Home Building Costs – DIY Vs Typical Owner-Builder – Who Wins?
Is there much advantage in being a DIY (do-it-yourself) owner builder? Many people manage their own building or remodeling projects. But, a few will also jump in with both feet and do a lot of the physical building labor. This is the DIY owner builder. Who saves the most money?
To answer this, we must allow for different approaches to DIY work. Some people use a lot of friends. Sometimes friends are in the building trades. Some people work quickly and knowledgeably and others take their time and even learn as they go.
Differences Between DIY and Typical “Manage Only” Homeowner Builder
The “manage only” builder will employ a lot of subcontractors to do most, if not all, of the labor to build the home. DIY builders will use a lot of their own labor and get the help of friends and family.
On the surface, you would bet that the DIY approach would save the most money! That’s not always the case, however. Let’s break things down a bit further.
How the “Manage Only” Owner Builder Saves
This most popular way makes homeowner builders their own General Contractor (GC.) There is a savings right off the top even if they don’t perform their own labor. Now, they may hire a home building coach, but the amount they pay for this coach is generally far less than paying for a GC. This often saves them between 10 and 20%.
They save additional money by managing many of the building materials purchases and avoiding some of the GC mark-ups on materials. This can put another 10 to 20% savings in their bottom line.
Finally, most “manage only” owner builders do, in fact, provide some basic labor even when they don’t consider themselves involved in labor. By helping out wherever they can, it’s not uncommon for them to save another 5%.
How the DIY Owner Builder Saves
In many ways, the DIY builder is much like the “manage only” one. But, they do much more. Working as their own GC, they enjoy the same savings there. Also, they usually are involved in the materials purchasing and can save there too.
Now, here’s where things get quite a bit different. The DIY builder does a significant amount of work. Cutting out the cost of many of the subcontractors can really pile up the savings. So, should this be the approach of every owner builder?
No. Not likely.
Cautions for the DIY Builder
The apparent advantages for the DIY owner builder can sometimes turn against them. This is where the comparison gets a bit dicey. Here are some things to consider:
- A DIY owner builder often tries to do too much of their own labor which can really extend the time it takes to build which increases financing costs and interest charges.
- If a DIY builder isn’t careful, mistakes will be made that can be very costly to correct which will wipe out much of the potential savings on the project.
- Some DIYers will spend so much time on the project that they feel forced to take time off work resulting in lost income. This lost income is, in effect, an added cost to building.
The Home Building Coach to the Rescue
If a DIY builder takes care to avoid the common problems, then yes, this home building/remodeling approach can definitely cost less. Just be sure that, if you do attempt to be a DIY owner builder, that you have the skills to perform the labor and that you don’t overdo it.
Lastly, a home building coach can really be of exceptional value to you. A coach that is experienced working with DIY owner builders can keep you on the straight and narrow and help you avoid costly errors and lost time.
Prepare well, learn all you can before you begin, and you’ll not only save money but you’ll have a great time too!
You can learn so much more about home building and remodeling online. One great option is to take advantage of a very informative yet simple to follow *free* e-course that you can find by clicking here http://www.DreamHomeCreation.com. You will also find other tips and tools, surveys, videos, and additional articles by Mel Inglima.
Author: Mel Inglima
Article Source: EzineArticles.com
Provided by: Digital Camera Information
Aaargh – planning quiet day operating from house to finish journal paper but neighbour is doing DIY – blimmin’ academics … oh, hang on …
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Many of those foreclosed homes have become that way because of speculators and flippers Now is not the time to try to flip houses unless you want to join the people who have bitten off more than they can chew.
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