With all the attention on today’s housing market, it’s natural to feel apprehensive about building a log home anytime soon.
But there are considerable upsides to the current housing situation for buyers who want a log home now.
For one, with morelog home companies eager for business, many have begun to drop their prices, starting with the log packages themselves.
It may seem like right now isn’t the best time to build a log home.
But building in the current market actually could save you thousands.
“It’s been a popular trend to discount the price of the logs,” says Mike Cole, assistant vice president at M&T Bank, who specializes in nationwide log home financing.
“If you’re willing to have your logs delivered within the next few months, many producers will offer to take 5 percent off the cost of your entire log package. With an average price of $80,000 for logs, that’s $4,000 in savings right there.”
Sometimes, the discounts can be even bigger. At AmerLink & In The Woods, a Battleboro, North Carolinabased log home manufacturer, President John Barth says the company has been selling log packages for 10 to 15 percent less today than a year ago.
“For quick and nearterm deliveries—meaning within four months—we’re offering some pretty deep discounts,” says John, whose company ships approximately 480 log packages each year. “There are certainly some nice opportunities for buyers in this market.”
And the savings don’t stop at the logs. Experts say producers also are willing to help with the cost of your loan. “Some manufacturers will pay the borrower’s interest on the loan during the construction period,” reveals Doug Groff, president of American Log Mortgage in Mountville, Pennsylvania. “In other cases, they may offer to pay a point or two [one point equals one percent of the total loan amount] toward the borrower’s mortgage, saving homeowners thousands of dollars over the life of the loan. Or, they might cover a portion of the borrower’s closing costs.”
You can save on construction costs, too, since many contractors are looking for work. “Builders are hungry for business,” Mike says. “They need to keep their crews busy, so they’re certainly going to be a lot more flexible on how much they’re willing to build your house for.”
Savings in that area can add up to an extra 5 to 10 percent off the price of your build. Other incentives being offered now include free upgrades, furniture, complimentary appliances—even bonus outdoor-living packages, which include deck or patio materials.
Don’t be hesitant to ask your log provider if they have any special programs or price incentives.
Another advantage? Building permits are easier to get since the industry is trying to boost business.
Also, the taxes on your home should be lower since it’ll cost less to build. Adding up all those savings means that, with a little research, there could be a big upside to building your log home today.