6 Tips to Know for Building a House
Buying a new construction home has plenty of perks: you will be the only owners of the home, you can customize it to the look and feel you want, and you can truly make it your own and know that everything on/in the home is new. Plus, it means you won’t need to worry about home renovation projects for a while, which is a saver to your budget. However, while there are many benefits, building a new construction home isn’t always easy. If you are currently waiting for land to break, here are the six tips to know for building a house.
- Know your budget.
Before you even start to shop around and find builders and land, it’s important to know your budget. Take a good, hard look at your finances and determine exactly what you can afford, not just in monthly mortgage payments, but also in terms of a down payment and all the fees and utilities associated with the new house. Once you have that in place, you need to add more money as a “fluff fund”. This fluff fund will serve as money you will need to pay for unexpected expenses, such as a change in a design, an unknown permit, etc. If you have extra money set aside for the unexpected, it can help keep your new construction home on budget.
- Choose your builder wisely.
Depending on where you want to build, you may be forced to use a specific builder. However, if you have the ability to choose who builds your home, be sure to do thorough research and find out who would be the best option for you. Not only should you meet with builders to see portfolios of their work, but ask for a list of references and talk with them. Find out what they truly think about the builder and if they would recommend them to others. The more you know about a potential builder, the better chance you’ll have of being comfortable with the build and knowing your home will be done on time.
- Understand upgrades.
When it comes to new construction, it’s important to know that the homes are typically “builder-grade” and any other changes are considered an upgrade. This could be for something major, such as adding a deck or patio onto the house, and it can even be something small, such as changing the brand of fixtures. When you understand upgrades and how they work, you can better plan for your new construction home within your budget. According to Whitewater Kitchen and Bath, “A home’s finishes say a lot about the style and quality of the home, so understanding what specific upgrades you want in a new construction home can help keep your project running on time.”
- Keep constant communication.
When having a home built, it’s very important you stay in constant communication with your builder and your finance broker. This will ensure that everyone is on the same page regarding financing and timeline, and it will help you better understand if any issues should arise. If you find that your builder seems to be dodging your communication efforts, be sure to visit the jobsite in person to stay in communication. The more on top of your new home build you can be, the better it will be for everyone involved.
- Do your finance research.
You should have your financing secure before you start to build a new home, but you should also do your finance research too. Not only does this mean finding the right lender—specifically a company that works with new construction financing—but it also means grants. For instance, if your new home is being built with eco-friendly finishes and technologies, you may be eligible for government grants or rebates. The more you know about what financing offers are available, the more affordable your new home construction could be.
- Hire an outside inspector.
In most cases, the builder will hire an inspector to do the final inspection of your home, and while this is okay, it’s still important for you to get an outside inspector with no relation to the builder. With the money you are spending on this new home, it’s important that everything is done properly and safely. Having someone else come in and put their eyes on it will ensure you’re not being cheated and that the home is safe for you and your family once you move in.
Building a new home can be extremely exciting, but it also requires a lot of work. If you have new construction taking place, be sure to use these tips to keep everything running properly.