If you’re in the process of building a home, you may be a little overwhelmed by all of the expenses adding up. Without careful budgeting and planning, your new home can end up costing well over the price of a similar pre-built model.
However, you can take several steps to reduce your costs during your new home construction. Read on to learn the most effective techniques to save on your custom home build.
1. Quote Around With Home Builders
Home builders can use various pricing systems to determine your final costs for your custom home construction. If you’re looking to maximize your savings on your home build, we recommend quoting around with several companies, then choosing the one that makes the most sense to you.
Some companies charge a percentage of the estimated construction cost, typically ranging between 6% and 25%. Others charge based on the amount of time and labor they expect the build to take. And some simply add up all of the costs of the smaller tasks involved in the home build, then present you a bill at the end of the project.
Determining a company’s pricing strategy can help you predict how much you will pay for your custom home build. You can also request a free quote on many contractors’ websites to gain a more detailed understanding of your costs.
2. Include Elements That Will Save You Money Long-Term
While your custom home build will undoubtedly include most expenses up-front, you’ll also need to consider how much you can budget to keep your home running long-term. Making long-lasting investments upfront can save you money in the long run and reduce your overall house costs.
For example, you can consider adding a metal or slate roof now rather than asphalt, as these materials can last decades longer than cheaper ones. You can also incorporate energy-efficient building materials and systems to save money on your energy bills.
3. Look for Low-Interests Loans
If you’re planning to take out a loan to cover at least some of the expenses involved in your home build, we highly recommend spending time shopping around for the best loan offer.
Your loan interest rate can cost you a significant amount of money in the long run. While you may be tempted to take the first offer you receive to streamline your house build, doing so could rack up your costs significantly.
Instead, you should request loan estimates through several lenders and attempt to negotiate your interest rates and fees with each. Then, you can choose the most affordable loan option.
4. Include Low-Cost Building Materials
Whether your home builder incorporates building materials into your final cost or allows you to purchase materials separately, these items make up a significant portion of your overall home build expenses. As a result, you can reduce your costs by choosing lower-cost building materials.
When selecting the materials to make up your home’s structure and interior features, you should consider both cost and quality. Choosing materials that are too cheap could lead to expensive repairs down the line. However, selecting materials at the higher end of the spectrum will rack up your costs significantly.
When you work with our Schar Construction team, we can help you choose the best building materials while sticking to your budget.
5. Create a Priority List
Building a house can include many unexpected expenses. If you’re trying to stick to a specific budget, you may go well over your planned cost when a single problem arises.
As a result, we recommend considering which elements within the home build you’d be willing to sacrifice if you go over budget in other areas. For example, maybe you can add the pool down the line or switch to lower-cost kitchen cabinets to save money in these areas.
6. Skip the Real Estate Agent
If you’re unfamiliar with the process of home building, you may be tempted to hire a real estate agent to help you. Many realtors advertise their services for home builders, offering to negotiate with the home builder, help you set up inspections, and walk you through the entire process.
While you can certainly enlist a realtor’s assistance if you’d like to, you’ll spend more money in the process. Instead, you can save money by working with a home builder that provides reliable services and assistance as needed.
7. Add the Finishing Details Yourself
If you’re serious about saving money on your home build, you can also consider completing a few finishing touches yourself.
Tasks such as painting the walls, installing appliances, adding the kitchen backsplash, and cleaning up dirt and debris can be pricey if you hire them out. Instead, you can get that money back in your wallet by completing these tasks yourself.
Altogether, you can take several measures to save money on your custom home build. When you work with our Schar Construction team, we can help you maximize your savings while providing high-quality, reliable contracting services you can feel confident in.
Call us today at 541-583-4850 to request your free estimate.