Build Your Own Home Inc. makes it easier for homebuyers to build their dream home

By Rochelle Rucker

HOUSTON - For most people, purchasing a new home is one of the largest financial decisions they will make in their life. Plus, a home that's built properly will provide comfort and years of enjoyment. A home provides this not only in dollars and cents, but also in the realization that the owners' input from the beginning of the construction phase is proudly displayed in the final product. That's how first-time homebuilders John and Robin Cox felt after they constructed their dream home on June 22, 2001, five months after the slab was poured.  

The Cox's are part of a new breed of consumers who want a real role in the decisions concerning their home-buying investment. That is why they built using the Build Your Own Home Inc. (BYOH Inc.) method.

BYOH Inc. is a full-service, home-building consulting company based in Magnolia, Texas. Unlike typical custom home-building companies that call all the shots and make all the decisions for the buyer, BYOH, backed by more than 30 years of home construction experience, assists and consults with the homebuyer/builder throughout the entire building process. However, the homeowner/builder makes all the decisions concerning the design, construction, crew selections, interior decor and finishing of their dream home; BYOH stands along side guiding them on every crucial step and decision. There are no surcharges for change orders because the buyer is the boss and negotiates these without the middleman adding profits. From selecting the plans and sub-contractors to coordinating and purchasing all building materials, the BYOH homebuyer/builder is in complete control. They even handle the payroll checks.

In contrast, the typical custom homebuilder will design and build a home, but not necessarily to the buyer's specifications. Then it becomes adversarial between the builder and buyer, as profits are at stake - sometimes very high profits.

"The conventional custom-home builders don't allow the kind of control to the buyer that you get with BYOH. They (custom home-builders) want to handle the money and the decisions. Their cost to build is also based on what the final value of the house is, not what it cost to build," Robin Cox said.

Get With The Program

Most buyers are building a home for the first time and aren't familiar with choosing contractors and materials. So many choose Program Two, the most popular of BYOH's three programs. At a fee of $3.95 per total square footage* - Program Two is for the homebuyer with no, or very limited building/trade knowledge. It includes weekly (or more often) on-site inspections of materials and workmanship by BYOH's expert building superintendents during the entire construction process. This program provides guidance, oversight and support during the entire construction and inspections of the home.

Three major concerns buyers have when they decide to build their own home are inspections, superintendents and financing - who is going to oversee the project with the buyer, will they come out to the construction site regularly and how will "we" handle the construction money payroll. When a buyer signs up with Program Two they get:

• A personal, experienced paid superintendent who is on the BYOH staff. The buyer does not pay the superintendent extra for these job-site visits as compared to some of the competition where the buyer is charged a fee for these inspection visits.  
• Peace of mind knowing that BYOH's sub-contractors go through a merit process before they are placed on the company's list of approved sub-contractors. New sub-contractors must provide references before being added to the approved list and initially for only a 90-day trial period. If at any time a buyer has a complaint, the sub-contractor is removed from the list. Also, the sub is not required to pay to get on the list nor, is there any fiduciary relationship between the sub and BYOH Inc.

Program Two is just what the Cox's were looking for when they decided to build their home. Robin knew a few custom-home builders, having worked in the land development industry.

Another reason the Cox's went with BYOH is because they are the only company to offer true 100 percent financing. "From lot purchase and construction financing to the final mortgage and closing," she said. In the end, the Cox's realized $10 per square-foot savings over what was estimated at the beginning. "And, I didn't cut any corners where it was important," Robin adds.

"I really worked my superintendent and never had to pay him extra for all of his visits. I actually spent only about four to six hours on the phone checking products and negotiating prices with suppliers," she said. "My personal superintendent met me on the site two to three times a week and he was always accessible to me. That's unheard of with custom builders."

Program Two was also a perfect fit for Christopher and Christy Roy who are building a $140,000 home in Mont Belvieu. The approximate 30 percent savings on materials is allowing the couple to not only add amenities such as upgraded material for the kitchen countertops, a custom log mantle and a brick fireplace, but they are saving even more money by using BYOH's sub-contractors.

"This is our first home and we are very pleased about being able to build it the way we want it," Christopher Roy said. "We chose Program Two because we wanted a little help with the contractor selection."

"Once people are shown how easy and builder friendly the building process is, they jump at the opportunity to build a home of their own," said Jim Morgan, president of BYOH Inc., who has more than 30 years experience as a general contractor.  "No one cares more about a home's quality, livability and homeyness than the homeowner. So it makes sense that the homebuyer/builder should be in control of every phase of construction from start to finish." The average BYOH homeowner/builder typically builds from 2,600-3,500 square feet of living area.

Morgan's more than three decades of experience as a general contractor provides each BYOH customer with the knowledge and skills to handle each phase of the construction process.  

With BYOH, the buyer is the homebuilder. Materials can be purchased from an approved list of suppliers that provide the BYOH builder heavy discounts, or the homebuilder can purchase materials from any source including auctions and the Internet. In addition to saving 30 percent, many buyers recognize another value of dealing with BYOH: instant equity when they cross the threshold into their new home.  

For example, a buyer who builds almost any size home can realize tens of thousands of dollars instantly in the home's equity when they move in because of the savings they made controlling the cost of materials, supplies and labor.

After talking with BYOH officials at a recent home show in Houston, Dean and Susan Johnson who live in Thousand Oaks near Magnolia, decided to give the BYOH concept a try.  

They liked the fact that they could start building their new home before selling the old one because of how the financing was put together.

"We didn't need the equity in the sale of our home, first, to start building, which is very helpful for us," Susan Johnson said. "Also, we are able to build the exact home that we need without the hassling from the typical custom homebuilder. We had some very special needs and building requirements that we couldn't afford except by using the BYOH controls."

The biggest concern for the Johnson's was the loan approval process. "BYOH and the financing company really ran the gamut of options for us," said Dean Johnson. "Our house finally did sell, and we accelerated the process of closing to a very rapid pace. I was amazed that we were able to buy our lot and close on both the interim construction loan and the permanent loan in one closing."

An important feature when using BYOH is that buyers can purchase their own materials at builders' rates and even select sub-contractors and suppliers. George and Vicki Milner of Kingwood did just that and took advantage of the savings. Before they made a decision to build their own home, they attended home shows looking for designs to suit their needs. Of special interest to the Milner's and particularly Vicki, was choosing the right all-purpose vacuum cleaner for their $153,000 home.

After careful consideration, they settled on a central vacuum system. A central vacuum system has three to five times more power than any portable vacuum. And because the power unit is located in the garage or attic, it can have as much vacuum-power as needed.

"It is the greatest thing in this house," George Milner said. "A custom-home builder wanted to charge us $3,000 for the system. But we were able to buy one for $1,200 using our builders' discounts."

BYOH offers two other programs. Program One, with a fee of $2.75 per total living footage*, is for the homebuyer with considerable building knowledge and experience. This program allows for the homebuyer/builder to personally do any portion of the work.

Program Three, with a fee of $6.95 per total square footage*, is for the homebuyer without any building knowledge, limited time and who wants a turnkey job with some personal input. BYOH coordinates the scheduling of all suppliers and subcontractors acting as the homebuyer/builder's building superintendent.

Building a home is the largest single investment any family will undertake. Recent studies show that sales of new homes jumped 19 percent in August over last year.

With home building on the rise, more consumers want more control in the building process. BYOH's and Morgan's three decades of home-building experience plays an important role in making sure consumers get what they want in style, beauty and quality.

"People like the idea of having total control over the construction of their American dream home," Morgan said. "We wouldn't have it any other way."

To get started building your own home using our 32 years of experience contact us toll free at 1-800-720-3070 or on the Web at http://www.ubuildyourownhome.com/

* Includes living area, porches, garages - all built-up areas

"Costs and fees mentioned in this article are subject to change without notice. Percentage of savings apply only the home(s) mentioned in this article and will vary with each home built."

Rochelle Rucker is a freelance writer in Houston.

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