“Can I afford to rebuild?”
Let’s figure it out!
Real answers will require talking to architects and contractors, but here are some ways to get a rough idea.
*This information has been checked for accuracy and non-bias by licensed insurance experts and representatives from National 501c3’s specialized in insurance advocacy. We are not insurance brokers. Consult with a licensed professional about your insurance policy and specific situation.
first
know your square footage
To assess what you can afford you’ll need to know your square footage.
If you need a little guidance around what that is and how to find yours, click here.
what is
Cost Per Square Foot
The cost of building a house is made up of several different elements:
Contractors (the people working on the house)
Materials (what they build with)
Finishes (Flooring, Tile etc, which have a wide range of prices)
Fixtures (Lighting, Faucets, etc.)
Permit fees
Fees (Like getting your utilities connected, etc
“Cost Per Square Foot” is all of those things rolled into one and divided by the size of your house.
For a guide to square footage and figuring out yours, click here.
it depends on
Finishes & fixtures
A lot of the cost will depend on elements that you choose. Obviously the style of the house has a huge effect on price, but there is also a ton of variability in the things that you see.
For example:
hard wood floors cost more than laminate
aluminum windows cost more than vinyl
steel roofs are more costly than rolled roofing
stone countertops are more costly than composite
It also depends on mechanical things like solar, what type of HVAC you install, etc. The more custom features, the higher the price tag.
When you see a low cost per square foot price, you can safely assume that it means standard window, door and ceiling heights, lower end tile and countertops, etc.
“What Can I afford?”
We made a (rudimentary) template you can fill in with your own numbers to get a sense of what you’re working with and where you’ll need to do some supplementing. We’ll walk you through how to find everything you need to fill it in below.
Note: We use Google tools for most of our guides and templates, but you don’t have to!
If you’d like a guide to setting up all your admin and a bunch of helpful templates, click here.
How to bring down your cost per square foot
Mind the upcharge:
A General Contractor doesn’t typically swing a hammer. They get paid to oversee, coordinate, and carry the liability for your build - ie. they hire all the hammer swingers, and make sure everyone is doing their job.
Typically a “GC” deals with all your permits, buys your materials, schedules the sub contractors and handles inspections.
The way they make money is by charging you a mark up on everything they facilitate. This amount is often a percentage, for example GC’s often charge 20% on top of all materials that they purchase for you. Like a commission.
They often also charge fees and contingencies.
Ask your builder for a “cost plus” contract, in which you pay only the actual cost of labor and materials—plus a fixed fee or percentage—rather than a marked-up lump sum with hidden fees.
Ask your contractor to bid labor and hard materials only, excluding windows and doors, and provide your own finishes. If you’re participating in any bulk buying or business pricing, this would save you that 20% markup on top of any discounts you can secure.
One of the major expenses in a build is what’s called “site work”. This is work done at your lot before building can begin, usually by a number of different providers. Many survivors have had luck bringing these costs down by negotiating discounted rates for several houses in their area. A provider will usually be keen on the extra business and willing to negotiate to get it.
Site work that could be negotiated includes:
Site surveys
Geotechnical Soils Reports
Civil Engineering
Grading
PostFire is currently negotiating discounted rates with service providers for members, but if you’d prefer to move ahead on your own reach out to your neighborhood captain and ask about bundling these services with neighbors.
team up with neighbors
Get discounted materials
There are a number of groups working on ways to bulk buy materials, (like the USGBC), and PostFire is negotiating with some suppliers on your behalf. In the meantime:
LLC’s can often access hefty discounts from materials suppliers. If you have a business it’s possible you could save by purchasing through your business. Simply ask the materials supplier if they offer "Business pricing”.
Dont buy materials from box stores. Call your local suppliers and ask for discounts as a fire survivor.
Team up with your neighbors and bulk buy.
Use Discounted or free plans
There are many architecture firms and non-profits who have pitched in to help survivors rebuild affordably. We are compiling a comprehensive list of discounted and free offerings, but in the interim Foothill Catalog is a great non-profit option, and Altadena Collective is very discounted local option.
*PostFire does not endorse or recommend any vendor.
Do some of it yourself
DIY the things you are confident you can confidently do well. Even just painting will save you thousands.
Tip
If you’re having a hard time with the financials and would like some support, Operation Hope and Project Porchlight offer free financial guidance for disaster survivors.
what if
i’m uninsured
There are new resources popping up for uninsured folks and we’ll continue to make you aware of them, but here are a few options:
Apply for a low interest SBA loan - they have up to $500k for your home, $100k for personal property, and $100k for home hardening.
Use free pre-approved plans.
Use the cost saving strategies above to bring down cost.
Consider applying for a Habitat For Humanity build. They have collaborations with Foothill Catalog that are beautiful!
Ask your disaster case manager to connect you to Mennonite and other builders who build homes at no cost.
what if
im thinking of selling
Circumstances may be such that you need or want to sell. If that’s the case be sure to get a full grasp on the ramifications of selling vs holding, and if you can, consider doing it in a community minded way.
If you are party to a lawsuit (against SCE or otherwise), be sure to check with your attorney about what effect a sale would have on your claim. If you do not yet have an attorney, read this guide.
Consult with a financial advisor on the larger impact of selling or rebuilding on your personal finances. If you don’t have one, consider Operation Hope.
Speak to someone at Greenline Housing about how to sell ethically and what assistance options they might have.