Options for Building a Home

Hey everyone, Michael here.  I’ve had some people recently ask what their options are for building a new home.  They’ve heard about owner building and they know about the home building companies out there that can take care of everything for them.  They’ve also read about a few brave soles that have physically built their own home from the ground up…swinging a hammer until it was time to load up the moving truck.  So what if none of these options really fits you?  And if the ultimate goal is to get the best possible house at the best price, what is the best route to take to create your dream home?  Here we’ll dive deeper into this discussion…be sure to check out our most recent video below where I try and answer some of your questions.

Hire a Professional Builder

The easiest option to create your dream home is to hire a professional builder to handle the entire process.  This could be a local custom home builder or a large, national home building company like Pulte, D.R. Horton, or Toll Brothers.  When you hire a company to handle the complete process, all you do is pick out what you want and sit back and watch it all come together.

Pros:  No day-to-day responsibility.  Proven house plans.  Planned communities.

Cons:  Lack of control…your schedule starts and ends per the builder.  You cannot choose who does the work.  Even if you are a painter or your uncle is an electrician, the builder will typically stick with their own subcontractors out of loyalty.  Lack of options:  Meaning, you are limited to the plans and locations they currently serve (except for some small custom builders).  So even if you like that country lot with five acres for your horses, they won’t build outside their communities.  Cost:  You pay extra for the full service the builder provides.  Not a Magic Bullet:  You may still have problems come up while building (always stay involved to look out for your interests).

This option is the way to go for those who don’t have a particular house plan and location in mind, are more “hands-off”, and don’t mind paying the extra costs.

Physically Build it Yourself

It sounds extremely intimidating, but it’s possible to physically build your own home.  This is where you do everything from digging the hole for the foundation to hanging the drywall.

Pros:  Huge labor cost savings.  You create the quality…so it will meet your expectations (hopefully).  You get exactly what you want.

Cons:  It takes a tremendous amount of your time…and if you have a day job, this project will take years.  Expertise – Are you knowledgeable about every home building activity?

This option is great if you are building a mother-in-law suite in the backyard or a finished basement, but it’s typically way too demanding for a full size, primary residence.

General Contract Out the Work Yourself

This is where you take on the role of the general contractor and hire trades who are experts in each building activity.  You hire a foundation company, a plumber, a roofing company, drywall contractor…etc.  These companies have all the tools and knowledge required to efficiently complete a quality job.

Pros:  You don’t need to be an expert in every building trade.  Time:  Managing the process as the general contractor will take far less of you personal time than physically building it yourself.  Schedule:  By hiring competent trades, it’s possible to cut your overall build time down to six months or less.  Control:  You have complete control:  house plans, schedule, special changes…the sky is the limit.

Cons:  Even though this takes much less time than physically building the home yourself, you still will need to dedicate serious time to the project.  Responsibility:  Yes, you get complete control of the project but with control comes responsibility…if anything goes wrong, you are responsible for taking care of it.

Hybrid Option

This last option for building a home is a hybrid of the last three.  Based on your experience, time available, and knowledge, you actually combine all of the options described above to fit your particular circumstance.

 

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