I've been trying to research what is involved in building a house. I have some land to build on, and I currently own a house that I will be selling. What I'm looking for is maybe a timeline, or something that will explain what all I will need to do. I'm not wanting to talk to builders yet, because there seems to be so many things that should be decided first. I don't know anyone who has built before, so I have no trustworthy brains to pick. I've looked at house plans, but I don't know how much house I can look at building- do you apply for a mortgage or some other type of loan? I'll have at least $20k and upto $40K cash to start with, but will need a loan as well. Another thing I've thought about is putting the money into hiring the builder to go as far as drying-in, then finishing the inside myself, so that I can put most of the $$ into the size of the house. Another thing i've wondered is if builders negotiate on price, or do you just accept what price they quote and go from there? Anyone have any experience / advice they can lend?

Thanks in advance

 

You sound like you not only want to be your own General Contractor overseeing all the other trades, but also the BUILDER...

And you sound like you're not sure how to go about this...
I would suggest you think long and hard about even considering this then...
this is not an easy project, this will take a LOT of coordination and time, and knowledge about the trades, about the permits, about a LOT of things...

Even more difficult than taking your powerstroke diesel apart and never having done it !

but if you insist...for starters, go to your local library or bookstore and there are 100's of books explaining the process...

Since there will be a loan involved, you'll need to talk to a mortgage company or at least a broker... this may be the first place to start to see how much house you can afford to build based on your credti history the property value, etc...
typically you get an interim loan for building then convert it to a permanant loan....
but MOST companies will want a finitie build time... no more than 6 months...

good luck and all with it...

Not saying don't do it... just saying tighten the seat belt because it's a RIDE better than six flags !

 

You get a construction loan that gets rolled into a mortgage loan when the house is completed. Small local banks are usually easier to deal with, just walk in and talk to a loan officer and ask em what you need to do. Some banks have lists of approved contractors. Everything is negotiable with your builder. Most contracts have clauses where the builder is not responsable for fluctuations or availability of materials. In my experience whatever price you negotiate figure on going over at least 25%. My builder told me he'd be done in 4-5 months but it took 9. After talking to others I found out I got off easy. Some people I talked to took up to 2 yrs to get a house built. Its definitly a test of patience but in the end it's worth it. Good luck!

 

Banks will look at your experience level also. They want the project done and done right to protect their investment. Without experience it may be very difficult to obtain a construction loan and a mortgage.

 

It also sounds to me like you want to be your own general contractor, which is just fine. However, you're going to have to do some homework. I know six people that went through this and not one of them has regretted it, but it sure did consume gobs and gobs of time. I too will be doing what you are doing down the road, so I suck up all the knowledge and information I can. I see three things you need to address; suggestions are provided.

1) Type of home and cost. You need the plan/idea of what it's going to be. At that point, you can ask builders how much they charge per square foot to build your dream. In my area, that is around $85-90 per sq foot depending on things like cabinets, carpet, etc etc. You get the point. This is probably one reason why bigjack mentioned plan on possibly 25% more than planned. However, I know a person that built his house for $73.50 or so per sq ft. He was very savy with purchases and negotiation and many things in the house were purchased online. He build up a large collection of materials prior to building.

2) The loan. Banks like to frown on wanna be builder/owners. Don't let this stop you. I'd suggest talking to a bank this week and get some ideas and feedback. If you don't like what your bank has to say, try a few more as well as mortgage companies. However, you'll probably look better if you're educated/informed about the process when you sit down and get serious about your loan. I've seen banks let people build their own house with the requirement that you must meet certain stages of completion by certain dates. They loan you more money as you go along and demonstrate progress in lieu of handing you the full loan amount up front.

3) Building permit issues. The county in which I reside is very friendly to people building and remodling homes, and if you call them or better yet visit them in person, they will help you and work with you. You won't be the first, nor the last that they help. They will let you talk to inspectors as your questions arise; this will help you avert rejections when the inspector pays a visit. Plan on an inspector only checking his messages and returning phone calls 1x - 2x per day. You may also be able to arrange visits with the various inspectors along the way. However, I'd plan on visiting them at their office. Also, you may find (as I have) that many of the things that need to be permitted are noted on a website for your county's building department. Ask about it.

Have you put in a well and done a perk test? In my area, and maybe across the country, banks shy away from financing when the well delivers anything less than 5 GPM. On the septic, depending on your soil you may have a very simple and less expensive drain field, or the county may force you into one of those pre$$urized and more expen$ive systems. Just a few things to be aware of, but again compensation for these things can be negotiated.

You can probably do some things yourself. For example, I know a guy that recently finished building his house; the lowest bid to simply hang the cabinets was $1500. This is not rocket science or brain surgery. He got one of his buddies to help him do it; took them less than a day and neither had done it before. But the guy building his house had just done his homework and proceeded in confidence. That was an easy $1500 he saved. For you, think about your abilities, time requirements, and willingness to learn and then do the work yourself and choose your projects accordingly.

Hope this helps.

 

Here you go:

http://www.homebuildingmanual.com/

Hope this helps!

 

Here is a couple ideas for you.First have you looked into modular homes?they have come a long way quality wise and for 60k here in Michigan you could have one brought in,set up,and be living in it in less than a month,a decent 3bedroom ranch.And second,our local chain lumberyards sell what are called kit homes,they are stick built,but cost can very.It would be like buying a car,They give you brocures to look over,then you decide on any modifications once you pick the home you like,such as better windows,doors,etc.This can increase the price of a kit alot.By going this route you have the ball in your court.Once you have decided on the one you want and how you want it,then you find contractors to bid on erecting it for you.These kits are complete outside shells,meaning when they are built,everything outside is complete.doors,windows,siding,shingles,etc.Inside alot you can do yourself,such as 80% of your electric(those guys make alot of money,just stringing wires and drilling holes)And alot of your plumbing you can do yourself,Mainly the water supply lines,you will want a plumber to do the sewer lines,I just built a guy a 2400 sq ft 2story gambrel(barn) style,his total lumber cost was 22,000,and his labor was 12,000,but you already know from my other post that he didnt pay me,so he got a smokin deal for 23,000!
If you have anymore questions I will gladly help all I can.

 

Wow- Thanks everyone. This sure helps me with my first steps.
The land I have currenty has a mobile home on it that will be torn down (so old it cant be hauled out), so there is already septic, water well, electric, etc. in place.
KT- I hadn't thought of modular homes really, mainly because I'm wanting a 2 story. I have just assumed that Modulars were only 1 story. But I will look into them, thanks for the suggestion. I did however, plan to do alot of the interior work myself, flooring, installing fixtures, running the plumbing lines, and yes, I can tackle cabinets (with some help) in hopes of saving some cash. Wasn't sure though if a bank would go for loaning $ to get the home to the dried-in point only.

Thanks alot everyone- I didnt even know where to start asking questions!

 

You can find a lot of really nice modular homes in 2 story.

Also, with a modular, you still have the option of doing a lot of the finish work yourself.

 

You need to determine if the county will allow you to use that septic as well as any water issues. Where I'm at, there's still plenty of barrel and other illegal septics out there. Some are on lots that would have perc issues (soil with high clay content). The county has put people through the wringer on septics. Where I'm at, the septic+drain field/well must be 100' or more apart. Do you meet that test? Was your septic installed with a permit and if so, will the county allow you to use it on the new home? Remember, septic size is usually based on # of bedrooms in the house; does the current trailer muster that test? If the county permitted your septic, the permit/records will show what it's rated for. Does the county have your well on a well log and ideally showing how much water it will deliver (GPM)? The bank will probably want to know about this too. The county you are in quite likely will make the septic for you new home meet current code. You may wish to call the county this week and get some info; it's free information and good to know now.

 

You can get very nice modulars with two storey, they are probably built a little better at the factory than on site because they have to be transported. Have a full basement if you can (double your living area) ,you can get them unfinished, if you might want an attached garage, check with building insp. some places want firecode sheet rock on house side, as well as garage side. If you go with on site construction try not to make too many changes, it will cost you. (Worked for a guy this past summer, he and his wife kept changing things, toilet location archways, we even moved garage wall over 6" Pain city. There are many things to think about. Good Luck, George

 

If you are anywhere near San Antonio, go to the adult education courses for home building at St Phillips College. It doesn't take that long to learn the basics. Actually, if you knew how easy it is to be your own builder, you wouldn't have some yoyo build it for you. Building a house is simple and anybody can do it. It's not near as complex as you think.
Another option would be the Builder/Owner Network out of SA. They basically guide you thru the building process and you are the builder. They advertize on KTSA a lot.

 

Hey lookin there are actually 2 week classes you can take that will tell you how to do everything step by step. Jees I know if you do a search on google for house building classes you will find all of the info you need. Ed

 

I agree - modular is the only way I'd go in my area. They aren't going to get 3/4 finished and leave for the next project because it would block up the assembly plant. Module home are normally not paid for until the day of delivery - so it's in their best interest to finish it. You also have a locked in price - usually the biggest delay that can occur is the basement not being ready in time. They also have a more stable work force that results in more uniform quality - trust me my current home is living proof of all the corners a contractor can cut while using inexperienced help.

 

Unfortunately, i'm not close enough to san antonio to go to the classes mentioned. A modular home sounds like something I really ought to look into. I wouldn't have thought it, in the beginning. I assume there are different 'brands' of modulars? Are modulars looked at as being the same as regular constructed homes? I dont want anything even remotely close to a mobile home. As far as the septic and well, yes, they are more than 100' apart, but as for being rated for a larger home, I don't know. I will have to check into that, as well. Thanks again all.