Ask an Expert (continued)
What about buying materials? Can I save money using your contacts to purchase them? Absolutely. We belong to a consortium of homebuilders to give us buying power. You can take advantage of our pre-negotiated pricing with these name-brand companies - and you can expect to save somewhere between 20-40% off retail.
How do I make sure I stay within my budget? Staying within your budget depends largely on the upgrades you select during the building process and your ability to resist making changes after you get started. These changes can quickly escalate your building costs. Most owner-builders spend 10% more than they budgeted because they choose upgraded materials (e.g. cabinets, countertops). Because of your savings on general contractor fees and the markups you’d otherwise pay, you have a certain amount of leeway. We’ll monitor your budget throughout the process to help you keep your project on track.
How often can we expect to see you on our home site? Your DirectBuild consultant will perform 25 scheduled onsite visits, two in the pre-construction phase and 23 at critical intervals during construction. We also make several unannounced visits to check progress. During these consultations, we note any corrections that need to be made and discuss future phases with you so that you have a clear understanding of the building process as it unfolds. We actively participate in every project we’re involved in to ensure you end up with the quality home you set out to build.
How much money can we expect to save by hiring you versus a general contractor? Typically, a general contractor charges 13% - 18% over the construction cost of a new home. As an owner-builder, you’ll also save on the cost of liability insurance, which is passed on to you by the general contractor – typically another 3%. The equity you gain will depend on market factors, timing and location but, on average, homes appraise at about 12% more than they cost the day they’re completed.
What is your fee? What’s it based on? DirectBuild charges a flat fee based on the size and complexity of your project. Our all-inclusive fee ranges from 6-9% of the total cost of the home you build, not including the land. A $3,500 deposit is collected upfront. If you previously purchased a ToolPak, the $1,500 ToolPak fee is applied toward this deposit. The balance is due at predetermined points throughout the construction process. Once you become a DirectBuild client, you will be entitled to 20-40% savings with our subcontractors and suppliers. In addition, we will help you work toward completing your land and financing acquisitions.
How much time does a project typically take from beginning to end? The planning and preparation stage can take 6 to 12 weeks. It really depends, again, on the complexity of the project. Upon completion of the plans, we prepare a cost-to-build budget for you. At this time, you can submit the building permit application for approval. Once you have your building permit, you can begin making up your schedule. The building process typically takes between 7 and 9 months. If you are financing the construction, most lenders require that you complete the home one year from the date the loan is approved.
What types of organizations and associations are you affiliated with? We are members of the NAHB (National Association of Home Builders) and active in the local HBA (Home Builder’s Association). We are also a member of the HBA’s Green Builder Program that endorses environmentally sensitive building standards.
How do I get started? It’s as simple as calling us to schedule a free consultation. Building your own home isn’t a fit for everyone and we can walk you through a quick assessment to see if you are comfortable and ready to become a successful owner-builder. And remember, it’s never too early to call – even if you don’t have a design in mind, haven’t purchased land or feel clueless about financing options. The sooner you get on board, the better, so we can support you from day one.