A House By The Park

A few days ago, Build submitted the official architectural plans to the City of Seattle for approval. There are still some details outstanding like the placement of an extra door, some railing specifics related to the upper stairs, and of course all of the interior details, but apparently unless the outstanding items are significant from a structural or safety standpoint, it’s ok to change them later. We ending up using Swénson Say Faget as our structural engineering consultants and their fee was $2915 (Kevin at Build also has a structural engineering background so it was good to know there were two sets of eyes at work). The non-refundable cost to apply for the demolition and construction permits ended up being $5460.75 and was based on the estimated construction cost of the house. In other words, the more expensive the house, the more the permits are. I’ve been advised that the permitting process takes about six weeks, but since no one in their right mind is building now, it could be quicker.

After initially inspecting the property (at a cost to me of $116.25), the City also required me to submit a full, written geotech report with my application. You may remember that I already paid $350 for a “verbal” geotech report before I bought the property, but I guess when you ask them to write something official up, it’s much more expensive. I used Icicle Creek Engineers this time and the charge was $2700.

Other matters

I don’t have a whole lot of new renderings to display, but here’s one of a proposed ceiling treatment for the living room:

I’m not sure how I feel about it yet, but it — or something like it — will be necessary in order to dampen the echo caused by the vaulted ceilings. The idea is to put something visually nice on the ceiling and pad the area above it with a sound-dampening material.

Also, I’m getting to the point where I need to start thinking about sinks, lighting, appliances, and other interior details. Does anyone have any recommendations as to where the best places to shop online for that stuff is? I’m interested in sites which showcase hardware, lighting, and appliance design as well as retailers where you can actually buy the stuff.

Costs accrued during this stage:

As you can probably deduce from the title, there are several unrelated things to cover in this post. Some more important than others.

First things first: I had NVL Laboratories check the house for asbestos and lead paint last week, and as expected, there’s a significant amount of both (mainly under floor tiles and on the exterior of the house). None of it is airborne, so that’s good, but it presents a bit of a challenge when taking the house down. You’re supposed to have a professional abatement team come in and dispose of the stuff in a special way.

That brings us to the subject of demolition. Build hooked me up with a great local non-profit organization called Re-Store that is actually going to “deconstruct” most of the existing house piece by piece and sell the re-sellable elements as “vintage” building materials. Not only will this option save me a significant amount of money in demolition costs but it will save 52 tons of material from going to a landfill. This is really the best type of building decision: the kind that is environmentally friendly and saves you money. As if that wasn’t good enough, I can also write off the market value of the donated materials — $8500 — and get a nice tax refund out of it. It’s a win-win-win.

With regard to the timing of deconstruction/demolition, there is an opportunity to do it as early as December but my feeling is that it should occur as close to construction time as possible (spring). I just don’t like the idea of tearing down a house before the plans for the new one are even approved yet. I also don’t want my across the street neighbors to get too used to their newly sweeping water view. I think they may actually end up with a significantly better view than they have right now by the time I’m done, but their best view is clearly when my house is just a hole in the ground.

So that brings us to the economy. I could probably do a whole post on this, but the long and short of it is as follows: the market and the economy in general have gone from bad in early 2008 to worse in mid 2008 to near catastrophic in October. I’m invested about as conservatively as you can get (mostly cash and muni bonds, very little equity exposure), but even with that conservative allocation, October and now November are really making me fear for the future of the economy. I remember clearly the 1987 crash and the dot-com bubble bursting, but in neither case did I think another Great Depression was possible. When you start to worry about whether your bank deposits are safe, how many millions of people are going to lose their jobs in 2008/2009, and how our government is going to deal with all of it, you reflexively move into “batten down the hatches” mode a bit.

My feeling as of now is that if things stay where they are at or get better, there shouldn’t be any change in my plans, but if the economy dives further off the cliff or I don’t think things have sufficiently stabilized by the spring, I may re-examine my construction schedule. I’ve prepared Build for this possibility, and they of course understand, being plenty in-tune with the markets and the economy themselves. It’s still game-on for now though. Permits are being applied for, documents are being submitted, and the project marches forward. Let’s hope Barry O. has the calming influence on the country and the economy that we think he can and let’s hope the market stops trading “like a lunatic on ecstasy”, as my favorite CNBC guy Steve Liesman likes to say.

Costs accrued during this stage:

Last Friday’s meeting was all about zeroing in on one design/floorplan and going over initial cost estimates. At this point, I’m very happy with the general floorplan and how the house looks from the back (the view side). The front of the house and the cost, however, need a bit of work. Below are the latest renderings and schematics:

Back side

Front side

Main floor

Upper floor

I think the back is looking really great. The major addition since the last renderings is the rooftop deck with the hot tub. We’re still figuring out how the roof access is going to work, but a hatch seems like the most cost-effective, least obtrusive (albeit a bit ghetto) solution.

The floorplans are also looking good, with the main floor really opening up, two flexible locations for the dining room (west edge or north edge), and an upper floor that accommodates the requisite three bedrooms. I still have a punchlist of things for Build to nudge around in the floorplans but nothing major.

The front of the house, however, is still not quite doing it for me. It just hasn’t achieved the Feng Shui that the back of the house has yet. I don’t know if it’s the angles, the paneled siding, the colors, or what, but it’s just not there yet. We’re going to experiment with some siding and color options as well as modifying the angles and lines until we achieve curb appeal nirvana.

And now for the costs.

Ohhhh the costs.

Let’s just say they are too high. It’s not Build’s fault as they are just estimating materials and labor for a house of this size and finish, but as the house is currently spec’d, it’s about $400k over my anticipated budget.

That’s a lot.

I’m not sure what we are going to do about it yet, but I’m glad we’re having this conversation at this stage rather than mid-construction. I’ve heard plenty of horror stories about architects underestimating projects only to have the homeowner vastly overextend themselves in order to finish the project. In Build’s words, they are trying to “make sure any financial surprises we run into will be positive ones”.

I like that.

We’re going to meet this Friday to discuss packages of things we can possibly save money on.

With the stock market sinking a whopping 18% last week, I have major questions in my head about what the cost of construction labor and materials will be come spring when we break ground. I have thought for the last several months that the cost of construction would decrease as the economy soured but have been told that so far, that hasn’t happened. That’s all well and good because before last week, the decline in the economy was a slow bleed, but last week was extremely damaging. It wasn’t just damaging to wall street fat cats and hedge funds. It was damaging to anyone and everyone who has any money invested in the stock or bond markets. In my opinion, it was the sort of calamity that is going to finally cause people to really watch their spending.

Everybody is always so quick to talk about how the American consumer borrows and spends above their means, but I think this episode shook a lot of people to their core. I think it canceled a lot of vacations and certainly canceled a ton of construction projects — indefinitely. When I think about how many construction projects will break ground in my neighborhood this spring, I think there is a real possibility that I’ll be the only one. Who knows.

Although the financial crisis we’re going through right now is a terrible thing, I’m hoping the cost of building a house during it will be commensurate with the reduction in wealth we’re seeing in the equity markets. If anyone has any good web sites at which to track the cost of materials, let me know. I know the cost of both lumber and copper have plummeted, but beyond that, I have no idea.

When you buy a property with an existing house on it, you have several choices ahead of you. You can:

1. Move right in and accept the house as is.
2. Do a classic “remodel”, putting in new floors, carpeting, bathroom fixtures, and/or kitchen appliances.
3. Tear the whole thing down and start from scratch.
4. Tear 99% of the thing down, start almost from scratch, and call it a remodel.

Options a and b are pretty straightforward and if your house already has a great footprint and layout, you probably don’t need to think about c or d. But what if you need to completely reinvent the property? What is the best way to accomplish a total transformation with as little friction as possible?

In the United States and other countries with similar building conventions, it’s usually option d. All cities are slightly different, but generally if you keep even a single wall up, it officially counts as a “remodel”. I’ve even heard stories of people keeping a tiny portion of an existing wall up, calling an inspector out to bless it, and then knocking the wall down and rebuilding it within 24 hours.

If you get your project blessed as a “remodel” by your city’s planning department, you save yourself a lot of extra permitting, extra costs, extra arguments with the city and/or neighbors, and extra time. You’re also more likely to get special “out of code” allowances from the city if you need them. For instance, the carport in my current structure does not conform to code anymore (it’s too close to the street) and the western-most edge of the house is technically in an environmentally critical zone. If I built from scratch, the chances of getting approval to re-create these out-of-code elements would be small.

Although I’ve spent a bit of time over these last several months researching and interviewing architects, the complexity of picking a firm didn’t hit home until I realized how different each one is from the other. Being a designer myself, I felt a rapport with almost all of the 8 firms I talked to, and I had even “soft settled” on one of them for a couple of months, based mainly on how much I like the principals personally and how great their portfolio was.

As the prospect of building became more and more certain though, I felt I still had some homework to do, specifically around the subject of pricing. High end custom home architects have an awful reputation for designing without cost consciousness in mind. I’ve talked to people who’ve gone through it first-hand as clients as well as other people in the construction industry and most seem to agree that although architects are very important to the process of building a house, most are not overly concerned with building you a nice house as economically as possible, but rather building the most impressive house they can, with overspending as the main by-product. I know not all architects are this way, but from personal accounts, I also know that many are, and that’s why I have to be extra careful. Since I don’t want to spend a million dollars on construction, finding the most cost-effective high end architect has quickly become the most important part of this project.

Following is everything I’ve learned about architects over the last several weeks:

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