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Owner-Building a "spec" house


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Anthony's Forum Posts: 18

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By Anthony in Lebanon, OH on 1/11/2005


I've built five homes in my life.  The last home we built was with UBuildIt.  We have roughly $150K in move-in equity on a $300K cost to build.  I'd like to do another UBuildIt project but instead of moving in, I'd like to sell it for a profit. Any advice? I should probably talk to my UBuildIt guy, but while I'm online, It doesn't hurt to ask.  I'm sure the financing might have to be fooled with a little (last owner-built house we had to sign a letter stating that we planned on moving in). I saw in a different thread that in Texas you are on the hook for 10 years.  Anybody know anything about Ohio?  There are a few extra lots in a subdivision down the road that would be easy to sell and keep track of during building.


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By Kenneth in Lees Summit, MO on 1/12/2005


It is not owner-building if you are not planning on living there.

From a code perspective, you are allowed to do a lot of things on your own house that you could never do if you are the builder.  For example, I can do my own electric, plumbing, and HVAC since it is my house, regardless of whatever qualifications I might have (of course it still must be up to code standards).  If I am a builder, I have to use a master electrician, master plumber, and master HVAC tech to complete their respective trades.

Also on an O-B house, I think they tend to turn a blind eye to "side jobs" and using unlicensed subcontractors (all businesses practicing in my locale are required to have a local license).  As a professional builder, I would have to submit my subcontractor list when I pull the building permit - not necessary as an O-B.

I would recommend you understand the differences between O-B and professional GC when dealing at the regulatory level. 


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By Susan in Middleburg, FL on 1/15/2005


I am sure on the financing end you would have bigger hoops to jump through, unless you use the equity in your current home to build it. But the county would be the one to regulate if you could owner build. I know here in Florida (Clay County) I can apply for a building permit again after 1 year of completion of the house we are building. It doesn't say anywhere on the building app that I have to intend of occupying it though. I have also thought of buying some land i have been looking at to build for resale. I don't want to do it for a living or anything but one every couple years is a good little profit.

Check with you local building department:)


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