Having a home that is personally built by the owner is an idea that has been through many people’s minds. A lot of people do not do anything about this thought because of rationalizing that it is either not possible, or is too expensive. But for some, they act on the idea and search for information and then later discover that there are actually quite a few information that most general contractors do not want their possible clients to find out.
One way to save a lot of money in building your own home is by being an owner-builder as opposed to hiring a general contractor to do the job for you. In order to be an owner-builder, you must be aware of the role and responsibilities that a general contractor would generally take care of. Setting up a construction budget, hiring subcontractors, purchasing the necessary materials, and overseeing the progress of the construction are some of the important tasks that involves building a home.
It must be expected that there would be times when household interests would bump into each other. In addition to this, it is the sole responsibility of the owner-builder to ensure the proper filing and acquisition of legal documents such as the building permits. With all the factors considered, it is very understandable why some people who has never tried to build a home would say that it is easy. The good thing is that even though it seems too tough, there is a big reward in exchange.
In general, contractors charge about 20% of the total value of the house to be built which mean you can save a lot of cash without hiring them. This simply means that if you become an owner-builder, you can save up that 20% into your home equity.
The general contractor’s fee will still cost you a lot more money in comparison to the expenses that you will have to include in the budget for being an owner-builder. Also, it must always be considered that the general contractors take over and control the entire project which means there would be less work for you, but in return you will need to pay a large fee. Project managers to monitor the overall project are also needed if you are going to hire a general contractor and this can cost you more money to be deducted to your potential equity.
Even though being an owner-builder is not the easiest job that you can do, there are a lot of advantages that you can gain from this. If you have the willingness and the drive to accomplish this job, then there are many advantages that you can fully enjoy compared to hiring a general contractor.