Now that construction has started, we've been asked: "Oh, now you just get to sit back and watch, right?" The answer is "No, not at all."
We work with the principle: "design only what we need". Some major design elements are needed from the beginning. The floor plan and building structure determine everything else. Details such as windows were required for permitting. The kitchen needs to be ordered early. Since the colors in the kitchen are closely related to the colors of the floor and counter, we've chosen those too. These major decisions are the ones that we have finished.
But there are many more decisions that are still to be made. We have delayed some decisions simply because they are not needed earlier. For example, we've just started talking to a craftsman about the front door. This class of decisions follow the construction schedule. A few of the many other items in this category are hardscaping (driveway, outside walkways, etc.), landscaping, deck material and railings, stair railings, interior doors and hardware, kitchen backsplash, shelving, and light fixtures.
We intentionally delay other decisions until we have more information and context. For example, many of the colors will be finalized once we can test them on the building. We have a general color scheme chosen, but once the siding is up we can apply some paint swatches and choose the exact colors. We haven't even begun to think about carpet and interior wall colors. Another example is wiring. Once the frame is up, we can walk through the structure and decide on exact positions for light switches, electrical outlets, and any additional wiring such as Ethernet cabling and speaker wiring.
We delay other decisions because we do not know they are needed. Some decisions have unintended consequences that we have to take into account later. We discovered one example recently. Our island is 11' long, but CaesarStone comes in slabs up to 10' in length. We can live with it and have a seam in the counter where two pieces of stone join together. We can attempt to shorten the island to 10'. We can tweak the counter design to avoid or integrate the seam. We could even change the counter to another material. Luckily, we learned about this issue early enough that we have time to address it (though shortening the counter would affect the imminent cabinet order). Not everything will be so accommodating.
The early stages of construction are interesting to watch but don't require a lot of input from us. We don't really have anything useful to say about the size of the foundation hole or the concrete being poured. As construction progresses more elements will need our input, and we will be more involved in the construction process. Some of these decisions will be minor, but some will be required to allow construction to move forward. We will be kept busy designing throughout the entire construction period. In fact, this may be our slow period!
Sunday, October 23, 2011
Saturday, October 22, 2011
Excavation & Foundation
Last week excavation was finished and the foundation was started.
Yuval took a great composite picture of the completed excavation:
Then surveyors were brought back for a very precise placement of the foundation. The precision is to within a small fraction of an inch; apparently the city can hassle you if the foundation is off by even one inch.
Then the forms for the footings were started. All these forms will be put in, then precisely aligned, and then the footings will be poured. Much of that will take place over the next week.
I captured a few pictures of the lower parts of the form.
And the timelapse:
The position isn't so great for capturing the foundation work, so there's not a lot to see later in the week. However, since the dirt-moving is finished for now, Yuval will move the camera to a better position. It will be at the top or bottom of the site, so it can get a nice view of the foundation as it goes in.
Yuval took a great composite picture of the completed excavation:
Then surveyors were brought back for a very precise placement of the foundation. The precision is to within a small fraction of an inch; apparently the city can hassle you if the foundation is off by even one inch.
Then the forms for the footings were started. All these forms will be put in, then precisely aligned, and then the footings will be poured. Much of that will take place over the next week.
I captured a few pictures of the lower parts of the form.
And the timelapse:
The position isn't so great for capturing the foundation work, so there's not a lot to see later in the week. However, since the dirt-moving is finished for now, Yuval will move the camera to a better position. It will be at the top or bottom of the site, so it can get a nice view of the foundation as it goes in.
Sunday, October 16, 2011
Excavation (Almost) Complete
This past week was all about moving dirt. The majority of our site was excavated, resulting in a big hole in the ground. Some of the dirt was piled at the bottom of the construction zone, some was moved to the lot just up-hill of us, and some of trucked off-site.
Quite a bit of dirt has been removed compared to the ground level:
A bit more action this week on the timelapse (note the back-hoe sinking in to the dirt pile at the end of the day!):
There is maybe one day left on excavation, and then the forms for the foundation will start going in.
Quite a bit of dirt has been removed compared to the ground level:
A bit more action this week on the timelapse (note the back-hoe sinking in to the dirt pile at the end of the day!):
There is maybe one day left on excavation, and then the forms for the foundation will start going in.
Saturday, October 15, 2011
Construction Started
After many months of work, we have finally broken ground on our new house! Last week excavation equipment was brought in to start work. The first task was to clear the lot and grade it in preparation for digging space for the foundation.
Up until recently, our lot looked something like this:
But with more cut-down trees and some blackberry and grass growing all around.
When we stopped by last weekend, it looked like this:
All the junk and extra dirt in the main area of the lot has been cleared away. The lines sketched in are roughly were the foundation will be. The first picture in particular shows where the stair tower will jut out at the bottom of the slope.
We also have a timelapse camera set up to record the construction process. Here's the video of the first few days of work.
As you can see, our camera placement was sub-optimal, and it was nearly buried! We moved it south, so it will hopefully stay out of the way, and get better footage.
Now that construction is under way, we'll try to provide more regular posts. Every week or so we'll post a few pictures, a short description of what has happened, and a short timelapse video of the work. We hope you enjoy following along with us.
Up until recently, our lot looked something like this:
When we stopped by last weekend, it looked like this:
All the junk and extra dirt in the main area of the lot has been cleared away. The lines sketched in are roughly were the foundation will be. The first picture in particular shows where the stair tower will jut out at the bottom of the slope.
We also have a timelapse camera set up to record the construction process. Here's the video of the first few days of work.
Now that construction is under way, we'll try to provide more regular posts. Every week or so we'll post a few pictures, a short description of what has happened, and a short timelapse video of the work. We hope you enjoy following along with us.
Tuesday, October 11, 2011
Trees
A small part of getting the site ready for construction was dealing with any trees that might get in the way of the building. There were only two trees to consider, a pair of tall pine trees near the top of the lot that we were hoping to keep. They would be right near the entrance, and looked quite nice together. Yuval had a botanist come to check them out before making a decision on whether to keep them or not. The results were that one tree was healthy, but the other was only in OK condition. However, the healthy one was about half-way into our planned entry!
These two trees supported each other via their root systems, so either both had to stay or both had to go. We decided it would be safest and easiest to remove both of them now. A couple weeks ago, they were carefully taken down. Yuval snapped a few pictures during the process, and allowed us to share them.
Some of the wood from various trees on site is being saved and cured. We hope to be able to use some of it later for pieces of furniture.
These two trees supported each other via their root systems, so either both had to stay or both had to go. We decided it would be safest and easiest to remove both of them now. A couple weeks ago, they were carefully taken down. Yuval snapped a few pictures during the process, and allowed us to share them.
Some of the wood from various trees on site is being saved and cured. We hope to be able to use some of it later for pieces of furniture.
Sunday, September 25, 2011
Custom Construction Loan
Last week we closed on a custom construction loan with Washington Federal.
When it comes to construction financing, there are two major options (unless you can self-finance): get a bank loan or get a private bridge loan.
Private bridge loans allow you to move faster, can be easier to get, and provide more freedom. For example, a bank may not approve a loan for a home using non-standard construction methods. However, they are more expensive; interest was 15-20% on the loans we considered. Refinancing a private loan once construction is complete can be more difficult because the bank considers the project more risky than one it has already vetted.
Bank loans require a long process of approving the borrowers, builder, and project, but they are cheaper. Depending on the bank, a construction loan may have a standard mortgage rate plus a fee equal to some percentage of the loan or the loan may have a rate 2-3% higher during the construction period. Banks tend to be more rigorous about inspections, which can be both a benefit and a hindrance.
We chose Washington Federal on Yuval's recommendation. As a builder, he finds them easy to work with, and they have a good reputation (e.g., Erika's grandparents thinks they are the best choice). Another advantage is that their construction loan automatically converts to a standard mortgage; no refinancing needed.
The standard credit application for us was approved easily, and Yuval was already verified as a builder with them. The project approval required a fully-approved permit set, along with a budget breakdown, and some other details. This part of the process took longer than normal, first because we had to wait for the permits, and second because the bank had problems finding an available appraiser who was willing to evaluate a modern, green, construction project in Bellevue.
Once everything was approved, the bank worked on finalizing the paperwork and getting it sent to escrow. I worked on getting a course of construction insurance policy in place, along with some other minor details. Once the escrow agent had the documents, we wired the funds for the fees and down-payment, signed all the documents, and the bank managed to close the loan the same day. And now construction can start! Excavation is scheduled to start October 1st.
When it comes to construction financing, there are two major options (unless you can self-finance): get a bank loan or get a private bridge loan.
Private bridge loans allow you to move faster, can be easier to get, and provide more freedom. For example, a bank may not approve a loan for a home using non-standard construction methods. However, they are more expensive; interest was 15-20% on the loans we considered. Refinancing a private loan once construction is complete can be more difficult because the bank considers the project more risky than one it has already vetted.
Bank loans require a long process of approving the borrowers, builder, and project, but they are cheaper. Depending on the bank, a construction loan may have a standard mortgage rate plus a fee equal to some percentage of the loan or the loan may have a rate 2-3% higher during the construction period. Banks tend to be more rigorous about inspections, which can be both a benefit and a hindrance.
We chose Washington Federal on Yuval's recommendation. As a builder, he finds them easy to work with, and they have a good reputation (e.g., Erika's grandparents thinks they are the best choice). Another advantage is that their construction loan automatically converts to a standard mortgage; no refinancing needed.
The standard credit application for us was approved easily, and Yuval was already verified as a builder with them. The project approval required a fully-approved permit set, along with a budget breakdown, and some other details. This part of the process took longer than normal, first because we had to wait for the permits, and second because the bank had problems finding an available appraiser who was willing to evaluate a modern, green, construction project in Bellevue.
Once everything was approved, the bank worked on finalizing the paperwork and getting it sent to escrow. I worked on getting a course of construction insurance policy in place, along with some other minor details. Once the escrow agent had the documents, we wired the funds for the fees and down-payment, signed all the documents, and the bank managed to close the loan the same day. And now construction can start! Excavation is scheduled to start October 1st.
Friday, September 23, 2011
Thoughts on Relative Costs
Building a house forces a shift in perspective on money and costs. We are dealing with large amounts of money, but it is still valuable to pay attention to the small savings.
The whole project costs a lot (it is much more than we planned to pay for a house just a few years ago). The land purchase alone was more than we had ever spent in an entire year, let alone all at once. The down-payment for the construction loan is as much as the cost of the land, but those together are less than half the total cost. Dealing with numbers this large makes us a bit inured to how much money we are actually spending.
However, we cannot lose sight of the smaller costs that make up the total price. Carefully considering trade-offs, even when it only saves a few hundred dollars, allows us to allocate the budget where it is most valuable without going over our target. For example, saving a few thousand dollars on appliances and eliminating unnecessary features of the kitchen cabinets will allow us to get nicer hardwood and faucets.
Depending on what we're looking at, we change what we consider the minimum worth worrying about. At the level of the project as a whole, we generally consider the costs in increments of $5,000. When looking at our savings account or cost increases, we round to the nearest $5,000. Changing lenders to reduce our financing costs by $2,000 would barely be worth it we only considered financial savings.
But the many facets of the construction budget merit closer attention. We look carefully at increases of as little as $500. That amount is trivial compared to the entire budget, but with 20-30 categories in the budget, these small changes can add up quickly. We don't worry about everything. For anything less than $100, we consider the impact minimal. Even if we added that to every category, the affect in the overall cost will hardly be noticeable.
Whenever we make a change, especially a change that affects cost, we ask ourselves, "Is this upgrade worth it to us? Can we afford it?" By considering those items, we've been able to keep the costs reasonable and choose the upgrades that will really make a difference to us.
We do hope that once this project is complete, our financial sense of scale will return to normal. For now, we barely blink at putting $4,000 on a credit card or writing a check for $10,000 because that is what we have set ourselves up to expect.
The whole project costs a lot (it is much more than we planned to pay for a house just a few years ago). The land purchase alone was more than we had ever spent in an entire year, let alone all at once. The down-payment for the construction loan is as much as the cost of the land, but those together are less than half the total cost. Dealing with numbers this large makes us a bit inured to how much money we are actually spending.
However, we cannot lose sight of the smaller costs that make up the total price. Carefully considering trade-offs, even when it only saves a few hundred dollars, allows us to allocate the budget where it is most valuable without going over our target. For example, saving a few thousand dollars on appliances and eliminating unnecessary features of the kitchen cabinets will allow us to get nicer hardwood and faucets.
Depending on what we're looking at, we change what we consider the minimum worth worrying about. At the level of the project as a whole, we generally consider the costs in increments of $5,000. When looking at our savings account or cost increases, we round to the nearest $5,000. Changing lenders to reduce our financing costs by $2,000 would barely be worth it we only considered financial savings.
But the many facets of the construction budget merit closer attention. We look carefully at increases of as little as $500. That amount is trivial compared to the entire budget, but with 20-30 categories in the budget, these small changes can add up quickly. We don't worry about everything. For anything less than $100, we consider the impact minimal. Even if we added that to every category, the affect in the overall cost will hardly be noticeable.
Whenever we make a change, especially a change that affects cost, we ask ourselves, "Is this upgrade worth it to us? Can we afford it?" By considering those items, we've been able to keep the costs reasonable and choose the upgrades that will really make a difference to us.
We do hope that once this project is complete, our financial sense of scale will return to normal. For now, we barely blink at putting $4,000 on a credit card or writing a check for $10,000 because that is what we have set ourselves up to expect.
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