Friday, 29 May 2020

7 Simple and Effective Ways to Save Money When Building a House

Written by Posted On Wednesday, 09 October 2019 03:45

If you are going to build a house, there are things to do to save money. Click here for some ways to save money when building a house.

Are you building a new house? Are you searching for ways to maximize your expenses?

The average cost of building a new house from scratch is around $290,000. Most of the time, the amount goes higher once you start splurging on some add-ons. 

Though spending on these things isn’t bad, there is a risk of wasting your money on things that you do not need. How do you manage your spending?

Are there ways to save money when building a house? Or should you just accept what the contractor tells you?

Keep on reading below as we provide some valuable tips that will help you spend wisely during the home-building process.

Simple Ways to Save Money When Building a House

Though building a new home from the ground up involves hundreds of thousands of dollars, it doesn’t mean there is no room to save some money. To maximize your spending, you need to plan right. You also need to work with the right people.

Let’s take a look at some simple yet effective ways to save money when building a house.

1. Determine What You Want

Homebuilding is a serious process that takes a lot of time and resources. Thus, you need to start right by determining the type of house that you want. 

Do you want a single-story home or you want something with an attic? Do you need to make room for a swimming pool? Do you want a concrete house or something made of durable wood?

2. Start with a Budget

After deciding on the type of house you want, it is time to set up a budget. And when it comes to your budget, you need to stick to it as much as you can.

Consult with your financial advisor. Ask him how much you can afford with your current finances. This is crucial considering the tendency of many to overspend.

The key is to strike a balance between how much you want to spend and how much you can. Finalize an amount and stick to it no matter what. 

3. Go for Multiple Bids

With a budget to follow, you can start looking at different bids. It is wise to look at several options compared to a single one. More options mean more flexibility.

Don’t automatically sign the first contractor that offers the lowest bid. Look at two or three more bids before deciding. After finding a bid that you like, look for references.

Don’t hesitate to ask the contractor for the contact details of their previous clients. Talk to their old customers and get their feedback. What you want to know is if they can deliver on their word on time.

4. Get a Good Architect and Builder

You should also find a reputable architect. A good architect can create a home that has an excellent floor plan. The floor plan plays a big role when it comes to the things you need to spend on.

Tell the architect that you want an open floor plan. This will allow you to maximize the space of your home in different ways. It creates a free-flowing home where the living room can work as your dining room and workspace.

Furthermore, hire a good builder. Go for one that has a solid track record. Find someone that doesn’t keep you in the dark.

Thankfully, some companies like Idea Homes involve you in the process from pre to post-construction. Click on this link to learn how it works.

5. Break Down Your Spending

Make sure to account for all your expenses. This means breaking down your spending line-by-line. Before singing-off on the final price, get a template of the things you need to spend on.

Request for a template and go through each item in the presence of your contractor. As you review each item, you may realize that you can discard some of the items you initially included.

When it comes to big-ticket items like furniture, decide on them early on.  Months before you start the home building process, scout for couches and other furniture on sale. Be on the lookout for items on clearance. 

6. DIY If You Can

Even if you hired a builder, it doesn’t mean you cannot DIY some of the work. Doing so will help reduce your expenses. 

Start with areas that are easy to work on. Take a task like installing a sink or dying a concrete floor. You may also consider installing fixtures like lighting.

As for the more complex ones like wiring and plumbing, it is best to leave them to the pros. But if you have substantial knowledge in handling them, don’t hesitate to take on the work. This will save you money that you can spend on materials you still need to buy.

7. Reuse Some Materials

Last but not least, consider reusing some materials. If you can find some leftover lumber or other wood types, put them to good use. 

If you see your contractor throwing scraps of materials, examine the items one by one. See if you can still salvage a few of them. There are good excess materials that only end up on the dump truck.

Additionally, you should consider sourcing some materials. Though your contractor may get some items cheaper in bulk, you may buy them individually at half the price.

Furthermore, know when to splurge. Yes, several upgrades are pleasing to the eyes. But ask yourself if you need them.

Consider the return on investment they offer. Foam insulation is a wise investment. A porch, on the other hand, can wait a couple more years.

The key is to spend on things that truly count. 

Build Your Dream Home Wisely

Finding ways to save money when building a house goes a long way. You can use the savings to fund other important expenses within and beyond the house. As for the furniture and fixtures, you need to spend time doing some research.

We invite you to check our different articles on homebuilding. We provide comparisons of different items to help you make wiser purchases. We also feature different solutions to help turn your dream home into a reality.

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tracy handy

Tracy is a full-time real estate advisor and blogger. she specializing in real estate technology .and she would like to write real estate,  home improvement topics.
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