Log and Timber Home Living Log Home Buyer's Guide September 2021

Ask any log home company representative what sort of homes they craft and they will fire a question right back at you: Do you have land? They're not trying to be coy. It’s a legitimate query. The location, topography and composition of the site on which you plan to build will have a huge impact on everything else to follow, from excavation costs to the design and orientation of the house itself. This is why before you start to contact log home designers, producers and builders in earnest, it’s vital to know where your home will be. If you don’t have property yet, don’t fret. Use these handy guidelines to narrow the field as you shop around. 1 Follow Your Passions As you start the log home planning process, your lifestyle should play a key…

An informed appraiser is the key to getting a fair market valuation of your log home. Many appraisers, even those with years of experience, aren’t familiar with log home construction and may not know how to fairly estimate a log home’s resale value. If you find yourself in need of an appraisal, either to finance an existing log home or to qualify for a construction loan, you'll will find helpfull information in “How to Appraise Log Homes.” This free, 13-page booklet, written by log home construction expert Jim Cooper, is designed to help appraisers and lenders accurately determine the value of log and timber homes by familiarizing them with the distinguishing characteristics of these custom wood structures, including styles, construction, cost variables, market trends and points of comparison with other types…

Building a custom home is a life-altering decision. But if you’re planning to build a log home, that puts you in a class of your own, because for most log home owners, it’s a dream fulfilled — the last house you ever intend to own. While you will enjoy distinct advantages with custom log construction, you also will assume a measure of risk. You are in control of the design, materials, finishes and other elements, but you also must trust your log home producer, builder and a host of trade professionals to realize your vision. Plus, you will be committing to a process that may take six to 18 months to complete. If you do your due diligence, odds are everything will work out according to plan, but one area where…

Some log home buyers are in a position to finance construction themselves, which is great! But if you’re like most, you will need to borrow money to fund the build. A short-term construction loan operates a little differently than the standard mortgage most people are familiar with. The construction loan pays for the materials and labor needed to build your home. These loans are made for periods from six to 18 months and have higher interest rates than mortgage loans because, as far as banks are concerned, they carry more risk. Lenders will want at least a 20 percent deposit because of that risk. Typically, you pay only the interest until the project is completed and then the mortgage takes over (assuming you have a construction-to-permanent loan), adding the construction loan principal…

It’s the perennial question: “What does a log home cost?” But that’s the construction equivalent of asking, “What does a car cost?” Are you shopping for a Kia or a BMW? Do you want the basic package or all the bells and whistles? It’s the same for log homes. From the log diameter and profile you select to the faucets you choose — every option or upgrade will impact the final price. While we may not be able to give you a grand total, we can help you plan. According to lenders, builders and manufacturers in the log home industry, a historical analysis of log home buyers’ loans reveals average percentages devoted to specific materials and labor costs. Use these percentages to help set your budget.…

Q: What insurance do homeowners need during log home construction, and when should they get it? A: “Builders-risk” insurance is the primary means to insure for property exposure claims during construction. Builders-risk insurance is active while projects are under construction, renovation, remodel or repair. It’s best to secure builders-risk insurance prior to starting the project. In the case of a construction loan, builders-risk insurance is normally required before the loan closing date. Q: What does builders-risk insurance cover? A: Consider it like homeowners insurance but without personal-contents coverage. This type of policy covers the structure and materials during construction only, including certain types of loss, damage or destruction of property, but it excludes claims of defective work or design. Liability is normally not a part of a builders-risk policy, but your agent should be…