If you’ve read my first article, BUDGETING YOUR REGISTRATION START: Where to start? It has a very basic overview of the process. However, there are still a number of questions that I would like to address. Again, many of these questions will come up if you are building a custom home, but I would guess that log home owners are more deeply in the decision-making process than someone dealing with a custom home builder. After all, the differences become immediately apparent, as owners have to find their own manufacturer.
Unless you have a pocket full of cash, you will need to follow the construction loan mindset throughout the budgeting process. I plan to dedicate an entire article to the construction loan, but this follow-up will serve as a preliminary step before going to the bank.
Most of your budget will be the purchase of the land. With today’s new construction market, especially in New Jersey, untreated land makes up 30% to 40% of the total project (of course, in other states the land won’t be that much, but its overall costs will also be lower). It helps to buy the land first so you know how much money you will have left over.
Next, you need to find out how much to set aside for your excavation, your driveway, and your septic system. Before you can get to this number, it helps to hire a civil engineer to do a survey and plot plan (you’ll need the survey for the mortgage company anyway). This will cost you a few hundred dollars. The plot plan will diagram where the house (and house footprint) will go, the length of the driveway, where the septic tank will go, and. With this document, you can go to the excavator to request a quote.
Since most log homes tend to be built in rural areas, you will probably have to install your own well and septic tank. Most likely, the excavator making your driveway will be the one digging out your septic. The well driller will probably be a different company. Both are “wild cards,” because the cost of the septic tank will depend on how well it perceives the soil (short for filtration), and you don’t know how deep your well will go.
Again, the engineer will design a septic plan that will need to be approved by the county (in most states). The cost of your septic could range from $ 10,000 to $ 30,000. If you are placing the house away from the road, you need to budget for that extra long driveway. And if your lot is heavily wooded, you will have to pay more for tree removal; Remember that you need to clear plenty of space to accommodate both the house and a large area around the house for the machinery to maneuver. You should also consider a space to place the records after delivery.
Once the location and footprint of the house is determined, you may need to use a different contractor for the foundation. The log house manufacturer does not provide the foundation (with rare exceptions). There are several ways to do it: you can build on a slab, a basement, or a full basement. You can use a block foundation, a precast foundation, a poured concrete foundation (these are the main options). Poured concrete is the most expensive. These days, many people choose precast log home foundations, because they are so accurate and do not require a footer. If you go this route, you will need to hire a mason to pour the floor after the precast foundation is erected. Remember that if you choose to build on a slab, you will have trouble routing your wiring, because this is usually done from the basement.
The manufacturer of your log home will give you a quote for the package. Many people want the manufacturer to list on a “turnkey” home or at least a worn shell, as a matter of convenience. However, this might not be the way to go if you live in a different state than the factory. Do you really want to pay for shipping for the plywood? In the end, having your contractor buy lumber locally could save you thousands of dollars, even if it’s a little less convenient to figure it out initially. Your local builder will be happy to give you a quote as long as you have a good set of preliminary plans to work on.
I started with a simple checklist for ordering my budget. Fortunately, I found a contractor who was willing to take over the project and hire his own subcontractors; your detailed quote helped me to visualize all the elements that were included in the project. Then I added submarines that I hired separately (excavator, bricklayer, landscaper, etc.). Here are some of the line items that were included in the checklist: air conditioning, appliances, builder’s benefit, doors (interior), doors (exterior), driveway, electrician, fireplace, floor, foundation, furnace (or furnace ), HVAC Installation, Insulation, Interior Trim, Kitchen, Labor, Landscaping (Seed Grass), Lifting Equipment, Light Fixtures, Logs, Wood (Plywood, Beams, 2×6), Masonry, Permits, Plumbing, Plumbing fixtures (sinks, bathtubs, toilets), Ceiling, Sanding and Staining, Septic, Ladder (if not included in registry quote), Tile (kitchen and bathroom), Utilities, Well, Windows.
Depending on where you work, you may have other expenses. If the flatbed truck transporting your logs cannot get to the site, you will need to take the necessary steps to unload the logs elsewhere and have them delivered. If you are off the road, you may have to pay for telephone poles or trenching. Also, your builder may require you to bring power to the site for your tools (most allow you a few days of generator power, but not for all work).
It took me a while to fill in all the blanks on my checklist, but once I started looking at each task individually, the project as a whole made sense. Actually, the registration package was the easiest part to handle. In our case, the manufacturer provided only the logs (and layout), which resulted in less than 1/6 of the total cost of the house (not counting the land work). Otherwise, the costs are like any other personalized home; then the question becomes “Who does what?” After all, a little sweat equity goes a long way.