Behind the Log Home Scenes – Myths and $$

by Phaas | 10th October 2008

There are quite a few myths about log homes that are circulating among folks who are already having enough problems with sorting log facts from fiction.  Here’s my take on one of the biggest myths in the log home industry – How to get the “final“  total price of a log home from a manufacturer.  Time and time again, when I was selling log homes, customers would ask me to verify how to come to the final price on their new log home – to take the log package price and multiply it by 4, to take the advertised SF of a plan and multiply that by $150 a square foot, to see what the maximum they qualified for and add 10-25%.  The short answer to that question is – it depends.  Not very reassuring.  Here’s why.  Using multiplier won’t work because every log home manufacturer’s components package is different.  Company A’s product may be pre-cut, contain fastening hardware, with doors and windows.  Company B’s product may contain only the raw, random length wall logs and other log components.  If you use a static multiplier for either package, you’re going to get some fictional number that won’t do your budget any good.  There are just too many factors involved in getting an accurate job cost to just throw out “just multiply the log package price by “x” and you’ll have your budget.”  That won’t even get you in the ball park.  If someone gives you that advice, politely thank them and run the other direction.

When someone gives you an estimate of “x”  dollars per sqaure foot – take a few more mintues to ask this person some follow up questions.  If you are talking to a local builder, and your project is going into his territory, you might have a starting point to begin working out the details on your budget.  As you get close to selecting a builder/supplier, be sure to talk to some of their recent references, and be candid about your budget concerns – how close was this person to the original budget proposed (barring change orders).  Talk to the banks that they worked with.  Check them out with the Better Business Bureau or the State’s Attorney Generals office.  This is most likely the biggest financial investment you’ll make in your life – take the time to make sure the people you involve are capable and trustworthy.

If you are at a Log Home Show, and you get a quote of “x” dollars per square foot – I’d take that information with a grain of salt, unless they are truly a local builder.  Quite of a few of the log home companies travel across the country to the log and timber home trade shows, and they just don’t have the local contacts to give out accurate building costs.  For example – If you were to attend a Denver, CO show, depending on where your were building in the state of Colorado, your square foot building costs could range from $150 a SF to $300 a SF and up, for the EXACT SAME LOG HOME PLAN!  To get accurate figures, your best bet would be to work with some of the local businesses and trades from your building area.

In order to get any accurate budget information, you’ll need to start with a good and detailed set of plans.  If you’ve already decided on a manufacturer, and you’d like to proceed with their designs, be sure to take a look at a set of their final construction documents.  Make sure everything is spelled out.  Get your builder’s opinion on them – can he build from them.  Any information that’s left out is time and money on the job spent figuring it out.

The best way to take charge of your budget is to come into things fully prepared.  If you use an independent design firm, like Gravitas, you are calling the shots from the beginning.  You can go through the design process – including and many or as few of the log and timber components you like.  I say this because, the log and timber frame companies are in the business of selling wood.  It’s only natural for them to try to include as many components into your log package as they can – sacrificing elements of your design and budget to pad their sales figures.  With an independent design firm, you get the elements you want, where you want them.  Some people want to see log and timber everywhere – others only want log walls, with drywall and plaster to break up the exposed woodwork. Either way, you get the design elements you want.  The biggest advantage is that when you shop around, you have the power.  The log home companies are all bidding on the same set of plans, and they know you’re out there shopping around.  It’s in their best interest to give you the best price possible in order to stay competitive.  An independent set of plans forces them to sit down and dissect your house in order to get accurate figures.  When the preliminary bids come in – you’ll have the ability to compare the apples to apples.  Only when you decide on a manufacturer, should you begin the Final Construction Document phase of your plans.  By waiting until you choose a manufacturer, the designer can then incorporate the specific details pertinent to their particular construction system (thru-bolt, lags, mechanical settling devices, etc) into your plans set, giving more than enough details for the builder to generate an accurate budget for your new log house.

Bottom line is, if you don’t have a detailed set of plans – specific to not only your building site, but to your tastes and budget, how can you expect to get anyone to give you any sense of how much things will cost.  A good set of plans may run several thousand dollars, and if they’re done right and they are thorough, they can end up saving you thousands in the end.  Like it or not, you’re paying the same $$ when a builder and his crew are standing around trying to “figure out” a detail as you are when they are hard at work, building your dream home.  Doesn’t it make sense to arm them with the best information and plans?

Hope this was helpful.  Let me know if you have any questions.

Happy stacking!

Paul

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