Finding Profit In Concrete - Design Build Business... -
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Published on: 10/1/2003
Last Visited: 11/10/2004
Traditionally, concrete homes had a bad reputation, and many homeowners perceived a concrete home as a standard square "box" home with little design, says John Vogstrom, owner of Vogue Homes, a third-generation design/build custom home company in Eagan, Minn. However, as demand for ICFs increases, consumers, builders and architects are discovering that nearly any design they can dream of can be built with concrete.
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These savings are echoed by Vogstrom.He lives in a concrete home he built and says that a homeowner will typically pay about 3 percent more up front in building costs for an ICF home.However, he points out that the homeowner quickly makes up the additional upfront costs through energy savings and insurance reductions.
"I pay half for my insurance due to discounts.More insurance companies are realizing the advantages of ICF-built homes and giving better rates.The money you save on insurance washes out the 3 percent in initial costs, and you break even," he explains.
Vogstrom's previous residence, which was framed, was smaller, and actually cost him more in energy bills than his larger, concrete home.
"You save a lot on energy costs.I've cut my heating and cooling costs by 50 percent or more," he states.
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However, even with the increased interest, Vogstrom's team still had to do a lot of explaining and educating about the material, the process and the benefits of an ICF home. Demand for concrete homes increased, and in 2002, due to that demand as well as increasing liability and mold issues in the industry, Vogstrom transitioned the company to building 100 percent of its homes with ICFs.
While business has been successful, and the company now has a waiting list for its homes, Vogstrom admits there is still the challenge of the learning curve.
"Even though the building industry has changed so much over the last 50 years, I think people are slow to make the leap.They're not sure about things and are concerned over costs," he explains.