Points to Consider When
Building Your Own Home

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New-home construction is still on the rise, albeit more modestly than earlier this year. And while fewer people may be choosing to have their homes custom built than they did a decade ago, according to 2004 data from the National Association of Home Builders, still about one-fifth of Americans who want a new home choose to build it rather than buy it. In fact, the number of owner-built homes, where the homeowner acts as the general contractor, has been edging up in the past few years.

WHAT TO DO: Aside from time and cost, the considerations for building your own home are numerous. Refer to the NAHB's comprehensive consumer guide. Should you be your own contractor? This article says it can make it difficult to find financing. Brush up on building codes and standards. For more information, contact your local builders' association. Read about how the steel industry is targeting consumers to choose steel framings to build their homes. Get the skinny on choosing cabinets, flooring and windows.

Home Sweet Home

Some considerations when hiring a subcontractor:

• Think flat-fee only. Get subcontractors' estimates in writing, based on the entire job, not a per-hour fee.
• Verify your subcontractor's insurance. Have your subcontractor's insurance company fax or send proof of insurance directly to you.
• Insure the site. Have an insurance policy to cover the house while it's under construction, as well as any uninstalled supplies at the site.
• Pay subcontractors with lien waivers. These forms show that you've paid your bill and prevent a subcontractor from putting a lien on your home.

Source: Bankrate.com

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