Building our own home is something that a lot of people have thought about at one point in our lives. Many of us never act on the idea because of the probability of it not working the way we want it or simply because we think it will cost way too much. 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.
Being an owner-builder is something that can save you a lot of money in comparison to hiring a General Contractor. 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. This involves all of the important matters when it comes to building a home such as purchasing the materials, setting a budget for the construction, hiring subcontractors and, of course, monitoring the progress of the construction.
There is a great possibility that difficult times could arise especially when there are competing ideas. Moreover, there are necessary paperwork that the owner-builder must take care of such as the building permit. Any person who has never tried to build a home from scratch could say that it not as difficult as it sounds. The good thing is that even though it seems too tough, there is a big reward in exchange.
The great reward I’m talking about is the 20% that you could save up that comes from the overall proposed value of the home which general contractors usually charge as their fee. 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. Even though there would be a lot less work for you if you hire a general contractor, you must always consider the high cost of paying their fee and to keep in mind that the general contractors have total control over the whole project. If you hire a project manager, a part of your money will go to the project manager which is responsible for overseeing the progress of the construction, which means another deduction 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.