What was your net worth as a couple before you owner-built?

What was the average price quoted you to build your design? Highest price?

by Mark A. Smith

I've grown to despise the expression "You get what you pay for." It's a favorite of general contractors who condemn owner-building. It's spoken with some gravity as if it were a higher truth known to the wise.

But it just isn't true. We see people saving 35% by owner-building every day of the week. They have the same house, the same kitchen sink, the same garage door, the same sliding window as the person who used a contractor and spent 35% more.

What is it about that kitchen sink that makes it better when you've spent $338 instead of $220 like Elaine and I did? Or heaven forbid, if you paid $450 or $600, the listed "retail price"? When a contractor is running the job, you have an excellent chance of paying retail for house components, although they are widely available at deep discounts.

Yes, you pay more for a general contractor and what does it get you? A better design? No, that should be the province of the designer working closely with you. Better quality? Not if you are checking the work that goes into the job each day. The average custom contractor provides on-site supervision only a couple of hours a week when you're building. Expertise? You can hire an independent inspector for that who will provide objective input. Peace of mind? Yes, if you are clueless about the process.

But you won't be clueless. A successful owner-builder plans thoroughly before breaking ground. You wind up knowing your house and what's in it better than any third party can. Along the way you resolve design issues to your satisfaction and see better ways and better components to meet your needs.

The reward for this is not well understood. You pay less, but you get the same valuation as a contractor-built house. On an average home, you would save more than $50,000. Mind you, this is pure equity, it is tax- free wealth.

So, did you get what you paid for? You paid less, but got much more. I prefer the saying, "The best things in life are free."