Luxury Custom Home Price - Value Relationship
One of the greatest misconceptions that custom homeowners have when preparing for a home design project is the relationship between price and value. It is not hard to understand why most people may think this way. It is common to hear the old saying "that you get what you pay for". This does not always translate to a direct relationship between value and price. No more than price is directly associated with superior quality. Perception of value and the buyers expectations are the x factors in the final determination of the price - value relationship.
Definition
of Value
Value has an intrinsic worth and an emotional significance to most
people. Each individual places some degree of significance to the intrinsic and
emotional value of an item or experience. Each individual will react
differently to each one of these value assessment elements and every reaction
will reveal some degree of transparency of their own personal definition of
value. Value can be translated into monetary worth and can also be placed on
the emotional experience.
Let's use the example of a popular and unique oil painting artist
work. The more rare and scarce the artist work, the greater the demand and the
greater the price. The value that the art work will have to one collector will
be completely different then another. The true value in the oil painting to the
buying collector is based on his emotional passion and his perceived future
value of the work.
Without a common comparable service or commodity, it is very
difficult to establish a relative price when assessing the worth of an unique
source of value. In the case of art work it's common that the value is defined
by the emotional pleasure that its brings the buyer. The price may not even
have been a consideration in the purchase if the emotional investment was
strong enough.
Experiences
Influences Luxury Home Design
Much like art work, another example of immeasurable value would be
personal and unique experiences. An example of this would be an exotic trip to
a special destination or witnessing a once in a lifetime event like the
Olympics or World Cup. These types of emotionally based experiences are
difficult to place a value on. Select international travel may be one of the
greatest experience influencers of any. Taking in the different architectural
and decorating ideas while traveling will have a substantial influence on our
perception of beauty, taste and value.
When people commit to the idea to design and build their dream
home they are embarking on a new and extraordinary experience. Even if the
owners have designed and built a previous home, the experience and process is
uniquely personal. It may not always be readily apparent that these events have
had an impact on your design judgment during the time of your travels. You may
not realize it until you think about what motivated a particular attraction to
a design shape or color during your personal home design experience.
A word about personal experiences influencing home design.
Although you are absolutely in love with an architectural feature that has
influenced your design or decorating ideas, these features will likely not have
the same effect on other potential owners when it is time to sell. This is a
good example of something valuable to one person not always translating into
value for another. This is an all too common issue with owners that overly
personalize the design of their luxury homes.
Luxury Home
Site
The lot selection is always a major contributor to the perceived
and innate value of a the proposed luxury home project. The future home site
has multiple impacts on the value of the proposed home. The first of which is
the rule of residential real estate values, location, location, location....
The finer neighborhoods are always in demand and historically lead the resale
market in price appreciation
The finer neighborhoods are commonly conveniently located to high
end shopping and the finer restaurants. They are close to the central business
district and impeccably maintained. They are highly secured areas that are
routinely patrolled by security firms or local authorities. In most cases they
are located in the better school districts or close to the popular private
schools.
The selection of your future home site will ultimately influence
the architectural shape of the homes footprint and the design theme of the
home. The architectural design theme of your luxury home will also be
influenced by the architectural styles surrounding the property and the
standards of the imposing deed restrictions. Houston has no zoning codes so
deed restrictions and architectural review committees have the final authority
on the acceptance of the neighborhood architectural elevations.
Standards of
Quality
The standards of quality of great home design and construction are
similar in principle to the valuation of an exclusive piece of art work. There
is an emotional ownership between designer, builder and owner that transcends
the boundaries of ordinary and by definition of luxury, has elements that are
uniquely rare and scarce in its form and function. Design and construction are
indeed separate activities, but are not independent of each other during the
value assessment.
Standards for quality architectural design represents the sincere
effort to capture the lifestyle design needs of the owner consistent with the
restrictive limitations imposed by the financial resources and external
influences. Great design is not restricted by size or form or resources. It is
the reflection of creating a visually appealing space that serves both rich
form and practical function, while incorporating the complementary unique
restrictive influences into the total body of work.
The standards for quality construction design are developed for
products, workmanship and performance. These standards are commonly referred to
as specifications and define the minimum standards acceptable for construction
results. Excellent quality construction can be measured by consistency in
maintaining a higher level of quality standards for each progressive
construction phase. Quality construction standards can also be defined by the
finished product being sustainable and providing low repair requirements during
an extended service life.
In luxury home construction, design and construction quality are
not exclusive of each other, but rather mutually reliant in representing the
quality final product. It is very possible to witness excellent construction
quality and ordinary design and vice versa, but the highest standards of
quality and value is achieved through great design being enhanced by higher
standards of quality craftsmanship. Timeless value is ultimately measured by
these standards of quality.
Professional
Luxury Builders Expertise
The professional luxury builders expertise is the artistry of the
luxury home design and building process. This intangible value has more of an
immediate value to the owner building the luxury home then a long term value
that transfers with the property. Having the knowledge and experience to
understand how to avoid design mistakes during the drawing stage or to actually
build an unique architectural feature is what separates the true professionals
from novices. This expertise allows a luxury home construction project to
operate in an orderly and smooth procedure. The hundreds of decisions that need
to be determined are systematically presented and discussed with the owners
well in advance of the required conclusion. The proper professional guidance
will save the owner money, time and aggregation
The professional luxury builders expertise translates to greater
value the earlier the owner can include them in the design process. Your
general contractor will assist you in the due diligence in selecting and
purchasing the best home site for your needs. They are an advocate for your
home building and design needs. They will advice you on product reliability,
special architectural feature cost and construction risk associated with your
project. As with any trusted advisor, good advice and counsel is invaluable.
Value Based
Design
If the true value of a luxury home is the emotional attachment to
the form and function of the design, the owner should understand the relative
cost associated with special architectural features during the design phase,
not after the fact. Understanding the impact that design features like 20 ft
cascading ceilings and the relationship of under roof to living area has on
construction cost helps the owner set design priorities early in the process.
The info@marwoodconstruction.com 713-818-1720 https://www.marwoodconstruction.com/All Rights
Reserved by Marwood Construction same is true for the impact that specific
products like barrel tile roofs and hand tooled stone features have on cost.
Value based design is a technique that is used by owners,
architects and builders that are attempting to optimize the design of a home
relative to the feasibility budget. Another value based design technique is
evaluating special architectural features impact on total cost and redesigning
these features. This is commonly referred to as value engineering. These are
all techniques to provide stewardship to the budget during the design phase of
the home.
The luxury custom home price - value relationship is a complicated
and imperfect science. As discussed, the owners perception of value is the
determining factor at the end of the day. Aligning the owners interest and mind
set with their luxury home builder is the most effective mechanism in
maintaining a vigilant awareness of the price value relationship during the
building of a luxury custom home.
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