If you build your house yourself, meaning manage the subs and workers yourself instead of paying someone else too, you save all that money, but you also do not pay high premiums on materials, etc. You will find that it is possible to build 50% equity into your home if you owner build. That is incredible. The reason you can do this is because you have the freedom to shop around and find the best prices on labor and materials, and all savings go back in your pocket. When your home is finished, it could be a $400,000 home, but only cost you $200,000. to build.

Let's look at an example: If you hire a contractor, they may give you an estimate for cabinets at about $10,000. Let's say you decide you want to spend time to try and find cabinets of equal quality for less. So, you look at discount stores, overstock, etc. And, you find the same basic cabinets for $6500. Now, your contractor may have done the same thing, but the difference is, that the $3500 is just that much more profit they make, and for you, it is a savings. So, now, you have cabinets valued at $10,000, but paid only $6500 for them, so you have instant equity.

Wouldn't it be nice to go into a home and already have equity in it? Well when you owner build, if you give the home due diligence, and do some things yourself, you will have equity in your home right off the bat.

More control

One of the big advantages of owner building is having hands on control. When you hire a contractor they select materials, and make the decision of when a lesser quality material is ok, and when it isn't. When a sub can get away with being late or not finishing on time, and when they can't. The contractor decides who they will hire to do what, and how long they will give them to finish the job. If you owner build, this becomes your prerogative. You get to interview sub contractors and find one that offers you best quality service and materials for the best price.

You also have control over quality. Quality control is huge. If you owner build, chances are you are onsite so you will be able to see potential problems, and when sub-par materials are being used, and catch it early enough to make a change. You are there to accept shipments and do quality control. If the lumber is not as straight as you want, you get to send it back. It is your house, and you get to control how well it is built, how quickly, and what problems you will encounter along the way. You also get to decide when people get paid for their work. Maintaining the control of your home is a big positive aspect for some.

As you can see, these two reasons to owner build are good enough for many. Owner building does mean you have to do some leg work, and it is that leg work that saves you money. You do not have to know everything about construction to owner build. You do not have to be motivated and organized.