Building a new home is an exciting process, and it’s also often the investment of a lifetime. With a little planning, you can trim your home building expenses and use your savings to add special touches to your new home.
These 15 tips can help you trim costs before and during the building process:
Eliminate the Cost of a Realtor
Six percent is a hefty price to have skimmed off the top when you sell your existing house. You can reduce that amount by acting as your own realtor. This works best in a market that has a low inventory of homes for sale, because buyers will be on the hunt for a good deal.
Research Movers Before You Hire
Advertised moving rates aren’t always the most affordable. Contact several movers, ask questions, and take time to calculate your expenses based not only on the amount of belongings but also how far you have to move them.
Find the Right Real Estate Agent
If you’re not comfortable selling your own home, find a realtor who is proactive, responsive, and committed to seeing your deal through to closing. Pricing your home for sale correctly the first time will help you fetch a better price than playing the price drop discount game. Also, hiring a friend or relative as your realtor can get a little sticky.
Have a Contingency Plan
When it comes to construction and home closings, complications and delays are sometimes unavoidable. Have Plan B ready in case find yourself with no place to call home between the sale of one home and the move in date for the next.
Don’t Limit Your Home Options
It’s so easy to fall in love with the first home you see, but almost every home seen after that is going to have at least one feature that you find appealing. Visit many homes over time to differentiate between “we must have” and “we can live without.” Eventually, the vision of your dream home will come into clear focus.
Partner with an Architect
Without the expertise of an architect, your ideas will remain just that. An architect has the expertise to bring your vision to reality. Many builders have an architect available for questions or designs.
Hire the Right Builder
If you had to choose only one thing to get right, it would be to find the right builder. Otherwise, no amount of planning will bring your dream home into existence. Research a variety of builders, review their experience, and drive through their neighborhoods. The most reputable builders will respect your input and keep you involved throughout the process.
David Belman of Belman Homes explains how much builder involvement means to his customers. “We’ve had people come to us because their friends or family members told them we would take care of them. That extra attention means a lot to customers.”
Measure Price against Value
When you’re building the home of your dreams, it’s important to watch your dollars. On the other hand, sacrificing value to save a few dollars could be a huge mistake. Passing up value now will often cost more later.
Engage with Your Builder
You can’t have a positive home building experience without good communication. Establish good means of communication with your builder to prevent misunderstandings and conflict.
A reputable builder will want to answer your questions. Some will even provide guides, such as What you need to know before meeting a builder in order to help you navigate your home building experience.
Work with a Reputable Banker
While you might feel pressured to acquire financing, take time to shop rates. Once you identify the best terms, lock in your rate. If you’re not sure where to start, your builder is likely to have relationships with reliable bankers.
Negotiate Your Construction Loan
Your construction company will require a down payment before beginning work. Often, home buyers aren’t aware that they can negotiate the terms of their construction loan. Check your options before signing on the dotted line.
Take Advantage of Online Shopping and Free Shipping
When you find furniture styles, appliances, or other home furnishings that appeal to you, do some online shopping to find the same or comparable products. You might be able to save money on prices and free shipping.
Look for Discounts and Coupons
Many apps will lead you to store coupons that you can use at the time of purchase. You might be surprised how much money you can save by shopping for sales and applying coupons for your home furnishings.
Buy Wholesale When Possible
Wholesale prices are nearly always lower than retail prices. While you might have to handle some assembly or finishing touches, the savings could be a worthwhile tradeoff. Most builders prices are wholesale as they deal in much larger volumes than consumers.
Identify Potential Tax Credits
Visit www.IRS.gov to learn about tax credits available to home buyers. Being a first time home buyer or investing in energy-saving options are two possible ways to reduce your tax burden.
To make the most of your home building experience, take a little stress off of yourself by trimming unnecessary costs. Take time to review and apply the 15 tips offered here. Your time commitment will translate into cost savings and increased value that you can enjoy for years to come.