Cost Trends: Per Square Foot

buildup

Gentlemen:

I'm being asked by clients in the Los Angeles area who are planning major remodels what the cost trending is per-square-foot. Costs appear to be dropping as the housing market depreciates and the requisitions for U.S. resources and materials diminish overseas, however I would like to know if there is a good source for information regarding this.

Thanks in advance.

precisionbuild

Maybe prices are dropping in LA, but I'm not dropping mine. My expenses are not going down and I could care less what others are charging. It sounds like you haven't sold your clients on you yet.

Brock

10 is a good figure. It makes multiplication easier and it sounds low. I would just go with 10 dollars per foot.

neolitic

Your local suppliers,
your subs,
your insurance company,
your mortgage,
your grocery bills.

There's your indicator.

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silvertree

Go to the Harvard Housing Studies site. They do trends very well.
I use a dart board with numbers, and some of the other guys guess.
Neither method is considered scientific. But we keep our traditions alive.

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rbsremodeling

What cost per sf where you hoping for?

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Kaiser

Thats some funny sh** right there.

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Bill Z

Sounds like an opportunity to educate your customers that pricing remodeling by the square foot became outdated and meaningless about the time Elvis died.

Have you ever heard it's better to answer a question with a question?
Do you want a 3'x4' window in your new addition or $55,000 in custom windows?
Are you buying a 200 square foot addition or 800?
Will it have 8' high ceilings or 15'?
What roof pitch do you want?
What type of shingles?
What wall thickness?
How will you heat and cool?
Level or cathedral ceiling?
What style roof?
What type of siding?
What type of foundation is required?
What type of soil?

What do you really want to accomplish?

How do you want your new space to make you feel?

What will that do for you?

I get really frustrated when homeowners ask this dumb $psf question. But, I try to compose myself and remember it is an opportunity to educate and gain credibility with the better prospects who are smart enough to understand how ignorant one sounds when they ask this question. Then it becomes a sorting process, the cheap people are sorted out because they are still focused on the original question and keep looking for some poor, ignorant contractor who will give them an answer.

Make sense?

Does it sink in?

Mr. Mike

That would be my first response, instead of them qualifying you on the phone call just tennis racket it back to them and qualify them, you will quickly find out if the prospect is someone you wish to spend time on closing.


Perfect sales call below:

They ask: what the cost is trending per-square-foot.

I respond with this: What cost per sf were you hoping for? I mean I can do a project for almost any budget but by knowing your budget I can determine the exact scope of work.

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Max Nomad

RS Means might be a good place to start, depending on what you do. We've had better luck with Chicken Bones, Rum, and blowing Voodoo Cigar Smoke.

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silvertree

First mistake is calling us gentlemen. 2nd one is "The price question"

Nothing beats good estimating like that. Screw the software. Dem bones is strong JuJu

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neolitic

My first question back
is usually, "Square foot of what?"
Then begin to elaborate.

I do, however, feel that
we are really talking to
a HO here right now though.

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Bill Z

There is an Aesthetix Interior Design in LA, he does refer to "clients". And he does say "Gentlemen".

neolitic

You had me going
until that last one.

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Bodger

Hi Karen. Kevin here.
Answer to your question is: A lot more than the last project you and I did together!
SURPRISE!!!

Teetorbilt

This comes from a recent poll in SoFL. $180 to $250+ a sq. ft.

I was checking my insurance policy.

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neolitic

I take it you two have been introduced?

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Bodger

I haven't looked at any hard data for this on the Los Angeles area, but that would be low here I'm pretty sure.

Teetor, do you know how the insurance companies arrive at these figures? Average everything together?

Trying to assign an accurate square footage price is like walking onto a car lot and asking how much a car costs anyway in my opinion.

Bodger

I'm thinking yes.
No way to PM, only one post.
But I'm thinking yes.
She's a nice woman if it's who I think it is.

RUN! Run for your life!

neolitic

Oooooh, that's too bad!
Also too late.

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