Get more for your money when you owner-build
Owner-building has some great benefits such as huge savings. One of the best ways to take advantage of these huge savings is simply to make your money more worthwhile. What do I mean by this? I simply mean that while you may save a lot of money on not paying the general contractor's fees, architect's fees, and some labor costs by building a home yourself, your biggest saving is found in the value of your home for the price you spend on it. This idea will become more clear to you as you read further.
Owner-building means a lot of things, but one of the things it means is getting that $250,000 house for less than $200,000. But, it means more that that to, one of the greatest ways to save money building your dream home is to get exactly what you want at a fraction of the cost. Huh? Basically use your money wisely and you can get all those "extras and upgrades" you would typically pay huge amounts of money on top of your budget for, and get them at standard prices. When you owner build you get more for your money because you aren't going to be paying the 10-15% that a contractor tacks on top as profit. It also means you make decisions, and don't have to pay someone for changes because it isn't going to inconvenience anyone. So, pay standard rates, and get "upgraded" items.
Does that sound good to you? Who wouldn't want to get jetted bath tubs, gas fireplaces, and beautiful custom trim, and all the other fun little "upgrades" at a price that would fit the term standard? Owner-building makes that possible because you can spend the same amount and get so much more.
The savings you get from owner-building don't usually come in the form of spending less money. If you can only qualify for $250,000, you will probably spend that much whether you build with a builder, buy an already built house, or owner-build. What it means is that you get more for the money you spend. When it comes right down to it, you spend less to get more, (or you spend the same amount and get so much more) but these savings are calculated against actual bidder estimates of construction costs, or against the appraised value of the home after completion compared to the costs to build it.
It is worth repeating, owner-builder savings does not mean if you plan to spend $250,000 you will only spend $175,000. It means that if you spend $250,000, you may get a house valued at $350,000 or more. Make sense? Most owner-builders don't actually spend less money on their home, they simply get a much better home for that amount of money.
The smartest owner-builders are not the ones that spend the least amount of money, rather they are the ones that get the most value for the money they do spend. So, if you are considering owner-builder status, your goal is to get more for your money. You need to negotiate hard, find deals, buy things only if they are a bargain, and never be willing to pay more for something than it is worth, no matter how badly you want it.
To get more for your money you will have to shop around until you get the best price, but if you take the time and effort to do this, you won't regret it. Especially when you complete your house and have 35% built in equity. That is something every homeowner wishes they could start out with, and you can.if you insist on getting more for your money!
