Hi & a question

[Jett]

Hi there, I'm new to this forum. My wife and I are looking into buying our first home, we're both in our 20s and just starting our careers and want to stop throwing money away on an apartment as quick as we can. One of the options we've been looking at is having an "on-your-site" house built. The idea of really being able to pick where our home is really appeals to us, and it seems like it might even be cheaper. So I was wondering if any people here have experience with companies that do this? What are your thoughts on the cost savings, the quality, etc. Do they gouge you on any modifications you want made? (like say a fireplace). The company we're looking at claims they will do a ~2700 sq.ft. 2-story home, with everything inside completed (minus the appliances) for ~$90K. This doesn't include running utilities or installing septic also.

Thanks in advance!

[Rich]

Welcome to the forum.. and :shock: that's pretty impressive. I don't think I've ever heard of on-your-site building.

[Jett]

The company we are looking at is here: http://www.hilinehomes.com

I think it is a pretty common thing in this area, there are 3 or 4 other similiar companies in the area.

[doyle]

Jett, I've been wondering the same thing about these companies. In the Georgia area, there are also quite a few and they sure don't mind spending the advertising dollars.

There's http://www.southlandcustomhomes.com that builds really nice-looking homes (in the pictures...lol). They advertise prices in their print ads at $30-$40 per square foot.

There's also http://www.americashomeplace.com who doesn't advertise prices, but have been around since 1972.

And who can forget about http://www.jimwalterhomes.com/ since they have been building on your land since 1946.

Log homes? We won't even get into that area since there's so many of them.

Sure would be nice to hear from somebody who has used one of these "build on your lot" companies.

[Rich]

Essentially what you're calling an "on-your-site" builder is what I would call just a plain old builder. A builders counterparts would be a developer and a spec builder...in my opinion anyway.
I'm still not sure how they are building so cheaply.. except that they only provide their plans, which they've probably built a couple thousand of each, and that because of that they buy by the truckload and get better pricing. I suppose they could have some deal setup with the manufacturers for that bulk pricing. I wonder how the price changes when you want changes to the plans?

[Jett]

Ah, I see. I guess people around here just use different terminology. How much do houses cost to build in big suburban developments? (minus the land). I'd imagine what these companies do is essentially the same thing, except that it is on land you specify.

[Rich]

I always use 100/sf as an average.

[Jett]

100/sf is significantly higher than the ~34/sf for the 2700sf 2-story house we are looking at. It makes me suspect that there is some sort of a scam here, maybe they just use really low-end materials - although from their website they claim to use high quality materials.

[Rich]

That's what I'm thinking.. either they have inferior materials or they have such a wide distributorship of materials that they can get some great deals on just about every material out there.
To give you an idea.. I did a cabin at 47/sf. We didn't do the flooring and everything else was very basic. Vinyl windows, pine trim, metal roof, a small free-standing fireplace, and the foundation was 16x16x8 pads with 6x6's for structure to hold the floor up, cedar siding. We didn't provide any appliances. Single bathroom. I don't think I could build it any cheaper than that either.
I guess I'm just being sceptical because it really seems amazing that they can do it that cheaply.

[Tom R]

I'm skeptical, too. Check and re-check the fine print. For instance, is the foundation included, sorry, but at that price, I have to ask. And remember, you 'get' what you 'pay' for.

[Daniellwarrenjr]

from what I have seen with companies like this is that you really have to watch the workmanship. the package they sell is alright ( no frills) but the only way they make it so cheap is farming out the labor to sometimes, under experienced sub contractors.in the end you may not be satisfied with workmanship.You may concider talking to a well known contractor and see what they say.you may be surprised to find that they may give you an estimate you can work with and in the end be happier. Good luck

[eseidel]

I checked out their website and it says "from $35 per sq ft". In their FAQ section they state that, "Unlike a typical "custom" home though, you will receive $20,000 or more in instant equity." If you were only to pay $35 or even as much as $60 per sq ft., you would be realizing a much, much higher amount of equity. It makes me think that the $35 figure is a frame-in only package that they offer. If so, then I don't think they are being very up front. I have know way of knowing, but I guess that the real, turn-key (meaning completed) home will cost at least $80 per square ft...just a guess. But I could be wrong, I live near Detroit, Michigan.

I do work with a company out of Canada that offers site-built pre-insulated panelized kit homes. Sort-of a hybrid between traditional construction and manufactured homes. These are really amazing homes built to withstand severe Canadian winters. The R-value on the ceilings is R-40 and the exterior walls is R-28!! They are designed for the do-it-yourselfer, but as a contractor, I'm putting together a business plan to import them and build them as spec homes. They'll ship anywhere in the world. And actually do more business in Japan and Europe than the US. These "kit packages" run around $30-$40/sq ft. I figure my additional costs will run another $35/ sq ft, so a total cost of $65-$70/ sq ft. I should be able to sell the completed home for $95-$105/sq ft. in my area.

They can be completely under roof in about 10 days...a big plus when you have a short building season.

If anyone wants more info I'd be happy to discuss it with you.

Rick
You can email me at seidelfam@hotmail.com (Rich, I hope its okay to post my email address)

[eseidel]

Man, how embarassing...

I should have said "no way of knowing" not "know way of knowing"

I "knead" to start proof-reading my posts. :-)

Rick

[Rich]

Not a problem posting your email. I was almost involved in a prefab 4-plex that was being shipped out of Canada. I gave a labor quote only to the builder and he didn't want to entertain it. Said he could get 2 guys for half of what I wanted. Well it ended up taking him about a year and a half to build it.. I figured about 8months. The system looked very good on paper.

[mjpliv]

Hell, them Canajians sure build a mean shack! 8)

[mjpliv]

Beer's good too! :D

[Jett]

Thanks for all the info guys. I just found out that my wife's co-worker is in the process of having one of these homes built. From what I've been told their prices (~$35/sf) are for the completed house, with foundation & interiors. Also, I saw one of their homes advertised for $260K on 5 acres of land. It's one of their ~$90k models. I'm still deeply skeptical, especially after everyones comments here, but it seems like the real thing.

[Tim]

Thanks for all the info guys. I just found out that my wife's co-worker is in the process of having one of these homes built. From what I've been told their prices (~$35/sf) are for the completed house, with foundation & interiors. Also, I saw one of their homes advertised for $260K on 5 acres of land. It's one of their ~$90k models. I'm still deeply skeptical, especially after everyones comments here, but it seems like the real thing.Keep us posted, sounds exciting!

[Jett]

I found a few more listed, one for $334k, another for $245K. Assuming $90K does cover the full cost of building this looks like a great investment for us.
All we would have to buy is the land, we found a nice parcel already for $90K. Oh, and we'd have to get septic and whatnot installed, not sure how much that costs... If it's under $20k it looks like we could swing it and end up with a $250K-$350K house for ~$200K...