Frequently Asked Questions

First, it’s important to know what your project is. Are you going to build a $200,000 home or a two million dollar home? Will you provide some labor yourself or use contractors for every phase? There are a lot of variables. Don’t be fooled. Savings from being your own builder (by wearing the contractor’s hat yourself) is neither easy nor an automatic windfall. Claims of savings of 40-60% are usually overblown. These results are rare and require that you provide a ton of your own labor and time along with managing the process yourself. Can you do it with the right experience, time, friends and a good system? Yes, but be prepared to focus intently on it for at least a year. But, what is a realistic savings goal for “Owner Builders” who want to manage their own project and use contractors to do most of the labor? With a good step by step process and advice from industry experts, you can expect to save as much as 15 -20%, on average. This means that on a $250,000 home, you can save up to $50,000 dollars. (In some situations it can be more.) For some, that’s a year’s salary. And, that’s nothing to sneeze at … especially when you realize you’re also getting a brand new home in the process!

Owner Builders manage their own home building (or remodeling) projects without the use of a General Contractor. They may or may not be true DIY owner builders (providing some or all of their own labor), but they are involved from the get-go. Do you need to hire a licensed General Contractor to be an Owner Builder? In North America and a lot of other parts of the world, no, you do NOT need to hire a licensed General Contractor / Builder. And, you do not need to be a licensed builder yourself. You may, in some cases, need a special permit. Be advised, however, that you need to get the right professional assistance, prepare early and thoroughly, and have a system that gives you step-by-step processes to keep you on track. Personally, I advise all owner builders to hire a Home Building Coach to provide this process and guide them along the way.

Providing your own labor can provide you with the biggest savings in any owner builder project … whether remodeling or building a new home. Labor is a big factor in any such project. But, are you knowledgeable, skilled, and able to put in the time? My advice is to never perform your own labor unless you possess the following: · Time: You should know that you can perform the work without jeopardizing your time and effectiveness at work. · Ability: Attempt only work that falls within your skill-sets. Sometimes friends and co-workers can provide the skill and that’s okay too. · Speed: As they say, “time is money”. In building this is also true, especially if you have a loan that you’re paying interest on. Finally, keep your overall goal in mind. Are you focused on saving the most money, getting more of what you want in the home, or are you really wanting to maximize your enjoyment of the entire process? If you can perform the work well and it’s very enjoyable, then go for it!

Do you know what a good contractor/builder looks like? Do you know what you WANT in that builder? If not, you simply won’t know what to look for or what to ask during interviews. Never base your choice simply on his or her quote! Here are some of the main qualities that I recommend that you look for: · Speed of work: Slow and methodical can be good but when it comes to a major project where interest costs are involved, you want reasonable speed. · Quality of work: Seek out physical evidence of their competency in their trade. · Competitive pricing: It’s not the lowest bid you want, but at the same time, it usually makes little sense to choose a builder who is more than 20% higher than average. · Exceptional communications: Be sure that you can communicate with your builders. There’s nothing worse than working with someone that won’t listen or you just don’t understand. · Performance that matches promises: It’s easy to talk a good game. This is where people get fooled. Never assume … look for proof. Now that you know what to look for, you can base your interviewing on these factors. Get a minimum of THREE BIDS on each trade and a minimum of THREE REFERENCES. Question the references based upon these qualities. If the builder doesn’t measure up, don’t hire her.

Don’t allow that big error to blindside you and rob you of your savings. As I advise in my writings and speeches, I suggest that you get the best professional help you can afford. Even “Owner Builders”, who take some control of their own projects, need to get this help. The number one strategy I advise is to hire a Home Building Coach. Home building and remodeling are complicated processes that demand well-prepared processes and excellent execution of those processes. Most people cannot provide this completely on their own. This is where the experienced Home Building Coach can work wonders! The “Coach” will bring that strategy and provide personal guidance to help you execute the step by step process and act as your trouble shooter to steer you clear of disasters. You’re not looking for “perfection” per se. Home building and remodeling are fluid processes that require others to perform over a long period of time. This will surely result in mistakes and delays. But, when you prepare well, get good help, and stick with the plan, you’ll steer clear of the worst disasters.

Real Estate, like life and business, has its ups and downs. At the time of this writing, I get this question a lot. It comes in different forms such as: · Should I make sure homes are appreciating in value before building a home? · Would it be better to buy a foreclosure or another existing home instead of building? · Does it make sense to rent in the current economy? The answers to these and similar questions can depend upon when you’re seeing this but the truth is that it’s more dependent upon your situation and your goals than it is a question of the economy. You should think specifically about your goals … what are you trying to achieve? Where do you want to be in a year or two and how do you want to get there? In other words, it’s very personal. The decision to build should reflect your needs, your situation, and your ability to make it happen. I’ve helped people to build in many different housing markets. And I know through direct experience that dollars and cents aren’t the only driving factors. If you know what you want and have the financial means to achieve it, then almost any market or economy is a good time.

Yes. Should I qualify that answer? No, but you may want to. The truth is that almost any time could be an excellent time to remodel depending on your goals and needs. And your needs may have nothing to do with market values. You may not be all that concerned about equity, short term gains, or market fluctuations. You may be far more interested in getting what you want in your home, providing for a growing family, or creating conveniences that you’ve done without for too long. Now, while there is a lot to be said for controlling your purchases and making better money decisions, a home remodeling project can be put into a different class than building a new home from scratch. So, whether or not this is the right time to attempt a major home remodeling project depends upon your goals. If it is to add significant value for resale alone, then it may not be wise. But, if you need the space for a growing family, bringing in renters, or for relatives that you want to house, then that takes precedence. Get advice about your personal strategy from your home building coach, talk with local building industry professionals and plan well before you proceed.

A home building coach is used as a personal advisor to people building or remodeling their homes. Usually, a home building coach is best suited to help the Owner Builder who wants a direct hand in their own project. But, home building coaches can also help individuals and others who are having a General Contractor build their home for them. Here are some of the services and advantages of a home building coach: · Coaches help you decide and outline what your project will be · They provide independent expertise to evaluated your project, professionals, and the costs · Coaches should provide you with a step by step process if you want to manage your own project as an Owner Builder · They help you save money and get more of what you want in your home. · The same benefits are realized with major remodels as well as the same processes are used. By far, the most common use and benefit is that they empower you to be your own builder (or remodeler) without needing to know everything yourself. They cost far less than a General Contractor while bringing similar knowledge and experience. They could, in fact, be builders themselves acting in the capacity of a consultant instead of your builder.

Getting started is never easy when it comes to a big project such as remodeling a home. It’s hard enough when it’s a minor thing like painting or changing window coverings but if you’re about to do something major like redoing the entire kitchen or adding rooms to the home, you’ve got a sizeable project ahead of you. If you don’t go into it with the right mindset and plan, you’re going to suffer much more than you need to. But, that’s not the real question here … “How do you get started?” There are two professionals I usually suggest using to help you get started. Your first major step once you’ve decided to proceed is to either hire yourself a home building coach or an interior home designer. For a remodel, I lean towards hiring the interior designer first. A remodel must take into account the existing home style and good designers are adept at helping you sort through your desires, match them with what you’ve already got, and then setting out a plan to achieve your goals. Once this is accomplished, then would be the time to hire a home building coach unless your designer is willing to act in that capacity too!

If you’ve been following my advice over the years, you’re likely very aware that I am an advocate of the home building coach. I’ve personally coached hundreds of people with their home building projects. You’re also likely aware that I like to use an interior designer to help you hone in on your goals and formulate a plan for your new home. In remodeling, I normally advise people to start with talking to an interior designer and then go to the home building coach. While you could do it this way with a home building project as well, I would instead advise you to start, instead, with the homebuilding coach. Getting this coach lined up is the first step after deciding to move forward. An experienced coach will be instrumental in finding all your other professionals along the way … including the interior designer if one is necessary or desired. It is important to note that your home building coach could, in fact, be an interior designer if they are experienced in dealing with builders and new construction. You see, it’s the relevant experience we’re looking for when it comes to building a home from scratch and knowing when to utilize designers, architects, engineers, tradesmen, lenders, and suppliers and making those materials decisions. So, home owner builders are better off hiring a coach first thing.

Certainly, there are many ways that you can get your house plans. Architects, residential designers, drafters and structural engineers can all prepare house plans and floor plans for you. Many times you can find a “Design Build” contractor who can design your home and prepare blueprints for you. The quickest, easiest, and least costly way would usually be to purchase pre-drawn and engineered house plans from a stock house plan book or website. These will not be truly custom house plans as they would need to be drawn by an architect (or other designer) exclusively for you. You can purchase these house plans, both online and off, for a few hundred dollars. You can also ask them if they offer the flexibility of customizing the plans. I advise you to ask them also if they will provide a detailed list of all the materials called for in the construction of the home. This will be a big help when pricing out the materials package before building. Now, there’s a big word of caution before you purchase! Always check with your local building authorities as well as any Home Owners Association to see if there are restrictions about who you can use to design your plans or where you can purchase plans. It could actually be illegal to have plans prepared out of state/province or jurisdiction. Or you may have to use an architect from an approved list of architects.

The word “sustainable” is kicked around a lot when we talk about green building. This word helps. So, let’s talk about sustainability first. When the term is used in regards to building, we’re looking at ways to build and develop that don’t harm the environment and that utilize resources that can be easily replenished. When resources can be easily replenished it doesn’t diminish our ability to continue in the same fashion for years and years to come. In addition to this, green building generally includes energy efficient processes when it comes to power usage, non-toxic materials in the construction, and materials that don’t pollute the environment during their production. Green building is really about the products, their design, and their efficiencies. It’s not so much about the labor or the “act of building.” But, with that said, it is important to find laborers that are experienced with the various “green products” you intend to utilize in your home. Does building a “green” home really save on energy bills?

It should! Not all “green building” is created equally, however. When looking at the various components of a green home, we can look for savings in several areas: · Energy efficient wall systems like SIP, Nascor walls, ICFs, and hay bales to name just a few, when combined with well insulated ceilings, can provide insulation and barriers that make good use of the energy the home is using. · Then if you utilize energy efficient wall systems you’ll want highly efficient double or triple pane windows as well so as not to lose the benefits of the walls. Green homes would usually include these items as well: · A high efficiency heating and air conditioning system · Energy Star appliances · LED and other low energy light bulbs Solar, wind, geothermal are other, even more natural ways to “go green” but generally require a heftier up front investment. Going green, when done correctly, is beneficial to our environment and in the longer term … saves you money.

It should! Not all “green building” is created equally, however. When looking at the various components of a green home, we can look for savings in several areas: · Energy efficient wall systems like SIP, Nascor walls, ICFs, and hay bales to name just a few, when combined with well insulated ceilings, can provide insulation and barriers that make good use of the energy the home is using. · Then if you utilize energy efficient wall systems you’ll want highly efficient double or triple pane windows as well so as not to lose the benefits of the walls. Green homes would usually include these items as well: · A high efficiency heating and air conditioning system · Energy Star appliances · LED and other low energy light bulbs Solar, wind, geothermal are other, even more natural ways to “go green” but generally require a heftier up front investment. Going green, when done correctly, is beneficial to our environment and in the longer term … saves you money. Are kit homes & packaged homes really the best for Owner Builders? Answer: First, what is a “KIT HOME”? A Kit Home is basically a home in a box. But, it’s unassembled. You have to build it yourself! Now, just as there are many ways to build a home, there are many types of Kit Homes as well. A few examples include: · Log Kit Homes · SIP Kit Homes · Panelized wall home packages Each type has its own unique advantages depending upon what you want. Should you, as an Owner Builder use a kit home? Well, yes and no. Yes: If you are a DIY Owner Builder, then using a kit home package could save you time and money and give you a better finished product. A top notch Kit Home company, with excellent customer service might be your best bet. No: On the other hand, if you are planning to use contractors to build your home, it’s probably not a good idea. Builders who are not accustomed to these packaged homes will often find fault with the package and increase their fees.

Energy efficiency is all about eliminating waste and maximizing the return on dollars spent for energy. It involves design, construction methods, efficient materials and quality systems that use less energy. An energy efficient home is a result of the way the home is built as much as it is a result of the products you put into it. So, for the best, most efficient home, it’s necessary to start from scratch and build the home properly from the ground up. There are several things to incorporate when building an energy efficient home: The home’s exterior (including walls, windows, doors, and insulation) should not allow heat or cold in or out. Heating and cooling systems should be high efficiency systems delivering maximum value for the energy used Solar, wind and other natural resources should be used where possible High quality and efficient appliances & light fixtures can reduce the amount of energy needed for them to operate. Energy efficiency is not only the conscientious thing to do but it saves money in the long run. It may cost a bit more up front, but your returns will come over years with lower energy bills.

Wall panelizing has to do with the framing of a home … usually in new construction. Panelized walls can be used in a home addition but the advantages are not as apparent unless the project is a major one like with a new home construction project. When building a home, framers typically will build one section at a time on the floor of the unbuilt home then tilt up the “panel” and nail it into place. This serves to speed up the process of framing while making it easier to build at the same time. Home companies, such as Kit and Packaged Home companies offer panelized walls when you order a home package from them. These framing panels already have door and window openings built right into them so that a lot of measuring and cutting is already done before the materials hit your building site! For DIY Owner Builders, panelized walls can be a real advantage. Journeymen framers on the other hand often prefer to build their own panels as they go. They feel that it’s faster than dealing with a stack of panels that have to be unloaded from a truck, inventoried, and moved into place before construction begins. So, if you’re a DIY Owner Builder and you want a packaged home, panelized walls can be a big advantage. Just be sure to deal with a reputable company with a good track record of quality as well as personal customer service.

I’ve had this question a lot over the years and what people really want to know is one of perhaps one of three things … or, maybe all of them: How much does it cost to build a small home? How much can you save by building a small home? Do you save a proportional amount by building the same type home but smaller? Certainly you save money by building smaller. You need fewer materials, it takes less time to build, and the design itself is cheaper to create. How much it costs, however, is impossible to answer. Your area, building practices & labor costs, suppliers and manufacturers and shipping costs will be different than mine. But, what about proportional savings by reducing the size of a home or house plans? Unfortunately the savings isn’t proportional. Building a similar home that is 25% smaller will not likely save 25% in costs. It might be more like 5 – 10%. This is because you’re scaling down size and materials, but not the number of rooms, bathrooms, kitchens, & appliances, etc. Yet, in the long run, if you stay in the home a while, your savings will mount up due to lower costs in maintenance and lower energy bills. So, it can pay to build small!

It is commonly believed that homes and buildings represent the biggest consumption of energy in the world today. The trend now is to care for the environment and keep building and energy costs down. Building smaller homes, even if they are quality and luxurious homes, makes a lot of sense. Why is a small home design something to consider? Let’s take a look at some of the advantages of using a small home design to build your home: · Small homes use less energy to operated · They take less energy and effort to build · Small homes need fewer building materials to build · They are less expensive to build · Small home designs require a smaller footprint on the earth · They are easier and cheaper to clean and maintain So, if you don’t need the space, and especially if your house is designed to maximize the use of every square inch, a small home can be ideal. Just be sure not to shortchange yourself out of space you truly need. Your home should be comfortable and convenient or you will resent what is missing and it won’t serve you well at all. As always, I recommend you carefully consider your personal needs and wants before designing your home.

We hear a lot about the “cost per square foot” when it comes to home building and even remodeling. If you’re looking for the cost per square foot of your project, you’re likely really wanting to know how to figure the entire cost. So, how do you figure this? First, you must know what parts of the home or construction project are counted in the square footage. In most cases, what is being referred to is the actual enclosed living area or heated area of the home. Attached recreational spaces (like porches), extra storage areas, workshops, etc. are typically not counted in the square footage of a home. Now, on to the “cost per square foot.” How does knowing this help you? When you’re quoted $100 per square foot to build your home, and you know the exact square footage, it becomes a simple matter of math. A two thousand square foot home, at $100 per square foot = $200,000 to build. And, even though the foundation, garage, and attic are not normally included in the square footage calculation, they often are included in the $100 per square foot quote. So, knowing the cost per square foot is going to give you an excellent look at the entire cost to build your home. And this can be just as important to your lender as it is to you.

A modular home is comparable to the average site built/stick built home in quality, style and appearance but is in actuality a pre-built home. Pre-built means that a good portion of the home is built in the factory then delivered to the building site. And, with a modular home, there is assembly required at the site. A Modular Home is not a Manufactured Home There is a clear distinction between a pre-built modular and a manufactured home. Manufactured homes are not considered stick built or site built homes. They have their own classification as a mobile (on wheels) home. As such, they don't receive the same value as a traditional stick (or site) built home. So, if it's a real home you're looking for at a bargain price, look closely into modular homes. It could be the best time in years to do so. What Makes a Modular an Affordable Home? Here are some of the cost advantages of building a modular home. · Shorter Building Time: The shorter building time usually equates to lower loan costs which is a big savings. · Less Onsite Labor Required: You'll pay for factory labor but your on-site labor will be much, much less and the savings adds up. · Buying Power of Manufacturer: This allows the home buyer to get more quality for less money. · Special Deals Being Offered: Try to find the modular companies who are offering discounts because of the slow economy. Researching Modular Home Companies Start by learning all you can about modular home companies and how they operate. Here are some important questions to get answers for: · Do they have delivery charges and how are they determined? · Do they provide any labor or assembly on site? · Do they know of local builders that are familiar with their product and assembly? · What are their customer service policies and procedures? · How many house plans do they have and can you ask for modifications? · Do they have a local representative to deal with? · Have they been approved by your local building authority?

Making the decision to build your home with a Kit Home (which can also be called a “packaged home”) is a decision to streamline the home building process as an Owner Builder. Most people who choose to build a Kit Home have also made the decision to be a DIY Owner Builder. The advantages make sense for the do-it-yourselfer. You can enjoy: · A huge reduction in decision-making · Centralized source for the bulk of the building materials · Pre-prepared house plans, engineering and blueprints · Panelize walls -- pre-cut, measured and assembled framing walls · Time savings and lower interest costs So, even though you’ll pay more for kit homes and packaged homes than you would if you bought all the materials item by item in local stores, you may not consider the extra cost a disadvantage. You’ll normally find these items included in your Packaged Home Kit: · All the materials for the home’s shell like framing lumber, siding, roofing, windows, doors, etc. · Finishing materials such as … interior trim, cabinetry, countertops, insulation, drywall, etc. What you WON’T usually find include items like: · Foundation · Mechanicals such as plumbing and electrical · Finishing items like: appliances, floor coverings, and light fixtures The convenience and time savings can be your biggest advantage … especially for the DIY Owner Builder. Is a Modular Home or Prefab Home better than a manufactured Home? Answer: There’s some confusion when it comes to describing a modular home. Is it a manufactured home? Is it a stick built or site built home? Does it qualify for a traditional home mortgage? Here are a few ways to look at what a modular home is: It’s a site built (or traditional) home that is built in the factory It’s a manufactured home without the wheels It’s a kit home (packaged home) that doesn’t require you to build it 4. A modular home is often called a prefab home but not all prefab homes are modular homes. What you get when you buy a modular home is a traditional “site-built” type home that is pre-assembled in a factory in large sections (on average 2-5 sections.) These sections are then delivered and, using big cranes, placed and attached to a permanent foundation built on the building site. Modular homes qualify as “real” homes and earn the same appraisals (or home values) as other homes that are built completely on site, stick by stick. So in this sense, they can be considered “better” than manufactured, or mobile homes. And yes, they DO qualify for a regular home mortgage at the going interest rates.

There’s some confusion when it comes to describing a modular home. Is it a manufactured home? Is it a stick built or site built home? Does it qualify for a traditional home mortgage? Here are a few ways to look at what a modular home is: It’s a site built (or traditional) home that is built in the factory It’s a manufactured home without the wheels It’s a kit home (packaged home) that doesn’t require you to build it 4. A modular home is often called a prefab home but not all prefab homes are modular homes. What you get when you buy a modular home is a traditional “site-built” type home that is pre-assembled in a factory in large sections (on average 2-5 sections.) These sections are then delivered and, using big cranes, placed and attached to a permanent foundation built on the building site. Modular homes qualify as “real” homes and earn the same appraisals (or home values) as other homes that are built completely on site, stick by stick. So in this sense, they can be considered “better” than manufactured, or mobile homes. And yes, they DO qualify for a regular home mortgage at the going interest rates.

The biggest investment for an owner builder when building a home is the materials package. This is why everyone seems to ask this question first! Unfortunately, it’s a question that cannot really be accurately answered early on in the process. Several decisions have to be made and many steps have to be taken first. The most important thing that influences the cost of the materials is the type of home and type and quality of materials. You could be building a stick built home from 2x6s, a SIP or ICF home, a log home, hay bale, post and beam, steel framed, or any of a number of different types of homes using various building materials with a wide range of costs. A lot of research on the internet is one of the best ways to get the information you need. But, here are a couple of ideas that should help you with this question: The materials package itself will usually cost between 30 to 50% of the overall homebuilding cost. The most traditional approach (i.e. stick built out of 2x6 lumber) is probably going to be the cheapest if you’re using outside labor If you’re a DIY owner builder, doing a lot of work yourself, products that are easy for you to install yourself would likely save the most money in the long run. Accurate pricing of home building materials will need to wait until the house plans are prepared and materials lists are made.

Do you need a new bathroom? Do you want a new and functional kitchen? Maybe you want to add a second story to your home. A home expansion can be very involved with decisions about home addition costs, home addition floor plans, building materials, and financing. It's not something you go into lightly. The best home additions provide increased value for your home while at the same time increase the home's livability. Start first by deciding all the things you really want and need. Then prioritize that list and narrow it down. You may be able to include most of what you want but your budget will be a determining factor. Here is a list of the most popular projects for home additions. In no particular order: 1) You simply need more space: A growing family, more "things", more visitors ... and many other reasons create the need for more space. This is the most popular reason to add on. 2) To build more equity in the home: This could be considered a by-product of all the other reasons for a home addition. But, many people add on just for the potential to create equity ... especially if they're in the smallest home in the neighborhood. 3) To gain more storage space: Storage seems to be one of the most sought after features of a home. Certainly, a home with inadequate storage space is a liability. Additions of a garage and RV and boat shelters are included in this. 4) To add an entertainment center, billiards room, hobby/exercise room: These popular add-ons can really make a home fun. As going out for recreation becomes more expensive, having fun at home becomes more attractive. 5) Create a rental unit for income: It's important to comply with local codes regarding number of units on the property and the number of families that can legally live there. Added and ongoing income can be very attractive. 6) Creating private but accessible living quarters for aging parents/in-laws: This is a growing need. Again, codes can be restrictive but the personal value of this expansion can be considerable. 7) Building a home addition for a home business: Often, homes need more space for a home business and home businesses can benefit from separate access that doesn't require going through the home. Proper design goes a long way towards making this work well. 8) Expanding popular living spaces like Great Rooms, Family Rooms, & Dining Rooms: Very often these cannot be achieved through a simple remodel. Extra square footage is needed. 9) Adding a bathroom: A very popular home addition. It is most common when a master bedroom has no master bath or when a family grows too big for the number of bathrooms currently in the home. 10) Adding a laundry room: Older and smaller homes often had no separate laundry rooms. For this reason, laundry room additions have become quite popular. 11) Sunrooms, screened porches, and green houses: Outdoor living is in. These will likely become more and more popular in coming years as well. Home additions represent a major home improvement. This requires professional help. You can start with an architect, General Contractor, or a Home Building Coach. I prefer a home building coach. Either way, get professional help from the start. So, the “best” home addition for your money is the addition that suits your needs and fulfills your dreams.

Wall panelizing has to do with the framing of a home … usually in new construction. Panelized walls can be used in a home addition but the advantages are more significant with a new home construction project. When building a home, framers typically will build one section at a time on the floor of the unbuilt home then tilt up the “panel” and nail it into place. This serves to speed up the process of framing while making it easier to build at the same time. Home companies, such as Kit and Packaged Home companies offer panelized walls when you order a home package from them. These framing panels already have door and window openings built right into them so that a lot of measure and cutting is already done before the materials hit your building site! For DIY Owner Builders, panelized walls can be a real advantage. Journeymen framers on the other hand often prefer to build their own panels as they go. They feel that it’s faster than dealing with a stack of panels that have to be unloaded from a truck, inventoried, and moved into place before construction begins. So, if you’re a DIY Owner Builder and you are wanting a packaged home, panelized walls can be a big advantage. Just be sure to deal with a reputable company with a good track record of quality as well as personal customer service.