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H o w b u ild e r s t i k e ik e p ric e of y o u r n ew h o m e
These days, builders are making
a lot o f their money by jacking up
their prices on extras like hardwood
flooring. An upgrade on flooring,
for example, can mean as much as
a 40 percent boost in the builder’s
profit margin.
Two things make it possible for
your builder to convince you to up­
grade: Your desire to set yourself
apart from others and your belief that
the builder is in the d n v er’s seat.
One home buyer, for example,
wanted hardwood floors in her fam­
ily room, kitchen and master bed­
room Her bui Ider was going to charge
her $7 a square foot, which would
add $5.(XX) onto her hom e’s base
price. Instead of accepting that quote,
she shopped around and found a con­
tractor willing to do the job tor $5,25
a square foot and saved $1400.
Usually it’s good when a consum­
er can buy from somebody who buys
in bulk. Your builder probably saves
money on appliance from buying
them in volume. But are these sav­
ings passed on to you ? Not always. II
you’re not getting 10 to 20 percent
off the list price, push for it. Remem­
ber, the more appliances you’re buy­
ing, the better your negotiating lever­
age.
A home buyer who wanted to up­
grade the appliances in her kitchen
was offered a package for $4600. By
shopping around she found a dis­
counter willing to knock $400 oft
that price. Her builder then agreed to
match the lower price, then threw in
a free upgrade on a dishwasher.
Window«
Bay windows, skylights and spe­
cial windows involve structural ad­
justments to a new house, so your
builder is justified in charging you a
lot for them, right? Not necessarily.
For example, if the framing on your
house is not yet completed, window
installation is relatively uncompli­
cated. So, don’t go along with a build­
er who says an unplanned addition
will cost you an arm and a leg.
One couple asked their builder to
add two side-by-side picture win­
dows to their living room. The build­
er said that the late change in plans
would cost them $4000. But a sales
associate had told them the addition
would cost the builder only $12(X) to
$14(X) Armed with that information,
the couple got the builder down to
$2000 Il’s your house, so stand your
ground!
B a th ro o m «
One way builders make a profit on
every new home or remodeling job is
by marking up their services, the
services of subcontractors and the
products they buy (which they prob­
ably get at discounted prices by buy­
ing in bulk). This is true even for a
Since its inception, the program is
designed for all professionals who
manage commercial properties — no
matter how experienced or new to
the business. Students can expect to
learn through participation as well;
the course is just 40% lecture and
60% “hands-on” training, through
role play, case study and group as­
signments.
“This is not old material for new
people. This is new material for ev­
eryone who is in the business,” says
M ichael J. Lipsey, CCIM. CRB,
CPM. President of The Lipsey Com­
pany, creator of BOMA Boot Camp,
and one of four trainers in Portland.
“W e’re going to train you to do what
you’ve always wanted to know how
to do.”
Aspiring experienced and veteran
managers alike will learn how to;
■ Think outside o f “1010 Main
Street’’
■Anticipate em erging m arket
trends
-Provide a more desirable build­
ing at less cost
-N egotiate m ore com petitively
with both tenants and vendors
-Be more effective in attracting
and retaining tenants
-Handle crisis situations and field
media inquiries
-Prepare and evaluate market­
ing budgets to position yourself as
an asset manager
-Value a property
-Understand land uses, value and
zoning differences
BOMA Boot Camp has been ap­
proved by the Building Owners and
Managers Institute for competency
credit for the RPA course entitled
“Fundam entals of Real Property
Administration". The Institute lor
Real Estate Management (1REM) has
also approved Boot Camp lor tour
elective points toward earning con­
tinuing education credits.
C o u n te r to p »
Conan or granite countertops may
be ideal for your new kitchen. They
look great, they're easier to take care
of than standard surfaces and they’re
by
L ee P erlman
Developer Marty Kehoe plans to
build a five-story, 130-unit apart­
ment building on a block bounded
by Northeast Sixth and Seventh
avenues and Halsey and Clacka­
mas streets.
Architect Bob Moreland told city
officials at a meeting last week that on
the western hall ol the block the build­
ing will sit on a two-level, 128-space
garage starting four feet underground,
with an entrance on Northeast Halsey
Street.
The building’s main entrance will
be through an open public plaza
facing Northeast Seventh Avenue.
Exterior materials will be brick
and either stucco or precast con­
crete. Some units will have over­
hanging balconies.
K ehoe later told the O bserver
that there will be 30 studios, 70
one bedroom s and 30 tw o -b e d ­
room s o f 500, 700 and 900 square
fe e t, r e s p e c tiv e ly . R e n ts w ill
range from $400 to ju s t o v er
$900, he estim ates.
“It will be a nice building, but we
want to keep the rents as affordable
as possible so that we can fill it
quickly,” Kehoe says.
The building will not have ground
floor retail space, as permitted by
zoning and encouraged by city plan­
ners.
Kehoe said it would not be eco­
nom ically feasib le because the
project is in a “strange space—one
block off both the main retail areas”
along the Broadway-W eidler and
Martin Luther King Jr.-Grand corri­
dors.
His preliminary plans won praise
West Coast homeowners their losses
Fewer C alifornia hom eowners
■; taking a loss when they sell their
mes, providing fu rth er indica-
n that the sta te ’s beleaguered real
ate market is in a steady, although
> h ’, recovery, a real estate infor-
ition service reported.
In July, 27.9 percent of all home
llers sold their homes for less than
ey had bought them for.
That was down from June’s 28.4
:rcent and down from 31.3 percent
t July a year ago, according to
ataQuick Information Systems, an
cxiom Company.
July's 27.9 percent was the lowest
nee 27.1 percent for February 1992.
was well below the peak of 42.7
ercent that occurred in September
993.
During the first seven months of
lis year, 29.9 percent of the state's
home sellers took a loss, down from
32.0 percent for the same period last
year (see chart), the company report­
ed.
“We thought the loss percentage
might go up because of this year’s
sales increases. A lot of today s
seller-buyers are concluding that wha,
they lose at one end of the deal, they
make up at the otherend,” said Donald
L. Cohn, DataQuick CEO.
“Home sales have been strong this
year because of the recovering econ­
omy and the reasonable prices and
interest rates. Now that home prices
have bottomed out and are going up
in some areas, taking a loss should be
even less of a problem,” he said.
DataQuick monitors all real estate
activity nationwide and provides in­
formation to lending institutions, ti­
tle companies, industry analysts and
. Av< Me /e w e
Home gardeners can learn to pre-
t and manage insects, weeds and
•ases using least-toxic controls and
nemade remedies.
Metro'sNaturalGardeningworkshops
I be offered throughout the metmpol-
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9:30 to 11 30 a.m. Saturday
Sept. 14
Fnendly House
1737 NW 26th Ave.
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1 lo 8 30 p.m. Wednesdav
Sept. 25
Leach Botanical Gardens
6704 SE 122nd Ave.
-Northeast Portland
7 to 8:30 p.m. Tuesday, OcL 8
Metro Regional Center, Rixwn 270
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7 to 8:30 p.m. Thursday, OcL 17
Gresham City Hall
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Beaverton Community Center
12350 SW Fifth S i
Unable to attend ? Call Metro Recy­
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consumers.
The company was acquired last
year by Little Rock, Ark.-based
Acxiom Corp.
The numbers include all “arms-
length” resale condo and house trans­
actions where current and prior sales
prices were available.
Loss sales are most common in
areas where a lot of new homeyin the
“move-up” category were built and
bought during the sales and price
boom of 1988-1991. So far this year,
rqZ‘3-'
loss.
The lowest loss ratios can be found
in areas where prices are increasing,
or where housing stock is older and
length-of-ownership is longer. Home
prices in Santa Clara County are go­
ing up at the fastest rate in the state
and the county has the state’s lowest
loss rate at 13.0 percent. In San
Francisco 13.6 percent of all sellers
If your builder hands you an esti­
mate that sends you into sticker shock,
challenge it.
And don't forget the shop-and-
compare technique. Find a lower
price and chances are your builder
will match it.
from city officials except tor one
point-the proposed design of the
western face along Northeast Sixth
Avenue as a blank wall. Planner
Jeff Joslin said Central City Design
G uidelines call for ground floor
windows or some other sort of "cre­
ative” approach.
“Putting in a four by four foot
piece of artwork probably won’t do
it," Joslin added.
"The cumulative effect of having
block after block of blank garage
walls is to create an unpleasant pe­
destrian environment,” he said.
“The more requests for excep­
tions city officials sec, the crankier
they get," he added.
Kehoe says he was attracted to
the site because it offered a chance
for “high-density development in
an up-and-coming part of town.”
■. ■ -
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more durable But, they’re also more
expensive. One reason is that these
materials are harder to work with
Does this mean there's no give in the
price? Not at all. because the builder
may be adding on a hefty mark-up
If your heart is set on a top-of-the-
line kitchen, be award of the la d that
while many desirable extras come
with a price tag, they may be over­
Five-story apartment planned
for 7th & Halsey
BOMA Boot Camp
BOM A's Most Successful Course
omes to Portland.
It’s no secret that the commercial
cal estate world has become a com-
letitive place, as property managers
re hit with everything from manag-
ng the needs of dozens of building
enants. to running financial models
in multi-year leases, to posturing a
iroperty for future prosperity.
To help meet these challenges, the
building Owners and Mangers As-
iociation (BOMA) International has
earned up with The Lipsey Compa-
iy to offer their most popular train­
ing course, BOMA BootCamp: Skills
ind Systems for Today’s Property
Manager from Septem ber 26-28,
1996 in Portland, Oregon.
This three day, intensive skills
building program focuses on finance,
operations and management skill,
marketing, crisis communications,
legislation, tenant retention, and leas­
ing skills.
room as small as a bathroom, and it
can add a lot to the price of a house.
A builder in Oregon says he tacks
on a margin of up to 40 percent for
bathroom upgrades. For example,
when he buys a $140 toilet, the cus­
tomer pays nearly $200 tor it.
So, how can you avoid these high
mark-ups? If your builder w on’t
match the best price you find, shop
around for a better price or consider
buying the items yourself and having
them installed by another contractor.
EDWARD T. DURHAM, )R.
(503) 319-0821
FAX 283-2977
317 B. N.E. KILLINGSWORTH PORTLAND, OREGON 9721 1
L aw n s & sc ru b s
G ard en s
T illin g
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Hauling Available at Reasonable rates
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