How To Value A House?

Selling Properties Property Evaluation
#14

Thanks Syyed. Cost of construction is neglected part in this forum. Whenever anything related to construction comes on the forum, builders jump in and spoil most of the discussion. Beginners who need help get even more confused and leave the forum.

Good attempt by you.

By the way, my finished cost was 2400 even though structure was complete before 2013 budget. My friend's average or somewhat below average finish cost was 1850. Builder's finished cost was 2000. People making home around me had Rs 2500 finish who recently completed.

Umar Gul cricketer also finished home when I completed my grey structure. His finished cost was Rs 2200/-

We all discussed and shared our costs with each other to help.

#15

BR malik visit my threads you will get almost 50 % idea with regards to cost of construction…

#16

Malik sb, what is the are you are talking about, it must a very posh area, Umur Gul must be living in very high end Area.

For plot size of 10 Marla and below 2,000 will be very high if a person intends to construct for selling. Based on little exercise of surveying in middle class sector and societies of Islamabad people are paying around 2000 to 2200 for a constructed house plus the cost of land.

I'm planning to construct 10 Marla and have budget of 1,600 in mind for average finish but if it goes beyond that I will be stuck.

To understand it in a bit more detail what do you suggest will be cost of grey structure for average construction, my expectation is around 750 to 800 per square foot. Planning a covered area of 3,400 square foot and expecting a cost of 2.5 million to 2.8 million, how do you see this?

Once you reply I will also share the breakdown.

#17

@ HT sb, agree to your comment in general but the numbers are quite aggressive. 15 to 20 years do bring a lot of wear and tear but Prices don't go down to plot cost after this time unless a house is very poorly maintained.

In my formula im subtracting cost of repair at the end and this will go very high to make a house in running conditon in case it's not maintained properly. Every house needs significant spent after 5 years and major overhaul every 10 years.

Taking example of islamabd sectors I-8 to I-10, average age is around 15 years. I-9 and i-10 average is 20 plus and I-8 is in the range of 10 to 12 years. Price is still well over plot cost in I-9 and I-10; I-8 is really is ascendancy and is very very high as you must be aware yourself.

#18

@ Syyed. I am takkingt about E-11.

Somehow, my impression is that people guiding us before construction give wronh estimates. All labour contractors give wrong estimates. Carpenters give wrong estimates. On probing this impression myself and a friend of mine, we came to conclusion that workers want the owner to jump in a project or work. Rest, they know that owner will arrange money somehow or taking loans. If they give correct estimates, owner will be shy of jumping in and hence no work of workers. They are street smart and we are not. They constantly give you adrenaline injection that your cost are very good. Mr. X and Y and Z spent so much but still work quality was low. Purpose is that owner is happy and never object to your work.

One og my friend did construction recently in G-15 . Size 30x60. His cost of grey structure was 950.

When I look back, I think architects gave better estimates but we rejected it at that time because one wants to be optimist at start on construction.

Almost 4 of us were making house at same road. We discussed and helped each other. Every one of us were stuck due to wrong estimates. It was beyond anyone of us estimates.

Builders save a lot of money in structure. But after seeing home building by a builder close to my home where I was living on rent, I will never ever take builder's house. Its like outsourcing milk supply network to cats as they know a lot about milk.

#19

B.R. Malik Sahib, please keep writing, your opinions are reality based and will definitely benefit lots of us. In return, we can give you Dua’ and insha’Allah you will be rewarded in this world and the world hereafter for your good deeds. I read every word of you keenly, and actually copy it to a word file named “MUST READ MULTIPLE TIMES BEFORE AND DURING CONSTRUCTION OF MY OWN HOUSE”. Please keep writing.

#20

Thanks a lot for the encouragement :slight_smile:

#21

Dear Malik sb, thanks for the details, I was trying to to press thumbsup button but inadvertently pressed thumbs down, sorry for that … :slight_smile:

#22

Welcome. No problem.

If you need anymore information, would be happy to share.

#23

Good article Syyed. Although, it would be more helpful if you can tell us how you came up with the numbers of construction cost. Coincidentally, i have been working on an estimate for construction of house with covering area of around 4000 sqft and I came up with the same number as you i.e 1600/sqft for average finishing.

I have no actual experience of house construction and the estimates are based on current market prices for raw material and labour rates. Anyway here is the detailed breakdown:

Architect: 100000***

Boring: 140000

Sand/Crush: 220000

Bricks: 382500 @ 8.5 x 45000

Cement: 445500 @ 495 x 900

Steel: 588000 @ 85000 x 7{tons}

Water proofing and heat insulation: 150000

Marble: 320000

Marble (outside covered area): 150000***

Pipes: 310000

Electric Wires: 160000

Electric Fittings: 150000

Grills & railings: 295000

Aluminum Windows: 174000

Main Gate: 90000

Glass Work: 45000

Stone Wall: 90000

Paint: 280000

Woodwork (Doors, wardrobe, kitchens): 400000

Wood polishing: ?????***

Hardware Fittings: 90000

Bathrooms: 300000

Utility Connections: 120000

Labour - Civil Work: 1000000

Labour - Electric: 150000

Labour - Sanitation: 150000

Labour - Paint: 100000

Labour - Carpenter: 250000

Labour - Guard: 70000

It all adds up to a grand total of 6460000 (6710000***). I may have missed something but then again it is all a rough estimate. Experienced members and professional builders maybe able to point out some points I may have missed.

***Modified after BR Malik's input.

#24

Thanks brother zol,we will wish now some builder or contractor to come up and accept or contradict ZOL numbers with proof,

#25

I haven't found a single person building home who is not badly stuck in the end. It's not a one go shopping spree.

We bought first bag of cement at Rs 412/- and last bag which came only a week back for ramp was Rs 502/-.

Also, there are a lot of things out of covered area and on roof. One has to marble or brick tile the roof too. A lot of material especially tiles and marble is wasted somehow. Almost everyone burnt bore machine once. Plaster has to be done from outside and than charcoal painting ( Though it's of no use ) .

Your labour estimates are quite good except the paint one. You have not included the polish of wood work too. Paint material estimate is also on the edge. Number of bags of cement seems a lot less. Steel also seem less but it depends upon the map.

Have you included architectural fees if you are hiring one? Also approval of map if it's legal requirement.

You mentioned 70000 of guard. Would you be able to complete project in 7 months?

Insulation estimates seem good. My advise would be to opt for even cement floor if you have to decide between flooring finish and insulation. Marble and tiles can be installed later but insulation is extremely important. I hope you understand what I meant to say.

My style might be of probing, but it's just to help you. Most of the people would tell you that it's great estimate.

Unfortunately my laptop fell off from the hands of my kids and the HD had problem. Otherwise I had all data in percentage expense on all heads. Will try to recover data after Ramazan iA.

#26

Thanks BR Malik. I was hoping someone with experience will give some input.

Prices are always evolving and you can never predict how much it will increase. Although, I would like to mention that you can save some money on steel if you buy it from one of the factories in I-9. You can buy all the steel at once and they will deliver to you as needed.

You are right; I totally forgot to add marble for roof, terrace and porch. Considering if you use sunny white marble; it cost around 40-50/sqft. If total area of roof, terrace and porch is 1900 and if labour rate for that is 20/sqft; you will end up paying nearly 1.5 lac.

As far as I know burnt boring machine is not responsibility of home owner.

I have included plaster outside covered area in civil work labour. Most of the contractors had a same view about the charcoal or garam look. It’s a waste of time and money.

Regarding material estimates; I got those from different contractors. Most of them told me 850-900 cement bags will be enough. Same for other materials.

I will check how much wood polish is needed and how much is the labour rate.

I also forget to include architect rates. During my research, I came across 2 different kinds of architects i.e. Freelance architects and professional companies. Free-lance architects charge around 80,000 which include approval from CDA and all the structural, electric and public work drawings. Their work is done when they will give you the drawings. Professional architect companies charge around 250000-500000 but they will check and inspect work on site from time to time. I think if you are going for average construction you should hire a freelancer.

I think 7 months is ample time to finish work provided you supply all the material on time. I once saw a home built from ground up to finishing in 4-5 months. It was 30x70 and had a basement too.

I hope you can recover data from your HD and share with us cost of your home.

P.S: I have modified my original post to add architect fee and other things pointed out by BR Malik.

#27

Zol

read through this thread regarding 10 marla construction cost you will have some idea.... And this was for bahria town and its cheaper if not in bahria or dha...

http://www.zameen.com/forum/answers/construction_and_materials/construction_on_a_10_marla_plot-3440.html

and most of your prices are way over the top..... Have them checked out yourself rather than contractors... In some points there is a difference of rs 50,000 to

1 lacs...

#28

@Zol sb, the numbers seem low, atleast for some of the items, let's try to analyze one by one.

Starting with boring, 140,000 should be Ok.

45,000 bricks is Very very low for, I'm assuming plot size is 40x80 and you have two stories with an attic ( mumty); I would say that the bricks required will be around 80,000. Based on Internet research including Zameen.com forums number of bricks per cubic foot are 13.5. I think total volume of walls for 4,000 square foot will be in the range of 6000 cubic feet. Rate could go down to 7/ piece to 7.5/piece if you source bricks from brick kiln (bhatta); there are several bhattas in and around tarnol.

cement would be around 0.35/square foot which means requirement for your are would be more in the range of 1,400 bags to 1,500; you may take this down to 1200 bags but 900 looks bit on the lower side.

#29

HT, Thanks for the link. I remember going through that thread few months back. Too bad they have locked it. I know some prices are very high for example for steel the actual price they quoted at the factory was 82000; some outside vendors even offered 76000 per ton. I have inflated some prices in my estimate for inflation or in case i am wrong about estimates regarding quantity; and as it turns out after reading Malik's and syyed's posts that i am wrong.

Syyed,

I used a generic floor plan for getting estimates. Covered area was around 3920 and it had 2 floors +mumty. It was a little like this plan but not exactly:

http://www.alharamcity.com.pk/images/stylish/35%20x%2070.jpg

Let's update the total if bricks and cement is estimated according to syyed:

Cement is now: 742,500 @ 495 x 1500

Bricks are now: 680,000 @ 8.5 x 800000

and the grand total becomes a whopping 7,304,500 which equals around 1800/sqft. This is not looking good.

#30

Dear Zol, what is area of plot? I might have a few maps in my iPad which I can email. You might save some money. I also have a contact in G-7 who will approve map fron CDA in very low charges. Obviously if you are willing.

Regarding professional input expected, I guess builders have their own axe to grind. They jump in to have their own benefit. I agree with Syyed regarding cement.

Will share some more later.

#31

Sorry I write in bits due to time constraints.

Just to add a few points.

Labour for electrician and Sanitary are high. You can manage both in 1 lakh each. I hope everyone has advised you to have good plumber. I emphasise again. I am quite surprised how important plumber is. Infact his real show begins when one is shifted.

Continued. .....

#32

Dear Zol, dont be disheartened, its good to have a realistic number rather than a very low ball number and have surprises later on.

When i started making estimates initial input was that the cost will be around 1200/sqft then with the passage of time this went upto as high as 2200/sqft but now i think both these number are eith too ambiotious or too luxurious.

For approx 4,000 square feet 7 million to 7.5million appears to be a realistic number.

Difference between 7 and 7.5 will be the sourcing of materials and ancillary and hidden cost. Purchase from the right source could save a buck or two; like bricks @ 8.5/piece appears to be high. I think if you go to bhatta (klin) it will be around 7/piece (including transportation). On the other hand cement @ 495 looks slighly lower sidish, i think cement bags for most of the brands are 500 plus and then there might be some money to have these delivered to location.

For financing purposes 7 to 7.5million should be a good number. However as Malik sb is reviewing the numbers he would be able to advise more ratinal number for each line item.

#33

I think 7 to 7.5 Million is quite realistic figure. Building home from foundation till ramp is not an easy thing. A lot of things come up without expectations. I wish someone can make BOQs for home construction. If I get my data, Syyed can have a good write-up from it. I do not trust builders by the way for input. Building your own home and builder information is completely different ball game. Builders are fortunate that they do not live in that house for many years.

I would not favour Bhatta going. I went to most of the kilns in Fatehjang area. Finally purchased bricks. But they sent wrong quality bricks. Since a singke kiln produces many qualities of bricks, its not possible for us to sort out. Dealers can manage it well. One can return bricks to dealers too if wrong quality. Its norm of market. But its great that dealers know that you have visited kilns and gave their cards. They are cautious not to cheat.

I bought bricks from dealers, cement from cherat cement company directly, steel from I-9 factory, crush from direct taxila and sand from truck owner.

Polish labour is Rs 40/ sq ft. Material is expensive. In your size housr polish labour roughly would be Rs 80-90000/-.

Have you calculated curcuit breakers and main switch in electrical fittings? Even energy savers for whole house become burdensome in the end but one has to buy to check points.

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