Budgeting Your Log Home - Creating a Checklist

If you've read my first article, BUDGETING YOURcan use a block foundation, a precast foundation, a
LOG HOME: Where do you start?, you've got a verypoured concrete foundation (these are the main
basic overview of the process. However, there arechoices). Poured concrete is the most expensive.
still a number of questions I'd like to address. Again,These days, many people choose precast
many of these questions will come up if you build anyfoundations for log homes, because they are so
custom home, but I'd venture to guess the log homeaccurate and don't require a footer. If you go this
owners find themselves deeper in theroute, you'll have to hire a mason to pour the floor
decision-making process than someone dealing with aafter the precast foundation is erected. Remember
custom builder. After all, the differences becomethat if you choose to build on a slab, you're going to
apparent immediately as the owners have to findhave problems routing your wiring, because this is
their own manufacturer.normally done from the basement.
Unless you have a pocket full of cash, you're goingYour log home manufacturer is going to give you a
to have to follow the construction loan mindsetquote for the package. Many people want the
throughout the budgeting process. I plan to devote amanufacturer to quote on a "turnkey" house or at
whole article to the construction loan, but this pursuitleast a weathered-in shell, as a matter of
will serve as a preliminary step before going to theconvenience. However, this might not be the way to
bank.go if you live in a different state from the mill. Do
The biggest part of your budget will be the purchaseyou really want to pay shipping for plywood? In the
of the land. With today's new construction market -end, having your contractor purchase lumber locally
especially in New Jersey - the raw land constitutescould save you thousands of dollars, even it it's a
30%-40% of the total project (of course, in otherlittle less convenient to calculate it initially. Your local
states the land won't be so much but your overallbuilder will gladly give you a quote as long as he has a
costs will be less, too). It helps to purchase the landgood set of preliminary plans to work from.
first so you know how much money you're going toI started with a simple check list to sort out my
have left over.budget. Luckily, I found a contractor who was willing
Then you need to figure out how much to set asideto take over the project and hire his own subs; his
for your excavation, your driveway, and your septicitemized quote helped me visualize all the elements
system. Before you can get to this number, it helpsthat went into the project. Then I added subs that I
to hire a civil engineer to draw up a survey and plothired separately (excavator, mason, landscaper, etc.).
plan (you'll need the survey for the mortgageHere are some line items that went on the checklist:
company anyway). This will cost you a few hundredAir Conditioner, Appliances, Builder's Profit, Doors
dollars. The plot plan will diagram where the house will(interior), Doors (exterior), Driveway, Electrician,
go (and footprint of the house), the length of theFireplace, Flooring, Foundation, Furnace (or Boiler),
driveway, where the septic and well will go. With thisHVAC Installation, Insulation, Interior Trim, Kitchen,
document, you can go to the excavator for a quote.Labor, Landscaping (Grass seed), Lift equipment,
Since most log homes tend to be built in rural areas,Lighting Fixtures, Logs, Lumber (plywood, joists,
you will probably have to install your own septic and2x6s), Mason, Permits, Plumbing, Plumbing Fixtures
well. The excavator who does your driveway will(sinks, bathtubs, toilets), Roof, Sanding and Staining,
most likely be the one who will dig your septic. TheSeptic, Staircase (if not included in log quote), Tiles
well driller will probably be a different company. These(kitchen & bath), Utilities, Well, Windows.
are both "wild cards", because the cost of the septicDepending on your job site, you may have other
will depend on how well the land percs (short forexpenses. If the flatbed truck carrying your logs
percolate), and you don't know how deep your wellcannot make it to the site, you'll have to make
will go.provisions to off-load the logs elsewhere and have
Once again, the engineer will design a septic planthem brought in. If you are set way back from the
which will have to be approved by the county (inroad, you may have to pay for telephone poles, or
most states). The cost of your septic could rangepay for the trenching. Also, your builder may require
anywhere from $10,000 - $30,000. If you are settingthat you bring power to the site for his tools (most
the house way back from the road, you mustallow you a few days of generator power, but not
budget for that extra-long driveway. And if your lotfor the whole job).
is heavily wooded, you will have to pay extra forIt took a while to fill in all the blanks on my check list,
tree removal; remember that you need to clearbut once I started looking at each task individually,
plenty of space to accommodate both the housethe project as a whole made sense. Actually, the log
and a large area around the house for the machinerypackage was the easiest part to deal with. In our
to maneuver. You also have to consider a space tocase, the manufacturer provided the logs only (and
put the logs after delivery.the design), which came out to less than 1/6 the
Once the location and footprint of the house istotal cost of the house (not counting the land work).
determined, you may need to use a differentFor the rest, the costs are like any other custom
contractor for the foundation. Foundations are nothome; then the question becomes "Who does
provided by the log home manufacturer (with rarewhat?". After all, a little sweat equity goes a long
exceptions). There are several ways to go: you canway.
build on a slab, a crawl space, or a full basement. You