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How to save money on new construction

Everyone dreams of buying their own home. It’s a challenging pursuit, however, as buying a house is probably one of the most expensive purchases one can make.

You might have heard or read somewhere that buying a newly built home can be cheaper than buying a resale. It honestly depends on several factors. The location of the residential development plays into this, as well as the materials used and customizations you want.

If you’ve already decided on buying new construction, here are several things you can do to save up some money.

 

  1. Create a budget and stick to it

    In order to save, you need to have a budget and you need to follow it. Start with a list of must-have home features, then take the trip to a hardware store or building depot to look at materials. If you can, ask for quotes. The more you know about how much building a specific room generally the costs, the better you can create a realistic budget.

    You should also sit down with your financial planner to assess your financial capability. This way, you’ll have a clearer idea of how much you can afford to spend on a new home without incurring debt.

  2. Look at several bids before selecting a contractor

    Don’t hire the first contractor you meet. Instead, get several bids and compare each bid carefully. Look at how much they charge upgrades, if they get subcontractors, if they offer closing cost incentives and insurance, and their proposed timeline for building your home.

    You can even ask for references just to check if the potential contractors are any good at their work. By taking several bids, you increase your chances of finding the best deal.

  3. Go for a smaller footprint

    The bigger the home you plan to build, the more it’s going to cost. So, if you don’t need that much space, consider building a smaller home.

    But what if you do need all that space? Focus on the essentials to save some money. Consider an open floor plan, which allows you to create flexible, multi-use spaces and make the house feel larger than it really is. This will help you save money from building walls, which can easily cost a lot of dollars.

  4. Take on some DIY projects

    Today, do-it-yourself projects are very popular. That’s because most people have identified that when you do some of the work yourself, thousands of dollars can be saved in the process.

    Paying a contractor for some jobs, such as installing fixtures and fittings around the house, drives up the total building cost. So, if you are handy enough and you think you can help, go ahead! Your DIY project can be as simple as installing the light bulbs and door knobs to painting the kitchen cabinets.

    If you are eager to do more, YouTube is a wonderful resource of DIY home improvement projects. My favorite YouTube channels include This Old House, Lowe’s Home Improvement, and Matt Risinger (who also offers product reviews and other related content.

  5. Help out with sourcing materials

    Another way to shave the total building cost is to source materials yourself when you can. Check the community is there’s a local Habitat for Humanity ReStore, where you can get new, high-quality materials. Shops like Amazon and Home Depot also offer great deals and amazing quality.

If you are looking to build a home without going over budget, I can help! Get in touch with me when you’re ready to get started.

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