Tips for building a new house

From my real estate appraisal course work book:

Law of Decreasing Returns

The premise that additional expenditures beyond a certain point (the point of decreasing returns) will not yield a return commensurate with the additional investment; also known as law of diminishing returns.

This never applies to boating though.


This is exactly what I ran into. I figure I only got about 30% of my money back in the high end stuff!
 
Look into Pacific homes. We built one and it was easy and quick. We had all our finishes and fixtures picked out and stayed with the plan. 2700 sq.' Four months from start to finish.
 

Attachments

  • IMG_1595129727682.jpg
    IMG_1595129727682.jpg
    465.5 KB · Views: 70
Last edited:
Look into Pacific homes. We built one and it was easy and quick. We had all our finishes and fixtures picked out and stayed with the plan. 2700 sq.' Four months from start to finish.
A second for Pacific, they helped a ton when I was in the custom home investigation mode. I liked the "prefab" modular style home. Built to house standards in a dry, temp and humidity controlled environment then delivered and set on foundation. Contractor buddies even stated many issues are removed when using this route. This was what I had designed until in 18 months of searching and looking for bare land for correct price and area became a huge issue. Then when 90% solution presented I grabbed.

I will provide hot water for soon to commence addition. Great idea. Hope I am NOT living redram99 problem as this IS my last house.

MB
 
To the OP, make sure you have 50% of the build price in hand ready to go. Construction mortgages only pay for work already done and the banks' draw system follows their logic, not the reality of cost timing in construction. The costs are almost always loaded on the front end of the job, with foundation and frame, lot development, driveway build, site leveling and utilities connections all coming early. The first draw never seems to cover all that work and you'll be struggling for funds until the final draw arrives after completion. Builder will be waiting to be paid for the entire project, which means in turn they'll be carrying the subtrades or late paying them as well. Prompt payment is the sincerest form of praise!

Regarding the licensed builder vs owner-builder route, the bar has raised very high now with the advent of step code. The maze of design, consultants, code and building science pretty much makes it inaccessible to people without recent trades experience. A good friend of mine decided to do it and engaged me for the foundation, frame and site work, and it worked OK but he admitted in the end that he would have saved time and stress by having me handle the entire build on my warranty. He got a great product though, primarily through excellence in design, particularly with regard to solar heat gain and shading. It's the most airtight building we've ever been involved with, meets the stringent Passiv Haus standard. Add a PV array and it's a Net Zero home.
 
I have been in hundreds of new built homes in my time as an in-home technician for a major telecommunications company and as a carpenter. Few thoughts that I have.

Gain as much expertise/knowledge as you can with design and layout of houses. Go into show homes in your area. If you have a realtor, see if you can view a few new builds. That’s way you can see want you like, how they flow, what works for you, what materials you like, what you would different.

Don’t overlook the details. Nothing worse then when you live in your new house and you wish you did something different. Walk through your house through the build after hours. Get a feel for it. Especially when the electricians start boxing it out. See where they put outlets and add more/move if needed. Make sure the light switches are where they make sense to you.

Run Ethernet to every room and to where your tv’s/computer will be. Hard wired internet is always better then wifi. Also new houses are not kind to wifi. With the open floor plan it is very hard to put the wifi modem in the most central spot. Also with the additional sound proofing that people are putting in it kills wifi.

At the end of the day it’s your money and house. Get want you what. Don’t compromise due to it being easier on the trades. If something does look right bring it up to the Builder politely. They shouldn’t be upset with questions.
 
The biggest pain in the butt in our build from a couple of years ago was the architect. It wasnt a total knock down but 75% new construction. The builder did his best but when it came time to install the custom built cabinets and cut the quartz my wife an I dropped by the house to lay out the island on the floor in painters tape so she could plan for a live edge table and wtf this table does not fit the architectural drawings that show all structural dimensions including the table and islands. Hey wait a minute even I know what "NTS" means "Not To Scale"...she messed up big time. Anyway I would put trust in the builder but be conversant with drawings and understand dimensions, even if you have to scale it out in real time.

In our case we were at lock up so we let her go on the spot and she had to remove all of our stuff from her social feeds.

Soft costs like engineering, site surveys and permitting can really add up. And then the interior designers come calling watch out!!!
 
Well we have signed on with a designer and have made the mental start date for the fall. Funny how plans have already changed 6 times and there is nothing on paper. Survey, geo tech survey and hazmat completed. So I guess it's a go.

Spoke with a couple other builders. But without solid drawings it is hard to commit to someone. But we have to get in line for a builders schedule sooner than later so that's the dilemma.
 
Well we have signed on with a designer and have made the mental start date for the fall. Funny how plans have already changed 6 times and there is nothing on paper. Survey, geo tech survey and hazmat completed. So I guess it's a go.

Spoke with a couple other builders. But without solid drawings it is hard to commit to someone. But we have to get in line for a builders schedule sooner than later so that's the dilemma.
Final drawings should have absolutely nothing to do with your decision on a builder in my opinion. You're interviewing someone for how much you can TRUST them. If you don't trust them then don't hire them. If you need more information to build that trust then dig deeper. References, more face to face time, understand their processes, what is your fee ACTUALLY getting you, who will be on site, ask to come out to another site during a build, look them up online, ask them to walk you through a budget review, ask them what courses they've completed to maintain their license, do they have kids?, what do they do in their spare time? do you feel like chatting with this person on a daily/weekly basis? And finally don't be fooled by fancy client portal apps, there's something to be said about the old school method.

Maybe I ranted about all of this earlier lol. Good luck and congrats!
 
Choose a good general contractor... forget about doing it it yourself.....for a multitude of reasons.
 
I’m not sure if I’ve replied to this or not but I built a house two years ago now. I did an owner build and hired my own trades and most things went good but I had a few problems too . I was living in a ****** rental and we were already delayed so I stressed to get the house done ASAP. Some of the finishing things I decided to just do myself instead of waiting any longer for the contractor which was a mistake with my own job on the go and two little kids. The other mistake was I assumed my wife would want to decide on all the colours and floors etc and I was wrong. She really didn’t care and I honestly don’t really care either so a lot of those decisions were rushed and kind of last minute because of a lack of planning. This was nice in a way because she wasn’t picky but I ended up having to deal with a lot of it. Again, I was in a hurry to get started so I got a few quotes for a foundation which were all pretty close. I ended up hiring someone referred from a friend because he was available right away and didn’t get a solid quote. This cost me because the bill ended up about 20k higher than it should have been. We split the difference which was still higher than my highest quote but there are still hard feelings and he sewered me in town with other contractors even though I believe he was the one out of line. I’ve got some timber framing in my vaulted living room and I’m not happy with how the drywall and timber’s look. Basically the way the drywall butts against the wood doesn’t look great and this should have been caught during the framing stage . Again, I was in a hurry and didn’t notice. The last thing was the concrete. Because the first guy told everyone in town I screwed him when really he overcharged nearly 20k on a 45k job I had a hard time finding a good concrete guy to work for me. I had a guy recommended to me and only did one reference check with a friend. I showed up to see how the 2000sqft of stamped turned out and he didn’t tape off my flashing or siding so I had dried concrete all around 3/4 of my brand new house. This is not easily fixable and I now have black flashing that looks 30 years old. So I guess what I’m really saying is take your time, get your quotes straight ahead of time and make sure whoever you are hiring isn’t a dipshit because with how busy things are right now it’s hard to find anyone that actually cares. Hiring a general would have been easier but I got a pretty nice house built for about 190$ a sq doing it myself and my guess is I would have been closer to 250$ if I had used a general.
 
Last edited:
I will chime in, just got to lockup yesterday on my man cave room, a stick build with 8"x 8" fir beams for aesthetics, 26'x30' with 10.6' walls and 16' cathedral ceiling. I am retired so can be on site 24/7, no requirement for loans so no lender engagements/requirements. After much research, debate and approval from City I decided to be the general contractor (GC). I have NO experience at building houses/additions but am very handy, can read plans and call myself capable. Google and my city engineers are awesome. Most detailed up to date info is on web. This I used then confirmed questions with engineer. So far I have kept at least 15K in my pocket from "being in charge". I did perimeter drains, house wrap, and floor vapor barrier, passed all inspections first go. I will do final interior finish for occupancy permit, not insulation or drywall. What have I learned so far?

Make dam sure your designer and engineer have the MOST correct perfect plans possible, I would not have "discuss with home owner" on any future final plans. Nor options, 3- 1.75"- 20" LVL vs Steel beam for instance. These cause issues.

Its easy to call builders for a look, chat, and possible acceptance, but dam hard to get one unless your budget is unlimited and your timeline is when they want to build. Campbell River is build crazy so I got lots of "I would love to build, your on the wait list". Possible start 1 year out.

Have $$$$ for the what ifs. Had to dig out 48" of "bad dirt" and fill with pit run, all 150 meters worth, a $5000 WTH expense, plan for the worst and hope for better.

This is very paint all with one brush statement but I say I would NOT really trust any trades builder. They are out to make $$$$, or take your $$$$$, are incompetent (recommend one current with 2018 new codes), never met one who treated your $$$ as theirs. Remember when contractor leaves a case of nails out all weekend in the pissing rain its YOU who pays for replacement. Roofers without tarps? Contractors without equipment, pounder, concrete vibrator, scaffolding, and so on all adds to your end costs. Being the general contractor, being on site every day and present, closely watching, supervising, allowed me to sub all tasks out to trades, ultimately saving me lots.

I know many people who have had their houses built, nearly all say what a nightmare. I know non who have said it was a "fun" experience. One yet unfinished large addition has caused me frustration, $$ and stress. I would most definitely be the general contractor again, contractors have taught me lots, being engaged with your house build adds to the end results, at least for me and I am not done yet.

I recommend, reading, learning and being involved as much as possible if you have a timeline and budget. If money and timelines mean nothing, then be the "best" homeowner/ GC according to my builder. Come on site to pay final bill only.

Good luck, 32knots.

HM
 
I’m not sure if I’ve replied to this or not but I built a house two years ago now. I did an owner build and hired my own trades and most things went good but I had a few problems too . I was living in a ****** rental and we were already delayed so I stressed to get the house done ASAP. Some of the finishing things I decided to just do myself instead of waiting any longer for the contractor which was a mistake with my own job on the go and two little kids. The other mistake was I assumed my wife would want to decide on all the colours and floors etc and I was wrong. She really didn’t care and I honestly don’t really care either so a lot of those decisions were rushed and kind of last minute because of a lack of planning. This was nice in a way because she wasn’t picky but I ended up having to deal with a lot of it. Again, I was in a hurry to get started so I got a few quotes for a foundation which were all pretty close. I ended up hiring someone referred from a friend because he was available right away and didn’t get a solid quote. This cost me because the bill ended up about 20k higher than it should have been. We split the difference which was still higher than my highest quote but there are still hard feelings and he sewered me in town with other contractors even though I believe he was the one out of line. I’ve got some timber framing in my vaulted living room and I’m not happy with how the drywall and timber’s look. Basically the way the drywall butts against the wood doesn’t look great and this should have been caught during the framing stage . Again, I was in a hurry and didn’t notice. The last thing was the concrete. Because the first guy told everyone in town I screwed him when really he overcharged nearly 20k on a 45k job I had a hard time finding a good concrete guy to work for me. I had a guy recommended to me and only did one reference check with a friend. I showed up to see how the 2000sqft of stamped turned out and he didn’t tape off my flashing or siding so I had dried concrete all around 3/4 of my brand new house. This is not easily fixable and I now have black flashing that looks 30 years old. So I guess what I’m really saying is take your time, get your quotes straight ahead of time and make sure whoever you are hiring isn’t a dipshit because with how busy things are right now it’s hard to find anyone that actually cares. Hiring a general would have been easier but I got a pretty nice house built for about 190$ a sq doing it myself and my guess is I would have been closer to 250$ if I had used a general.
Some of the exact issues I experienced. As the GC I STOPPED my builder from doing beams the easy way, now they are as I wanted and look great. Seams the easy, fast don't really give a **** is the new building process, or I will care if you sign the blank check first. Walk around some new builds and really look at what's going on. Sheathing nails missing studs, non square corners, and slapped up buildings are the new norm. All for a clean $100 per hr for ticketed guy and $55 for apprentice. Glad I have the time to watch every portion of my final build to get all exactly as I want.

32knots, if you can I recommend taking on the challenge of GC. I think end results will show.

HM
 
I’m not sure if I’ve replied to this or not but I built a house two years ago now. I did an owner build and hired my own trades and most things went good but I had a few problems too . I was living in a ****** rental and we were already delayed so I stressed to get the house done ASAP. Some of the finishing things I decided to just do myself instead of waiting any longer for the contractor which was a mistake with my own job on the go and two little kids. The other mistake was I assumed my wife would want to decide on all the colours and floors etc and I was wrong. She really didn’t care and I honestly don’t really care either so a lot of those decisions were rushed and kind of last minute because of a lack of planning. This was nice in a way because she wasn’t picky but I ended up having to deal with a lot of it. Again, I was in a hurry to get started so I got a few quotes for a foundation which were all pretty close. I ended up hiring someone referred from a friend because he was available right away and didn’t get a solid quote. This cost me because the bill ended up about 20k higher than it should have been. We split the difference which was still higher than my highest quote but there are still hard feelings and he sewered me in town with other contractors even though I believe he was the one out of line. I’ve got some timber framing in my vaulted living room and I’m not happy with how the drywall and timber’s look. Basically the way the drywall butts against the wood doesn’t look great and this should have been caught during the framing stage . Again, I was in a hurry and didn’t notice. The last thing was the concrete. Because the first guy told everyone in town I screwed him when really he overcharged nearly 20k on a 45k job I had a hard time finding a good concrete guy to work for me. I had a guy recommended to me and only did one reference check with a friend. I showed up to see how the 2000sqft of stamped turned out and he didn’t tape off my flashing or siding so I had dried concrete all around 3/4 of my brand new house. This is not easily fixable and I now have black flashing that looks 30 years old. So I guess what I’m really saying is take your time, get your quotes straight ahead of time and make sure whoever you are hiring isn’t a dipshit because with how busy things are right now it’s hard to find anyone that actually cares. Hiring a general would have been easier but I got a pretty nice house built for about 190$ a sq doing it myself and my guess is I would have been closer to 250$ if I had used a general.
Slightly wordy or I'd be asking for permission to post on my website. Glad you had a better than average owner-builder experience.
 
Check out Pacific homes, send them a 2D plan and they will put building plans together for you. We put up a 2700sq' house in the middle of winter in four months. I was the general and made a few mistakes in scheduling but otherwise it was almost a piece of cake. The final tally was less that 150.00 a sq.'
 

Attachments

  • 20170519_201452.jpg
    20170519_201452.jpg
    474.2 KB · Views: 10
I tape off the flashings and protect the siding.
I lead the framers (my own guys) and make sure things are perfect.
I tell the drywaller what beads to use where.
I insist on best practices on all installations that my team isn't self performing.
I scold people daily (not by choice)
I update my trades on the schedule months, then weeks, then days ahead of time.
I bring along an interior designer to have all the specs established before we touch any lumber. That spec package is a contract for everyone working on site.
I correct the Engineer.
I correct the Architect.
I keep the designer in check.
I answer my phone 100% of the time.
And I keep the marriage working by communicating constantly.

It's so disheartening to hear people blaming trades or architects when stuff goes wrong on a residential build. Stuff ALWAYS goes wrong. A good builder just deals with it because there's nobody else to blame.

All that for 10%? Sounds like a no brainer.
 
I tape off the flashings and protect the siding.
I lead the framers (my own guys) and make sure things are perfect.
I tell the drywaller what beads to use where.
I insist on best practices on all installations that my team isn't self performing.
I scold people daily (not by choice)
I update my trades on the schedule months, then weeks, then days ahead of time.
I bring along an interior designer to have all the specs established before we touch any lumber. That spec package is a contract for everyone working on site.
I correct the Engineer.
I correct the Architect.
I keep the designer in check.
I answer my phone 100% of the time.
And I keep the marriage working by communicating constantly.

It's so disheartening to hear people blaming trades or architects when stuff goes wrong on a residential build. Stuff ALWAYS goes wrong. A good builder just deals with it because there's nobody else to blame.

All that for 10%? Sounds like a no brainer.
I think what you wrote isn’t the norm and likely why you appear to be quite successful . Honest question here. If I hired you to build my house and my framing package and trusses were 150k retail but under my personal account was 135k and under your account was 130k which would you charge the customer and which does the 10% get added? I only ask because I know what most guys do and in the end it ends up a lot more than 10% for the customer. Most builders I know would charge customer 150k and add 10% to that. Meanwhile the builder paid 130k.
 
Back
Top