Scenario: Mr. and Mrs. Byer seemed like very good prospects. They already owned a lot, and they had selected the plan for their dream home. They had good credit and sufficient assets to build the home, and were anxious to get started. They met with Barry Builder and went over the plans carefully. But when Barry visited their lot, he immediately knew there were problems.
The lot sloped side to side, at about a 25-degree angle. The plan the Byers had shown Barry was for a crawlspace house designed for level ground. There were no provisions for stairs, even though on this lot a walkout basement seemed desirable. At the very least, he would have to step the foundations down and terrace the land on the lower side of the lot. In order to get to portions of the house, he would probably have to pump concrete for the footings and foundation.
The lot also was heavily wooded with several large trees that would have to be cleared. Barry knew that he was looking at perhaps $25,000 to $30,000 in additional site work, and he wasn’t sure the Byer’s budget would stretch to cover the additional costs. He knew that they had also talked to another builder, and he didn’t want to lose the job by pricing himself out of the market. He could simply add a standard allowance to the contract for site work. But if he did, he knew there would be cost overruns and unhappy customers. Suddenly, this ideal prospect was looking more like a potential problem child. What should Barry do?
Solution: A difficult lot presents challenges, but it’s not an impossible situation. Before Barry spends a lot of time doing an estimate, he needs to sit down again with the Byers, and discuss with them what they really want. The Byers have several options. If they’re sold on the lot and the neighborhood, they should consider selecting a new plan or redesigning their home to fit the lot. This will be more complicated than simply adding a basement, since they will have to find space for a stairway as well.
One possibility would be to tuck the garage under the house at the low end of the slope to reduce the width of the house. Another would be to divide the house into different levels that follow the contour of the land. The most striking houses are ones that are designed for a particular lot. They fit into the landscape and become a part of it, rather than simply sitting on top of the ground.
While sloping lots are generally more difficult to build on, they can offer advantages if the buyer knows how exploit them. Sloping lots are ideal for a walk-out basement, which greatly increases the livability of any basement space. These lots often have better views and more interesting landscaping possibilities than do level lots. But it does require more imagination and effort to realize those possibilities.
The Byers need to understand that a walk-out basement, land clearing, additional grading, terracing, and the import and export of fill dirt could add to their costs. Barry needs to be upfront with them about these additional costs, and yet protect himself by having accurate site development allowances. As a responsible builder, Barry has an obligation to create realistic expectations in the minds of his customers, and to guide them to a finished product that satisfies their needs.
Al Trellis, a co-founder of Home Builders Network, has more than 25 years of experience as a custom builder, speaker, and consultant. He can be reached at altrellis@hbnnet.com.
