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. 

The American Institute of Architects (AIA) and the Associated General Contractors of America (AGC) have jointly developed a set of contract documents that define the role and responsibility of the contractor, owner and architect. These documents have been developed over more than 100 years of experience and address most major issues that might appear during construction. Every few years, these documents are updated and revised to adapt to the latest construction trends and techniques. The AIA documents are highly respected by attorneys, contractors, architects and engineers and accepted as the industry standard.

Building a custom log home or timber frame home is typically a very large financial commitment. Owners place a great deal of trust into their architects, general contractors and other building professionals. Often times, clients who have never built a custom log home (or any type of custom home) do not understand what to expect. Using a professional licensed architect is one of the best ways to insure the project will be successful. Your architect will most likely be familiar with AIA documents. The AIA contracts spell out the normal obligations and responsibilities of each party such as duties, timelines and payment schedules.

At PrecisionCraft, premiere designer, manufacturer, and builder of log & timber homes, customers want to the opportunity to customize their homes. They are looking for a “one-of-a-kind” home that fits their personal taste, needs and their surroundings. However, there is no reason to “re-invent the wheel” when it comes to following a set of standards and expectations. The AIA contract documents, used with PrecisionCraft’s clients, have been proven year after year and follow a known path of success.

As the leader in custom design, PrecisionCraft Log Homes encourages clients to turn to the well trusted AIA documents. PrecisionCraft specializes in the design of handcrafted log homes, milled log homes, timber frame homes, log & timber hybrid homes, and stick frame homes with log & timber accents.

The design of your home and the style of logs that you select are key elements that you should consider early in the planning stage of building your home. These decisions can greatly influence the amount of time and money that you will spend on future maintenance. 

Since it is a combination of water and sun (UV rays) that does the most damage to finishing products, it is wise to incorporate long eave overhangs, and, when possible, porches into your home design.  Another design element that will extend the life of stain is a good gutter system that keeps water from sheeting down the logs and directs the water away from your home. And, don’t forget those log ends; make certain that log corners and purlins are well under the eaves.  By incorporating these design elements into your plans, you will positively influence the longevity of the stain on your home. 

Another factor to consider is the style of log that you choose.  If you prefer the look of rounded logs, be prepared for more maintenance.  The upper curvature of rounded logs takes the full force of the sun, whereas the lower curvature has less exposure to damaging UV rays; this means that to keep an equal appearance between the upper and lower curvature of the logs, a periodic coat of stain may need to be brushed onto the upper curvature of the logs.  This step may be necessary only on portions of walls that are receiving extreme and constant sun. 

But the single most critical factor in preventing premature stain maintenance is proper prep work of the logs prior to staining.  There are five words that sum up the best in proper wood surface prep:  clean, sound, warm, dry and textured.  

Clean wood is free from mill glaze, dirt, pollen, wax, mold, bird droppings, etc.  A buildup of these elements prevents stains from being able to penetrate and bond to the wood surface.  This may seem perfectly obvious, but this is the step that is given the least attention, and often a thoroughly clean surface is never achieved, with inevitably poor results. You can count on it–the cleaner the logs, the better the stain can anchor into the wood.

Sound wood is wood that hasn’t suffered surface damage from UV exposure.  Surface damage is apparent when the natural color of logs starts to turn a progressively deepening yellow color that then turns to gray.  Depending on the location of your home, this process can happen in a matter of as little as two weeks. As the UV degradation continues, the wood fibers are loosening and detaching from the bulk of the wood substrate.  If you stain over this fragile and damaged surface, the stain can lose adhesion along with the deteriorating wood fibers. Therefore, wood that has been left unprotected for any extended time should be sanded, media blasted, or aggressively power washed to remove damaged surface wood fibers prior to applying any coating.

Warm wood is ideal for stain application.  If the wood surface is too hot, the coating may start to dry before proper wetting, penetration and adhesion can occur.  If the wood surface is too cold, the contracted state of the wood cells can prevent penetration and anchoring of oil based stains; and water based stains can start to freeze before they can establish adhesion to the wood.   Remember, we are talking surface temperature of the logs, not ambient air temperature.  

Dry wood, as defined by the USDA Forest Products Laboratory, contains 20% or less moisture.   Coatings can blister and peel if applied to logs with a 20%+ moisture content.  Before applying any coating, you should rent or borrow a moisture meter to check the moisture content of your logs.  If the reading is 20% or greater, don’t stain.  It is better to wait than to have to repair blistering, peeling stain. 

Textured wood, roughening up the wood surface by either sanding, a light cob blasting, or any other, similar abrasive methods, will greatly enhance stain penetration, improve adhesion and provide more stain durability than application to a highly smooth surface; this is particularly true on the upper curvature of logs. 

The first year after the initial stain application, you want to carefully inspect the overall appearance of the stain, checking for inconsistencies in the initial application.  Check to see if there are areas that did not receive an initially adequate amount of stain, which can sometimes happen in localized areas when the stain is first applied.  If you locate such areas, simply clean the surfaces with damp rags or bristle brushes to remove dirt, pollen, etc., and then apply a light coat of stain, feathering it into adjoining areas.

Once you have inspected your home and beefed-up any areas that may have needed another light coat of stain, you should consider applying a compatible clear topcoat on the entire structure. Clear topcoats are extremely easy to apply, yet they can extend the life of the pigmented coats of stain underneath.  The clear topcoats are sacrificial coats that take the brunt of weathering, protecting, and thus, extending the life of the pigmented coats.  They are very easy to apply, and because they are clear, the color of your logs doesn’t darken as it would if you applied repeated coats of pigmented stain. Eventually, however, you will need to decide when more pigmented stain needs to be applied for the best overall appearance and protection.

While you are inspecting the stain, also look for any checks that may have opened up on the upper curvature of the logs.  Checks on the upper curvature can take on water from rain and snow, so it is important to pay close attention to these openings and prep and seal them properly. 

And, finally, make it a practice to walk around and inspect your home, every fall and spring.  Look for the obvious:  bushes that have overgrown and are scraping the home, trees that have matured and the canopy is now dripping water down the logs, gutters that need repair, sprinklers that need adjusting and are spraying water on the logs, “stuff” that is being stacked against the logs.  These are simple things to correct, but doing them can prolong the life of your stain, allowing you time to enjoy your home instead of working on maintaining it.

Presented by PrecisionCraft, the leader in designing, manufacturing, & constructing log homes.
 
 

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.

1. As you interview lenders, look for a loan officer who is experienced in Construction lending.  Even more importantly, make sure the lender is experienced in Log Home and Timber Frame construction lending.  You may have many questions during the process and you will want to deal with an expert that you can rely on.
2. What is the lender’s policy as it relates to paying the required upfront deposit as well as the final payment to the Log or Timber Frame company?  You will find that many lenders shy away from financing these types of homes because they are not comfortable paying out monies before materials are on site.  Alternatively, the Log and Timber Frame companies require a down payment to begin milling the logs or timbers.  Keep in mind that the log or Timber Frame package is unique to each client’s project.  The down payment deposit is your “good faith” commitment towards purchasing that package.  Unless you have the financial wherewithal to pay these monies out of pocket, you will want to be sure your lender will accommodate the required payment terms of your Log or Timber Frame Company.  Understanding this upfront can save many challenges later in the process.
3. During your research, you will find that lenders offer two types of Construction loans.  I refer to the first as a “Two-time Close,” which means the lender will provide you with a construction loan that will need to be refinanced into a new permanent mortgage loan once the home is completed.  This type of transaction requires that you re-qualify for the new permanent mortgage and it also requires that you pay two sets of closing costs.  A less expensive approach may be a “One-time Close” loan.  In this situation, the lender provides one loan for the construction period.  When the home is complete, the loan will automatically convert to a permanent mortgage.  Lenders policies vary, but for the most part, this type of loan will not require you to re-qualify or pay new closing costs when the home converts to the permanent mortgage.  Typically, during construction, you will pay an interest only payment based on what you owe each month.  As your balance increases, so will your monthly payment.  When the home is complete, you will begin to pay a Principal, Interest, Tax and Insurance payment (like that of a normal conventional loan).  Construction loan terms vary from 6 months to 12 months and beyond.  Check with your lender.
4. Once you have determined which lender you will use, it is recommended that you apply for your financing early on in the process.  Understanding how much you can qualify for up front will aid in your discussions with your Log or Timber Frame company as well as with your builder. Most lenders do not charge for a pre-approval.
5. Understanding the real estate market in the area that you are going to build can be very useful.  It’s important for your lender to know if your new home will be marketable in your area.  For instance, here are some items to consider sharing with your lender:  Is the size home you are considering building in line with other homes in the area or will it be an over-improvement or an under-improvement?  Does your property include acreage and if so – how many acres?  Is this typical for the area?  Is the property zoned agricultural and is there anything growing on the site?  Are there other log or Timber Frame homes in the area or will your home be the first?  Are you considering an alternative approach to power (i.e.; solar)?  It’s critical that you discuss these items with your lender up front.  It can save you from challenges late in the processing of your loan.
6. What type of down payment is going to be required?  You will find that each lender has different policies.  Most lenders will require a 5%, 10% or 20% down payment (down payment percentage is typically determined by your loan size).  This means 5% to 20% of the overall project cost (land plus construction costs of the new home).  As an example, if you are purchasing the land with the construction loan, you would add the purchase price of the land to the budget (cost breakdown) for the home.  You would be required to bring cash to the loan signing of 5% to 20% of the total amount.  If you own the land outright, the equity in the land would most likely count towards your down payment needs.  In this scenario, you may not be required to bring any cash to the loan signing.  The equity in the land may already be your 5% to 20% (or more) down payment.  If the land equity is sufficient, you may be able to finance the closing costs into the loan as well.  Discuss your scenario with your lender up front to determine if you will be expected to bring any cash to the loan signing.
7. Are you considering beginning any construction work on your site prior to loan signing/closing?  Pre-start activity is generally acceptable, but you should check with your lender before beginning any construction work on the property.  There may be a challenge with the Title Company insuring the lender if any work has begun prior to the loan signing.  If it is determined that it is acceptable to begin work ahead of time, keep good records of anything you pay for out of pocket.  You may be asked to prove payment for these items.  A copy of the Invoice and canceled check or credit card receipt should suffice.  Any payments you make ahead of time should also be credited towards your down payment needs (listed in # 5 above).  Once your initial down payment is made, any excess items paid for may be able to be reimbursed to you at the loan signing.  Discuss this with your lender to see if you can be reimbursed for any of these items.
8. What happens if your costs exceed your original budget?  This is a common occurrence with construction projects.  The excess can be caused by something outside of your control or can be caused by an upgrade that you make along the way.  Either way, if there are not sufficient funds in the loan to pay for the overage, then you must pay for it with your own cash.  Perhaps a better way to handle this would be to build a contingency factor into the loan amount.  This is accomplished by increasing your loan amount for potential cost overruns.  A good rule of thumb is to build in 5% to 10% of the budget as a contingency factor.  This is all possible as long as the appraised value of the property supports the extra dollars requested in the loan.  Typically the lender will not require that you use the contingency dollars.  It is only there for you should you need it.  Ask your lender to explain their policy on the use of contingency dollars.
9. Is Interest Reserve an important feature for you with the construction loan?  Interest Reserve is a dollar amount that is added to your loan and is used to make your monthly interest payments during construction.  Instead of writing a check each month for the interest that is due, the payment is taken out of your loan and made for you.  During construction you actually make no monthly payments.  At the end of construction, you owe more money because you have borrowed those monthly payments using the loan proceeds.  This feature is not important to everyone.  It may be useful for a client who wants to sell their current home, but would like to live in this home while the new home is being built.  Making two house payments on a monthly basis may be a challenge while the other home is trying to be sold.  Having an Interest Reserve could be a nice feature in this scenario.
10. Are you considering being an Owner Builder?  Being involved in the building of a Log or Timber Frame home appeals to a lot of people.  If you are considering overseeing or actually doing some of the construction work on your own, please discuss this with your lender up front.  Some lenders will want to be sure that you are experienced enough to oversee the project.  You may be asked to provide a resume of your experience as it relates to construction.  Other lenders may not allow you to be an Owner Builder at all.  Be sure your lender will accommodate this for you.

This article was written by Paula Murtha with Chase Home Finance. For more information on log home financing, please contact Paula by email at Paula.Murtha@chase.com or call 303-759-6762.

A report prepared by the Edinburgh Center for Carbon Management1  (ECCM) compared the carbon dioxide footprints of three structures and the benefits when more timber was introduced into the construction.  The results were astounding.  ECCM estimated that there could be up to an 88% reduction of greenhouse gases by using log or timber structural elements wherever possible rather than other conventional building materials.  The reduction of greenhouse gases was achieved by replacing materials high energy, high CO2 production values, such as steel and concrete, with solid wood.  The report states that the production of steel and concrete materials accounts for 10% of the total global emissions of greenhouse gases.  These materials have a high CO2 output created during the extraction of raw materials, refining, processing and manufacturing of the finished product.  As reported in a study published by the Royal Australian Institute of Architects, the energy consumed to process a tree into a finished sawn timber is about one-tenth of steel production.2

In another report prepared by The Consortium for Research on Renewable Industrial Materials (CORRIM)3  compared four different structure using different wall systems – two woods, one concrete and one steel.  The report found that the steel wall system generated 33% more greenhouses gases than wood and the concrete wall generated 80% more greenhouse gases than wood.  The study also reported that the wood structures out-performed the steel and concrete houses in energy use and the impact on air and water quality. 

Wood walls are typically framed or solid.  Conventionally framed walls use a combination a several materials including processed wood products such as plywood or other laminated wood products, fiberglass insulation, exterior siding, interior sheetrock and some type of wall covering.  Solid wood walls using logs or timbers have basically one product – the log or timber.  The energy consumed and the CO2 produced in the production of logs and timbers is a fraction compared to the production of all the various materials in a conventionally framed wall. 

Consumers are much more aware the environmental impact of using different materials and are being increasing sensitive to the hazards of exposure to chemically processed materials.  Logs and timbers are 100% natural.  As a natural product, they do not emit VOCs or other pollutants into the outdoor or indoor space.  Trees are produced from soil, water and air combined with the energy from the sun, in a miraculous process of photosynthesis.  Ecologically and environmentally, solid wood is the only building product that is renewable, biodegradable, recyclable, energy efficient and extremely beautiful.

Sustained and plantation forest growth actually reduces greenhouse gases by consuming CO2 out of the atmosphere while the trees are growing.  Political pressure to reduce carbon dioxide emissions, such as the Kyoto Protocol, is sure to continue and it will become increasingly important to find solution.  The use of solid wood construction such as with a log home or timber home can make a positive contribution. 

[1] Forestry Commission Scotland Greenhouse Gas Emissions Comparison – Carbon benefits of Timber in Construction.  Aug 2006. 

[2] Wood – another low carbon footprint solution.  Feb-Mar 2006, ECOS 13. 

[3] The environmental performance of renewable building materials in the context of residential construction

Perez-Garcia, John, Bruce Lippke, David Briggs, James B. Wilson, James Boyer, and Jaime Meil. - www.corrim.org/

 

Many people fancy themselves to be good log home designers and undoubtedly, some are.   Anyone can call themselves a “residential designer” with or without any education or experience in the field and most jurisdictions will accept plans prepared by non-certified designers.  The danger is that a non-licensed designer may have fragmented knowledge about the log home building process without fully addressing all areas of responsibility. 

Only architects licensed through examination have dedicated themselves to years of rigorous study, education and requirements. A licensed architect has a comprehensive knowledge that brings together artistic design with safety, environmental and energy concerns and sound building practices.  In addition, licensed architects are required to complete continuing education every year keeping them up to date with the latest in log home design and building practices. 

Most licensed architects are members of the American Institute of Architects (AIA). 
The AIA is a professional organization that supports architects. Members adhere to a code of ethics and professional conduct that assures the client, the public, and colleagues of an AIA-member architect’s dedication to the highest standards in professional practice.

In addition, the AIA has developed a comprehensive set of construction contract documents developed over more than 100 years of building experience.  Using AIA prepared contract documents with your general contractor and subcontractors is a path that has proven successful over many years of experience. 

Licensed architects are members of a community of professionals.  Most stand behind their work and are typically insured to protect themselves and their clients against financial loss during construction.  Many states require licensed architects to have insurance against errors and omissions.  A non-licensed designer will most likely not have this insurance protection resulting in a financial loss for clients.   

A licensed architect may charge anywhere from 5% to 10% of the cost of the home depending upon the services provided.   This might be slightly higher than a non-licensed designer but, the higher level of service and protection provided by a licensed architect is well worth the added cost. 

Learn more about custom log home design.

Log Homes Council members must subscribe to a rigid code of ethics developed to ensure well-constructed, code-complying structures and fair business dealings.   The Council is a clearing house for complaints dealing with questionable practices and often times mediates customer complaints and disputes.   All Council members agree to provide interested persons with truthful and accurate information and educational materials about log home building systems.   The Log Homes Council sponsors research and testing of materials to determine structural and thermal qualities.  This information has been critical to engineers and architects as they design buildings with log and timber components.   Members of the Log Homes Council are also members of the National Association of Home Builders.  

In addition to using the Better Business Bureau, using the Log Homes Council is a great way to narrow your search for a log or timber home company.  Organizations such as the Timber Framers Guild and the Timber Frame Business Council are also great resources for researching industry companies. Starting your search with the members of these organizations will ensure that you are shopping the best log home companies. 

The Better Business Bureau is a good place to start.  Check to see if the log home company you are considering is a member and if there are any outstanding complaints.  Dun and Bradstreet is a financial and credit reporting service and can give good information about the financial history of a company.  It is highly recommended that you consider only companies that have financial history reported by Dun and Bradstreet.  If a company is not listed, you may want to look elsewhere.   

Consider companies that have affiliations with industry trade groups such as the National Association of Home Builders - Log Homes Council, the Timber Framers Guild or the Timber Frame Business Council.  Many trade organizations, such as the Log Homes Council, establish ethical guidelines to ensure well-constructed, code-complying structures and fair business dealings.     Once you have narrowed the field, we strongly encourage you to visit the companies. Check out their log home manufacturing facilities and talk to their staff.  You will be relying on the capabilities and expertise of the company and it is important that you trust their abilities and integrity. Learn more about PrecisionCraft’s log home design services & manufacturing.

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.