All I know is that a log home A-frame style looks great on paper.
Posted on 08/24/2005 9:11:44 AM PDT by SoDak
I'm nearly finished remodeling the old house I bought a few years ago, will be done in three months or so, and I'm planning to build a new house on an acreage next year as soon as I get the current one sold. I'm seriously considering building a log home if I stay in South Dakota, and wonder if anyone out here has had any negative experiences in building, living in, insuring, or financing a log house. Banks seem a little skittish about them, although I've never gotten a reason why. I've created a design and had the design approved by an architect at a log home builder. I would appreciate anyone's input.
find another bank
log homes are not THAT unusual
I've owned two. Built the second one myself. Look at my page.
I didn't have any trouble with the bank. Insurance is the same as a stick built.
However, there are many differences in construction than a conventional stick built home.
The financing problems with log homes stems from lender's desire to have log homes as comparables on the appraisal.
Unless you're in a resort or mountain area there will only be about about 2 log home sales probably 20 miles from your property and and $60,000 below your sales price for use on the appraisal.
They are a bit rare. That's why lenders are skittish. Like Mr. K said, find someone else.
The issue with them, however, is appraisal. It's only worth what the market will bear. Which means that doing the appraisal is hard. An appraisal uses "comparable sales" to determine value. If log homes are common in your area you should be OK, but here in Ohio, there's only a handful and therefore, nothing to compare them to on the appraisal. That's why they're hard. If you build a 3200 square foot home for $340,000 and there are only 3 log home sales in a 20 mile radius of you in the last year--and they are only 1000 square foot homes that sold for $140,000--it's hard to determine the actual value of yours.
That said, as long as you aren't building the only log home for miles, you really should have no issue getting it done, but be prepared to do your homework and wait a bit longer for the loan.
Very cool place.
COOL you can be a log cabin republican!
There are a few springing up in the area. There's a very nice one on the golf course I play, which kind of gave me the idea when it was built 5 years ago. My design comes out to 3100 square feet plus a full basement. I haven't approached a bank to actually underwrite it, but I work with bank's as my clients, and have had conversations with a lot of bankers about them and I think several posters here have it right on the appraisal bit.
All I know is that a log home A-frame style looks great on paper.
No thanks, I like girls.
New project for you!
ACK! Heck no!
Uh huh....I'll help, even give advice (like never use a nail gun while drinking beer)....but that's it.
party pooper :)
I live in a 100 year old redwood shack and didn't getting insurance. I guess you just need to have a cool agent.
Rodentia? I thought that was a country near the Black Sea which is now part of Romania...taken from Eutherians of Wallachia by Vlad Tepes in the Battle of Transylvania (1366).
I knew they were a wily tribe, but now are they attacking log homes?
You just finished a remodel too, huh? Feels good being done? I have about 2 more months of part-time interior work, and a couple of weeks of landscaping, and I'll be done with my complete overhaul, finally, and can blow this joint.
I have seen unflattering descriptions of log homes as prone to a range of problems that stem from their unconventional nature and the relative lack of fully experienced builders, sub, and workers: inadequate foundations, mold, leaks, rot, greater repair and maintenance expenses, and so on. It seems that the relative risk of error in design and building log homes is greater than with conventional homes, often leading to serious problems; and the logs themselves can prove troublesome due to defects and poor seasoning. I am sure that it is possible to build a fine log home that is well-made in every sense and sure to last; I am also sure that it is possible for NASA to have built and operated the space shuttle without fatal incident.
The contractor I plan to use is out of Montana, and they have been building log homes for something like 27 years. I toured a couple of their spec homes and they look pretty good.
Er,
I started pretty much from scratch....I still have the scars.
It took 3 years at that....I'm celebrating with muscadine wine and chocolate ice cream.
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