December 2021 Update & summary so far

26 Dec, 2021

We bought our own piece of Idaho in late 2018. Little did I know back then that I had made a real smart decision because people are flocking to Idaho in droves now in 2020-2021. Finding it was a process. I knew Idaho was where I wanted to be on our first visit to buy land and I imagined that I would end up in Coeur D’Alene, but once I got there, it wasn’t what I thought it would be. We ended up searching more north until we found our new future forever home. Some things I noticed during my search…some land is land-locked – no access and you will need an easement to access. Some land is so steep that it is not usable. Towards the North Idaho/Washington border, there were ‘No Smelting’ signs – which lead me to believe that a potential hazard could be there. I found potential land in several areas and then ruled them out due to lack of services, demographics, or other reasons. Look for standing water or other natural hazards. Some land is only for hunting. Look for nearby utilities because if your land is far from visible power poles, it could cost a lot to get power.     

Our original plan was to hold onto our 20 acres and build from scratch in our retirement. Well, we couldn’t wait…so we started building our house this year and here is a sum up of how we did it until now. Go back and read some of my older posts for specifics if you want to know more. (We are not done yet, so there will be more to come)

Let me say that once we purchased the land, there were so many decisions to be made that it was rather daunting. I did not know where to begin and I was not able to find the resources I needed to know where to start. What comes first? Power or Well? This is why I started writing about it in hopes that my experience will help someone out there.  

In 2020, we did a few things on our land. We visited it just to look at it a few times and walk around, but there wasn’t anything there but retired timberland. I got excited and planted some fruit trees, which are still alive today. We hired an excavator guy to cut dirt roads. We installed posts and a gate which we later had to revise for better access.  Late 2020, I started to hear a lot of ‘me too, I’m moving to Idaho too’ and at first, I was excited that more people saw the value that I saw and then, I started to see prices going up. I was watching the price of land and homes keep going up and it got me a bit nervous that if we waited too long, we might be priced out of building on our land. So, we started researching.

I had a lot of big dreams for this place, which no sooner were shot down when I realized that building from scratch was going to cost a lot more than I had imagined. When we visited a custom home builder, it became painfully apparent. Plan B: I had a list of things I wanted in my new house and searched local builder plans that were already available, online. I didn’t give up. I knew what I wanted and searched until I found a plan that was almost exactly what I wanted and then chose to change up a few things from that base plan. This probably saved us a few hundred thousand by customizing a cookie cutter plan rather than choosing to start from nothing and asking for everything. We chose Lexar Homes and I have been very pleased with our experience so far.

Once we picked the builder, I was on a mission. If you read one of my earlier posts, you will see that I got ahead of myself at one point because I felt like things weren’t moving fast enough. I just did not understand the process. I am still learning now.

Permits. We obtained permits from several departments because in my county, there is no one building department that oversees everything, but that’s OK…they are all in one building and we went from office to office.  Everyone was so nice and helpful wherever we went. There are stores that we go to now and they know us by name, imagine that! We visited the Recorder’s office and obtained a survey map of our lot which had measurements and property lines. With this information, I was able to create a map of my property and using a measuring wheel, I drew a map of the property with distance from all directions to the proposed electric, septic, and house sites. Draw a map the best you can because you will be asked for this when applying for permits. We went to the Road & Bridges Department for a  permit to sign off on our driveway (clearance, view, access), perc test and septic permit from Panhandle Department of Health, electric permit from State of Idaho (online), well permit (by well company), wood stove permit (by stove company), and house construction permit from the Planning Department. My experience is that each department sent out an inspector within a few days to a week out and all who said they would come, came on the day promised and on time. All together, my permits came out to less than $3000.

My builder suggested that I get started with the construction loan process ASAP and I have to admit, I drug my feet a little thinking it wouldn’t take so long and I wasn’t 100% both feet in to get started. Well, had I started sooner I probably would not have overstepped and got ahead of myself because I asked my excavator guy to start digging the foundation/crawl space and had a site visit from the project manager before we were fully funded to start. Technically, you should be approved to be funded by the bank BEFORE you do these things. Also, we dug a huge Olympic size hole in the ground for the foundation before the building inspector came which again, I should have waited…but, I told the inspector that we dug multiple sites for the perc test and I don’t know if he believed me or not, but he gave me the go ahead.  

May. The Loan. There are a few different types of construction loans so it is best to talk to a knowledgeable lender. Our loan is interest only during the process and then converts to a house loan when done. There are scheduled ‘draws’ where you are billed by the builder at certain intervals during the build and then you request a draw to pay them. My bank allows one draw every 30 days. Since my land needs a lot of work outside of the builder responsibilities (power, well, septic, paint, etc.), the loan has all of these things built into it. During the loan process, my land plus the completed house was appraised for completed value and that is how it is determined how much will be lent to you. I use my own funds to do the work and after it is done, I can request a draw to be reimbursed. I try to time my draws to add on to the builder draws. There are 4 draws in my loan. The bank inspects the house build when a draw is requested and then they pay out (minus anything they see as unfinished). The last draw will not be paid until all promised work is complete. The loan is good for 1 year, so the house must be done within 1 year…which is why the strict schedule.      

One of the biggest costs is excavation….and worth every penny. Our 20 acres is retired timberland with stumps everywhere and tons of brush. We have a small excavator and though it’s a tough little machine, it can’t compete with large construction equipment that a professional excavation team can bring in. Construction Management Team led by Leroy has been an absolute must. They cleared the land, cut roads, and dug the foundation. It would have taken us a year to do what they did in weeks. If time is a factor, then a good excavation company is a must. Charges include moving equipment in/out and then by the hour x number of workers/equipment. Expect to pay about $1000/person/day. It’s not cheap, but well worth it.  We have spent in the ballpark of $45K-50K+ on excavation.

May. Power by Northern Lights (NLI). I started the process in Dec 2020, but the ground was already frozen so I had to wait until it thawed out. Power already was available for us across the street from my property. Had to bring a new pole in to our side of the road and then underground wire from there to approximately 500 feet to the house site. Just under $12,000. That is with us setting the power supply box ourselves which probably saved us a few thousand. Solar panels are not seen everywhere like in California because there are gloomy stretches and the power is much cheaper. So far, my NLI electric bill says 8 cents per kilowatt. In California, my bill was 28 cents per kilowatt in December 2021 with the promise of future increases.  

October. Well water by Northern Lights Drilling. My neighbor to one side towards the mountain is at 720 feet deep. My neighbor to the other side of me is at 375 feet deep. I estimated that ours would be 500 feet. Estimate for the drilling $24K. They hit water at about 200 feet, but I wanted more. I was lucky, I rolled the dice and they hit 50 gallons per minute at 295 feet. Not everyone is going to be as lucky, but I thank my lucky stars that we were. Actual cost just under $10K. We booked JR from Northern Lights in March 2021. Now he is almost 2 years out. We still need a pump to bring the water up. I did get a few estimates ranging from 13K to 28K. We are planning on doing the work ourselves once the ground thaws.

I value other people’s opinions. I joined local forums and chats to see what others are saying and I pay attention to questions asked and the answers. There’s nothing like experience and I put a lot of weight on people’s opinions. That is how I found some of the companies that I have used to make progress on my house build.

Once the house started…it seemed pretty fast. The foundation took less than a week (Aug). Then it has to cure for at least a week or so. We waterproofed it ourselves and backfilled it ourselves which cost less than $2K in materials and tools (Sept). We probably saved a couple thousand here. We have our own excavator. We bought a compactor. I wouldn’t recommend doing some of this stuff without equipment. The investment is worth it. The house plan we selected has homeowner responsibilities built into it. This saves us money. You can pick a higher end house and have everything done for you. It may not be for everyone, but I love that we are able to be a part of the process. Framing the entire house took about a week (Oct). Then the roof was sealed over in a day. Next is rough electrical and plumbing(Nov/Dec). Our windows are delayed about a month. We ordered a woodstove, also delayed a bit. Overall, Lexar has been great. They keep me in the loop when I am not there and delays in one thing doesn’t mean it all stops…And Idaho workers show up rain or shine or snow…and on time.

Burn piles. I was alarmed at first when I saw my framer burning the junk wood/cut ends, but soon after I understood it to be a way to get rid of trash. And then, when we drove around there seemed to be a lot of huge burn piles…it’s the culture in North Idaho. I like it! I did not have the guts to go huge like the ones I saw, but I did make a few piles and burned them which turns out to be a great way to get rid of forest debris.   

Snowplow. It is important to have a reliable snowplow guy. I was lucky to find a good one…found him through word of mouth on a local Facebook forum. $65/plow (each time), my driveway is about 500 feet long.  If the workers can’t get to the house to work, stuff doesn’t get done….and I could be charged more since they would have to come back to do it anyway. I found out that access from the county maintained road to my street is not awesome so I paid my snowplow guy to plow that too. I haven’t gotten a bill yet and I’m a bit scared since this has been a very snowy year!

So, this is where were are in a little over a year. The actual house build started around August. It is now December and walls are up and there’s a roof on it. Siding soon and electrical and plumbing is progressing inside.

Keep checking back for updates : ) Merry Christmas & Happy New Year!