Building a house for penny pinchers.

[Jon Boy]

This. We were fortunate (after lengthy vetting process) to find a reliable, honest contractor, AND have a 1500 sq ft addition built for $115 sq. ft.

My advice is to play GC, this alone will cut costs almost in half. However, you could also have the honest contractor act as GC once you build rapport (after he frames and dries it in) he may accept the gig to finish it off with his trusted subs.

What part of the country is this addition being built?

There’s a lot of false information about being your own GC and saving a ton of money. Majority of gcs are marking up labor, subs and material 10%. Some are as high as 15% but I’ve never heard of higher. So at best you’re saving yourself 15%. However, if you’re in a hustle and bustle area of the country good luck getting any of the better subs. Most of the company’s work for a few gcs that keep them busy year round and they’re not wanting to have to deal with a harry home owner.

Also, building materials are very low right now compared to the peak we saw a few years ago. Take a look at the lumber futures.

At the end of the day, if you build it yourself you’ll save a ton of money. The more labor you hire out, the more it’s going to cost you.


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[Team4LongGun]

I'm in NW MT.

False information? We did and it saved about half. Not here to steer anyone wrong-sounds like you got it all figured out.

 

[Rich M]

It's gonna be pricey either way you do it. Some things are better to just bite the bullet on.

I could see building a small, future rental (single or double) and then basing out of that while you build, renting it later on - if you can. The house may need various inspections - electric, plumbing, roof, etc. Do your research and use licensed folks as necessary.

I though of an example of where a DIY went wrong - folks were building a barndominium out of a steel building and spray foamed the interior - right on the metal. Voided metal warranty. Trying to sell it for cheap.

 

[Preston]

I'm in NW MT.

False information? We did and it saved about half. Not here to steer anyone wrong-sounds like you got it all figured out.

I don’t think he was referring to you, but could be wrong. He is correct that GC only mark up 10-20%, but most of them are running multiple subs, and multiple projects at once. And not doing any of the work. Unless, it’s a multi family or inside the city limits there will be little to any inspection or QA/QC conducted. And a majority of the projects are time and material basis, not bid. I’m also located in NW Montana and Montana is one of the easiest places in the world to be called a GC, and there is no testing, standards, and/or education/experience required. So I bet your house is probably built better and you saved a lot.

 

[GreenNDark Timber]

What part of the country is this addition being built?

There’s a lot of false information about being your own GC and saving a ton of money. Majority of gcs are marking up labor, subs and material 10%. Some are as high as 15% but I’ve never heard of higher. So at best you’re saving yourself 15%. However, if you’re in a hustle and bustle area of the country good luck getting any of the better subs. Most of the company’s work for a few gcs that keep them busy year round and they’re not wanting to have to deal with a harry home owner.

Also, building materials are very low right now compared to the peak we saw a few years ago. Take a look at the lumber futures.

At the end of the day, if you build it yourself you’ll save a ton of money. The more labor you hire out, the more it’s going to cost you.


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This is very accurate info on the subcontractors, at least in my part of the country. If you are able to get the quality subcontractors to give you a bid you can bet they'll be marking their price up to you at least 15-20% vs the cost they'd give to the general contractor that gives them work regularly. You'll be a one hit wonder for them and they'll either want to hit a home run or not take the risk of working for an unknown client. What you're usually left with are the subs that aren't busy and there's a reason for it.

I'm not saying being your own GC is a bad idea, just consider the perceived savings aren't always as they appear.

 

[Jon Boy]

This is very accurate info on the subcontractors, at least in my part of the country. If you are able to get the quality subcontractors to give you a bid you can bet they'll be marking their price up to you at least 15-20% vs the cost they'd give to the general contractor that gives them work regularly. You'll be a one hit wonder for them and they'll either want to hit a home run or not take the risk of working for an unknown client. What you're usually left with are the subs that aren't busy and there's a reason for it.

I'm not saying being your own GC is a bad idea, just consider the perceived savings aren't always as they appear.

The carpenters usually get burdened with being the general contractors even when the home owner decides to be the gc. I don’t do business that way but I do know of some that have their subs mark their bid up 10% and turn around and hand it to the carpenter for the lead. All the while the home owner feels like they saved. I don’t do any larger jobs that the home owner wants to acquire the subs and material. We do everything from concrete to finish except for mechanicals. I put my bags on every single day with all of my guys and if the home owner doesn’t wanna pay for that quality control that is fine and I walk.

At the end of the day, there are tons of books and YouTube videos out there on how to build your own house if you haven’t worked in the industry before that will save you a ton of money. If you don’t want to perform that research and labor then it’s going to cost you a lot of money. If you do want to build most of it yourself prepare for 100/sqfoot. If you don’t prepare for 200/sqft


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[Legend]

I have built a few houses now. In addition to the 10 to 15% savings the GC marks up you get the savings of shopping for a better price. The most extreme one I saw was the bids for rain gutters. There was a 400% difference between 3 bids. And the GC is going to use his buddy even if it would be the high bid. And he will use his buddy for every sub job....I adds up. Likewise every contractor will use their favorite supplier regardless of cost.

If you GC yourself you can save way more than 15% by being in charge of the material purchasing (shopping for better prices). However, it is a job and takes a lot of time. And if you are green and can't do or understand the work yourself....don't even try to be your own GC.

 

[tdhanses]

I don’t think he was referring to you, but could be wrong. He is correct that GC only mark up 10-20%, but most of them are running multiple subs, and multiple projects at once. And not doing any of the work. Unless, it’s a multi family or inside the city limits there will be little to any inspection or QA/QC conducted. And a majority of the projects are time and material basis, not bid. I’m also located in NW Montana and Montana is one of the easiest places in the world to be called a GC, and there is no testing, standards, and/or education/experience required. So I bet your house is probably built better and you saved a lot.

Even if the GC only charges 10-20% the subs will cost you 50% more then doing it yourself, i don’t see how one can’t easily save 50% going diy.

 

[cnelk]

Nuthin beats sweat equity. Nuthin.

 

[gbflyer]

You can be your own GC then the subcontractor can charge you for standby, additional labor, demobilization, etc when you screw up and order the wrong windows, not enough roofing, etc,. Just depends on how experienced and organized you are.

 

[Jon Boy]

Even if the GC only charges 10-20% the subs will cost you 50% more then doing it yourself, i don’t see how one can’t easily save 50% going diy.

No doubt. You will save minimum of 50% on mechanicals. Not near as much in carpentry labor. Carpentry labor is always falling way behind and I drive to change that. Cracks me up when a complex concrete and framing plan come together and the mechanicals are still higher.


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[Jon Boy]

No doubt. You will save minimum of 50% on mechanicals. Not near as much in carpentry labor. Carpentry labor is always falling way behind and I drive to change that. Cracks me up when a complex concrete and framing plan come together and the mechanicals are still higher.

However, I have done that and installed all my own mechanicals. It took way longer than I expected and I did not enjoy the experience.
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[loganwayne]

I have built a few houses now. In addition to the 10 to 15% savings the GC marks up you get the savings of shopping for a better price. The most extreme one I saw was the bids for rain gutters. There was a 400% difference between 3 bids. And the GC is going to use his buddy even if it would be the high bid. And he will use his buddy for every sub job....I adds up. Likewise every contractor will use their favorite supplier regardless of cost.

If you GC yourself you can save way more than 15% by being in charge of the material purchasing (shopping for better prices). However, it is a job and takes a lot of time. And if you are green and can't do or understand the work yourself....don't even try to be your own GC.

As a GC there's usually a reason I'm not using the absolute cheapest guy. That said I do price out alot of stuff from different subs and vendors. Even on cost plus jobs I'm trying to hit the budget I told clients. But my clients are going to be different than what most on here are going to be building, everything is 1mil+ and our average $ a sf was over 450 last year

 

[Forestryguy]

With prices of building materials I think the least expensive house has to be a remodel of a house out of the 1970’s. New enough to have trusses, plastic waste lines and an electrical system that doesn’t need to be completely replaced.

The house 2 doors down just sold and met these requirements. But, with a listed price of 240k, it was not what I would want to but as a remodel job project.

If I was going to live in a temp home while building a permanent residence I would consider moving in a decent sized prefab shed. Make it livable. Once into permanent house can reuse it for storage or possibly resell it.

 

[ShortMountain91]

The house 2 doors down just sold and met these requirements. But, with a listed price of 240k, it was not what I would want to but as a remodel job project.

I did the 1970s remodel project right before building my final forever home. Bought the place for $225k and thought I overpaid at the time. This was a larger home at 3100 sq ft though and had a little bit of land with it. When we sold the place, that project was well worth the effort of the remodel. I think it's a great option if you can find the right house to do it on.

I then turned around and went to work on my forever home. GC it myself and did a decent bit of work myself but hired several subs also. Only found 1 bank willing to let me do the project. We got it built for just over $130 per sq ft in the height of covid and this house was not a budget home. We did a home run plumbing system, stand seam metal roof, fully encapsulated crawlspace, used the best (and probably most expensive) framer around, etc. Could have built it closer to $100 per sq ft if I wanted but I don't plan to ever sell this place so wanted it my way. The damn roof alone cost me more than what my dad built his house for in 91.

Point being, you can save a ton if you're willing to put in the work. After doing it personally I would recommend hiring out someone who does this professionally. The stress at least for me was incredibly high and it was hands down the worst year of my life. But I do absolutely love the final product and time heals most wounds.

Here is my final house that was built for just over $130 / sq ft. The American dream can still be done but it is for sure a little harder these days.

 

[Preston]

I did the 1970s remodel project right before building my final forever home. Bought the place for $225k and thought I overpaid at the time. This was a larger home at 3100 sq ft though and had a little bit of land with it. When we sold the place, that project was well worth the effort of the remodel. I think it's a great option if you can find the right house to do it on.

I then turned around and went to work on my forever home. GC it myself and did a decent bit of work myself but hired several subs also. Only found 1 bank willing to let me do the project. We got it built for just over $130 per sq ft in the height of covid and this house was not a budget home. We did a home run plumbing system, stand seam metal roof, fully encapsulated crawlspace, used the best (and probably most expensive) framer around, etc. Could have built it closer to $100 per sq ft if I wanted but I don't plan to ever sell this place so wanted it my way. The damn roof alone cost me more than what my dad built his house for in 91.

Point being, you can save a ton if you're willing to put in the work. After doing it personally I would recommend hiring out someone who does this professionally. The stress at least for me was incredibly high and it was hands down the worst year of my life. But I do absolutely love the final product and time heals most wounds.

Here is my final house that was built for just over $130 / sq ft. The American dream can still be done but it is for sure a little harder these days.

That is awesome! Beautiful house any way better than $300-$450 per foot.

 

[tdhanses]

As a GC there's usually a reason I'm not using the absolute cheapest guy. That said I do price out alot of stuff from different subs and vendors. Even on cost plus jobs I'm trying to hit the budget I told clients. But my clients are going to be different than what most on here are going to be building, everything is 1mil+ and our average $ a sf was over 450 last year

Problem with that is price is really dependent on location anymore, not so much the house built. In KC I can show you a 2,000sqft $1 million dollar home and a 5,000sqft $900,000 home, they both are nice just depends on the part of town they are built, lots anymore drive price more then anything.

 

[cnelk]

Where did the OP go?

 

[loganwayne]

Problem with that is price is really dependent on location anymore, not so much the house built. In KC I can show you a 2,000sqft $1 million dollar home and a 5,000sqft $900,000 home, they both are nice just depends on the part of town they are built, lots anymore drive price more then anything.

100% Lots and the lay of the land can change prices fast. This area is extremely expensive to build in period then you get into certain developments and that just keeps adding cost.

Im getting ready to do a full gut on my personal house and going to do alot of the work myself and i still dont think ill be able to do it for under 150sf and still have fairly nice finishes.

 

[Cedarsavage]

Where did the OP go?

Taking it in. Scraping the temporary apartment idea. May end up doing the work myself but I’m gonna put some more thought into it