8 Financial Mistakes to Avoid When Building a New Home

December 17, 2015How It Works
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Building a new home

When building your own home, you may be wary of making decisions – both small and large – that will cost you more money than you should be paying down the road. All of these pitfalls are common enough for first-time home buyers; avoid them and your wallet will thank you, as will your new home.

The first thing the budget-conscious home builder should consider is size. The average home is between 1,500 and 2,000 square feet: if you plan on going above this average, make sure you need the extra space enough to justify the extra cost. One way to keep yourself in check is to picture yourself in 10 years time. Will you still need that much space? If so, it’s worth the investment, but if not, consider downsizing before construction begins.

While you are contemplating the size of the house, before the final plans are set in stone, be sure to give consideration to your home’s potential resale value over time. Even if you plan on passing it down from generation to generation, remember that the future is never certain. Your best bet is to build a home worth investing in.

Be careful not to allow extra features that you don’t need to hike up your mortgage payment. However, it is also advisable not to sacrifice all amenities for a lower initial cost. Remember that you can always add to your home, but certain features, such as a full basement, cost much less to build with the home than to build years down the road. You will need to determine the proper balance that works for you between saving on the cost of the home now versus including amenities now which would be more costly to add later. But to be certain, you should never sacrifice structural integrity for a lower price.

By the time you begin the process of physically building the home, you should have built a strong trust bond with your contractor. That being said, you don’t want to go into this process blind; check in on the building process whenever possible and make sure you always know what is being done, when, and to what standard.  Remember that minor imperfections now can cost you thousands in the years to come.

Lastly, when building your home, keep in mind that not every aspect of your dream home is going to be practical. If you want to add something that is going to cost you dearly, or that your contractor advises against, it’s best to give it up. It will be your home for the years ahead, and you shouldn’t compromise your vision completely, but if something is impractical it may well be a waste of money.

U.S. News and World Report goes more in depth on how to save money when building a home here: http://realestate.usnews.com/real-estate/articles/8-financial-mistakes-to-avoid-when-building-a-new-home/.

One of the most important factors in the cost of your home is who you trust to build it. At True Built Home, we work with you to get you the best product for the most reasonable price. Visit us for more information at: http://truebuilthome.com/.