Building a house is expensive no matter what, but there are ways to reduce it.Choosing the right piece of land, thinking carefully about your design choices, and working closely with a developer will make the process much easier.With proper planning and smart decisions, you can build your dream house without breaking the bank.Many people over budget when building their dream home.
Step 1: You should research the land you intend to build your home on.
To find out more about the land you want to build on, speak to your local Land Records or County Surveyor.The land should be free of liens and financial encumbrances.A land developer or a real estate agent can help you find out more about the land you are interested in and find a parcel that matches your specifications.The value of the land can be found on county websites.When you are considering your options, this can be useful.Look at flood zones.
Step 2: Don't invest in problematic lots lightly.
Hills or lots located on in-fill are encouraged by some people.Because these lots are undesirable and have never been developed before, they generally go for a lower price than a lot that is close to infrastructure and other homes.If you're buying a problematic lot, talk to your agent.These lots can cost you more in the future.If you want to set a foundation on a rocky piece of land, you will need to blast or clear the rock.You need to clear the trees on the land.You might have to pay a lot to connect your home to the local infrastructure if the land is too far away.
Step 3: You can split the cost of a large lot with someone else.
If you find the perfect piece of land to build your house on, but the official lot is too big for you, you could try to convince a friend or family member to be your neighbor.This way, you will be able to save money by buying a larger lot and splitting it in half, then having your friend or family member pay you for the portion of land that they chose to live on.You should read through the home owners association and the local laws regarding subdividing.There could be a rule against subdividing.Is this an option for you?Along with the offer, you may want to include a contingency that addresses your intentions.You should look into what you can legally build on the property.Sometimes you won't be allowed to build certain structures or keep certain types of vehicles on the property.
Step 4: You can choose a stock plan.
If you choose a stock plan, the contractor will know exactly how long it takes to build, what materials are needed, and what the dimensions are.If you choose to have a custom home built, the contractor will be building a home with dimensions and specifications that they have never tried before.It is possible that the actual costs will exceed the original estimate.Stock plans can be changed within certain limits.You might be able to incorporate special modifications into your stock plan home if you talk to your contractor.
Step 5: It's better to build vertically than horizontally.
If you build a 3,000 square foot house spread across a single story, it will have a larger roof and a wider foundation than a house of the same size.Houses that are spread out over a large, single lot have higher roofing and foundation costs than multistory houses.The height of the home should be less than 32 feet.The limits of your home's architecture can be put under pressure if you build a home taller than 32 feet.Don't build a bigger home if you want it to be taller.Building up may be the only option in some cases.
Step 6: You can choose a low-cost look.
If you adopt a rustic aesthetic for your home, you can leave walls of simple wood unfinished and even expose roof beams.If you chose bare concrete floors, a modern industrial look could keep your costs low.The styles would save on construction and materials costs.Don't invest in high-end finishes, expensive millwork, and fancy decorative components.Reject landscaping requests.The builder may offer to do the landscaping for you.It would cost you more to do it on your own.You should negotiate any extras with the builder when you are developing the contract.If you want to have landscaping done at the same time as the house is built, you need to include this in the contract.The builder may be willing to landscape the yard for free.
Step 7: A smaller house is what you should build.
When building a house, think about your needs.If you only spend time in two or three rooms when building a massive house, you've wasted a lot of square footage and money.Don't add space you might not use.You can get an idea of what you can afford by visiting a display home.
Step 8: It's a good idea to build a house on a level playing field.
If you build a McMansion in a working-class neighborhood, you will end up taking a financial hit when you decide to sell.House prices are determined by the prices of other nearby homes, not the amount of money you put into it.Ask your real estate agent what the other homes in your area are worth.The average cost of a house in your neighborhood is what you should spend more on.The average cost of homes in the neighborhood per square foot, the average selling price, and the number of days a home has been on the market can all be found by a real estate agent.
Step 9: Purchase low-maintenance materials.
Metal roofing and vinyl siding don't need to be changed.They will save you money over the long term, even though they bring up the initial investment in building your home.It's important to consider the climate when buying building materials.Some materials may not perform well in certain regions.In a desert climate, vinyl siding may crack and degrade.If there are restrictions on the types of materials that you can use, consider the CC & Rs of your home owners association.You should order your materials in a timely fashion.Material delays can hold up a construction project.
Step 10: Used and reclaimed materials can be used.
When building a home, you can save money by choosing materials and appliances that are functioning.If you know where to look, bricks, cinder blocks, paint, and a variety of appliances are available at a discount.Search online for home supply stores that are having sales on returns, refurbished items, or floor models, and check your local newspaper for demolition sales.Many used or surplus housing materials can be found on online marketplaces.Reusing materials is economical and prevents waste from accumulating in the junkyard.You may be able to negotiate with the builder to have things like appliances included.
Step 11: It is a good idea to shop around when buying materials.
When you compare prices at several different home supply stores, you can get both building materials and finish materials at cheaper rates.You should look for more economical alternatives to the materials you have chosen.marble floors will be more expensive than hardwood floorsYou can save money by choosing inexpensive materials.Many builders will give materials that they can't use.If there is a Habitat store near you, you can buy discount materials.
Step 12: Do you know which types of upgrades will give you the most value?
Some improvements will help you save money, while others look nice.Investing in quality insulation can increase your home's value and keep your energy costs low.A really expensive kitchen cabinet won't add much to your home, but it will make it look better.
Step 13: Don't let materials go to waste.
Standard sizes of building materials are usually used.It is possible to find drywall in 4 by 8 sheets.If you want to put up a wall that measures 8'2' by 4'3'', you'll end up with a lot of wasted building material and added costs due to the time it takes to cut and measure the materials.The dimensions of your home should correspond to the building material lengths and measures.
Step 14: Solicit multiple bids.
Don't submit your specifications to only one construction company after selecting them.Do you know if the estimates of several local contractors are accurate or if they finish projects with overages?Ask the companies you are thinking of working with for references and check for reviews of their services online.Send your design specifications to contractors who will send you the lowest estimate.Look into each contractor's availability.It's possible that they're scheduling their work as long as six months out.It's important to choose a company with a reputation for finishing work on time.Only a certified general contractor can build a home.If you want to know if the contractor is insured, ask to see their certificate of liability insurance.You can ask the insurance company to include you as a certificate holder.If there is a lapse in policy, you will be notified.Don't go with the cheapest bid.Make sure to vet each contractor and make sure you get the best person for the job.
Step 15: Do it yourself.
If you have the time and know how, you can build your own home.If you act as your own general contractor, you could save up to ten percent on the costs of building your home.
Step 16: Work for a construction company.
Many contractors have barter systems in place where people can work on the house they are having built in exchange for a slightly reduced rate.If you feel comfortable swinging a hammer, painting the exterior or interior, or doing some basic landscaping, you could propose the idea to your construction company.Is it possible for me to contribute to the home-building process in exchange for a reduced contract cost?You could just take on the tasks you know you can do, such as painting or lighting installation.Do not take on tasks you don't feel like tackling.
Step 17: The cost of the home will be impacted by your design.
Don't make as much of a difference in your pocketbook if you talk to your developer or construction contractor about alternatives that still satisfy your needs and priorities.It will be easier for the developer to install the right wiring and connections if you group your appliances in a central location.You should look into your options for energy.Consider how much alternative energy sources might cost or save you over time if you want to look into them.
Step 18: Adhere to the budget.
Time and money will be added to the homebuilding process when you change the work order.You should stick to your plan once you have received an estimate.Carefully watch the progress of the home's construction.The costs will exceed the estimate in an unavoidable way.
Step 19: Choose appliances that use less energy.
The Energy Star logo can be found on washing machines, dryers, ovens, and fridges.The appliances have been certified as energy efficient by the Department of Energy.Energy Star certified appliances can make a home 15% to 30% more efficient.Over the course of the home's life, this savings can save you money on electrical and gas bills.
Step 20: Orient your house in a way that conserves energy.
Large windows covered by a small overhang face the south as you build your house in such a way.This way, the sun's heat will warm the home during the winter and the house will stay cool in the summer.
Step 21: You can choose a shorter mortgage period.
You will build equity quicker if you finance your home with a 15 year mortgage instead of a 30 year one.For a longer period, your interest will accrue.When you subtract what you owe on the mortgage from the market value, you get equity.On a long mortgage period, the amount you owe will remain higher for a longer period of time.
Step 22: You should make advance payments.
Instead of paying the minimum monthly payment on your house, pay ahead on the mortgage to save money over the long term.You will end up with a lower amount of interest if you pay your mortgage early.Adding an extra dollar amount with each payment is one of the ways to pay ahead.If your minimum payment is $500 a month, you should pay $600.Instead of twelve payments, make thirteen.Make two payments in January.Extra income can be used to pay off your mortgage.You should put 20% down as a down payment.You will have to pay for mortgage insurance if you don't.