January 18, 2020
While there are many misconceptions about building a custom home, one of the most common is that building a custom home is too expensive. Of course, building a new construction home isn’t cheap, and it may be one of the most significant investments you ever make. But, when the result is your dream home, the investment is worth it in the end.
The truth is that the cost of building your newly-constructed home is dependent on the choices you make as you design and construct it. As the homeowner, you have the power to customize your budget, decide where to splurge, and dictate where to save. With a bit of research and cost-effective planning, you can build your family’s dream home and avoid spending a fortune.
6 Ways To Save Money While Building A Custom Home
1. Set a budget
First and foremost, determine how much you can afford to spend on building your custom home. Meet with a financial advisor and your lender before you buy a lot. Once you set a budget, communicate it to your builder and stick to it. Decide to abide by your budget – no matter how tempting those more expensive options may be.
2. Select a smaller footprint
When building a home, every bit of square footage matters. The bigger the house, the greater the costs. For example, if building your home costs $100 per square foot, an additional 250-square feet will cost you $25,000. Focus on the space your family needs. Keep your floor plan modest and highly-functional to maximize your dollar. Selecting an open-floor plan is a great way to give you the feeling of a larger home without the added building cost.
3. Consider the aesthetic
Particular home aesthetics offer cost-saving opportunities. For instance, if you go with an “industrial” or “rustic” feel, you can leave some projects unfinished, and the result still looks purposeful.
4. Save where you can
When designing your home, determine what features are must-haves and what features you can save on. There are ways to save on design features like appliances, lighting, window treatments, and flooring if you do your research. For instance, cut costs by going with high-quality faux wood floors as opposed to traditional hardwood floors. Similarly, go with the standard light fixtures and window treatments, and then upgrade them later on when your budget allows.
5. Splurge where it counts
Remember, not all upgrades and amenities are valued equally. It’s crucial to not only consider what you want in the house but also what will get you a return on your investment later on. According to Kiplinger, laundry rooms, energy-efficient appliances, and outdoor living spaces are a few of the features that homebuyers are looking for in a new home.
6. Choose your builder wisely
Builders can make or break your home building experience and budget. The goal is to find a respected and affordable home builder who you can trust to do quality work and stick to the promised timeline. Compare a few different home builders in your area and choose the one that offers the most for your money. Take note of things like reasonable upgrades, inclusive based prices, reviews, and recently completed projects. The builder should know your budget and priorities so that he can offer input on additional ways to cut costs.
The bottom line is that building a custom home doesn’t have to break the bank. Take time to research, make cost-effective decisions, stick to your budget, and ultimately be a conscious consumer. With Signature Homes, the process is transparent and straightforward. Begin your custom home journey with Signature Homes by scheduling a time to tour our neighborhoods.