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[quote=”DavidCMurray”][quote=”costaricafinca”]
My suggestion is that if you are on a strict and limited budget, is to purchase an existing house.
[/quote]And I would take the exact opposite approach. If you buy an existing house, you do get a known, fixed price, but it is very difficult to know what the house itself is. Construction techniques vary and it is easy to cover up inadequacies with paint and skim coat concrete. Visual inspection tells you little about what you’re getting. You’re buying a pig in a poke.
What’s more, buying an existing house means buying someone else’s notion of what they wanted rather than designing from blank paper to create the house [u]you[/u] want and need. And remodeling any home involves double work and almost double expense. Everything you do to an existing house you must undo first . . . and dispose of the debris.
If you cannot afford all the house you need, design a house with expansion preplanned. Then, when resources are available, you can finish building the house you want.
But that’s just me . . .
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100 % agree. And there is no reason to be afraid about building, actually it is fun to see your own ideas grow out of the ground. My experience, 90 % of the home buyers change part of the house immediately or after a short time. They buy a “used” home for the price of a new one (or even more), and then they rip out part of the money and start remodeling.
When friends or potential clients ask me what it cost to build a new home here I usually answer with either of my tired old smart-a** answers, being:
• How long is a string?, or
• Whatever you want it to cost!Either answer is right (albeit admittedly contrite) because literally, you can spend as much or as little as you want, but you are going to get exactly what you pay for.
Before I get into the “meat” of my response, let me say that I only wish I had arrived on the scene and built my home within the same time frame as elindermiller, maravilla or DavidCMurray – or all of the other thousands of expats that preceded me – congratulations to you for arriving before the boom (here) and the bust (up north)!
Now, as elindermuller says [b]“…. the more walls, number of rooms and bathrooms, the more expensive is the house. Big kitchen = higher price. Granite counter tops, high tech appliances, wood ceilings and trims, high ceilings or cathedral ceilings, vinyl window/door frames, imported security doors………..and many more details make a big difference in price.” [/b]
That part of her response follows along with and agrees with my previous post, so obviously I can absolutely agree with her to that extent. But then she goes on to say [b]“When clients ask for building cost by square foot, they want some kind of reference or idea…..” [/b] At this point she begins to contradict her previous statement, and is still agreeing with me because offering a [b]“kind of reference or idea”[/b] really is 100% meaningless unless it includes qualifying statements like:
• “but that all depends on what you expect the builder to include; or,
• “how far you want the builder to go”; or,
• “how extensive a schedule of allowances you want (for pool, landscaping, fixtures (electrical, lighting and plumbing), appliances, etc., and of course, finishes)”; and.
• “where you want to build it, and what condition is the site in?”Without any form of qualification, you can give them an answer of $65.00/sf, $95.00/sf, $120.00/sf, or $300/sf and it means absolutely nothing, zilch, nada!
And, I believe, she truly understands that because she goes on to say [b]“they understand very well that they have to provide a floor plan with details and measurements in order to give them a quote for their project.”[/b] BUT DO THEY, ESPECIALLY THOSE WHO HAVE NEVER BUILT BEFORE?
Her last statement confirms my entire argument and illustrates that the [b]“kind of reference or idea…”[/b] means absolutely nothing without (her words) [b]“a floor plan with details and measurements in order to give them a quote for their project.”[/b]
Duh! I rest my case!
To make it work you must have the basic 3 phases of development:
• Conceptual plan
• Schematic drawings – and price check (estimate)
• Construction drawings (even better with mutually agreed upon specifications) – and final price confirmation for contractYou can call them whatever you want, but in the real world, this is what it boils down to! If you do it this way you will have fewer change orders and less headache!
CRbill and Elisabeth, you two and I are of exactly the same mind. I take no issue with anything you’ve written, but I will add this . . .
Building a house involves many, many decisions regarding finishes. Builders understand this and so include allowances for electrical and plumbing fixtures, tile and other flooring, paint, cabinetry, countertops, (maybe) landscaping, and others. The client makes the final choices.
And, like builders in North America, they always underallow. For the most part, you cannot reasonably expect to actually get the cabinetry, for example, that you’ll want for what the builder has allowed. Of course, the newcomer has no idea what that cabinetry is likely to cost, so s/he’s dumbstruck when the prices come in.
Why do they do this? Easy. They all understand that they’re in a bidding contest and the potential buyer is likely to choose the lowest bid. So once the deal is inked, the buyer is at the builder’s mercy. And when you find out that you cannot actually get acceptable cabinetry the plan calls for at the allowed price, you only options are to either settle for (a lot) less or to add money to the job. And it happens over and over again. It happens in Costa Rica. It happens in the U.S. and Canada. And it happens everywhere else. So gird your loins.
The other thing to keep in the forefront of your thinking is that, as the client, you must be absolutely clear about what the contract includes and what it does not. If you think you’re going to get a tiled garage floor (common here), be sure it’s in the contract and the attached specifications which include the quality of the tile itself. (That’s important, too.) If you think landscaping is included, be sure to understand just what that means: how extensive is the job? And the list goes on . . .
David – well said and my point exactly! These and other decisions can be made up front, before the contract is signed by way of the client dictating the schedule of allowances that is included in the proposed pricing. That is why it is important to understand that the client needs to enlist the services of a “project manager” before the contract is signed, and preferably during the process of interviewing and selecting the contractor(s).
Stop and think about it – who is the client’s advocate in the process? Answer – no one!
• The builder? Hardly. As you say, the more change orders, the more he makes!
• The architect? No way, he gets paid for putting pen to paper, and the more he has to document and change the plans, the more he makes. Also, once the need for the change order is determined he will usually request payment for a field visit before, during and after the implementation of the change.An experienced project manager can also assist with the architect’s contract as well. They insist that their rates are promulgated by the College of Engineering – and they are! But through negotiation their scope of services can be increased (without additional monies) to include additional responsibilities during the pre-construction, construction, and completion periods.
For most (not all) people moving to Costa Rica and building a new home here they are still living afar and come periodically to check on the progress of the work. Somewhere along the way they begin to realize “I should be here more, or more often – things aren’t going as I expected”. That’s when reality sets in that they have no one on their side, no advocate, no extra set of eyes that is intimately involved and totally understands what the client wants and expects.
After all, for most of us moving here it is not something we do everyday. Fortunately I had over 40 years experience in real estate development, but it was still a rude awakening when the full realization set in that I was building 1,600 miles away, in a different language, in a different measurement system, in a different monetary system, and most importantly (and unfortunately) – a totally different mental attitude!
I spent 3-5 days here during every month of the build, but that wasn’t enough. Over those 40+ years of development I had only one project that was not delivered on time and only one project that went over budget ….. I’m sitting here in that project as I write this!
Bill, your observation about the advisability of having a project manager looking out for the home buyer’s interests is spot on. One cannot possibly be too careful in supervising the building process.
I have a friend who bought a property with a beautiful view which he wanted to take advantage of. Left to himself, the builder oriented the house in the wrong direction!
[quote=”DavidCMurray”]Bill, your observation about the advisability of having a project manager looking out for the home buyer’s interests is spot on. One cannot possibly be too careful in supervising the building process.
I have a friend who bought a property with a beautiful view which he wanted to take advantage of. Left to himself, the builder oriented the house in the wrong direction!
[/quote]I have seen that happen…….property owner not in the country, contractore did probably not know where “north” was which is written on the blueprint…… A good contractor sets the corner stakes together with the owner, to make sure they are on the same page. Ticos have a different concept of positioning a house. If they have the choice, they often put the porch, entrance and nice side of the house right in front of the road, no matter of the better views in the back. Must be the culture I guess, they always have an open house, while we prefer our privacy.
You haven’t mentioned the Lake Arenal region. Admittedly, there is no Walmart, but, at the moment, I am enjoying bright sunlight and a cool mountain breeze. At night, the temperature is usually in the 60s – no A/C needed. 70s to 80s during the day. Our water bill is $7 a month (unlimited water). Nuevo Arenal has a large and active x-pat community. And lets not forget the lake. And the rivers. And the food!
[quote=”VictoriaLST”]You haven’t mentioned the Lake Arenal region. Admittedly, there is no Walmart, but, at the moment, I am enjoying bright sunlight and a cool mountain breeze. At night, the temperature is usually in the 60s – no A/C needed. 70s to 80s during the day. Our water bill is $7 a month (unlimited water). Nuevo Arenal has a large and active x-pat community. And lets not forget the lake. And the rivers. And the food![/quote]
There is a Sort-Of Walmart in Cañas, 20 Minutes from Tilaran, it is called Maxi-Pali.
And for special food, one can connect a beach trip with shopping at Auto Mercado at Coco or Tamarindo.
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