Owner-Builder Advice
Bill Falzett III
March 25, 2008
Self-reliance and independence are my favorite subjects to read and write about. Do-it-yourself projects are my favorite pastime. For me, building my own home was the ultimate do-it-yourself project, and it represents the very essence of self-reliance and independence. I have found that other owner-builders are similarly independent and industrious do-it-yourselfers who are willing to get their hands dirty, and not afraid to take risks. We ask questions, do the research and refuse to be told we cannot do a job. If you are such a person, building your own home might be for you if you can also manage a few key elements that go into a successful owner-built home.
Planning for your home should include an idea file, in which you save clippings, articles and images of styles and amenities you want in your home. You will need a practical set of blue-prints, which can be bought on-line, but preferably with content reviewed and approved by an engineer for structural soundness. You will also need detailed specifications about how you want each part of your home to be built. In the absence of such specifications, you leave the details to the discretion of your subcontractors. You must have a realistic budget, meaning it includes real-time costs of labor and materials that are within your financial means. Fortunately there is an unprecedented selection of guidelines and templates available to you that have been used successfully by other owner-builders in planning their homes. The information age has placed them all as close as your nearest computer browser pointed toward your favorite search engine.
Financing can be a challenge, as money is a little tighter these days, but there are still lenders willing to take on owner-builders. Shop around for awhile and meet with several lenders. When you talk to your lenders, whether on the phone or in person, be prepared to demonstrate your knowledge of the subject, your detailed planning, and your good credit. Be careful with the lenders who also provide services as a general contractor consultant; the cost of such services can greatly diminish your sweat-equity.
Research the construction process so that you understand the sequence of the trades, what is going on with each, and their relationship to one another. It is possible to hire independent inspectors for each phase of construction, but there is no substitute for having a good basic knowledge of each trade. There are many books available from which to learn the fundamentals of construction. You can also research on the Internet for details that are specific to your city or locale.
Manage the construction process meticulously. Begin with a construction schedule, and with a target ground-breaking date, and a date of completion. Keep your eye on your target dates and aggressively manage your materials and labor to meet the schedule. Visit with three sub-contractors in each trade, and always have the one you hire sign a contract that is specific regarding expectations. If your chosen sub proves unreliable, move quickly to another one. Do not wait for unreliable sub-contractors.
My home cost $440,000 to build and appraised at $566,000 and therefore created about $126,000 of wealth. It took 8 months to complete, for a net gain of $15,750/month. The median income for households in the United States is approximately $45,000/year, or $3750/month. All this math demonstrates it is possible for an owner-builder to realize sweat-equity that easily exceeds his income.
General Contractors have their place, and fulfill a need many are happy to pay for. However, if you are self-reliant, willing to take a risk, willing to do some homework and get your hands dirty, the math shows that it is worthwhile to consider building your own home. If you would like to learn more about building your own home, please visit my website at here.
Planning for your home should include an idea file, in which you save clippings, articles and images of styles and amenities you want in your home. You will need a practical set of blue-prints, which can be bought on-line, but preferably with content reviewed and approved by an engineer for structural soundness. You will also need detailed specifications about how you want each part of your home to be built. In the absence of such specifications, you leave the details to the discretion of your subcontractors. You must have a realistic budget, meaning it includes real-time costs of labor and materials that are within your financial means. Fortunately there is an unprecedented selection of guidelines and templates available to you that have been used successfully by other owner-builders in planning their homes. The information age has placed them all as close as your nearest computer browser pointed toward your favorite search engine.
Financing can be a challenge, as money is a little tighter these days, but there are still lenders willing to take on owner-builders. Shop around for awhile and meet with several lenders. When you talk to your lenders, whether on the phone or in person, be prepared to demonstrate your knowledge of the subject, your detailed planning, and your good credit. Be careful with the lenders who also provide services as a general contractor consultant; the cost of such services can greatly diminish your sweat-equity.
Research the construction process so that you understand the sequence of the trades, what is going on with each, and their relationship to one another. It is possible to hire independent inspectors for each phase of construction, but there is no substitute for having a good basic knowledge of each trade. There are many books available from which to learn the fundamentals of construction. You can also research on the Internet for details that are specific to your city or locale.
Manage the construction process meticulously. Begin with a construction schedule, and with a target ground-breaking date, and a date of completion. Keep your eye on your target dates and aggressively manage your materials and labor to meet the schedule. Visit with three sub-contractors in each trade, and always have the one you hire sign a contract that is specific regarding expectations. If your chosen sub proves unreliable, move quickly to another one. Do not wait for unreliable sub-contractors.
My home cost $440,000 to build and appraised at $566,000 and therefore created about $126,000 of wealth. It took 8 months to complete, for a net gain of $15,750/month. The median income for households in the United States is approximately $45,000/year, or $3750/month. All this math demonstrates it is possible for an owner-builder to realize sweat-equity that easily exceeds his income.
General Contractors have their place, and fulfill a need many are happy to pay for. However, if you are self-reliant, willing to take a risk, willing to do some homework and get your hands dirty, the math shows that it is worthwhile to consider building your own home. If you would like to learn more about building your own home, please visit my website at here.
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