One of the main differences between building a home in Chicago vs. the suburbs is the location. If you choose to build a home in the city, you’ll have access to all the amenities that come with living in an urban environment, such as public transportation, cultural attractions, and a bustling nightlife. However, Chicago’s heavy traffic can make it difficult to have projects in multiple locations, which could lead to delays and additional costs.

On the other hand, building a home in the suburbs offers more space and larger lots, giving you the opportunity to build a bigger home and have more outdoor space. This can be ideal if you’re looking for a quieter, more family-friendly environment. Additionally, the suburbs tend to be more affordable than the city, making it easier to build a home on a budget.

Another difference between building a home in Chicago vs. the suburbs is the architectural style. Chicago homes are generally more modern, with clean lines and less trim detail.  Suburban homes, on the other hand, tend to have more traditional styles, with more intricate details and decorative elements.  As a side note, we have noticed over the last 12-24 months the want for less trim in the suburbs is hot. Drywall wrapped windows, no crown moldings, less decorative trim walls and baseboards absent of shoe moldings are all very popular requests right now.

When it comes to building a home, there are many factors to consider, including location, budget, and style. Whether you choose to build in Chicago or the suburbs, it’s important to work with an experienced home builder who can guide you through the process and help you create the home of your dreams. So, if you’re looking to build a home in the Chicago area, take the time to weigh your options and make the best decision for you and your family.

If you would like to take on a Chicago Home Building project of your own, we would love to help.  Let’s set up a discovery call now!

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Let’s consider a scenario where a borrower takes out a 30-year fixed-rate mortgage for $1,000,000 at a 5 percent interest rate. In this scenario, the borrower’s monthly mortgage payment would be $5,368. This amount includes the principal and interest on the loan and does not include other expenses such as property taxes, insurance, or HOA fees.

Now let’s consider a scenario where the interest rate on this same mortgage increases to 7 percent. In this case, the borrower’s monthly mortgage payment would increase to $6,719, which is a difference of $1,351 per month. Over the life of the loan, this increase in interest rates could result in the borrower paying tens or even hundreds of thousands of dollars more in interest.

It’s important to note that even for wealthy individuals, this is a significant swing in monthly mortgage payments. While they may be able to afford the higher payments, it could impact their overall financial plan, including their ability to save for retirement or other financial goals.

For many borrowers, a change in interest rates of just a few percentage points can make the difference between being able to afford a home or not. This is why it’s essential to carefully consider interest rates when shopping for a mortgage and to seek out the best possible rates based on one’s financial situation.

What is happening with today’s rates? Let’s take a deeper dive into things.

Mortgage interest rates, which have remained relatively stable since November of the previous year. This has resulted in 30-year mortgage rates hovering in the 6-7 percent range, which is considered a moderate rate. When we look at our existing pipeline we realize that potential clients hit the breaks on new construction projects while they watched interest rates rise from 3 percent to 7 percent from November of 2021 to November of 2022. Now that things have stabilized, activity for custom homes is up again. Does that mean interest rates are down? Not quite.

Pressure on interest rates is coming from both sides of the interest rate spectrum. On one hand, there is pressure to raise interest rates due to reports of inflation, strong payroll results, and low unemployment rates. These factors suggest a strong economy, which typically results in higher interest rates as lenders seek to balance supply and demand for credit.

On the other hand, there is pressure to lower mortgage rates due to talks of a possible recession, recent bank failures, and weakening global markets. These factors suggest a weakening economy, which typically results in lower interest rates as lenders seek to stimulate demand for credit.

The recent inflation reports have caused some concern in the market, as they suggest that the Federal Reserve may raise interest rates sooner than anticipated. However, it is important to note that inflation rates have been relatively low over the past decade, and it is unclear whether these recent reports indicate a longer-term trend or a temporary blip.

At the same time, there are concerns about the strength of the global economy, particularly in Europe and Asia. The recent bank failures and weakening markets in these regions have raised concerns about the potential for a global recession, which could result in lower interest rates as investors seek safe havens for their money.

Despite these conflicting pressures, it is likely that the mortgage market will remain relatively stable in the short term. This is because lenders are currently able to balance the pressures to raise and lower interest rates, resulting in moderate rates for borrowers.

However, as economic conditions continue to evolve, it is possible that the mortgage market could experience significant changes in the coming years. Borrowers and lenders alike should remain vigilant and stay up-to-date on the latest developments in the market to ensure that they are able to make informed decisions about their financial futures.

Are you wanting to discuss your Custom Home Building options?

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Be Consistent

Many times stress with interior trim selections comes into play when you want to make different interior trim selections for different rooms. My advice is to keep it simple and be consistent. If you want 7 1/2 inch baseboards and your family room you should go with 7 1/2 inch baseboard throughout the entire main level. If you want to change things up do it by level not by room.  Also, if you want an elaborate interior trim package the material may not be in stock.  So be consistent with your selections to avoid lead time for material to be on site.

Use Elevations

If you’re not really sure or maybe you just don’t quite understand the importance of interior trim I recommend you use a designer to provide elevations. It’s always difficult is when I have a client who just cannot visualize the way they want things to be. In this case I highly recommend hiring the services of a designer who can draw your interior trim details room by room. This is also very helpful when it comes to bidding your project up front. With my bids we generally give an allowance for interior trim which includes baseboards, crown moldings, ceiling trims, wainscoting, doors and hardware. There’s a lot of details in there that can’t be over looked. If myself and my clients are not on the same page we need elevations so we can quickly make decisions to obtain proper materials on site and make sure our interior trim carpenters have the correct labor hours included for their pricing.

Understand Pricing

Want to talk to someone today about your custom home project? Contact Us Now!

I think with every selection that you have for your custom home  it’s important to understand pricing. I also understand it’s very overwhelming. You are building one home and for me as your home builder to assume you are going to understand all the pricing is not fair. For interior trim it’s pretty simple.  The more exotic, more specific or more custom that you want your product to be the more you will pay. There’s also the type of material you want, which effects pricing. Most of my interior trim packages are built with MDF trim. It’s a lot more economical. However, if you were someone who wants all natural hardwood product, understand you will be paying more. Interior trim fortunately does not move on the walls which is why I am completely fine using more economical MDF and my custom built homes.
Hey if you’re looking for custom tips tricks or information on how you can custom build or custom remodel your own home. We would love to help you. You can email me directly Ryan@SGHomeBuilders.com

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How Many Contractors Does it Take to Complete My Renovation Project?

By Ryan Siebert

This article is for all of you out there that are looking to take on your next renovation project on your own.  Coming from someone that knows about the renovation project I tip my cap to you for having the confidence in yourself to take on the experience.  Below are the three main issues you are going to have to deal with when managing your own renovation project.

Number of Specialists
The reality is even a simple renovation project will cause you to have a lot of skills on your own, or a lot of really good friends.  I recently shot a video about a Chicago renovation project we are completing.  I took the living and dining room as an example small example of the management that is needed.  In the example you see that the coordination skills required to get 10+ contractors together was extremely difficult.  I’m all for working with jack of all trades handyman that simply know how to get stuff down.  However, when you want your project to stand out, you bring in hired guns.  In other words, you do not want to have your oral surgeon working on your open heart surgery.  Custom work, should be done by specialist and your Chicago rehab project should be no different.  
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Coordination of Trades
Needing the trades is one problem, but actually getting them to show up at the time that you want them to is an entirely different conversation.  Countless times in my career we have had to stall our project to allow time for subcontractors to show up on the job site.  Other times I need not 1 but 3 contractors to show up on the job site the same day so the plumber can confirm with the framer the location of the drain for the bathtub, and the designer can decide what type of tile they are going to install based on the layout.  My point here is, even if you do happen to have the connections in front of you for your renovation project it will take your skills to look forward and coordinate all of the trades to be on site at the right time to avoid delays and paying extra from trips back and forth when decisions delay.

Your Decision
Multiple times in my career I have had to shut down job sites because clients are unable to make their finish selections in time.  It is frustrating, but at the same time I get it.  Decisions of  finish materials and colors are important, and some clients have a difficult time visualizing everything.  Rehabbing a kitchen or a rehab bathroom work requires a lot of selections.  I always tell my clients to let our project management team run the day to day so you can focus 100 percent of your time and attention to the finish details and we avoid delays in the project.  I can’t imagine having to worry about which contractor needs to show up next, while at the same time balancing the difference between the Calcutta Classique and the Calcutta Viceneza countertops.  

I implore all of you do it yourselfers to please value your time if you decide to move forward with a project on your own.  Remember, a renovation project will not affect you, but it also hits your family.  Make sure they are comfortable with whatever decision you decide to go with.

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Custom Built Home in Naperville

By Ryan Siebert

We recently wrapped up on our latest custom built home in Naperville.  I wanted to give you a tour of my favorite rooms of the house so you can keep your eyes open when custom building your own home.

Main Level

Den/Office
Coming from a guy that has his office out of his guest bedroom I have to say that my favorite room on the mail level of this custom building is the front den.  More commonly referred to as the office, this space turned out fantastic.  Big bright windows at the front of the house give off tons of sunlight and the extra space provided by the bay window two level bump out allows you to avoid a claustrophobic feeling.  My favorite part about this custom built home is the way it begs you to want to see the rest of the house from the moment you walk into the front door.  For other homes that we have done in the past the den space was an afterthought or worse yet, not wanted but required due to the layout of the rest of the house.  With this home we went with a bold wall paper piece, can lighting combo with a bold ceiling fan, and the architect gave us a full walk in closet space.  When it comes to building a custom home on a 50 foot wide lot you generally do not get much luck with the front of the home.  However, the bold colors catch your eye and have you thinking about what else is possible if this is only the appetizer portion of the house.

Second Level

Jack and Jill Bathroom
I could have taken the easy route and gone with the master bathroom, but something about the layout and tile design of the Jack and Jill bathroom really peaked my interest.  Most Jack and Jill bathrooms I’ve been in are longer giving access for both bedroom connections.  This bathroom was narrow and our architect designed a horseshoe walking path to give both private areas their own full sized vanity area, while keeping the bathroom and shower private in the back.  I especially liked the tile design in the shower.  Custom home building is supposed to be one of a kind and this shower takes the cake for customization.  I’ll let the pictures speak for the exact feeling that I am talking about.

Basement

Man Cave
Now I will take the easy choice in the basement and go with the overall man cave appeal.  The openness of the basement gives the possibility of games, TV’s, and holiday parties.  What is nice about this custom built home is the exposure from the natural light.  We only dug down 8 feet, but added a 1 foot wall with framing to give the basement more lighting.  We did not go all out with details in the basement, but we did use core tech flooring for the first time on this home.  It is a water proofed vinyl flooring that allows you to have a wood floor finish, while avoiding the floors being freezing from ceramic tiles.

The truth is this home was stunning from exterior to interior and top to bottom.  To prove it, I made a video tour just for you!  Enjoy!
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Marty Paris Founder and President of Sedgwick Development
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As the leader of one of Chicago’s top development companies Marty Paris knows his way around the block.  In this episode of Secrets of Homebuilders Marty gives an up close look into being a Chicago Development company and shares what it is like to manage the construction, but have no skin in the game for the development.  Marty discusses how he got started in development of projects and reveals the number of projects that he and his team are currently working on in Chicago.  For those of you looking to start Chicago Development, you may want to listen to what Marty has to say about the current state of the market and his feelings on the future.

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How to Prepare for Coffered Ceiling Installation

By Ryan Siebert

If you think installing a coffered ceiling is a simple task you can wait for the last second, you may find yourself in serious trouble.  

Custom building and renovation projects are quite possibly one of the most exciting, things that you can take part in.  You will also hear comments about them being the most stressful events that you want to avoid at all costs.  Coffered ceilings and millwork installation is a great example of how you can make or break your project with the proper preparation.  The three tips that we give when discussing your millwork are below:
Details Matter
Coffered ceilings and wainscoting can come in all kinds of shapes and sizes.  To make it simple, know the exact design that you want to go with, because making changes to the layout afterwards often does not work.

Details Cost
The more complex you wish your millwork style and shape to be completed in the more it is going to cost you.  This comes in two forms, the cost of the labor to install the product and the actual product.  Keep this in mind when you fall in love with the latest Pinterest or Instagram post.
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Make Decisions Early
As you can imagine, the longer that you wait to decide for specialty finishes the more that you will end up costing yourself.  Contractors get a bad rap for charging big fees for change orders.  The reality is, contractors charge big fees for change orders.  You as the consumer are stuck with the contractor you hired, so be detailed up front and avoid costing yourself down the road.

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Carrie McCormick – Real Estate Broker with @Properties
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Carrie McCormick returns for part two.  In this episode Pat and Carrie discuss the ways that the stock market rise and confidence in the economy could lead to a booming year in real estate in 2018.  Carrie also discusses how development in neighborhoods not only increase the value of homes, but it also helps create better schools in the area by raising the bar of student and parent involvement.  More development in your neighborhood gives the consumer the opportunity for custom renovations and rehab work to be completed.  From a developer perspective, it is important to know the areas and neighborhoods where there are value plays on the way, and when to hit the stop button as neighborhoods hit their peak in value.  Pat also reveals that Carrie will be joining the Board for the Home Builders Association of Greater Chicago.
 

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Why Does Wallpaper Matter?

By Ryan Siebert

The thing about custom renovations and custom  new construction projects is that they are custom. Follow me for second. I am a systems person. I love putting things together you can replicate. I’m constantly working with my project management team to come up with ways we can replicate our custom construction process for every single project.  When it comes to making selections for clients who want their home to feel custom the moment you walk in the door there really is very little you can do to create a system internally.  Today I want to share with you three ways that we make the custom home building and remodeling process systemized for our clients to make the transaction and joy the experience.

We Set Expectations

It sounds simple enough but too many times in my career we run into clients who want a special home.  In doing so we focus so on making their experience one that is unique to their individual transaction. What we forget to do is follow a step-by-step process.  There in lies the problem.  We miss steps or did you not take the time to explain what is needed for our clients to keep the project moving forward. They do not understand that taking 3 weeks to make a decision on the roofing color may be pushing the entire project back by 3 weeks, but taking 20 weeks on the backsplash doesn’t effect the project timeline at all.  When working with a custom homebuilder or renovation expert, be clear on what is expected of both you and your builder to keep the process moving forward.

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We Encourage Asking for Updates

What’s frustrating to me when a client comes off very calm cool and collective.  They trust us, they love us, they want nothing to do with the project except to see the finished product. Until they change. All of a sudden this client who loved us in the beginning realizes they’re not sure what’s going on. Part of communicating the expectations is doing so often enough that you have no questions.  However if you’re not comfortable with the level of communication or maybe you just don’t understand what exactly it means to select the rough in plumbing valves before you actually need to pick the finished plumbing fixture. Regardless make sure you’re comfortable with the level communication if you’re not and you want more details ask.  Most builders are too busy to stop to make sure that you understand until you start throwing darts at them.

We Ask That You Avoid Micromanagement

Coming for me this maybe one of the most hypocritical paragraph pointers tips of all time. Contractors absolutely hate micromanagers. You hired them for reason, your paying them for reason.  Let them do their job. Sure you may have watched a YouTube video or even HGTV all night long so you think you know more than your contractor. But the bottom line is you don’t. If you get to the point we do not trust your contractor anymore let them know, but by all means to void trying to micromanage the project. The moment you start talking to subcontractors, electrician plumber drywall etc, is the moment that your project is about to fall off the wheels. Now everyone is being told what to do from two separate managers. There is a reason we have one president United States, baseball teams have one manager. one quarterback in the huddle. Let your project manager do their job.

When construction is needed for your dream home or renovation project I can guarantee you there will be a time or two that you will end up frustrated. One day I hope to write an article that tells you the exact way to avoid frustration. Until then, I’ll keep giving you tips so that when the time comes for you to pull the trigger your custom project you will be well-rounded and have all the knowledge needed to make your transaction experience enjoyable.

For your own Free SG Home Builders “Consumer Guide to Building a Customized New Construction Home” contact us at Ryan@SGHomeBuilders.com or call 847.602.7641 or enter your information below.

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