© 2011 James L.Christy

Every month, we get a great Phoenix construction update from Jon Roof, Private Banking Specialist at Mutual of Omaha Bank.  The report sums up construction and housing activity in the Valley. 

According to Roof, the timing is ripe to start building a custom home or embarking on a large-scale remodel. “Mortgage rates are near record lows and land costs are still moderate,” says Roof.  But securing financing still seems to worry many potential buyers.  Roof suggests buyers look into a one-close construction to permanent loan.

What is a one-close construction to permanent loan?

A one-close construction to permanent loan is an “all in one” loan that finances both the construction costs and the permanent amortizing loan phases of your buyer’s home. During construction, the buyer is charged interest only on just the amount of money he has drawn to date. At the completion of construction, the loan automatically changes into an amortizing loan of principal and interest, usually over 15 or 30 years.

This type of loan can be used to build a new custom home from scratch or can be used for a major remodel of an existing home.

“There are a number of benefits to a ‘one-close’ loan. The first benefit is that closing costs are reduced, since there is just one closing, one appraisal, and one set of title and loan fees. An additional benefit to the home buyer is that they know even before construction begins that they have their permanent financing in place. That way there is no question of what rates will be, that the appraisal will be adequate, and whether or not they will qualify for the permanent loan when the house is completed. It gives the client great peace of mind to know ahead of construction what their rate will be when the home is completed and also the assurance that they will be pre-qualified even if unforeseen circumstances arise that change their financial situation, ” explains Roof.

There are a number of considerations to think about when picking a one-close loan. These include the bank’s flexibility with construction periods, low loan fees, and quick and easy construction draws. In addition, watch out banks that charge a prepayment penalty and be sure to get competitive rates.

If you would like to learn more about one-close loans, reach out to Jon Roof, Mutual of Omaha Bank, covering all of the Arizona market from our Scottsdale and Tucson offices 520-229-8262.

Tree by Vallone Design

Join PHX Architecture and some of the Valley’s best interior designers this Sunday to kickoff the Festival of the Trees.

The Arizona Biltmore called upon local design pros to use their skills to dress evergreen trees in dazzling and stylish ways to benefit Phoenix Children’s Hospital. Each of the fabulous trees will be available to take home at the culmination of a silent auction to support the hospital and children in need.

You have the chance to view and bid on these trees Sunday, December 4, from 3:00 – 5:00 p.m., in the Arizona Biltmore Ballroom. The event will be celebrated with holiday music provided by four talented singers from the Arizona Opera Singer Circle, hot chocolate and cookies, an ornament decoration station and a visit by Santa. Tickets aren’t necessary and there is no admission charge to see the trees.

Participating designers include: PHX Architecture, Vallone Design, Lawrence Lake Interiors, Bouton & Foley Interiors Inc., Ownby Design, Studio V, Charles Glover Interiors, Palm Design Group, Design Directives, Tamm-Marlowe Design, Wiseman & Gale Interiors, Loewen Design Group, Debra May Himes Interior Design, David Michael Miller Associates, Park Avenue Design, Michael Ferguson Interiors, Pawling Design-Interior Design for Home & Office, Susie Biers Company, Salcito Custom Homes, and H. Ryan Studio.

 This blog was first posted on the Wall Street Journal’s website.

By Mark Demerly

During the housing boom, architects were spread thin and had project During the housing boom, architects were spread so thin and had project backlogs of several months. The prolonged downturn has changed that and it is now an ideal time to hire an architect. But there are plenty of factors to consider first. Be sure to take advantage of the resources provided by the American Institute of Architects.

The first step is to ask friends and family who have used an architect for recommendations. There is also a tool that allows you to search for an architect in your area. From there, check out firms’ websites and view examples of projects they have designed. Once you’ve narrowed it down to three or four firms, you can conduct interviews with each.
Whether you are looking for a custom designed home or a remodeling project, have a vision in mind that you can share with an architect; it’s also a good idea to show some examples from design magazines. Kitchen and bathroom remodeling jobs typically add the most resale value, but also enhance the quality-of-life for homeowners. In this economy, more people are investing in upgrading their existing homes rather than buying new homes so larger renovation projects and outdoor living improvements are also worth considering.

There are several questions to ask an architect before design work begins. Some examples: How will the architect establish priorities and make decisions? What is the architect’s design philosophy? What services does the architect provide during construction? Can the architect provide a list of client references?
Another key consideration is to ask how the architect’s fees are established. Whether it is a flat fee, based on hours worked or a percentage of construction costs, be sure to consult the AIA owner-architect agreement and have a signed contract before any work begins.

It’s also important to be candid about what you are looking for and what you expect. And by all means, ask for an explanation of anything you don’t understand. You want to approach this as a partnership and hire an architect who you have a good working rapport with. Personal confidence in the architect is paramount. Seek an appropriate balance among design ability, technical competence, professional service and cost.
Most people underestimate the value taking the time work with an architect on pre-design services before the architect puts pencil to paper, in large part because most people really don’t understand what architects really do. It’s much more than just drawing plans and elevations and selecting materials. Planning and zoning requirements could limit or define the uses; setbacks could scale back plans; and heights and massing and a whole host of community concerns can arise if you and your architect do not take the time to perform the needed due diligence.
But the upsides to following my advice are clear: Architects can produce a better design and help boost the resale value of the property.

Most potential custom home clients hear the words “Design Review” and start to shudder.  You imagine your well-thought out dream home plans being slashed with red lines, hours spent with the architect…wasted.  It might seem like an arduous task, but with an experienced team in place the process can go rather smoothly.

• ensure that homes are built with high quality materials and craftsmanship
• preserve mature and native landscapes
• respect the scale, bulk and character of homes in the community 
• respect the privacy of their immediate neighbors
• minimize the visual impacts of parking and other items deemed unsightly

How does the process work?
All communities have slight differences, but generally here is what you can expect from most Scottsdale golf communities:
1. Pre-Design Meeting: Your architect will sit down with the committee to verify the building envelope and learn about other restrictions that may be associated with your home site.
2. Design Begins: Your architect can begin designing your home within the parameters agreed upon at the Pre-Design meeting.
3.  Preliminary Submittal: Your architect will submit your home plans to the committee. Most design review committees meet only once or twice a month, so your submittal needs to be timed accurately. Some communities require the plans to be submitted more than two weeks prior to the scheduled meeting. 
4. Preliminary Review:  The committee will meet to discuss your project. At this time, the commitee will want to see your choices for exterior materials (stucco color, roof tile, windows, and more). You might also be required to submit an architectural model.
If it is approved, you move on.  If not, your architect will need to make corrections and resubmit.
5. Construction Documents: With a set of drawings approved by the committee, your architect can begin producing Construction Documents.  These are the actual plans that will be used to by the builder to bid and build your home.  The Construction Documents must also be approved by the Design Review committee.  If approved, construction can begin.  If not, your architect will need to make changes and resubmit.
Before final approval, the committee might want to see a “Wall Sample,” a mock-up of your exterior materials including wall stone, architectural mouldings and copings, paint color, stucco finish, facia material, wood stain color, roof material, window frame material, driveway material and possibly more. 
6. Pre-Construction Meeting: Before construction can begin, the community will want to be sure that you have hired a reputable builder who will abide by the community rules. At this time you will have to provide a refundable construction deposit and your builder may have to pay for a bond, refundable when construction is complete and all work has been approved.
7. Framing Inspection: When framing is complete, your builder will most likely have to call a Framing Inspection.  A member of the design review committee will come to the job site and ensure that the framing and building height matches that of the plans that were approved during the review process.
8. Final Inspection:  Once the home is complete, a final inspection is scheduled to review the material choices and make sure the home was built as approved.  If you do not pass this final approval, your builder will have to make the suggested corrections and have another inspection.

Fees
The fee for design review submittal is different for every community. You can expect to be accessed an additional fee if your home is not approved after the second submittal. As mentioned in item six above, a construction deposit is also required.

 
How long does this whole process take?
From your pre-construction meeting to the time your builder can break ground on your home varies. The average time frame for design review is 6 to 9 months,  based on how stringent the guidelines are for your community. 

 
Here are some tips to make the process go more smoothly:
1. Hire an architect who has previously designed homes for your community or other communities with similiar design review guidelines. The architect should act as your liaison with the committee throughout the process.
2. When you encounter an obstacle, remember that the members of the committee are trying to preserve the value of their neighborhood, too.
3. It is just as important to hire a home builder who has experience with design review committees.  The latter part of the process relies heavily on the builder and his ability to follow the guidelines of the community.
4. Be an active participant in the process. Communicate often with your architect and home builder.  Not making timely decisions will only add up to a longer review process. 

“No client should have to compromise on features they think are important in their dream home. It is the job of the architect and the builder to design the home to suit the client and, at the same time,  work within the framework provided by the community, ” adds John Gurley, Project Manager for R.J. Gurley Custom Homes.

Now, go draft your team and get in the game.

Golf Course

When planning the golf course, developers and members of The Estancia Club wanted to build a combined Pine Valley and Augusta National in a desert setting near an Arizona landmark.  This site fit the bill and the group hired Tom Fazio to design a course that would be suitable for beginners, but still challenging for experts. The club was opened in 1995 offering 7,314 yards of superb golf and a caddy program to ensure you have a great round (think positive, right!). The course continues to receive national acclaim.

The 32,000-square foot, European-styled clubhouse is a treasure of its own.  Boasting dining facilities and luxurious men’s and women’ locker rooms, it is the perfect place to mingle with neighbors and celebrate a great day on the course. Other clubhouse sporting options include tennis courts, a pool with a lap lane and a fitness room.

Homesites

If you are interested in building your own dream home, there are still a few of the 223 custom homesites available.  The lots range in size from one-half to two acres and design guidelines ensure that each home will blend and contour to the site.  If you are interested in learning more about building a custom home, don’t hesitate to call.  R.J. Gurley Custom Homes has built several homes in Estancia and we would gladly meet with you and your realtor to find a homesite that will work for your dream home.  After that, we can recommend an architect to get you started.

Villas

If building a custom home is not your cup of tea, the Homes of La Scala might be the perfect fit for the lock-and-leave lifestyle.  These 39 Tuscan-styled patio homes are clustered into pods that open onto a central courtyard. Lately, we have been working on several of these villas to make them better suit their new home owners…everything from general updating and repairs to whole patio remodels.

Lifestyle

Recently, I asked one of our custom home customers who splits his time between Arizona and Colorado about why he choose Estancia. “I think we loved the  general architecture throughout the community, especially the Tuscan feeling. We love the first class service at the club, and the golf facility as they all are very courteous and gracious.  Also, we have really come to appreciate the desert, especially the wildlife…from the bobcats up in the saguaros to the Gila monster resting in our front patio.”

To see more of the architecture of Estancia, visit the gallery on our website.

• Contact your local home builder’s association for the names of member builders and remodelers.  Click here for the Home Builder’s Association of Central Arizona website. Also ask family, friends or coworkers for recommendations.
• Make sure the builder has a permanent business location and good reputation with local banks and suppliers.
• Find out how long they have been in the building business. It ususally takes three to five years to establish a financially sound business. You want to make sure they will be around after the the construction is complete to service any warranties.
• Check out the company’s rating and if there have been any complaints filed with the local Better Business Bureau.
• Make sure the builder has sufficient workers compensation and general liability insurance. If not,  you may be liable for any construction-related accidents on your premises.
• Ask the builder/remodeler to provide you with names of previous customers. It they won’t beware. If they do, ask the customers if they would hire the builder again.
• Ask if you can see the builders’ work, both completed and in progress. Check for quality of workmanship and materials.
• Do you feel you can easily communicate with the builder? Remember you will be in close contact with them throughout the construction process and afterward as you live in your new home.
• Make sure the builder provides you with a complete and clearly written contract. The contract will benefit both of you. If you are having a new home built, get and review a copy of the home warranty.
• Be cautious of low-priced bids. If the builder is unable to pay for the materials and labor as the project proceeds, this may indictate a potential problem. Keep in mind that less expensive does not necessarily mean better!

Thanks, NAHB!