1. (15 Points) I want to build a vacation home in the mountains near Winter Park and I need

your help with a cost estimate (and donations). The homeowner's association (HOA) has some

strict guidelines. The minimum square footage for a single-story home is 1,800sf. The

minimum square footage for a 2-story home is 2,400sf. The square footage is measured above

ground, basements are not included in the calculation. It must have high-end materials on the

exterior to make it seem we're fancy people. There must be multiple roof pitches. Interior

finishes are not a concern of the HOA.

Dreaming about this home, I want a 2-car detached garage for snowmobiles, dirt bikes and a ski-

tuning workshop. I want 4 bedrooms and 3 baths. I would like two big wood stoves

(comparable in price to a fireplace). The kitchen should be fancy for hosting spring break

parties. I would like an unfinished basement for now in hopes that I'll finish it later. The land is

a separate cost and will run $200k. I will also need a well and septic system which cost around

$20k-$25k total. The location factor in Grand County is 1.35. I have an estimating guide from

2016 which gives us square footage pricing, but assume an inflation rate of 3%/year

(compounded annually). Hypothetically, my budget is $400k.

1a. I really want a 2-story home to provide better views of the mountains. Using the RS

Means estimating guides (saved on Canvas), perform a cost estimate for this home. Show all

of your calculations and list all of your assumptions. Am I over budget? If so, by how

much?

1b. It seems that a 1-story home is more realistic. Perform another cost estimate for a

single-story home. Be very aggressive in your pricing and try to get me under budget. If you

need to make changes to my dream home, be sure to state your assumptions. You cannot

change the HOA rules, however. Show all of your calculations and list all of your

assumptions. Am I over budget still? What is your conclusion regarding my dream

home in Winter Park?