The Log Home Industry Expert

Residential real estate has taken a serious blow in the last few years.  New construction of single family homes is at its lowest point since the recession of 1991.  It’s a buyers market and smart investors know this is the best opportunity to get great deals on new construction, especially new log homes and timber frame homes.  Builders, subcontractors and material suppliers are all hungry and are willing to go the extra mile for new customers.  While almost all commodities are at an all time high and rising, lumber prices and other building materials are priced low.  The dramatic increase in energy costs has not yet been reflected in lumber prices. 

The current economic environment isn’t going to last forever.  Most economists expect the housing market to bottom out in mid-2009.  Once the supply of new homes is back into balance with demand, new construction will begin to increase at a normal pace.  Once construction begins to pick-up, prices are bound to increase.  In the interim, there are some great deals. 

For those individuals planning to build a new log or timber frame home, the timing couldn’t be better.  Now is the time to get aggressive with competitive bidding.  Builders and subcontractors are hungry for work and willing to cut deals that would have been unheard of a few years ago.  When the economy is down, many people are hesitant to jump into a new construction project.  However, the smart money buyers know that you buy at the bottom of the market and ride the wave up. 

Of course, timing is everything.  It appears that early to mid-2009 will be the best time to send our RFP (Request for Proposal) bid packages.  Mountain Architects offers bid administration services designed to assist customers in getting the best results through competitive bidding.  The project managers at Mountain Architects will prepare the RFP package for clients which will include construction drawings, engineering and specifications.  The RFP bid packets will be sent to prospective builders.  Information sent back to your project managers will be analyzed and compare to Mountain Architects initial cost estimate and national averages for reasonableness.  Mountain Architects will then gather and organize builders competitive bid information in order to assist you in making a good builder selection. 

Price is certainly not the only factor in selecting a builder.  Reputation, quality of work, and financial stability are all factors that must be taken into consideration when selecting a builder.  In conjunction with the RFP bid packets, the project managers at PrecisionCraft & Mountain Architects will provide “builder due diligence” by gathering background information on prospective builders.  All of these factors will assist our customers in making an informed decision and at very competitive pricing. 

Builders and general contractors that were extremely busy just a few years ago are now crying for business.  The harsh reality of the current economic climate has set the stage for current buyers to reap the benefits. 

Written by Tom Heatherington

There has not been a better time in years to build your log home!

If you permit the media to drive your decision making, you already know this is the worst possible time to make a lifestyle change.  The housing market is in the tank, stock charts look as if they were printed from an oscilloscope, and upcoming elections (are intended to) make us feel anxious.  If you include war news, terror reports, natural disasters and the Hollywood writer’s strike you must know this is absolutely the worst time to make serious lifestyle changes.

As the editor of the Log Cabin Directory, I have a unique perspective on the log home and timber frame business.  In my daily routine I speak with people on both sides of the log home sales process.  I answer phone calls and emails from prospective log home buyers, and I speak with builders, dealers and manufacturers on a regular basis. 

It is no secret that the home building industry in general and the real estate market in particular are experiencing a downturn, which actually has been anticipated for a number of years.  Although this slump has impacted the log and timber home segments of the market, it is not as severe as that being experienced by the conventional home building market.  When such cyclic events occur buyers will often postpone their plans, which usually prompts manufacturers and builders to focus more on improving customer service and sharpening their pencils to attract new customers.

Economic cycles are part of life and there is not much new in this current phase.  These cycles are always gut-wrenching, as we are experiencing them, but somehow we always get through them and business eventually goes back to normal.  Think back to as recently as the dot-com meltdown of 2000-2001 when the stock market was blowing-off billions of dollars in profits.  Companies were going bankrupt, banks were overextended and we watched TV like frightened deer in the headlights while the talking heads convinced us how bad things were.  Imagine what your reaction would have been back then if someone told you that you’d be smart to build a custom log home, because it would probably double in value over then next 5-10 years. 

This is why I believe that there is no better time to build a log home than now, because if you are a buyer, these current market conditions are exactly what you have been waiting for – whether you realize it or not.  With the housing industry soft overall, you can expect to receive more attention and better service from builders than at anytime in recent years.  Manufacturers have been reminded that you have a choice, and are focused on making you want to do business with them.  This is a buyers market and as history has proven over and over again, that dream home of yours will cost you more to build later than it will today. 

Any savvy investor will tell you that the time to buy is when a stock is out of favor.  The apprehension from log home buyers in today’s market creates a huge opportunity for those willing to ignore the media’s fear-mongering and proceed with their dreams.  Most people considering a log home have the funds or the credit worthiness to complete the process.  The only thing lacking is the courage to ignore the crowd’s ill-advised mindset. 

Now if you are planning to build a log home on spec and try to flip it for a quick profit, this may not be the most ideal time to play real estate roulette.  However, if building a log or timber frame home to live in and enjoy has been part of your plan, there hasn’t been a better time in years to make it happen. 

I am no Pollyanna.  On the contrary, I have three daughters so I have been hard-wired to worry about everything.  Additionally, I share the same concerns about the economy and my family’s future as you do yours, but every now and then someone has to slap me and tell me to focus on the things I can control.  If a log home is part of your dream, take a lesson from history and don’t let Drudge or the ‘alphabet news channels’ talk you out of realizing your dream. 

About the author: Tom Heatherington is the founder and editor of the “Log Cabin Directory”, one of the largest log home information sources online. He is the author of “The Complete Small Business Internet Guide” and numerous articles on log home living.

Over the past few years, the log and timber home industry has taken a new turn. Today the industry sees more and more homes combining log elements with timber frame components and conventional framing.

Employing a combination of materials and building styles is referred to as “hybrid” and is often done to achieve a particular design look. Many clients enjoy the flexibility in design that a hybrid style home allows. Below are a few examples illustrating how a combinations of different materials can come together to create a truly amazing home:

• Crested Butte - A hybrid log home design of large stone, milled log walls, and customized timber frame trusses.
• Eagle’s Nest - A hybrid log & timber home; square milled log walls with dovetail corners and custom timber frame trusses.
• Upland Retreat - A handcrafted log & timber hybrid home; handcrafted wall logs and timber frame trusses, posts & roof.

Many designers will use timber and log elements in combination with conventional framing. Of course, the log & timber home purist prefers a more authentic log and timber style construction. But, decorative log and timber elements added to conventional framing can achieve a mountain flavor and sometimes save costs. This hybrid method is seen regularly in multi-unit condominiums and resort townhouses. Framing side wings in combination with a timber frame or log great room makes sense and can save in construction costs.

Log home construction, however, can be very difficult to combine with other types of construction if the log home company doesn’t utilize a non-settling system. If your goal is to decrease the cost to build your log home by mixing logs with framing or post & beam construction, remember to check out the company’s non-settling system.

With any home design, the creativity of the designer will dictate the materials to be used. Find a company that is flexible in their manufacturing so as to accommodate the creativity of your design. Providing your designer with a broad palette of materials including handcrafted log, milled log, timber, framing, glass, stone, steel and other materials creates more opportunity for a unique and creative custom home. The design must come first and the materials must then be able to accommodate.

There is a great deal of interest in “green building”. But, what exactly is green building and how do you know if your builder is really complying with green building standards.

Green building can be defined in a number of ways. The goal of most people is to build their home with the least impact on the environment and promote indoor health and energy efficiency. This can be accomplished in many ways such as the use of natural materials that are free of toxins and low in VOCs (Volatile Organic Compounds); using high energy efficiency products such as SIP (Structural Insulated Panels) and Low E windows; utilizing energy efficient appliances and HVAC systems and installing effacement sprinkler and water systems.

Most new construction is utilizing some form of green building. Builders and developers are recognizing that there is real value to the consumer in building green. But, how do you know if your home is really being constructed using the latest green building techniques.

The best way to insure that you are getting the real thing is to use a third party inspector or certifier under a recognized program. ENERGY STAR is a program that has been around for some time and takes into consideration the energy efficiency of the home. Another third party verified program is the LEED program. LEED (Leadership in Energy and Environmental Design) was developed and is administered through the U.S. Green Building Council. It is the most comprehensive and well recognized third party verified green building program available and has been used in commercial construction for a several years. The USGBC has recently started LEED for Homes which is a pilot program established for residential structures.

The National Association for Home Builders (NAHB) has a green building program that is currently a self regulated checklist not requiring third party verification. However, the NAHB is now developing a certified program that is expected to be published later this year.

Mountain Architects and PrecisionCraft are members of the USGBC and NAHB. We have been involved in the LEED for Homes pilot program, Energy Star and the NAHB green building initiatives. If you are interested in green building or getting more information on building a green log home, contact PrecisionCraft for further information.

Subcontractors and tradesman are scrambling to line up jobs for the 2007 building season. New construction has been in a slump for over a year and many production and spec builders have significantly cut back building new units in an effort to reduce inventories. The cut back has left many of the subcontractors and tradesman looking for work or laying off employees.

The National Association of Home Builders single-family Housing Market Index has risen systematically from the lowest point last September, showing that builders’ assessments of the demand side of the market have been on the mend following the sharp contraction from the highs of mid-2005. Most indicators show that housing has past the bottom and demand will begin to increase. Higher demand will translate into high prices for labor and materials.

For prospective custom home buyers, now is the best opportunity to lock up builders and subcontractors. Those who delay starting their building project much longer in hopes that they will find even better deals will be disappointed. As the housing market starts to heat up again, builders and subcontractors will be filling their schedules. Now is the time to begin your dream log home.

The Houseal Non-Settling System™  is the most significant innovation in log home construction since the invention of the chain saw.  The Houseal Non-Settling (HNS) System™  prevents logs from settling and solves a host of potential problems for log home builders and homeowners. 

Settling in log homes has always been an issue, adding cost and complexity to log home construction.  Using traditional methods of construction, logs are stacked horizontally one on top of the other (either scribed or chinked).  Because logs tend to shrink and settle over time, the multiple layers of logs compound the effect of wood shrinkage.  A traditional 10’ log wall will settle upward of 6 to 8 inches depending upon the moisture content of the logs.  Special log home construction methods must be employed to counter the effects of settling.  The use of settling jacks, slip joints, and oversized trim and fascia are normal techniques used in traditional log home construction.  In addition, constant maintenance is required until the logs have fully settled. 

The Houseal Non-Settling System™  is a patented method of constructing log homes that ensures logs will not settle.  The HNS System was developed by Barry Houseal, a well known structural engineer and log home expert.  The basic premise of the HNS System is fairly simple.  Each log layer is held in place by a column of steel pipe and pins.  The steel pipe prevents the logs from moving down with gravity.  Each log layer and the roof members are supported by the steel pipe.

View the Houseal Non-Settling System™ for handcrafted log homes.

View the Houseal Non-Settling System™ for milled log homes.

Architects and designers love the HNS System because it gives much more flexibility in the use of log elements.  Builders love the HNS System because it eliminates settling jacks, trim boards and other construction techniques necessary to counter log settling.  Engineers love the HNS System because the steel adds strength to the log walls. 

PrecisionCraft has chosen to use the Houseal Non-Settling System™  in all Handcrafted Log Homes and Milled Log Homes.  We believe the HNS System is an innovation that adds significant value for our log home homeowners.  

Is a log home a good investment? Investors are frustrated with the performance of investment options in the new millennium. Stocks, bonds, mutual funds and other financial investments are not performing as many would have liked. Most investors, however, have found that the best performing asset in their portfolio is their home. As a result, real estate is viewed as a safe haven for investors with appreciation far outpacing other investments. With the security and growing values of residential real estate, a growing number of homeowners are now investing in their second home.

There are a wide variety of reasons why people build or buy second homes. City dwellers may want to escape to their home in the country for weekends and holidays. Northerners may want a home in the sun where they can golf year round. Southerners may want a home in the mountains close to a ski resort. There are also the Baby Boomers…a large number are eyeing retirement and are building second homes anticipating it will become their main residence.

Although the primary reason for purchasing a second home is lifestyle, investment consideration comes in a strong second place. There are several reasons why owning a second home makes good financial sense.

For example, the appreciation of vacation residential property is expected to continue to rise. Our country’s changing demographics are a good predictor that second home ownership will continue to be strong for the foreseeable future.

Baby Boomers reaching retirement age have more wealth than any previous generation; surveys show that ownership of a second home consistently ranks in the top two priorities for this group.

There are also tax benefits to second home ownership. Mortgage interest is deductible for first and second homes making home ownership one of the best leveraged investments. If you move into your second home and live there for at least two years, you can avoid any tax on the sale of your property.

Homes and real estate have always been safe investments. With a growing number of reasons why second home ownership makes sense, the demand for good locations and quality homes will rise. Some experts predict that second home ownership will become nearly as common in the future, as two cars are today for most households. Investment in a second home today is undoubtedly a wise decision for the future.

Building and living “Green” is good for your health, conserves energy and protects the environment. Log homes are the original green building solution made directly from the earth’s natural resource. This abundant, beautiful and renewable natural resource is 100% green.

Building green is a hot topic among building professionals and consumers – for good reason. The exposure to toxic chemicals in our every day lives is resulting in significant increases in asthma and respiratory illnesses, skin problems, migraine headaches and any number of health related problems.

Since we spend much of our time indoors, it is critical that our indoor environment is healthy and safe. Many building products today are made of man-made chemicals and emit high levels of VOCs (volatile organic compounds). Health experts are becoming increasingly aware and alarmed that these man-made chemicals are showing up in our blood and lungs.

Logs are 100% natural and don’t emit VOCs or other pollutants. Soil, water and air combined with the energy from the sun, in a miraculous process of photosynthesis, are everything needed to make a tree grow. From an ecological point of view, solid wood is the only building product that is renewable, biodegradable, recyclable, energy efficient and extremely beautiful. Logs and other solid wood, as basic building components, generate the least amount of air and water pollution, emission of greenhouse gases and solid waste. For example, steel and concrete require 2.4 times and 1.7 times more energy than wood to produce and 1.42 times and 1.67 times more airborne emissions with potential toxic or negative health effects. (The Canadian Wood Council – The Anhena Project).

Advances in forestry practices have steadily increased the supply and growth of plantation and private forests. In North America, the growth of new forests has outpaced the demand and can remain at a sustainable rate. In the long run, sustainable building products that are ecologically friendly are the only viable answer to a cleaner environment.

With energy costs on the rise and no end is sight, it makes good economic sense to design and build with conservation in mind. There is a great deal of documented evidence supporting the energy efficiency related to the construction of log homes. Studies conducted by the National Institute of Standards and Technology (NIST) and other testing organizations have compared log homes to other types of construction such as conventionally framed and masonry. Test results prove the energy efficiency gained through the thermal mass of solid wood walls. Log walls better utilize the available energy in both summer cooling and winter heating. (The Log Home Council, Documented Energy-Efficiency and Thermal Mass Benefits of Log Construction).

Most people building log homes plan to own and live in them for an extended period of time. Their log home may be a family retreat or a retirement home that they intend to own for the rest of their lives. The turnover rate of log homes is much lower than the average conventionally built house. With such a long term outlook, the decision to build and live in an energy efficient log home makes good sense for the health of the environment, you and your family.

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