Real Estate Information

Budgeting Your Log Home: Where Do You Start?


The Log home industry has matured these last many years, but there is still a lot of confusion about how much a log home costs. Naturally, everyone wants to know the cost of the log package; however, the budgeting only starts here. If you are shopping for a milled log package (as opposed to hand-crafted, which is a totally different category), the difference between one manufacturer's price and another is minimal when compared to the total cost of the structure. Here are some reasons why:

Other materials. The logs themselves only form a portion of the material costs of the home. Once the log walls are erected, you still have to worry about a floor, a roof, the windows, the doors, the plumbing, the kitchen... the list goes on and on. Some manufacturers quote a "weathered-in shell" which includes the logs, the windows and roof - all the elements that enclose the building (protecting the house against the weather). Other manufacturers only quote the log package, and leave it to the contractor to provide the other materials locally. When pricing a log package, make sure you are comparing "apples to apples".

From our experience, the price of the Logs only constituted approximately 1/5 of the total price of the finished structure. As for the rest... it's a high-end custom home, and like any custom home, your cost is limited by your imagination - and your budget. You decide whether to use hardwood floors or carpet, marble counters or formica, a metal roof or asphalt shingles. No log home company will offer these products to you. Unlike a Development contractor who offers you a limited selection, you choose everything yourself, from doorknobs to toilets. Once you start factoring in all these items, you will discover that there isn't a whole lot of difference between a log home any another home - except for the exterior walls.

Local price differences. We built our log home in New Jersey, which tends to be a lot more expensive overall than much of the rest of the country. The same house in Tennessee would cost considerably less in lumber and other materials. Also consider that labor costs vary wildly as well. A very big part of your budget will cover the labor, because this home will be built entirely by hand. Your contractor may not have to peel or notch the logs, but he will still be placing the logs one at at time, making sure the walls are plumb, drilling holes for the wiring, cutting settling gaps above the windows and doors, possibly fitting the roof frame one board at a time. Your builder is the most critical part of the project, and it's not necessarily a good idea to go with the cheapest quote. Do you really want him to cut corners to stay within a low quote?

Design features of the house. The most dramatic log homes have roof lines that point in all directions, dormers that grace the front, vaulted ceilings in the great rooms. But remember that every new angle you add to the roof adds exponentially to the cost of the project. If you need to keep costs down, think about a simple roof line with not too many angles.

Also, the old adage remains especially true with log homes: it's much cheaper to go up than go out. If you want a rambling one-story ranch house, you will have a bigger foundation cost, a bigger roof to consider, and lots more labor. If you build more stories and a smaller foundation, even though you will have to invest in a staircase the savings are considerable.

So what is the bottom line? A basic budgeting cost in the Northeast US would be $140-$150 per square foot for a milled log home; this is about the equivalent of a high-end custom stick-frame house. This does not include the land, the well, the septic, the driveway, etc. It does include the basement, the kitchen, the plumbing, etc. This is the turnkey budget for the house only. You can certainly do less if you give up a lot of amenities, but I wouldn't advise a starting budget of any less than $130 per sq. ft. You may find yourself running out of money way too soon, and that would be a terrible shame.

Mercedes Hayes is a Hiawatha Log Home dealer and also a Realtor in New Jersey and Pennsylvania. She designed her own log home which was featured in the 2004 Floor Plan Guide of Log Home Living magazine. You can learn more about log homes by visiting http://www.JerseyLogHomes.com.


MORE RESOURCES:

Press-Enterprise

REAL ESTATE: California receives up to $18 billion in multistate settlement
Press-Enterprise
“It is a good first step but only a step toward the solutions we need,” said Kevin Stein, associate director of the California Reinvestment Coalition, a real estate consumer advocacy group. In California, the banks have guaranteed more than $12 billion ...
Will bank settlement help Florida's real estate market?Palm Beach Post (blog)
$25B settlement reached over foreclosure abusesSacramento Bee
States, banks reach foreclosure-abuse settlementAlbany Times Union
LoanSafe -KTAR.com
all 2,849 news articles »


Fort Worth Star Telegram

Evangelical real estate developer brought Santorum to North Texas
Fort Worth Star Telegram
If Rick Santorum eventually wins Texas Republicans over, one of Texas' leading real estate developers should share credit. Last month, Jeff Blackard of the McKinney-based Blackard Group went undercover in South Carolina as a walk-in Santorum volunteer.
Donald Trump: Rick Santorum 'Wants To Be President? Give Me A Break' (VIDEO)Huffington Post

all 440 news articles »


Bloomberg

Shrinking the foreclosed real estate glut
Boston Globe
But it isn't going to fix the nation's residential real estate mess. That mess - millions of homeowners underwater on their mortgages, a stagnant residential sales market that lacks buyers and a clog of foreclosed property - can't be cleaned up with ...
REAL ESTATE: Refinancing program expands for Fannie/Freddie borrowersPress-Enterprise
Online Offers for HomePath Properties Expanded by Fannie MaeLoanSafe

all 160 news articles »


The Free Lance-Star

Vakos Real Estate opened this week in the Southpoint II shopping center.
The Free Lance-Star
BY BILL FREEHLING BY BILL FREEHLING One of the Fredericksburg area's oldest and most prominent development firms has started a full-service real estate brokerage arm. Vakos Real Estate opened this week in a 5200-square-foot space next to a Tropical ...
Who's who at new Vakos Real Estate firmFredericksburg.com (blog)

all 4 news articles »


Real Estate Agent Highlights New Technologies by Bicycling 700 Miles to Mid ...
MarketWatch (press release)
His route takes him across the breadth of four states and through 12 overnight stops, ending on stage before an expected 4000 attendees of the Coldwell Banker Real Estate's International Business Conference. Dyer aims to use a 150-year-old ...

and more »


DOJ: Three NorCal Real Estate Investors Agree to Plead Guilty to Bid Rigging ...
San Francisco Chronicle (blog)
Three Northern California real estate investors have agreed to plead guilty today for their roles in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice (DOJ) ...
Three to plead guilty in foreclosure auction fraudSan Jose Mercury News

all 6 news articles »


Real-Estate Crash Aids the Green Movement
Wall Street Journal
By LAURA KUSISTO The real-estate crash left pockets of the region's rural areas littered with the remnants of would-be golf courses, shopping centers and luxury subdivisions that never got off the ground. But the market swoon has yielded an unexpected ...



ETF Trends

Top 10 Global Real Estate ETFs
TheStreet.com
By Dave Fry 02/09/12 - 03:03 PM EST There is currently an expanding list of nearly a dozen ETFs oriented to primarily to global REITs (Real Estate Investment Trusts) with more on the way no doubt. In the following analysis we stick with our top ten ...
Investments for Income-LoversMotley Fool

all 24 news articles »


CBRE Clarion Global Real Estate Income Fund (NYSE: IGR) Declares Monthly ...
EON: Enhanced Online News (press release)
PHILADELPHIA--(EON: Enhanced Online News)--The Board of Trustees of the CBRE Clarion Global Real Estate Income Fund (NYSE: IGR) (the “Fund”) declared a monthly distribution of $0.045 per share for the month of February 2012. The following dates apply: ...

and more »


South Bay commercial real estate market heats up
San Jose Mercury News
Silicon Valley developers are racing to erect office and R&D buildings to meet a fresh surge of expansions by tech companies that's turning the region into a commercial real estate boomtown. Last year, the South Bay added about 26000 employees, ...

and more »

Google News

home | site map
© 2006