the challenges, know what you’re likely to encounter.  As I mentioned, $400/sf is a reasonable starting point for construction costs, and that means pretty basic construction, possibly using vinyl siding, low-end windows and luxury vinyl tile on the floor.  If you’re picturing nicer siding, better windows and hardwood or tile floors, then you need to budget more.  High-end construction can easily run over $800 to $1,000/sf.

• Be patient. Most quality builders have a year or more backlog for taking on new clients.  Especially with the scarcity of construction workers, there is no incentive for overloading their schedule. Most General Contractors are working with a limited pool of subcontractors so there’s quite a bit of juggling required to fit everyone into their schedule. Given the right fit of contractor and client you should expect a smooth and harmonious building process, as long as you temper your expectations on time and budget. It’s best to plan at least a year in advance before expecting to break ground, not including the time to develop plans with an architect.

• Plan for the weather. The weather definitely can play a role in when you start,- and finish,- construction. The winter can be a challenging time to build, though most contractors take the weather in stride. Depending on the given year it’s possible to pour concrete even through the winter, though it will probably add cost.  I was shocked to see my roofers start on my house in January, though they didn’t seem to have any problems due to the cold weather and did a great job. Spring is a common time to break ground, but if you start too early, you have to contend with frost laws that limit the weight of construction vehicles on the roads.  It’s not unusual to get some nasty weather, even snow, into April.

• Plan for necessities. It’s not uncommon, once people get going on the planning stages of a new house, to start tacking on things that may not be entirely necessary. If you’re adding bedrooms in case your second cousin and his family come to visit one summer you may need to reconsider.  One of the most difficult things to do is to maintain the self-discipline to only build what you will need.  I know this from personal experience! I had the opportunity to redesign my house completely at least three times, and each time it got smaller, rather than larger. Unless you have an unlimited construction budget, you need to be thinking about that cost/sf number and decide how important it is to have room for every friend or family member who might visit at some time.  There are lots of good B&B’s in the area for overflow housing.

• Think outside the box. One of the most lovely things about living in northern Michigan is the environment.  From May through November, you are likely to be outside a good chunk of time, especially if you’re on vacation. Even for those of us who are working up here (me!) it’s hard to resist slipping outside for a few minutes whenever the weather is decent. If possible, incorporate some nice outdoor spaces into your house plans.  I have a covered back porch that I love to hang out on with my cat nearly every night in the summer.  That time of year it doesn’t get dark until 9:30 or 10 pm, so the opportunity to relish the local environment is undeniable.  I also love to open windows in my office so I can hear the birds and feel a little summer breeze.  Think about how your spaces relate to the surroundings and take advantage of the natural beauty around you.

• Check local zoning code. There may be zoning challenges to consider, and other local restrictions that can affect your plans. One factor I ran into that surprised me is that many localities restrict a piece of property to one house, regardless of how large it is. There is a growing trend toward ADU’s (accessible dwelling units) or guest houses, but they’re not always permitted in the area. If you’re building near the water, you will likely have extra hoops to jump through. EGLE (Environment, Great Lakes, and Energy) is the Michigan State authority that governs construction near lakes and wetlands. They can determine that you have to build further away from the water or critical dunes, and sometimes require mitigation for the impacts of construction on the environment.

• Check the soil. Before putting a chunk of money down on a lot, it may be useful to get a soil expert to check it out. It’s not unusual to run into unexpected issues, such as soil that won’t perc, underground springs, or soil with poor bearing capacity. Sometimes, a normal looking lot has areas that qualify as wetland, even without standing water.  If you suspect this might be the case, a wetland consultant can help sort out what the State of Michigan will require. Each lot is unique and has its own set of challenges or benefits to building your dream home.

 
If you need help navigating these challenges in building a house or an addition, feel free to call me. I’ve helped numerous clients look at a piece of property or an existing house before purchasing it and helped them determine what to do with it.  I can help figure you out where the best place to build or renovate is, how to orient a house and describe what the construction process is like.  Being prepared for unexpected hurdles can save a ton of money and help smooth the path to building your dream home!

You might be wondering why you should hire an architect, when there are already a ton of plans floating around on the internet. But in the past 30 years working for clients, including some who started with an internet plan, none were satisfied with a generic plan.  It just didn’t fit them correctly.  And why would you spend so much time, energy and money on something that doesn’t fit right? Finding the right architect to design the right house for you is not only a good investment, but it’s essential for getting a house that feels like home.

Here are a few skills architects have that make them worth hiring that you simply can’t get anywhere else: 

• Design experience and education. To become a licensed architect requires many years of specialized education, on-the-job training and passing a rigorous series of state tests. And that’s just the start. Mastering the skills to design a successful building takes much more than just an architectural license.
• Deep understanding of how to build a house. Designing a house requires knowing  construction techniques, how materials react to weather and each other, structural design, building codes, zoning codes, and not least of all, aesthetics. There’s also the site-specific factors to consider such as the climate, how the building is facing (can that wall of windows really hold up to a gale force wind?), is the soil any good and is there a possibility of flooding? 
• Communicating clearly how to create an ideal home. Designing a good house also requires open communication between architect and client to determine what they want, what they need, and what they can afford, all of which are sometimes hard to define. What should the house feel like or look like? Are there natural features such as trees, views or water to design around? What combination of factors will make this house feel like home?     

To me the ultimate satisfaction is designing a house that the occupants will fit in just right, because it’s not a great house unless it’s truly a home. 

Having designed and built my own “forever home” I can definitely say it’s worth all the blood, sweat and tears to get to where you live in a house perfectly suited for you.  

If you want a unique home that fits your style and needs, your best bet is to hire a good architect.
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To help others get to this point I’m going to blog monthly about all the decisions and challenges that come with building a custom home.  If you have questions, email me at [email protected] and I’ll try to help you find your own way to a perfect home!