Build or Buy Existing Home?

[leilaniguy]

But then again, I started a house on 5th Ave. HPP in 2002, gave up on it 14 months later, transferred open permits to new owner w/ no problems, no hassles, got cash.

[jdirgo]

Back in 2002, I never saw the law being enforced, but now in 2006, I am.

John Dirgo, RA, ABR, e-PRO
Island Trust Properties, LLC
808-987-9243 cell

[nanasohana]

Just before we finaled, a friend of ours who is a contractor submitted a letter to the county that he was taking over the project and it was approved. We are not trying to get around the owner/builder law. Not sure yet if we are staying the whole year or if we may need to sale because of various reasons. I think there are big fines otherwise.

[Kapohocat]

Before I weigh in - I woudl like to suggest that like buying real estate, if you are going to build and live for awhile, OB is a fine choice. If you are building a spec house, do it legal and get a GC.

-Cat

Catherine Dumond
Blue Water Project Management
808 217-7578
http://bluewaterpm.125mb.com/index.html
"We help make building your dream home a reality"

[nanasohana]

The owner/builder requirement makes no sense to me because whether the house is built by a person who intends to live in the house or by a contractor who hires people to build a house, everyone must comply we the same regulations: licensed eletrician, plumber, permited house plans, inspections, etc. I think I have heard more problems from contractor built homes than owner built really. Anyway, because of unforseen situations I am glad there is a way out of the owner/builder 1 year requirement.

[John S. Rabi]

quote:

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The owner/builder requirement makes no sense to me because whether the house is built by a person who intends to live in the house or by a contractor who hires people to build a house, everyone must comply we the same regulations: licensed eletrician, plumber, permited house plans, inspections, etc. I think I have heard more problems from contractor built homes than owner built really. Anyway, because of unforseen situations I am glad there is a way out of the owner/builder 1 year requirement.

Nancy, the reasoning behind that law is if you build houses as an owner builder and keep selling them then you are in a business of selling houses, therefore, you have to have a license.

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Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB,RB
http://www.JohnRabi.com
Typically Tropical Properties
75-5870 Walua Road, Suite 101
Kailua-Kona, HI 96740
(808)327-3185

[nanasohana]

I guess that reasoning is to protect the buyer and that if you buy a house built by a contactor, it will be built correctly and be safer. I don't think it does guarantee that it will be built any sounder or better than an owner built home. But I guess the county feels that it will be. Man, I am reminded after building ours that it is so much work and stress that I will leave the business of building homes to the contractors. Lots of other ways to make money that are less stress, and risky. Now someday we will probably build that last home we want to get old in just because we know what we want and do have the knowledge and skills to do it. I need a rest first though!

[jdirgo]

Contractor-build homes have a one-year warrantee, hence the one-year owner-builder restriction, I believe (Cat -- correct me on that if I'm wrong). It also give time for any liens to be cleared.

John Dirgo, RA, ABR, e-PRO
Island Trust Properties, LLC
808-987-9243 cell

[John S. Rabi]

John, while most GCs provide a one-year warranty (some do two years) they are not required to do so as per the HRS. I think they do so because nobody would hire them otherwise. (Would you spend hundreds of thousans of dollars without getting a warranty?)

Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB,RB
http://www.JohnRabi.com
Typically Tropical Properties
75-5870 Walua Road, Suite 101
Kailua-Kona, HI 96740
(808)327-3185

Edited by - John S. Rabi on 09/11/2006 16:37:24

[jdirgo]

You're right, I've been so used to contractors all giving the warranty that I thought it was required by law.

I think the lien issue is still one that anyone considering an owner-builder home should still seriously consider, though. Their Realtor should put some very clear language in the contract specifying that any liens related to the construction of the home remain the responsibility of the seller even after the escrow closes.

John Dirgo, RA, ABR, e-PRO
Island Trust Properties, LLC
808-987-9243 cell