What should I use as a guide as a COST PER SQUARE FOOT for a contractor building a 4 bedroom green home in a?

Asked by Pat Palleschi, Pacific Palisades, CA Fri Nov 7, 2008

lot I own in the palisades. Pat

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Heather Paul, Agent, Santa Monica, CA
Thu Feb 23, 2012
The best advice is to get several estimates including an estimate of how long the project will take to get to completion. Also make sure you are comparing apples to apples in amenities with the different estimates to ensure which contractor will not only do the best job, but you will also be getting the best deal for your money.

Good luck!
Heather Paul, Realtor
Coldwell Banker
310-586-0364
0 votes
Bill Eckler, Agent, Venice, FL
Thu Dec 4, 2008
Pat,

Our recommendation is to contact a few builders by telephone to get their input. It's likely they will give you are range that will include the "plane Jane" version up to "all the bells and whistles" model.
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Brian Patrick…, Agent, Los Angeles, CA
Thu Dec 4, 2008
To see if you project "pencils out" ask yourself the question: "when this home is completed with all the details and features planned, how much would this home be worth if it were to be sold?" The square footage price is not really what I would focus on (you can always do the math to figure out what you pay per square foot). If the total project costs (price that a contractor will charge for the project, plus cost of land and permits, plans, etc.) are less than the market value of the project then things are looking good. The bigger the difference between the total project costs and the market value of the finished home, the more equity you will earn. For example, let's say that the home will be worth $4,000,000 when completed. Let's also say that you paid $2,000,000 for the land and the contractor will charge $1,100,000 to do the work. You will have a total home cost of $3,100,000 and you will have earned equity of $900,000. You will also have exactly the home that you want. Of course, some people want what they want and they are not as concerned about whether or not they will earn equity when the project is completed- that is a personal decision. Keep the big picture in mind- it is not the stated price per square foot, but rather the total project costs as compared to the completed project value that I think should be considered. I am a licensed real estate broker and a licensed general contractor and I have built custom hillside homes in Los Angeles.
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