Built It Yourself - 4 tips to avoid HouseWreckTopic: Real Estate Value
An Owner Builders (or The Build-It-Yourself industry), is growing in popularity as potential new home buyers look to save money building their dream home. Many people love the thought of saving thousands of dollars by not hiring a Builder. However, there are a few secrets the Build-It-Yourself companies would rather you not know.
As a seasoned real estate professional, I've set through several of these courses just to see what these companies are pushing. I deal with Contractors on a regular basis so I have some insight on how the industry works
Here are just a few things the Build-It-Yourself companies either don't tell you or are not completely open and honest about.
1. You get the same discounts as a Builder. This is one of the biggest marketing gimmicks Owner Builder companies use and it's just not true, at least not with the better Builders. You see, Builders have a network of sub-contractors and vendors they use on a regular basis. These subcontractors and vendors give them discounts if they continue to use their services. There is no way a sub-contractor is going to give you the same discount as a Builder who has been using his services for 5 years! Besides, do you really know if you're getting a discount? The truth is you're a one time customer and the Builder put their kids through school and food on the table month after month. Don't let the Build It Yourself crowd fool you.
2. Builders Overcharge for Everything. Not true in most circumstances. Most Builders have a mark up in the 20% range. The better Custom builders have their tried and true stable of vendors and sub-contractors. Getting these top notch subcontractors to work for you will be nearly impossible because they do not know you plus the Custom Builder who uses them keeps them busy. You should always question the subs that these owner builder companies recommend.
3. Our list of Sub-Contractors and Vendors are Pre-Screened. Well, maybe...or maybe not. Most of the time, "screened" means if they have the ability to pay the Build It Yourself company to get on their list. If you don't pay, you fail the "screening" process. I've been on several of these list and the only screening was the length of contract I was willing to sign with them.
4. You control the building process yourself, not the Builder. To some extent yes, but more than likely the answer is "only as much as the subs want you to be." What they don't tell you is that if you have a problem with a sub not showing up or doing less than ideal work, you've got to deal with it. A quality Builder has the pull to get things done where you don't. It all goes back to the Builder choosing quality subs and those subs wanting to keep the Builder happy to they'll continue to use their services.
Before going the Build-It-Yourself route, make sure you know how the game is played. You may think that you'll save money by doing this. The truth is that you'll probably come out near what you would have paid a Builder or you may even pay more due to having poor sub-contractors and over runs. Just watch one of the many shows on HDTV and see how many of those people actually save money by building their homes. You'll never met a home owner who have saved thousands by "Doing It Theirself" and say they would ever do it again!
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Alakazaam-information found, problem solved, thakns!
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