A Guide to New Construction In Southwest Montana
A Special Publication of The Bozeman Daily Chronicle
Summer 2015
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Editor/ Writer Stevie Croisant Writer Ashley Cosgriff Design John Jurmu Advertising Director Cindy Sease Advertising Manager Sylvia Drain
Table OF Contents Financing a New Home................... 04 Budgeting........................................... 06 Picking a lot....................................... 08 Curb Appeal.......................................11 Interior Design....................................12 Finding the Right Architect..............14 What to look for in a Contractor...................................16 Remodeling.........................................18 Going Green...................................... 20 Log Homes......................................... 22
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GETTING YOU INTO A NEW HOME IS WHAT MOVES US.
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Financing a New Home By Stevie Croisant
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hether you are a first-time buyer or have prior experience, financing a home can be the most difficult part of the home-buying process. Pete Edgecomb, Vice President of Opportunity Mortgage, a division of Opportunity Bank of Montana, shares his expertise on financing a home. You don’t have to settle “It’s good to meet with a few lenders,” said Edgecomb, “and when you choose one, stick with one.” Each bank has their own way of doing things and have different things to offer. You don’t have to go to your local bank. Get quotes from each bank, credit union or online lender you consider. Your credit score does matter The higher your credit score, the lower your monthly payments. Banks will be more eager to finance your loan. Raise your score before you apply for a home mortgage by paying off debt, making payments on time and not opening any new credit cards. Once you’ve been approved for a loan, Edgecomb recommends keeping in close communication with your loan officer about any purchases you make that could potentially affect your credit. The application process requires some forethought “We want to make sure people are qualified for the end loan,” Edgecomb said. When applying, make sure you have your last three pay stubs, last two months of bank statements, a cost
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break down from your contractor and a signed contract (if you have one already). Other banks may require more or less from you, but having these documents is a good starting point. Pre-approval Before you even find a house or a contractor, you can go to the bank to get pre-qualified. Getting preapproved will help you know how much you can afford to borrow. “We can pre-qualify based on what they’re thinking they will do to give them a better idea of what they might be borrowing,” Edgecomb said. Different types of mortgage loans In general, there are three types of real estate loans banks offer. The first is a conventional loan. These usually have 15, 20 or 30-year terms, have refinancing options, come with a nine to 12 month construction loan and are typically the most common mortgage loan. Keep in mind that if you have 20 percent equity or lower, you will most likely be required to purchase mortgage insurance. Veteran’s can qualify for a VA loan. Depending on your level of equity, you may qualify for an FHA (Federal Housing Administration) loan. Making payments Don’t stretch yourself too thin. Working with a lending officer will make a big difference, but you don’t want to agree to monthly payments you can just barely afford. “Budget for everything” is Edgecomb’s advice.
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Budgeting By Ashley Cosgriff
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uilding a home can be a fun and creative process, but there is always one component that looms over one’s head: the budget. Working out the right budget is easier than you may think. Asking yourself vital questions will help give you a better idea of how much to spend, such as: • How expensive of a home can I afford? • How much do I even want to spend? • What are the square foot costs in the area I want to live in? • After the woodwork, what additional amenities and hardware do I want?
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With all the things you might want to spend your hard earned money on, it is wise to find a professional with the right tools to help you be smart about what you are spending that money on. There are many different options to explore. First is a lender, which can be a bank, an insurance company or a credit union. Another helpful guide in budgeting for your home is a real estate agent; they do it every day. Both lenders and real estate agents use well thought-out formulas in calculating the overall amount you will need to spend on your home and how much you can afford based on your monthly or yearly income. Typically, your total monthly house payment
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should not exceed 25 percent of your stable monthly income. Other helpful sources are great architects and contractors, who will draw up a budgeting sheet for you based on all you want. Those who are excellent at their jobs will price compare things to give you the best deal, so you know they are saving you money. If you use the internet, another extremely helpful tool is costtobuild.net. This is an online preliminary budgeting tool that estimates the cost of your build. It asks various questions about sizing, building materials, as well as lifestyle questions about the number of bedrooms and how you wish to style each room. This site calculates each room: main floor, basement, upper floors, kitchen, bathrooms, finishes and other general measurements. It also includes a separate calculator for the garage, including measurements for structure, possible upper floors and finishes. Even if you are excellent with numbers and good at budgeting, it is always good to have another set of eyes take a look. Just make sure to get the most out of your money.
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Picking A lot By Ashley Cosgriff
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uilding from scratch…it can be a daunting thought. But when you give yourself enough time and plan appropriately, all the puzzle pieces will fit. The best place to start is finding the right lot for you. You need not look too far to find a beautiful place to begin building a home. Gallatin Valley has a large selection of lots to choose from with amazing views in all directions. When looking for the right lot, take even more stress away and work with a Realtor. They know city and out of city permits and limitations, proper budgeting and all the many different subdivisions around town. Just like an architect, contractor or interior designer, your Realtor should get to know you personally in order to know which lot will work best for you and your family.
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An important thing to think about when choosing the right lot for you is deciding whether you want to live in town or outside the city limits. There are pros and cons to both. A good way to decide is finding out and understanding the particular permits, limitations, potential HOA rules and the impact fees of each lot you are looking into. An impact fee is the fee that will pay for all or a portion of the costs of providing public services to the new development. This fee will usually be less for lots outside the city limits, putting the fee roughly around $6,000, and roughly $13,000 for a lot within city limits. When you are looking at your lot, ask your Realtor about the square footage. It can vary, but likely you will need to budget $110-$120 per square foot; affordable housing lots will be less.
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Living in town, you have faster access to all downtown has to offer and water and power hookups are never going to be an issue. However, it does tend to become more expensive. The cost of your lot, and the cost of living, including water, sewer and power impact fees will be higher than outside the city limits. More permits and limitations may be placed on your lot in town, which can take a long time to get clearance on if you wish to change anything. Living out of town has the benefits of less permit clearance, less restrictions on lots, better views and, a big bonus, being less expensive. It may take you longer to get into town, but there are less home inspection fees and procedures, and you have more options for how to develop the land. Once you choose the general area where you would like to live, this is where your Realtor comes in. They will ask
about your wants and needs relating to your lifestyle. They should inquire about the size of your family, children, pets and location preferences. A Realtor can recommend a good builder, tell you about the neighborhood and all the smaller details like headlights, parks and potential weather effects on that lot. Find a good Realtor that knows the market. Their knowledge of a ‘soft’ or ‘hard’ cost market and potential resale value can help you make your decision before you go through with building your home. They will also be aware of the many different subdivisions you might be interested in. Current booming locations include Middle Creek Parklands as well as the Woodland Park area. A Realtor should also work with you on finding a realistic price that goes hand in hand with finding your dream lot. Breaking Ground
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Curb Appeal By Ashley Cosgriff
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he exterior design and construction process is just as important as the building of your actual home. This is the entrance to the property, the walkway, the backyard; this is one of the first things people will see when they arrive at your home. Constructing the exterior of your home goes hand in hand with finding the lot where you wish to begin building your home. Think access points, square footage and presentation. Build your home to be compatible with to your surrounding area. The exterior aspects can be just as creative as building your house and designing its interior, but an important factor here is knowing your permits and potential HOA rules, depending on where you live. Just as you may have worked with an architect or a contractor on building your home, they can help with designing and constructing its exterior elements to your exact wants and needs while providing excellent and experienced suggestions. Working with an architect or real estate
agent can be immensely helpful to you, in that they are responsible for talking to your local planning department and/or city commission to work out all the details of your exterior planning. Architects and real estate agents alike will think of things that will benefit you and your family, such as how big your driveway should be, how to get the most use out of your backyard, adding a gate or fence around your house and even the consideration of a swimming pool. When you pay the extra money to work with an architect or real estate agent, it is worth having them take this extra stress off your shoulders. The exterior aspect of your home can have just as much style as the inside. Consider the paint job, the foliage, and decks. Planning on where to put a deck or patio can be an enjoyable and creative process, and think especially of your location and view. You can design a front patio, a backyard patio, or even a bedroom deck to take advantage of all the great views Montana affords. Breaking Ground
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Interior Design By Ashley Cosgriff
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he planning is done, the walls are up, you have built your home. There is a sigh of relief. It is done, and you have a roof over your head. Then you walk inside… and the next phase begins! But where to begin? Blank walls and bare floors. But not to fear, your interior designer is here. Creating your perfect home can be intimidating and stressful, but it doesn’t have to be. Work with someone who knows best! Working with an interior designer can add that extra edge to your home as well as take the stress away from you doing all the work. There are a few things to look for in an interior designer. You want a designer who is experienced and well-travelled. A good interior designer gets personal; they study you and they ask most of the questions. A good interior designer knows the current fashions and stay on top of the trends. When getting to know you,
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your designer should ask important questions about your personal needs, for example, “How do you use each room?” They should ask about your likes and dislikes, as well as how you live in your home. Anything from your specific style to pets to children, and if you wear muddy boots inside; your designer should know. If a designer is rushing you or making all the decisions, know that it is time to move on. They should never ask you to clear everything out of your home, but instead, find the balance between what you love about it, and what you hate about it. The things you hate tell the designer just as much as the things you love. The more you tell, the better the outcome of the project. A good designer will show you photos, color choices, inspiration boards and be willing to talk about their past projects. Many interior designers in Bozeman do just this. They study trade
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publications, keep up with blogs, and expose themselves to everything fashion that they can, including international design. They are well-traveled, and understand everything from the hip, young look, to the classic, vintage look. This is the type of designer you want in your home. A good interior designer, has a keen eye for matching their materials with your personal style, with the right mix of textures, layers, color schemes, and natural fibers. They study other cultures and styles, but take advantage of our wonderfully eclectic Bozeman artisan market and buy locally, while also using some recyclable materials. They are conscious of all the elements around them, including community, landscape, location, and even the seasons! When budgeting for your project, look for stores that provide a variety of different looks for different prices. Once you come up with your budget, your interior designer should be able to find something that looks expensive, for a price that works for you. Urbaine Home, for example, has everything from bangles and
bracelets to very high-end sofas and casegoods, with a variety of styles from Ralph Lauren and one of a kind pieces. A consultation to review your needs and desires could cost you a nominal fee or can be free of charge through a store or showroom. This is a time for the designer to get to know you. Another key element in working with an interior designer is that you have a good idea of what you want before going into the project, while still keeping an open mind. This, along with knowing your budget and being realistic about the two in tandem will make the process that much easier. Think, perhaps, of the type of style that works best for you. A rustic-modern is popular right now, along with a classic, vintage look; both of which add an edge to your home. Know your budget and timeline for the project, and the designer will do the rest. Be realistic according to your own lifestyle patterns, because they will do what you request and changing plans at the last minute can put a damper on an otherwise painless and fun project!
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Finding the Right Architect By Ashley Cosgriff
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hen looking to build a home, there are many different factors that one has to think about. Unless you are a natural-born designer, most people just want their home done and ready to live in… and they want it done well. There is a huge value in working with a good architect. Good architects should be experienced, reliable, personable, and should never rush or pressure you. There are many different ways to tell if an architect is good at what they do, and it is important to recognize these before you even begin working with one. Bottom line, do your research, because once you pick the right architect, they will take care of you from there on out. One way to choose an architect is to simply look them up. It’s 2015, and you can look online. Type them into your search engine and off you go! When researching anyone, it is important to look for a website. If a company does
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not have a website, it might be a sign that they are not as well established. A company’s website can provide you with much needed information, from their philosophy and exactly what they do, to their previous work. This will allow you to take a look at their style and versatility. Word of mouth is also important. People talk. Architects with a good reputation have earned it. They have most likely been around for a long time and are excellent at what they do. Go and meet them! If you are looking at a few and can’t seem to make a decision, have a meet and greet with each of them. A first time consultation and a discussion of your home plans should be free of cost to see if you are right to work with one another. And when you meet face to face, things will become much more clear if you are compatible. Ask to view their portfolio or if they can provide a list of promising contractors. Most of all, make sure
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they are friendly. It seems obvious, but it is important. You will be working with your architect for some time, depending on the size of the project, and getting along with each other is imperative. Another large element in the process of working with an architect is knowing your budget and having some idea of what you want. These two factors should add up so you have a realistic idea of what your project will hold. Experienced architects and contractors should give you a proper timeline of the project They should also aim to finish the project under your original budget to save you money, give you the most bang for your buck, and keep in mind its resale value. Make sure you trust those you are working
with and understand the contract that is signed. There are competitive bid and cost-plus-fixed-fee contracts. Competitive bids are a public offering process where a contractor submits a sealed bid to an architect, who will then choose the contractor with the best price and contract terms. A cost-plus-fixed-fee contract is a costreimbursement contract that provides payment of a pre-negotiated fee to the contractor that is fixed at the beginning of the contract. Once you’ve picked the right architect, let them ask you the questions. They should be interested in your life: how you live, if you have children or pets, your style, and what your timeline is. Once you and your architect understand each other, allow them to choose the right interior designer and contractor. Jerry Locati of Locati Architects stressed the importance of building a cohesive team of talented individuals who work well together and who are in tune with your wants and needs. Locati says, “We are all accomplished in our various jobs, but when we come together for you, we leave our egos at the door and listen.� This is critical in the design and building process, for the long road ahead. With the right team, the project will flow properly and you will enjoy the experience the whole way!
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What to look for in a contractor By Stevie Croisant
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uilding a home will be one of the biggest investments of your life. When your house is move-in ready, you want to feel at home. Hiring a contractor who will meet your wants and needs and will openly communicate with you is a must. Peter Brown, a licensed contractor specializing in residential design and remodeling, offers his advice on what to look for in a contractor. Online referral services can help at the start, but you must still carefully interview each candidate and check their references. According to Brown, you should look for someone who is a good communicator. “Your contractor should put communication with you as a top priority.” When interviewing a contractor, make sure they are licensed and insured, said Brown. Organization is also something you should look for. A contractor’s methods of operation and business practices should be well organized and professional. The best way to find out if your contractor will be communicative and organized? Get references. Check their online reviews. Talk to homeowners whose house was built by that contractor. “Most dependable, good contractors get plenty of work through referrals from satisfied customers, so speaking to
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other home owners is the most important first step,” Brown said. “References and recommendations from others will tell you about dependability and integrity, which is as important as price.” Brown also recommends hiring a contractor who works with quality subcontractors. “All trades are their own specialty,” he said. “[Subcontractors] have been doing these trades for a lifetime. It’s a benefit to use their experience.” If the contractor you hire does work with subcontractors, it is important to make sure those businesses are licensed, insured and local. Check their references as well. Also, don’t choose a contractor based on the lowest estimate. According to Brown, low estimates are usually a sign of an unlicensed, inexperienced contractor. Before signing see what the contract entails. Is the whole scope of the work included? Does your contractor offer a timeline, a full budget with materials and subcontractors listed? Everything from beginning to end that you want finished by your contractor should be written out in the contract. Keep in mind that if you are using an architect or designer, to let your contractor know. Having your contractor and architect work together will alleviate many potential problems.
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Remodeling By Ashley Cosgriff
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hen you even think about remodeling your home, it can be an overwhelming feeling. There seems to be so much to think about: where do I start? Will I have to move out for a time? How much will all this cost me? All these questions can be answered with the proper planning, right professional for the job and taking a deep breath. There are many benefits to remodeling your home, even if you are only remodeling parts of it. A remodel can add value to your home and make more money for you if you choose to sell. Knowing what additions or changes can add extra value to your home is important, as long as you plan well and talk to the right people. Start with the right crew: An architect will help you get the lay of the land, make drawings, models and give great suggestions you may
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not have thought about, based on their years of experience. • A contractor or builder will provide the materials and labor to perform the job right. • A designer will listen to your desired style and provide inspiration boards and color schemes to tie the whole house together. Plan Ahead: Know that in a remodel, especially of a bedroom, kitchen or living room, you may have to move out while under construction. Think of the sawdust, fumes and noise in relation to your children, pets and trying to normally go about your daily routine. Avoid the stress and let the professionals take over. Always plan your budget. Think of your potential timeline for the project. Talk to your architect, contractor or designer to get the right number. This will help you deter-
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Start your search in the Bozeman Daily Chronicle.
Open House Listings • Saturday & Sunday Classifieds • Real Estate Ads with Open Houses and New Listings • Commercial Real Estate Ads • Open Houses and Houses for Sale at bozemandailychronicle.com/ homes/ mine if you are on the right track and not spending more than you need to. To get the highest value for your home, it is important to know the most lucrative kinds of remodels. The suggested options for 2015 and 2016 are: • Kitchen Remodel: significant payroll, especially at resale time. • Window Replacement: Going energy efficient by replacing your old windows with insulated wood windows or insulated vinyl windows will return your spending over time with the energy saved. • Wood Deck Addition: (you may need a permit) will increase the value of your home, especially if you have a great view. • Other suggested lucrative remodels are: an attic bedroom, a basement bedroom or game room, a garage door replacement, and adding a fireplace.
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To advertise your property call your Chronicle Sales Rep or Sylvia Drain @ 582-2640.
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Going Green By Ashley Cosgriff
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ou’ve heard people say, “Build your home smart; think about budget and the right person to work with”. But what about building your home healthy? Buying local and sustainable materials keeps your home free of toxic chemicals and helps save the environment. They are defined as materials with overall superior performance in terms of specified criteria. Special contractors and builders are certified under the National Green Building Standards to buy unharmful products to use when building your home. For those who are looking to build their own homes from locally sourced and sustainable building materials, here are some things to look for: • Locally produced guarantee • Positive environmental impact • Thermal efficiency • Hits all health considerations • Recycled of building materials • Absent of pollution during manufacturing process guaranteed
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In the normal building and construction process, five to ten tons of cement are used to build the average middle class house, and for every ton of cement manufactured, a ton of toxic CO2 is released into the air. Materials with low CO2 emission include: adobe, sandbag construction, cob, thatch, brick, stone, hemp and the use of recycled materials. When beginning the build, the best place to start with the woodwork. “Green lumber” is engineered wood, recycled from wood waste. It is stronger, holds straighter, and is much better for the environment. Reading the labels on the products you use is very important; healthy choices to look for will be: • No foreign oil • No greenhouse gases • No formaldehyde (including in the wood) • No Volatile Organic Compounds • No petrochemicals (in glue)
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Talking to a professional is always best. If you want to build a healthy happy home, talk to Ed Adamson with Bozeman Building Traditions, whose “mission is to construct green, sustainable, custom homes for all price ranges”. He is talented and knows all the tricks of the trade, having been involved in the industry since 1997. His suggestion for buying locally sourced materials include Kenyon Noble, Simkins and Triple L Lumber, all of whose prices are lower than the “big-box” stores. He focuses on an open floor plan for an innovative use of natural light and solar orientation. He builds a “tight” home using the energy efficiency of a heat recovery ventilation system. This kind of building can be a bit more costly, but for the long-term energy savings and the elevated resale value of your home, you might want to consider it. If it seems too pricey, Ed also suggests simply having an “energy audit” of your home. This will tell you
how much heat you are losing, exactly where you are losing it, and how much money it is costing you. Do your part in keeping our wonderful Southwest Montana environment clean.
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Log Homes By Ashley Cosgriff
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t he log home. The great, old-fashioned rustic look with a cozy feeling is still very much in style. There are both pros and cons to building a log home, and it is important to know what they are. It is a commitment; before, during and after. Unless you are a contractor or builder who has worked on log homes before, it would be wise to find experienced help to work with you on this project. Here are some of the main things to think about: Construction If you choose not to go with an architect or contractor who knows the right people, find a good manufacturer to cut the logs and a good builder to construct the house. They will have worked with the Log and Timber Homes Council who: • Grade their logs and timbers to ensure structural soundness
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• Provide construction manuals to ensure correct con- struction techniques • Sponsor scientific studies that advance log and timber building technologies • Provide information to help con- sumers make smart choices You can also hire your own people to do the work and act as your own contractor, giving you more independence on the project. Guides can help, but real-life experience will make all the difference. Budget Finished log homes can range from $125 to $400 per square foot. The wide range is due to the many different choices that can go into building a log dwelling. Additional costs can include staining the logs and cleaning up the work site. Insurance It is important to know that log cabin homes are insured differently
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from conventional homes. The best thing to do is make sure your insurance agency is familiar with working with log homes and has done it before. Maintenance This is a big one. There is a lot more work that goes into a log home than one might think. Over time logs tend to shift and expand depending on the elements, as well as decay (which is usually not covered by your insurance). But this can be avoided if you go with a reliable and experienced builder who builds it right the first time. Another prob-
lem is pests, such as carpenter bees, termites, and beetles. A helpful product for some of these issues is something called log siding or chinking. These products are applied to the house’s exterior walls and will help shed water, protect the walls from the effects of weather, insulate, and are key in the aesthetics of your log structure. Keep in mind though that these products will need to be reapplied. If you cover all your bases and address problems before they arrive, a log home is a wonderfully cozy place to live.
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