Build or Remodel Your Own House

Kit Homes and Package Homes

2016-11-18T15:34:00.005-08:00

Summary: I have always found that the more you buy from one home building supply, the more you can save on building materials and service.

Home building suppliers are no different than most retailers. The more you buy from one, the better bargaining position you have for lower prices. These suppliers know right down to the last stud, how much opportunity they have to sell you that last stud.

Also, they know that if they give you a good deal on framing materials you are more apt to think of them for other building supplies they may carry, such as appliances, windows, roofing, etc.

I have found they often waive delivery fees not only for the large orders, but even for small orders or items that you forgot to order initially.

Kit Home companies and Package Home companies excel in the use of use these sales tools.

Kit homes or package homes are a good way to both save money and have a fairly accurate...READ MORE

Courtesy of AntiqueHomeStyle.com

Plan: G20164 Courtesy of Menards

Building a Small House

2015-01-18T07:00:00.000-08:00

How big is a small house? How much does it cost to build a small house?
A small house should not be confused with a "Tiny House".
It has Central Heat & AC, a fireplace, 2 large Porches, and a total living area of 800 sq. ft. The porches make the house look much larger.
A well designed small house can be quite comfortable.
As an auxiliary unit, this is an excellent plan. It would do well as a primary home too.
So, how much will it cost to build this...READ MORE

COOL House Plan ID: chp-26434

Building Costs per Square Foot

2015-01-15T07:34:00.000-08:00

The total cost of building a house increases as the square footage increases, but ironically, the cost per square foot stays pretty much the same as the square footage increases in size, if the quality and design remain the same.
Certain items and features don’t increase in cost that much, if at all. For example, a larger kitchen usually will have the same number of appliances, bathrooms may be bigger, but still have the same number of fixtures, and so on...READ MORE

Courtesy of HousePlans.com

How Much Does It Cost To Build a House in Massachusetts

2015-01-13T07:06:00.000-08:00

The cost to build a new house can vary widely due to the design of the home, the quality of construction, and the quality of building materials.

"Good afternoon Carl. I love the posts you have up here as they are very informative to me.

My wife and I have selected a house plan from Don Gardner Architects, Inc. that we would like to build in Pittsfield, MA, .

The plan is The Manchester - House Plan# W-718.

Would you be able to use this as one of your examples?

Thanks, Michael"

Hi Michael, I’d be glad to.

You chose an attractive “Traditional” house plan from Donald A. Gardner Architects, Inc.

They define a traditional home plan as a home that “typically features multiple gables, hipped roofs and covered entryways with a clapboard or brick facade creating a grand appearance.”

Their traditional house plans feature open floor plans in various sizes from 1600 - 5000 square feet.

The Manchester is a 3 bedroom 2.5 bath Traditional home that has 2,261 Sq. Ft. of living area and a finished Bonus Room of 235 Sq. Ft., for a total heated area of 2496 sq. ft.

Note: The Cost to Build Calculator treats the Bonus Room area of 235 sq. ft. as finished attic area with more than 78" headroom.

Except for the brick veneer exterior finish (Quality Class # 2) and the unfinished basement (Quality Class # 5 or better), I used the quality class # 3 throughout (Best Standard Quality) for all the other categories.

Other data the Cost Calculator required: Number of corners = 10, Unfinished Basement = 1,130 sq ft, Attached garage, interior walls and ceilings finished = 441 sq. ft., Porches = 227 sq. ft., 1-ea Zero clearance F/P.,Forced air central ducted heating and cooling.

I ran a cost to build estimate for this home plan for Pittsfield, MA 01201 and I came up with an approximate cost to build of $494,462 (including a General Contractor’s markup of $56,450) or $198 per sq ft of heated living area.

An owner/builder would not be paying a General Contractor, so the approximate total cost would be $438,012 or $175 per sq. ft.
,
This cost to build estimate is a "rough" approximate estimate for 2017.

Land, land development costs, impact fees, if any, and any other local fees, are NOT included in any of the estimated costs to build that I provide.

Well Michael, by using the cost to build calculator and the information found on my Getting Started page you can perform your own cost analysis, varying the quality of construction to fit your budget.

Have fun,

Note: To see what it costs to build a house in other states, visit Cost to Build a House by State
Carl Heldmann

Build a New 3 Bedroom Home for 100K

2015-01-13T07:04:00.000-08:00

With the Building Cost Calculator, you can discover the cost to build a 3 bedroom house in any city.

You can search home plans on the internet, run them through the calculator, until you find a house plan that you find acceptable and affordable.

Figure out a reasonable home building budget (cash + mortgage), subtract estimated land cost, and play with the calculator...…...READ MORE

familyhomeplans.com - House Plan 66715

Construction Loans - Owner Builder Financing - Owner Builder Construction Loans

2015-01-13T07:03:00.000-08:00

Dear Readers,
In answer to many of your questions as to where to find Owner Builder Construction Loans, the companies below still have them available (as of this post date).

The information posted below is from the lenders' web sites and may change without notice, as well as the availability of their loans. So, check their web sites to verify and call them.

NORMANDY CORPORATION SELF BUILD CONSTRUCTION LOAN
Normandy is a Direct Portfolio Lender specializing in residential and commercial construction lending. Their Self Build Construction Loan allows you to act as your own general contractor.
When you complete your new home, you may convert the construction loan with Normandy or with a mortgage lender of your choice.
Some of Normandy’s loan features include:

Loan amounts from $75,000 to $1,750,000
Loan amounts up to 90%* of the appraised value on single family, owner occupied, full income documentation, conforming loan amounts. Please call for additional information on other programs offered. (*Cross collateralization allowed on other properties, if needed, for maximum or greater loan amounts)
Land purchase may be included in the construction loan, up to 75% of the lot purchase price
Deal directly with the Loan Officer/Underwriter
Full and Limited Documentation programs available Fast pre-qualification, typically within 3 to 5 business days
Loans are available to Borrowers with excellent to less than perfect credit Flexible draw schedules
1 to 4 family homes preferred, see Multi-Family for more than 4 units
12 month construction term (longer terms considered on an exception basis)
Interest only payments based on funds advanced
Visit their website to see where they are currently offering loans.
Call today @ 800-390-7536 or use the "Pre-Qualify Now" link HERE.

OWNER BUILDER LOAN SERVICES
Owner Builder Loans is a Direct Portfolio Lender that offers short-term construction loans.
Visit their website to see where they are currently offering loans.
Toll Free (800) 543-5600
E-mail: loan@ownerbuilderloan.com

NOTE: You may also want to read my construction loan pages on byoh.com:

Good luck,
Carl Heldmann
byoh.com

Cost to Build in North Carolina Too High

2015-01-13T07:02:00.000-08:00

Hi Carl, We purchased our land in 2005 and are just starting to get prices for the construction of a new home in Hickory, NC on Lake Hickory.

We would like to build a ranch with a walk out partial finished basement and a 2 car garage.

We purchased the plans and would like to move forward.

The square footage of the home is 3000 sq. ft. including the partial finished basement.

There will be 4 bedrooms and 3 full baths, 9” ceilings on 1st floor, vinyl siding with partial stone front, 1 fireplace, wood floors except tile for kitchen & baths, $1,500 permit fees, $1,600 tap-in fees for water & sewer with a lift pump required for public sewer.

I have been in touch with 3 builders in the area and it appears that the cost of building on the lake is high.

I have come to the conclusion that since this is an upscale community the pricing we are getting reflects the area and not true cost of the home.

I have a background in construction and have compared the cost to build in Hickory NC to where I live presently.

The builders I have talked to in Hickory are saying that the cost to build this home will be between $140.00-160.00 per square foot. One builder stated $416,000 while another gave a range of $550,000 to $600,000.

Believe me when I say that we are not looking for a golden palace and feel that the cost per sq ft should be around $120.00.

There may be some upgrading but none that would justify there high cost per sq. ft. that has been given.

Do you have any suggestions? Laura

Hi Laura,

I think the builders are giving you realistic bids. This beautiful house, as stated in the description, is “overflowing with details’.

The Laurelwood - House Plan# W-5024

Donald A. Gardner Architects, Inc.

Overflowing with details, this home features all of the niceties that enhance family life. Ceiling treatments crown every living space on the first floor, and bay windows hug the screen porch, dining room and master bedroom. The lower level features two full bathrooms for each bedroom, making it the perfect retreat for overnight visitors or older children.

This home plan from Don Gardner has the following input criteria:

• 2016 Sq. Ft. finished first floor
• 998 Sq. Ft. finished walkout basement
• 3014 Sq. ft. Total Living Area
• 1018 Sq. Ft. unfinished basement
• Unfinished Bonus Room: 364 Sq. Ft.
• Garage/Storage: 661 Sq. Ft.
• Porches: 639 Sq. Ft.

This is an expensive home to build due to the complexity of design. Multiple roof lines, multiple bay windows, 9 foot ceilings, porches, and a large intricate foundation are but a few of the causes of a higher cost to build. While not a “golden palace” it is not a simple ranch.

Using the cost to build calculator found on my "Getting Started" page on byoh.com, for Hickory NC, I ran 2 separate “cost to build” estimates, changing only slightly the quality of materials and interior design.

I used “Quality Class # 3 and came up with an approximate estimated total cost to build of $642,000, including a General Contractor Markup of $87,202.

Moving up one “Quality Class” to # 2 on the cost to build calculator, I came up with an approximate estimated total cost to build of $860,044, including a General Contractor Markup of $117,822.

I don’t see how you could build this house as designed for much less than the $642,000 amount, unless you acted as your own General Contractor, saving the General Contractor’s markup.

But as you said in a subsequent email, you have concerns over doing that as you are coming from a different area of the country.

You could modify the plan, eliminating some of the expensive design features, but then it would not be the same house.

Whatever you decide to do, it is imperative that you draw up very detailed specifications. There are many areas of any design that without careful planning material and labor costs could escalate quickly.

Specifications should be well thought out in advance and adhered to during construction.

While one can build a home of similar size but simpler design at a much lower cost, it will not be a comparable house.

Here is a cost estimate of the same size house, including the finished basement area, porches, unfinished bonus room, and garage...but simplifying the foundation, and downgrading the design details and materials.

I used a combination of "Quality Classes" 5 & 6 and came up with an approximate cost to build of $446,758 including a General Contractor Markup of $59,772.

You could pick and choose upgrades (or even downgrades) for different categories as you so desire.

It's a lot of work figuring out the cost to build a house but it's well worth it. The devil is always in the details.

Important Notice:
Keep in mind that these 2018 estimates are approximate and are just a guide. Until you actually start getting your own bids and estimates and entering them into your own spreadsheet (see my spreadsheet page for FREE spreadsheets), they will remain approximate.
Best of luck,
Carl Heldmann

Additional reading for high bids:

Cost to Build a House in Baton Rouge LA

2015-01-13T06:59:00.000-08:00

Carl, my wife and I just closed on a lot in February and are having plans
drawn as I type.

I have made the decision not to hire a builder and hire and
manage all the subs myself.

Our plans are to build approx 2500 sq ft downstairs and 500 sq ft "bonus room" above the garage in the rear of the home...no plumbing or special features upstairs, just heated living space.

What price per square foot can I expect to build this home in Baton Rouge, LA
(land excluded) with reasonable features?
Thanks, Ryan

Hi Ryan,

Since you didn’t send a home plan, I found a 2,564 sq. ft. one level home with a potential bonus room above the garage from www.houseplansandmore.com(HDA).

House Plan #592-013D-0037

Using the Cost to Build Calculator from Building-Cost.net I came up with an approximate 2016 cost to build in Baton Rouge, LA of $308,362 including a General Contractor’s “mark up of $34,884.

Note: I used a 6 corner “footprint and #6 for the Quality Class” all the way through. This selection would NOT allow for the brick veneer that is shown on the home plan.

Using the very handy “Estimated Cost To Build This Home” that is on the houseplansandmore.com (HDA) web site, the total cost including the General Contractor’s markup, is $307,680

You should keep in mind that the cost to build for this example, or any house plan, can vary considerably depending quality of materials selected, and on actual bids for labor and material.

Until you actually start getting bids and entering them into your own spreadsheet (see my spreadsheet page for FREE spreadsheets), it will remain approximate.

Hope this helps, Carl Heldmann

Cost to Build a House in Utah

2015-01-13T06:58:00.000-08:00

This compact yet spacious house from houseplansandmore.com (House Plan #592-007D-0086) is open and airy.

There is an L-shaped front porch that leads to a spacious entrance foyer.

A super-sized great room enjoys a vaulted ceiling, fireplace and opens to the breakfast room with snack bar and an ideal kitchen that has an abundance of cabinet storage.

A luxurious first floor master bedroom has an oversized bath and there are two roomy bedrooms on the second floor

There are 3 bedrooms, 2 1/2 baths totaling 2231 square feet, with 1,586 square feet on the first floor and 645 square feet on the second floor.

There is also a 2 car garage and, a 1586 sq ft unfinished basement!

Houseplansandmore.com estimates that this house would cost $245,410 to build in Ogden Utah. That is equal to $110 per sq ft, including a General Contractor’s markup.

I ran the house through the Cost to Build Calculator found on my "Getting Started" page and came up with a cost to build of $244,909 (including a General Contractor's markup of $32,492), or $110 per sq ft.

Three things to keep in mind as to these estimates:

1. I selected the minimum quality of custom home building materials all the way through the house. Single-family homes vary widely in quality and the quality of construction is a major cost variable.

2. Both estimates are "rough" estimates for 2016.

3. Land and land development costs are NOT included in the estimated cost(s) to build.

Carl Heldmann

What Does it Cost to Have Just the House Shell Built

2015-01-13T06:57:00.001-08:00

"Hello Carl,

My husband and I are looking to build as soon as possible. We are trying to put together a plan, to make sure we don't go over our head.

We already own a little over an acre and 1/2, and the house is a 3,351 sq ft colonial. We were wondering how we should estimate just for the house alone.

We want the shell, roof, siding, foundation, windows, outside doors done, and then my husband will do all the plumbing, electrical, HVAC rough-ins, and insulation. We would then need it to be sheet rocked and taped.

The rest we want to do ourselves, from the painting, to interior doors, to the cabinets and floors. Would we save a lot doing it this way, and how much should it cost for just the house as I described.

Thank you so much,
Alicia"

Hi Alicia,
Yes, you should be able to save money.

How much you save will depend on how much you pay to have the shell built and how well you can shop for labor and materials for the rest of the house.

Read my page on BYOH called Shell Builders that will answer most of your questions. There is also a video to watch on shell builders on that page.

What you need to do 1st is estimate the total cost using the “cost to build calculator” on my Getting Started page. It’s # 5 on the list and is easy and fun to use.

I would select the cheapest “class category” (#6) on the calculator, as you are only trying to come up with a basic house cost.

Using the calculator results, you can “cherry pick” those items you plan to do, add them up, and that will give you a “ballpark” idea of how much you might save.

You won’t have an accurate estimate until you start getting actual bids in your city and state. Good luck,
Carl Heldmann

Fireplace Problems

2015-01-13T06:57:00.000-08:00

"Carl,
We have a 10 year old vented gas fireplace. The fireplace, which has been cantilevered out from the foundation, sends the exhaust up a chase which extends several feet above the roof line. The chase is OSB covered with felt paper and cheap vinyl siding. Underneath the chase from the outside, you can see the uninsulated OSB bottom. The space directly underneath the fireplace is also uninsulated (between the first floor's joists).

I can see un-papered batting under and around the firebox (top and bottom louvers.) I also hear intermittent "pings" when it rains, as it has done steadily here for the past four days. I think it is rain drops hitting the top of the fire box.

Last January, there was an incredible draft coming through the fireplace, which made it impossible to raise the thermostat on the first floor. In order to heat the first floor, we covered the fireplace with taped Hefty bags which were most unattractive, but mildly entertaining since the bags moved in and out and gave the fireplace a life of its own.

We had two fireplace companies take a look and both recommended that we install a new direct vent fireplace (Mendota brand) and vent out the back, insulate the chase, cap the top, etc. This would require us to remove and re-cut our granite surround, which consists of one giant piece (no mantle). The full replacement would cost approximately $10,000 (tear out, install, granite, electrical, permits, etc).

I have scoured the internet but have come up empty with respect to finding a less expensive, less invasive, option. My wife would like to forgo the Hefty bags this winter.
L.C."

Hi L.C.

I think you have 3 separate and often concurring problems.
1. Downdrafting.
2. A poorly constructed, non-insulated, and drafty chimney chase is acting like an “open window”.
3. A water leak(s) in the chase.

Diagram A Courtesy of Fireplacenetwork.

1. I believe your most serious problem is “Downdrafting”.
Downdrafts force the hot exhaust gases that are trying to flow up and out of your fireplace back down the flue liner and into your living area.

Downdrafts occurring when the fireplace is in use will cause carbon monoxide poisoning!

If you don’t already have them, get yourself several carbon monoxide detectors for your house.

Downdrafting: Downdrafting is usually caused by a chimney that is too short. That puts the flue opening directly in the path of wind vortexes. Wind vortexes are created as wind passes over roof ridge lines, trees, mountains, etc. The greater the velocity of the wind, the greater the vortex. This vortex wind creates downdrafts in your chimney flue.

Diagram B Courtesy of FireplaceNetwork.
The minimum (One often needs to go even higher) height a chimney should be is 2 feet above any roof surface or obstacle within 10 feet of the top of the flue. (See Diagram B)

Your chimney may be too short. If so, another section of flue would raise the height of the termination cap 3 feet, and I think that will help ward off down drafting, or you could replace the termination cap with a down draft proof one or do both, raise the height and recap.

Courtesy:NorthlineExpress.com

2. Drafts: The chase appears to be poorly constructed and is probably the cause of severe drafts around the firebox inside your home. These drafts are not to be confused with the down drafting problem.

I would have the vinyl siding removed (carefully, so that it can be reused and reapplied), have several of the OSB panels removed so that the chase can be properly fire stopped (see image), the chase insulated, the firebox chalked with fireproof chalk from behind for draft prevention and then, put the chimney chase back together and have the chase wrapped with house wrap (such as Tyvek) to keep the wind out, then reside with the vinyl siding.

3. Water Leaks: You have a leak (s) in the chase that is evidenced by both the photo of the underneath of the chimney chase and the “pings” you hear. The photo shows water damage (rot) and shows that the leak has been occurring for awhile.

The leak (s) may be in the chimney chase itself or more likely, at the top of the chase where the chase cap (called pan flashing in the diagram) may have rotted away.

The cap appears to be made of galvanized metal and galvanized metal doesn’t last that long before it starts rotting away.
If you replace the cap, use stainless steel or aluminum.
The chimney termination cap collar could also be leaking. (See diagram A)

The water leak could also be coming from the area where the roof meets the chase.
There is supposed to be a saddle (also called a cricket) that sheds rain water away from the chase (see image below).

Courtesy: Licitra Roofing

You should hire a LOCAL professional, such as a Professional Home Inspector, Home Builder (General Contractor), or an Architect to look at these problems (and any I may have missed) and help you make decisions as to the best course of action. This should not be too expensive.

I don’t think that the cure for these problems, even if you had to fix all of them, would be anywhere near the cost of replacing your fireplace. A good carpenter for the chase work (including adding insulation) and a good HVAC contractor (for the flue, cap, pan, firestop and adding an additional 3 foot section of flue if necessary) should be the only people you need to hire. The cost of insulation and additional flue parts, and even a new pan flashing and termination cap shouldn’t be too bad.

Good luck,
Carl Heldmann, byoh.com

Budget Spreadsheet

2015-01-13T06:56:00.000-08:00

Carl, thanks for all you do for us 1st time home builders!

Quick question, where can I purchase a construction budget spreadsheet?

Nicki

Hi Nicki,

I have two home building spreadsheets available and they are both free.

Note: If you are not familiar with using a spreadsheet it's NO big deal. Click here for my free instructions on cost estimating and using a spreadsheet.

One of the free spreadsheets requires you to have Microsoft Excel software installed.

The other, and better one (I feel) comes "bundled" with its own software, and all you need is a computer (Sorry, no Macs for this one).

Both are available at : Construction Estimating Software on byoh.com.

Enjoy,
Carl Heldmann (2015)

Free Construction Estimating Software

2015-01-12T04:48:00.000-08:00

Hey Carl.

Some websites charge to obtain the cost to build a house plan before purchasing that plan.

I'm currently looking at a few house plans on a particular website, but I want to know the approximate cost to build them before actually purchasing a plan.

What do you think? Nikki

Hi Nikki,

I think you are right. That is why you will find construction estimating software, plus a few cost estimating tips on my Getting Started page (and other related pages) on byoh.com.

You should be able to determine the approximate cost to build almost any home plan using this construction estimating software from the Craftsman Book Company, one of the most respected names in cost estimating.

In the initial stage of planning, you can use just the estimating software and the web site drawings of floor plans and elevations from home plan companies to go through the process of rough estimating.

You can play around with the cost estimating software until you get an idea of how the critical elements of size, quality of construction, and basic design (# of corners and one story versus two stories, etc.) affect the cost to build a home.

Then, based on what you can afford to build, you can pursue a particular house plan.

Good luck, Carl Heldmann

How to Get Builders Risk Insurance

2013-04-25T15:01:00.000-07:00

Summary: Obtaining Builders Risk Insurance as an Owner Builder has always been difficult. It has gotten even more difficult.

Hello Carl,

You may want to mention on your web site that Course of Construction or Builders Risk Insurance is very difficult to obtain when you are acting as an "owner builder".

We have been turned down by five insurance companies, and still have no insurance. Cindy

Hi Cindy,

Let a professional independent insurance agency/broker do the job you are trying to do.

Here is a quote from such an independent agency’s web site...continued.

Carl Heldmann, byoh.com

Luxury Custom Homes

2013-02-27T16:30:00.000-08:00

Summary: The cost to build a house increases as the quality of materials and the complexity of the home design increases.

Carl, I recently ran across your site and am looking at building my own home in Bokeelia, Florida (just outside of Fort Myers.)

I am trying to get some rough costs on a home plan called the Santa Rosa, from Slater Design Collection. However, I am having some issues using the building cost calculator.

I am confused on how I should plug in the 1,978 square footage as I will have a full open garage downstairs out of block and then be building off of that a wood framed structure.

I am trying to get a rough idea on cost before purchasing the plans as I want to make sure I fall in my budget area.

I will be doing all framing, interior finish work, building my own kitchen and bathroom cabinets. I will be getting some additional labor to frame the house, as well as will be sub contracting Rough Electrical and Rough Plumbing with hopes to complete these two pieces on my own.

Do you have any thoughts or pointers you could send my way so I could get some rough costs on this particular plan? I am hoping to come in under $200,000 completed with a pool and a $10,000 lot.

Do you think that is doable or should I begin looking at smaller plans? Any help would be greatly appreciated.

Jason

Hi Jason,

This is an expensive home design to build. It is in fact, a luxury custom home. It is extremely hard to estimate the cost on luxury custom homes just using estimating software.

Courtesy of Slater Design Collection

Here are a few reasons why:

Multi-cornered foundation (Quality Class 4)
Roof design and pitch (Quality Class 1)
Large glass areas (Quality Class 3)
Many large covered porches and decks
High vaulted ceilings inside (and outside) (Quality Class 1)
2 x 6 exterior walls (Quality Class 3)
10 ft ceilings (Quality Class 1)
Trey (tray) ceilings (Quality Class 1)

Using the cost estimating software, I came up with an approximate (rough) cost to build of $541,087, Included in that figure are the following:

$15,357 Insurance
$9,324 Permits and Utilities
$2,194 Plans and Specs
$68,560 General Contractor markup

HOWEVER, building a very simple 2 story, 2,000 sq ft house with an unfinished basement (with garage), the cost to build drops like a rock:

Using the cost estimating software, I came up with an approximate (rough) cost to build of $187,817, Included in that figure are the following:

$5,032 Insurance
$3,055 Permits & Utilities
$719 Plans and Specs
$22,465 General Contractor Markup

That leaves you money for the lot but, no pool...sorry.
Carl Heldmann, byoh.com

Sample Construction Contracts

2013-01-29T15:02:00.001-08:00

Summary: Always use a written contract when hiring contractors and subcontractors.

Hi Carl,

I recently bought your book and am excited to get started.

Would you be able to refer me to a good source of agreement templates I can use for the necessary contracts with subcontractors, etc, including the basic waiver of liability, etc… Thanks, Lynn

Hi Lynn,

I have a few sample contracts and forms on my Getting Started page.

Here they are: 3 Contracts to Build, Carpentry Labor Contract, Subcontractor Contract,Checklist for Buying Land, Description of Materials (Building Specifications), Full Waiver of lien, & Partial Waiver of lien.

I've used them, but you may (should) want to run them by your Real Estate/Construction Attorney.

I'm not familiar with what a waiver of liability is.

Perhaps you meant waiver of lien.

If so, there are samples of those provided too.

Thanks for buying my book!

Carl Heldmann, byoh.com

Carl, Awesome, this is great.

Thanks for writing the book. The information is great to have, even if we end up going with a General Contractor. God bless you!

House Plan Copyright

2013-01-15T09:12:00.000-08:00

Hi Carl,

Is there any way to avoid paying astronomical fees to an architect if I know exactly what I want in my home?

I have the floor plan and know the dimensions of all the rooms. I slightly tweaked an existing plan from a builders website.

I just don't want to pay the fees if I don't absolutely have to.

I'd appreciate any advice you could give me. Travis

Hi Travis, As an alternative to an architect or buying home plans from a web site or magazine, you can have a home designer who is a drafts-person draw up most new homes.

However, most home designs are copyrighted even if it doesn't say so on the plans. You must purchase copies of copyrighted designs from the original designer. Hiring someone else to copy a design, even if it's not an exact copy, is a violation of copyright laws.

Read House Plan Copyright Basics on the American Institute of Building Design's (AIBD) website.

Carl Heldmann, byoh.com

Acting as Your Own Contractor

2013-01-04T10:48:00.000-08:00

Carl:

We are planning an addition to our home, and I am at the point of deciding whether or not to take on the project myself rather then hire a contractor, after receiving bids from various contractors which were frighteningly higher then I expected.

So I stumbled upon your site which gave me some hope at first, but now I am again concerned. When I viewed your step-by-step building I could not find at what point the roof trusses were installed!

There is mention of the roofing and covering, but no mention of installing the trusses. Then I said to myself "He will probably say: "You should know that and if you don't then you should not be considering doing this yourself".

Am I getting in over my head or did I miss something in the step-by-step instructions?

Oh, I don't think I am a complete idiot, and I have built buildings before (as owner not self-contractor) and of course many many projects around the house so I know which end of a hammer is which, but not sure the order of doing things in this project.

Thanks, John

Time for roof framing and/or trusses

Hi John,

The roof trusses are installed right after the walls are framed and braced plumb and square.

Your carpentry contractor should keep you abreast of building materials needed to complete the job on time. Remember, delays cost him money. That’s why I always recommend contracting by the job, not by the hour.

You don’t need to know various home building skills, but you do need to know how to hire the contractors and subcontractors who do.

Your role as the general contractor is to be an organizer and a manager, not a tradesman. Your responsibility is to get the job done — by other people.

If you can estimate your costs, control those costs, and deal with people in a fair manner, you can build your own home or home addition!

Suggested reading:
How to be a General Contractor
Building a House Step by Step
Carpentry Contractor - House Framing
Cost Estimating
Cost Estimating Software

Good luck,

Carl Heldmann, byoh.com

What is Builders Risk Insurance | How Much is Builders Risk

2012-12-21T08:33:00.001-08:00

Summary: Builders Risk Insurance can protect a new home under construction against loss. The cost of Builders Risk is Minimal.

Carl, something I don't see on your web site is whether or not builders insurance should be a part of the budget? And if so, what are we looking at for cost? Chuck

Hi Chuck,

Absolutely, builders insurance, or more specifically Builders Risk Insurance, should be part of your home building budget as well as any home building budget.

You will find "insurance" listed as an expense item under "Permits, fees, surveys" which is the first Cost Category, on my Cost Estimating Explained page.

The cost varies from state to state, city to city and is priced according to the value of your new home.

An approximate cost can be obtained by calling your insurance agent, or any insurance agent that writes Homeowners" insurance. Builders Risk insurance is basically Homeowners Insurance, or Home under Construction Insurance.

It does not cover any personal property, but when your new is completed, it often converts to regular Homeowners Insurance.

Good luck,

Carl Heldmann, byoh.com

Be Your Own General Contractor

2012-12-11T15:02:00.001-08:00

My book, Be Your Own House Contractor: Save 25% without Lifting a Hammer, is now available as an eBook at a great price.

The Amazon Kindle Edition is fabulous and you can start reading it in under a minute!

The five most frequently asked questions I hear are and that are answered in my book are::
1. What is the actual cost to build a house?
A. 75% of what a comparable new home sells for.
2. What does "contract my own house" mean?
A. That you are in charge! You're the CEO.
3. Do I have to be licensed?
A. Not in the USA or Canada.
4. What is the number one problem that builders run into?
A. Cost overruns.
5. Can I really save 25% without lifting a hammer?
A. Yes.

Click Here and change your life.
You can do it. I can help.

Carl Heldmann, byoh.com

Cost to Build Calculator

2012-12-05T15:53:00.001-08:00

"Hi Carl, I just finished reading your book "Be Your Own House Contractor" and it was great!

I just had a quick question, I was planning on building a new house of 3000 sq ft for the purpose of selling it and I wanted to know if I could do the cost estimating without having all the plans drawn out?

Is it enough to just know roughly how many sq ft the house you plan on building is?
Thanks Carl, M. S"

The key word here is “roughly” because all you can determine without an actual home plan is a very rough cost to build estimate.

The cost to build calculator will give you a very rough cost to build estimate based on zip code and various “Quality Classifications” for any square footage you select and new home options that you select that affect building costs (significantly).

That should give you at least a starting point.

If you are planning to build a “spec house” (Built for sale) do your market research carefully, especially in today’s housing market. Consult with a Realtor in the area in which you plan to build.

Good luck
Carl Heldmann, byoh.com

When to Use Construction Consultants

2012-12-05T14:35:00.000-08:00

Summary. A construction consultant can save you time, money and worries when building your own home.

Hi Carl my question is two parts. First, is it worthwhile for me to hire a construction consultant like UBuildit for the construction of my new home? Their fee is 8% of the cost of construction.

I have met with the UBuildit home builder that would be assisting me and it seems like a fantastic idea, but I am very ambitious and any cost savings for me is a plus because I want to learn to build and not have someone ushering me along.

Although it would be great to have a home building consultant who already has contractors and subcontractors that are ready to help build my house.

Secondly, should I purchase the lot first and pay closing costs and then turn around a get a construction loan that converts to permanent financing and refinance the lot on the construction loan. I am a little vague on the best way cost wise to go about this. I am a shopper so I will do anything that will benefit me.

Thanks and I love the website. This is truly a great service and the best place I have found for credible, comprehensive, in-depth knowledge and advising anywhere on the web and elsewhere… FOR FREE! I feel like I should be paying you.
W.P.A"

It can be worthwhile for you to hire a construction consultant. Everything has a price. In your question lies your own answer. It starts with, “I have met with the builder...it seems like a fantastic idea.” If I felt like that, I would be inclined to use them.

I have heard good things about UBuildit, and if they have an inside track to construction lending (which according to their web site, they do), that’s a big, big plus.

As for buying the lot and then getting a construction loan, NO!

Do NOT do that unless you know positively that you will be able to get a construction loan.

Ideally, if the seller of the land can wait, close on the land at the same time you close on the construction loan. I do it all the time. It is called a “simultaneous” closing.

If the seller won’t wait, I would not do anything more than give the seller a very small deposit (earnest money) contingent upon at least a construction loan approval with a “clear to close” letter. See my lot purchase check list for other “contingencies”.

Good luck,
Carl Heldmann, byoh.com
Note: You may also want to read Construction Site Manager.

Home Construction Insurance

2012-11-15T05:41:00.001-08:00

"Carl: I am a General Contractor and entered into an agreement to build a man
a house. He owns the land and has the funds in hand so he does not have to
get a loan. The agreement is for him to “pay as you go".

Each time a particular phase is completed, he pays for it. There is a schedule of
payments and when each item is finished he pays. It is like getting the draw
from the bank.

My question is, the air conditioning unit was installed and the home owner made payment to me and the payment was passed onto the sub-contractor. After installation, someone stole the unit.
Whose responsibility is this, the contractor or the home owner?
John M."

John,
Didn't the homeowner purchase insurance against loss (It's also called builders risk, or hazard insurance, or fire insurance, or home under construction insurance (homeowners without personal possessions)?
And, was the A/C unit in place and wired?
Carl

"Carl, There is no builders risk policy. As the contractor I have a general liability policy and there was no request made for me to purchase a builders risk policy.

The home owner did not purchase any type coverage to protect his interest.

He is asking the contractor to make restitution.

And yes, it was installed and wired.
Thanks, John"

Well John, one of several outcomes could or may occur.

Here are my thoughts:
1. When an item such as an air conditioning unit is installed to (on) a house it becomes “real property”. That is to say, it becomes part of the house and the land the house sits upon…part of the “real estate".
2. Therefore his loss is his loss, no one else’s.
3. However, he may actually have insurance against loss and doesn't want you to know and doesn't want to make a claim to his insurance company, or there is a large deductible that he doesn't want to pay.
4. I find it hard to believe that a person of reasonable intelligence would not insure his house against loss. Theft insurance, while difficult to obtain by a professional builder, should be easy to obtain by a homeowner.
5. Neither you nor the subcontractor should not have pay for the AC unit.
6. But, based on my experience, you will probably end up paying for it if, and only if, you want to stay employed as the homeowner’s builder, avoid lawyers, courtrooms, and a no-win/no-win situation.
7. I would make sure that he has insurance from this point forward

Carl Heldmann, byoh.com

Ask the Architect

2012-10-31T09:20:00.002-07:00

Architectural home design can make a better use of space. In new home building, "bigger" is not always the answer, but "better" is.

Here to answer your questions on new home design and related issues is Harvard trained architect, David Moore, AIA.

David has experienced home construction from many points of view: as an architect, a carpenter, a general contractor, a speculative home builder, and a homeowner.

You can ask David questions concerning the design of your new home, room addition, major home remodeling, or home renovation.

Read more about this free feature on byoh.com at Ask the Architect.

Carl Heldmann, byoh.com

What is Builders Risk Insurance

2012-10-17T14:29:00.000-07:00

Carl, I'm going to build my own house near Jacksonville, NC, and I'm confused about insurance requirements. I know that the contractors I hire should have workers comp and general liability, but what should I have in addition to theirs?

One agent says only Builders Risk (BR) insurance and tells me it covers damage to the property and also includes up to $1 million of personal liability for third parties that may get injured on the property.

Another agent says BR only covers the property, not liability, and that I should get a General Liability Policy.

Yet another says I should try to extend my current homer owners policy (different residence) to cover a 2nd residence.

And, they all require 2 yrs experience in residential home building. Why? What difference should that make to an insurance company? They are only insuring the home up to its' value at the time of a claim. Can you identify any companies that are less stringent. Can you offer any advice and/or contacts? Roger

Hi Roger, the first agent has it right. To see why, read Construction Insurance-Builders Risk Insurance-Hazard Insurance-Homeowners Insurance

As for the required 2 years of experience, who knows? It makes no sense to me other than some insurance companies have more stringent underwriting policies than others.

I suggest using an insurance broker. Brokers have access to, and do business with, many insurance companies, whereas agents are usually limited to the policies of their insurance company.

It is the same way with mortgage loans in the mortgage industry. Brokers have access to, and do business with, many mortgage lenders, whereas loan officers in banks are limited to the policies of their bank.

Brokers can usually find what you need, or they don't get paid.

Carl Heldmann byoh.com