Cost To Build A House And Building Basics
These tips will help you save money on your new home.
Buildingyour home is likely to be the biggest investment that you’ll make. Make yourdream home a reality by saving money in smart ways and avoiding costly buildingmistakes with these 12 money-saving tips from some of Houseplans.com’s favorite design and construction experts. 1. Know how you use your living space. One of the smartest ways to save money whenbuilding your home is to first understand how you and your family use yourliving space, because good designers and builders are going to ask you about thisat the beginning of the project. “I start by looking at the family’s utilitybills and asking about their passions,” says Steph Nelson, national salesdirector for NelsonDesign Group
2. Choose your lot carefully. Designer Jason Breland at House Plan Zone agrees. “Whileyou may think you’ll save money buying a sloping lot, any savings will likelybe negated by costly site prep and necessary additional foundation materials,” hesays. Inaddition, Breland suggests researching the area your lot is in (the school system,crime rates, resale values, etc.). “There’s nothing worse than building yourdream home on a lot you bought for a great price, only to realize afterconstruction the reason why it was such a great deal,” he says. Unlessyou’re a licensed builder, architect, or home designer, don’t try to build yourhome yourself—hire a licensed general contractor. While you may think you cansave 10 to 15 percent, time is also money, and subcontractors won’t be as loyalto you as to the builders who give them the bulk of their work. You might waitweeks or months for work to be done, run the risk of a potential lawsuit if buildingregulations aren’t followed, and have no one to fix big mistakes like a toilet plumbedand installed in the wrong place. Plus, when you hire a builder, they can doreference and background checks on contractors, ensure that they have insurance(including workers’ compensation insurance), and see that lien wavers aresigned after work is completed to prevent your being sued or having a lienplaced on your house. And finally, ifyou’re going to make modifications to your plans, have a professional service make them rather than doing change orders on the jobsite, which builders chargea premium price for. Learn much more about plan modifications here. Whileeveryone wants their home to be unique in some way, keep resale value in mind,too. Remember, life happens, and if you end up moving at some point, a homethat is custom designed for your needs might not appeal to potential buyers. Also consider checking out one ofHabitat for Humanity's ReStores, which sell new and used building materials at steep discounts to fund the nonprofit.
Your lot can makeor break you, says Todd Jenkins, Vice President Custom Division, at the designfirm of Frank Betz Associates. “Youwant a gently sloping lot for a basem*nt or a nice flat lot for a slab or crawlfoundation,” Jenkins says.
Before you buy a lot, Nelson recommends understanding the climate in your areaand the orientation of the sun on your lot because these factors will affectwhat you can build and where. For example, if you’re in a cooler climate, youdon’t want windows or door on the home’s northern exposure because the housewill lose heat through them in the winter. And if you want to put solar panelson your roof, you need a simplistic roof line (like plan 430-164 above) and lots of southern exposure.
Shop around before committing to a builder. Checkreferences, go look at past projects, get everything in writing, and getmultiple bids before making your selection. “It may be tempting to hire yourcousin’s best friend’s uncle for the ‘friends and family’ discount, but you getwhat you pay for, and the lowest bid may not always be the best,” Breland says.Jenkins agrees. “Always make sure everything is included in the price,” he says.“The cheapest guy could become the most expensive if he has left out items thatwere supposed to be in the quote.”5. Avoid being your owngeneral contractor.
Saving even .5 percent in interest over the course ofa 30-year mortgage can keep thousands of dollars in your pocket. It’s also agood idea to pick your lender and get pre-approved before you choose your design,so that you know how much home you can afford to build.7. Choose a pre-designed plan.
Enjoy a smootherbuilding process and avoid costly mistakeson the job site by selecting a pre-designed home plan like plan 938-90 above. However, before you buy the plan, talk withyour builder to verify how much house you can afford. If you budget is for a2,000-square-foot home, don’t purchase a 2,500-square-foot plan thinking that youcan cut costs to afford it; you’ll end up wasting money on plans you can’t use.In addition, sticking to your budget and building a smaller house can free updollars to invest things like in better insulation or higher-quality windowsand doors. Another way to save money is to avoid extra unheated square footageby opting for a two-car garage instead of a three-car garage.
Mostbuilders offer allowance for fixtures, appliances, and finishes. Brelandadvises doing your homework and pricing these items before buying them. Impulsebuys at the home improvement store will wreak havoc on your budget. You canfind great deals online and avoid sales tax in some cases. Also, avoid custom(meaning more expensive) finishes. Choosing readily available products andfixtures that are cheaper like pre-fabricated shower units and cabinetry aregood ways to save. With all the variety in today’s home products, you’re notlikely to sacrifice individuality for cost.
10. Plan for the future. This can save you money if you have constructionexperience.However, “if your only experience is binge-watching HGTV andDIY network, then this might not be the best money-saving tip,” Breland says. Knowyour limitations and be humble enough to know when to call a professional. Inaddition, consider planting your own landscaping, which can save on laborcosts. Also, did you know that your builder can qualify for discounts on home plans? Send them here to find out more! Shop affordable house plans here.
Save money by planning for spaces you’ll want in thefuture. Consider roughing out plumbing and electrical in common walls for anin-law unit or bonus room you can add later. And, if you’re handy, you can save even thousandsby finishing the space yourself later on.11. Do some work yourself if you are knowledgeable.
Many of the problems experienced in the process ofbuilding a home can be attributed to a lack of communication. Don’t beafraid to ask questions and go over construction elements with your builderbefore they start. It’s always cheaper to get it right the first time ratherthan to tear something out and start over.
