This is not meant as a slight to general contractors out there. I respect you for the work that you do, and I do not feel like you are unfair or dishonest. You have a job to do, and you do it, so thank you.
But, just like any other job, there are a few things that your general contractor is not going to tell you because you hired him to build your house, not to tell you how to build your own.
That is not my job. My job, is in fact, to tell you how to build your own. So let me start by letting you know what 5 things your general contractor is never going to tell you.
- How much money you can save building your house without a general contractor
- That you can do his job
- That you don’t need a college degree to do his job
- That you don’t need a construction background to do his job
- That you don’t need to be a general contractor to get general contractor discounts
I am living proof that these things are true. I am a stay at home farm wife and mom to four active little kiddos, and I am the general contractor of our new custom dream home. I don’t have a college degree. I don’t have any construction experience. I didn’t know anything at all about building houses until about two years ago when I decided to start reading up on it.
It has not been easy, in fact it has been really hard, but it has been worth it. We have already saved over $75,000 and everything we have saved has been because we took the time to learn and educate ourselves.
So let’s get down to specifics shall we?
#1-How much money can you save building your house without a general contractor?
Every house is different, every contractor is different, and every owner builder is different. But there are a few general numbers that can give you a dang good idea of how much money you can save.
Most general contractors charge 15-25% of the total house cost for their services. If the house you want to build is quoted at $300,000 then $45,000-$75,000 is going to the general contractor.
That’s worth taking the time to be the general contractor if you ask me. But I am not finished….
When you are your own general contractor, you have the opportunity to do your own shopping. You get to price match, search, haggle, trade, and negotiate until you have nailed down (no pun intended) the absolute best price for each and every job and material on your home. Sound like a big job? It is! It’s a huge job! But is it worth $100,000 of tax free money to you? Because that is what you are working for. Every penny you save goes directly to your net worth and since it is saved money, not actual income, it’s tax free! You are still $100,000 richer, it’s just in the form of a house instead of cash.
By doing our own shopping, we have saved thousands of dollars already. Here are a few examples of deals that never would have happened if we hired a general contractor:
- Our house plan designer had a use for something that had been sitting in our yard unused for years. We traded it to him in exchange for part of our payment. We saved $300.
- I found the tile I wanted for our bathroom on craigslist, brand new, still in the boxes, for $100. We saved $600.
- I discussed our tight budget with a sub-contractor and he dropped his price to earn our business. We saved $2,000.
- We worked alongside our framers for three months. We saved $10,000 in labor.
- We offered to let a contractor do the work whenever he had the time instead of on our schedule. He dropped his price $1,200.
That’s only 5 examples and we saved over $14,000. Imagine what those numbers will look like when I have shopped and negotiated every single item in our new house.
If you are interested in specific numbers, you can download my FREE cost breakdown for our 4,000 square foot home right here. I have broken down how much materials and labor cost us for each thing.
So imagine your dream home for a second. How much will it cost roughly? If you have no idea then take a guess at how many square feet it will be and multiply that by $120. Now subtract 20% for being your own general contractor and another %20 for working your tail off shopping.
Our new home was quoted at about $500,000. If we subtract 40% we can build it ourselves for $300,000. Sound impossible? Well, it’s happening right now, and I am writing all about it.
How does saving $200,000 sound? Yeah it sounds good to me too.
***UPDATE: We are 4 months into the build, nearly half way finished with the house and have spent just under $140,000. We are feeling great about finishing this thing for $300,000. For the full article on where we are at and how much we have saved, CLICK HERE.
***2nd UPDATE: We moved into our house $2,000 under budget! CLICK HERE to see the 10 month update, and what the house looked like when we moved in. Plus a budget breakdown for everything we spent so far.
#2-How to be your own general contractor
This sounds a lot scarier then it is. Don’t get me wrong, it’s a TON of work. But it’s not the kind of work that everyone thinks it is. Being a general contractor does not have to involve building anything. There are plenty of general contractors out there that build the whole house, yes. But there are also general contractors that don’t. That is the kind that you will be.
Here is what you will be required to do as your own general contractor:
- Learn and adapt
You don’t have to know construction, but you will need to constantly be learning. You need to be able to research things when you don’t know the answer, read books and articles and websites about building houses, talk to people who know things, and change and adjust when necessary. You will be hiring people to build different parts of your house, so you will have to learn what you are hiring them to do. The #1 book I recommend for beginners is The Owner Builder Book by Mark A Smith.
- Be a good communicator
Most of what you will do as the general contractor is TALK to people. You will need to call businesses and contractors to get quotes and decide who to hire. You will need to ask questions when you don’t know. You will need to tell people firmly what you want and make it clear so you don’t end up with things in your house you aren’t happy with. You will need to be very specific about expectations. You may even need to fire people if they are not doing what they agreed to do. Communicating is almost your entire job.
- Be organized
Building a house is an enormous undertaking. There is paperwork that must be filled out, money to handle, pictures to draw, people to keep track of, schedules to follow, and much more. You will not succeed at saving money on your house if you can’t keep the information organized. Figure out a system that will work for you and you will do just fine.
- Be willing and motivated
Sometimes things are going to happen that are unexpected or that no one else wants to handle. As the general contractor, it is your job to handle it. You need to go the extra mile, make the extra phone calls, do the clean up work, and anything else that comes up. Keep your motivation high by posting a running total of how much money you have saved somewhere that you will see it. Try on your mirror in your bathroom so you can be reminded every morning when you wake up.
You also need to be willing and motivated to shop your options. If you aren’t willing to put in the time to shop for everything, that 20% we talked about saving a few minutes ago …. ya that will go away. Shopping is key.
- Be observant
You will need to be present at the building site often. It is your job to know what is going on, and to make changes when needed. It’s going to cost a lot less money if you catch the guy BEFORE he puts your stairs in the wrong spot instead of after they are completely finished. Don’t stress too much, just pay attention to what everyone is doing and check to make sure things are the way you want them.
- Be firm and clear with what you want
It’s your house. Who else is going to make sure it’s done right? Make sure you make it clear what you want, and double check that people understand. There are a lot of mistakes that can be saved by simply reminding people of what you want. Calling or emailing to confirm is not annoying, it’s responsible.
#3-You don’t need a college degree to be your own general contractor
Do I really need to go over this one? It is 100% legal to build your own home without proving to anyone that you know what you are doing. I’m doing it, and it’s working out just fine.
#4-You don’t need a construction background to be your own general contractor
None of the requirements that we have talked about require you to build anything. You don’t have to know how to frame a door, or plumb a sink. That’s what you hire your sub-contractors to do. All you have to know are the things we talked about earlier. Can you hire people? Okay great, you are qualified! On to the last thing ….
#5-You don’t need to be a general contractor to get general contractor discounts
It’s a common misconception that general contractors get EVERYTHING at a better price then the rest of us. Sometimes yes, that is the case, but it’s not always true. I have talked to a ton of sub contractors in the last year, and I can say that more then half the time they are buying their supplies at the same price everyone else is. The difference is, the general contractor is charging you to make him get the supplies.
I firmly believe that you can get better prices then a general contractor. You get your pick at any sub-contractor you want. You can get quotes from 20 different people if you want. And guess what, if you find out that you can’t get better prices then the contractor, then simply hire that contractor to do that job. There, now you still found the lowest price.
There are also instances where being your own general contractor qualifies you for the same deals. For example, Lowe’s has a program you can sign up for that gives you the contractor discounts when you buy in bulk. You are your own general contractor, so you get the general contractor prices. Always check to see if the store you are buying materials through has a general contractor discount.
A lot of people think I am crazy for being our general contractor. Maybe you do too. But so far, this experience has made me feel better and better about our house the farther we get in the process.
I love that we are the ones calling the shots. I love that this house is being built because of our hard work. I love finding deals so good that I have to call Farmer and tell him the good news. And I love being a part of all of it and experiencing our house being built first hand.
The satisfaction this house will bring when it’s completed will be so much greater then it ever would have been, because we built it ourselves.
So if you think you have what it takes to be your own general contractor, then let me help you through it. The entire purpose of this website is to help others like me. I want to show you what we are doing to save $200,000 on our dream home, so that you can do the same thing for yourself. This information deserves to be shared!
I have created a FREE library of checklists, schedules, and printables to assist you on this journey. In fact, just a few days ago, I uploaded our cost breakdown so you can see exactly how much each thing cost us. Yes, I am even allowing you to see my finances! Simply sign up below, and you will have unlimited FREE access to all of my house building resources.
Build your own house! Does $200,000 in savings convince you?!?!
If reading this made you totally excited and your wondering “where do I start??” then CLICK HERE for Step 1
or go back to the home page to have a look through all the other great stuff on this website.
If I can do this, so can you!
~Farmer’s Wife
FREE checklists and schedules
Access to the resources I created that helped Farmer and I save over $75,000 building our own custom dream home.
Rick Taylor says
Way to go! People don’t understand how much it cost to hire contractors, and really you can do the same job, just as good as they can with a little studying! I actually did this myself 13 years ago, only I added myself as the sub contractor also. I saved approximately $100,000, but it is a small house, only 1200 square feet, and a 3 car garage. My Dad and I and a little help from my son in laws built everything! Plumbing electrical, everything, even the foundation. I only hired brick layers after I poured the foundation. I didn’t know anything about building a house, but for 3 years before, I studied and read building books to get the knowledge. Anyone can do it if you have common sense and the eagerness to learn!
Hope you enjoy your home!! Congratulations on saving money!!!
farmerswife@therealfarmhouse.com says
Thank you so much for that nice comment Rick! It’s very encouraging to hear from people who have done it and succeeded. It is a lot of work, but we have had a blast learning new things and figuring things out ourselves so far. I just hope I can help other people have the confidence to go for it too! Thanks again!
Lindsay Faidley says
My husband and I did the same thing! Saved around $200,000 and was worth every penny! And we are 30 and 31…started a major huge remodel at ages 27 and 28! It is in our blood and anyone that knows some can definitely build a house on their own!!
Mike Haskins says
Sure, all of this can be done without a GC. … If you have 6-12 months or more to spare. If you want a house constructed from top to bottom in 3 months or less and think youll be able to work aside your subs while working a normal job, you’re wrong.
More often than not, owners who act as their own GC will endure more headaches than they anticipated and those ever present change orders. In certain regions you will be mighty lucky to find subs willing to work with you without a GC presence. Im currently on a job in a touristy area of Wisconsin, and the owners pulled their own permits, cant even get local contractors to show up! So they hired my company.
It can be done, but will come with alot more frustration, so be prepared for it. Most homeowners dont understand the basics of the processes, logistics, timing, and precision that comes with all of this.
Happy Building!
Wisconsin GC
Anna says
We just did this, this year. We built a 1200 square foot house for about $50K (not including land) – my husband served as the general contractor and did much of the labor himself. It can be done!
farmerswife@therealfarmhouse.com says
Thanks for the encouragement Anna! I love to hear peoples success stories. I would love to hear your best tip if you would like to share it with us.
Michelle Pannell says
Hello everyone
Michelle and was wondering do I need any permits or do I need to contact the county to say I want to be my own contractor? I also building a tiny home. Can someone help me with this question?
thanks
farmerswife@therealfarmhouse.com says
In my county yes you do. Some counties don’t care. Best to be safe and let them know what you are doing or at least look it up on your counties planning department website if they have one.
Jan says
You must have not needed a loan to build your house, because you have to be a qualified residential builder before the bank will loan you the money. At least this is how it works in Ohio
farmerswife@therealfarmhouse.com says
You are right Jan we did not take out a loan. But I do have a few close friends that have built their own houses near me and taken out loans and they were able to find banks that would do it. Thanks for the information! It would be wise to check the rules in your area before you get too far into it. Every state and even every county and city have their own specific rules for everything.
Kelli says
My dad built my house and I took out a construction loan. Like you said there are some banks out there that will. My husband and I are planning to build another one soon. Thanks for the info.
farmerswife@therealfarmhouse.com says
Thanks Kelli 🙂 And good luck!
Maliha says
I’m starting the process now. I think I can do it…I hope I can. I found your blog and now I feel with the information you are sharing, surely I can do this. Thank you so very very much for sharing this knowledge!
farmerswife@therealfarmhouse.com says
You are so welcome Maliha! I started out thinking there was no way I could do it because I didn’t know anything at all. Now that we are in the thick of it, I couldn’t be more grateful that we went for it! It’s a lot of work, but it’s so much fun learning to do these things yourself, and so rewarding. We have saved thousands already and we have a ways to go yet. Please don’t hesitate to ask if you have any questions! Good luck
Jacqueline Lippard says
Hi Farmer’s Wife!
I too am starting the building process. This will be the 2nd for me. The first was so much fun and very rewarding.
Very nice blog! As you’ve stated many times, PLANNING is the key!!
Our process started (on paper) about 18 months ago. We haven’t actually started construction yet. I’m getting close though.
One tip I can pass along is Re-Store!! If you have a Re-Store or something similar nearby, please go digging around. I found light fixtures for a fraction of the cost that were display models in a high-end lighting retailer. Also, I purchased several old color dated fixtures for between $3 and $8 each, then spray painted with an Oil Rub Bronze finish. Total for 6 fixtures a whopping $37 including spray paint and they were perfect!! Found a brand new Kohler porcelain sink for $45 that retailed for $375. The list goes on and on.
Again, great job on this blog!
Jacqueline
farmerswife@therealfarmhouse.com says
Thanks for the great tip Jacqueline! It’s nice to hear some advice from people who have done it before. Good luck on your second build!
Lee says
Farmers Wife,
I am a contractor and it is true that you can save a lot by building yourself, but there are risks that you take, especially without having a construction background. Studying and researching can help, but being in construction for 30 years, I have seen a lot of major mistakes that people have made and I have had to fix them. People need to make sure that the subs that they hire are not just the cheapest. They need to get references and know who they are hiring to do the work. There are way too many incompetent people out there that call themselves professionals and don’t know much more than the average person about construction. Just wanted to make that note, but good luck. As you said, it is definitely worth it.
farmerswife@therealfarmhouse.com says
Thank you so much Lee,
It is definitely not something to be taken lightly, I agree! That is one reason I wanted to write all of it down, so that hopefully I can pass along some of the information that I learn. Owner-builders need to be dedicated learners, smart when hiring subs, and overall be careful about everything they are doing. I appreciate your comment as this is definitely something people need to be aware of when they decide whether or not to be their own contractor. Thanks again!
Jeff says
I am a general contractor and there are cities that require you to have a state contractor’s license with plumbing, electrical and HVAC and etc. I have as well fixed problems that people didn’t know what they were doing.
Just be careful who you hire .
farmerswife@therealfarmhouse.com says
Thank you for the comment Jeff!
Chris says
I completely agree with this post. You may save money but it will take longer and more mistakes will get made. If you work out your cost per hour worked it may not be that cheap! Also the physical and mental cost – very stressful – and cost on relationships, including kids Many things need to be factored into the decision. Glad you were happy with your choice though!
Emily says
I am thinking about building my own house. What books did you read that you can recommend?
farmerswife@therealfarmhouse.com says
I had one book that was the difference between me chickening out and me feeling like I could absolutely build my own house. That book is The Owner Builder Book by Mark A Smith. You will love it!
Amanda says
I just stumbled across your page! Love this. We haven’t begun our house build yet, but we plan on building in the future with myself as the general contractor. I also am a stay at home mom, so will have the flexibility to be able to general when the time comes. Not that we aren’t busy already (ha!), but it’s worth the hundreds of thousands in savings. I’m a price shopping and haggling lover…I don’t understand the meaning of retail pricing. Ha!
We have some experience from completely remodelling our previous home… there will definitely still be a learning curve! But with all I have read about it and continue to, I am confident I can do this. Will definitely be following along!
farmerswife@therealfarmhouse.com says
Sounds like you already know what you are doing, that’s great! Good luck with your build and keep us updated on your progress once you start. It’s always nice to hear other people’s experiences not just my own.
Steve says
I am a general contractor and yes of course you can save money building your own house, you could also save money fixing your own car or growing your own cattle. Neither of these require a college education. Here is the thing. The market changes all the time, especially today with the new technology. We study this daily as it is our job. A good general contractor will be up to date on all the new advances and some items that make your home more energy efficient. There are engineered products on the market and some are expensive and others are most cost effective and do the job just as well. Also take into account that if you are doing this as well as your job then it has a cost associated with it. Time is money and if your not working and acting as the contractor then you are working therefore the pay your receive is by acting as your own contractor. Then also don’t forget that most people when they build their home borrow most of the money and have to live somewhere else while their house is being built. So you lose interest costs and rental costs the longer it takes you to finish. Then lastly I have been in this business for over 25 years and I can honestly tell you that you cannot get better pricing than I can. Guys who supply or work for builders will not supply the home owners with the same price as they do us. If they did they would jeopardize their relationship with builders who do several projects a year. Sub contractors will also spot a home owner who is acting as their own contractor and will slip in costs that often are not seen by the untrained eye. Also this is not a easy job, trades start very early and work often very late, weekends etc. to get things done. You know I could likely paint my own homes that I build but I prefer to find more work in my field. If your business allows you to do overtime I suggest you do that before you try and build your own home, in the end you will come out better off.
farmerswife@therealfarmhouse.com says
Hi Steve,
I hope I didn’t offend you, that was not my intention. I appreciate your comments. It’s always nice to have opinions from the professionals so we can better understand.
I am only trying to show people what we did, and how we saved money, and that it is possible to build your own house. I agree 100% with you that it is not an easy job. There are many risks you take, and just as you said, in some instances it may be better for some people to hire a general contractor. Each situation is different, and I hope everyone considers that before making the big decision to be their own general contractor.
Thanks Steve!
Heather says
Thanks for the article. I’m in the middle of a major kitchen and walk-in pantry/mudroom renovation. We bought a run down cosmetically, but otherwise in excellent condition custom ‘80’s home in a high-end neighborhood filled with executives and fancy wineries. I went through about 7 contractors before I decided to do my way. The cheapest quote I got was $125k without appliances. Most hovered around the $200k mark. All-in, Im running $40k in materials and will probably finish the job for around $60k (labor costs in my area are very high, and you definitely have to pay market rate. Professionals know what they’re worth and there’s no shortage of work. Definitely shop around. Contractors don’t have time to shop around and will just get their discount at the local supplier. I’ve mostly seen savings in the 50% range by watching for sales, or buying direct. My husband is an electrician, so I’ve been able to get Pro discounts. They add up on supplies like wiring, lumber and drywall supplies because those don’t go on sale. Anyone can get a pro discount card at the Home Depot. Ironically, I’ve only had to fire our structural engineer who refused to work with us when his solution wouldn’t work. He also did such a poor job that the permit dept had major questions and issues around what he submitted. Our architect hired him, but I wasn’t afraid to fire him and hire someone who could do the job correctly. After all, this is the foundation of our home! Follow your gut, a bad professional should be gotten rid of before they do more damage.
farmerswife@therealfarmhouse.com says
Great advice Heather, thanks for your input. And congrats on your success so far with your project. Keep up the good work!
Deborah says
We did a build and we believed construction insurance was important. The insurance wasn’t that expensive either. Just saying.
farmerswife@therealfarmhouse.com says
Thanks Deborah!
Nichole says
Thank you so much for this information! We are moving from Arizona to Tennessee and I want to build my own home! We built our own pool, got bids and hired the specific contractor! Reading this article allowed me to realize we can do this because we have already did this with our pool!
farmerswife@therealfarmhouse.com says
Yes Nichole! Good luck to you!
Justin says
I’ve ready a lot about having issues getting building loans being your own GC without having proof of expirieince or licensing. Not sure if this varies state by state, or bank by bank but is there any advice you can give to getting around those obstacles?
farmerswife@therealfarmhouse.com says
It can be hard in certain areas to get financing for owner building, but it’s not impossible. Look at all of your options, not just regular old banks in your city or town. There are private loans, credit unions, and other financial institutions. The most important thing though is to be overly prepared with your planning, timeline, and all other information. You need to convince them that even though you have never done this before, you are a good risk to take.
Rebecca Hale says
That’s great that you’re being your own contractor, and helping others learn how they can, too.
I just find it so strange when people like you say they are “building our own house.” I realize that everyone like you says that, but it’s just not the correct way to phrase what you are doing. There are a few people out there who actually do “build their own house.” My husband is one of those people. He is a “blue collar” tradesman, and we’re (literally, not figuratively) building a 3000sqft home with an attached 2000sqft garage/shop/storage (haha, gotta have a place for all the tools, supplies, and machines!).He hasn’t hired a single person to do anything, as he has the skills, tools, and ability to do it all. Surveying, designing, dirt work, concrete, utilities, framing, siding and roof, electrical, plumbing, HVAC, interior finishing, and whatever else I’m forgetting at the moment. We have had free help from friends on a few big project days, and my husband helps them on their big project days or with things they don’t know how to do. I am typically just a helper to him in between caring for kids and our household. But regarding the home building, I do have a few skills to contribute – the painting and wood finishing (trim, doors, floors).
While we have been able to do it debt free, I certainly don’t recommend doing it how we have. It takes so much time for 1 man. We’re not done yet, and we wish we were! But my husband knows many of the contractors and skilled laborers around here, and they would not do the work to his standards.
So…I just ask you to not claim to have “built your own house” unless you truly have. 🙂
farmerswife@therealfarmhouse.com says
Way to go on your build Rebecca! That is a huge undertaking. I didn’t mean to offend anyone by using the term “building our own house”. I have found that most people refer to it that way when talking about anything on the spectrum from literally doing all the work yourself to simply being your own general contractor. So that is the terminology I use so people can find the information that they need. I have tried to be very specific in explaining the approach that we took, while also exploring the options that everyone has when not wanting to hire a general contractor. Thanks for your comment. Your story is inspiring!
Jeff Nathan says
Yes, you can save money but it comes at a cost. If you have a job and have to take time off to supervise that costs time and money. Contractors do get better pricing, especially in this current market. They look at the homeowner as a one off, where as a GC that uses them all of the time gets professional pricing. The subs and suppliers know that there will be more business coming from the GC. By the time the GC adds his/her % on you are back to a similar pricing.
There is also the professionalism of the GC. If they have experieence then a great deal of time can be saved as well as the headaches of mistakes that need correction. Remember, time is money.
A GC is a professional that does this for a living. You do what you do for a living. Giving up your time is an opportunity cost that may be hard to quantify but it is real.
Find a real pro and you will not really save that much, maybe just a little.
farmerswife@therealfarmhouse.com says
Thanks for sharing your opinion Jeff
Yalonda says
Hi Farmers wife! I’m also a farmers wife getting ready to start the build process ( guest house 1st so we can live on our acreage while being able to watch over the larger build process beginning sometime next year). This was an absolute awesome article! I saved it a long time ago because I knew one day I would need it. I’m one of those people that doesn’t feel like it’s done quite right unless I put my hands on it, so being my own GC is right up my alley. Thank you so much for all the great information. I knew my bit of OCD would come in handy one day 🙂
farmerswife@therealfarmhouse.com says
Nice to meet you Yalonda. It sounds like you will be a great owner builder! Good luck with everything.