Featured Image Caption: Front View of Custom Built Home
While building a custom home sounds like an expensive endeavour, there are plenty of ways to save money on your dream home. With these seven tips, you’ll be able to trim down the cost of your custom home and make the project more financially feasible.
What’s more, with these cost-saving strategies, you’ll have extra money left over to customise your new home exactly as you want!
Conduct research and comparisons of local builders
Building a custom home is a big investment. You want to be sure you are getting the most bang for your buck. Comparing local builders is a great way to do your research and make sure you are getting the best possible price.
It’s important to have an idea of what you need before meeting with builders, which can help save time as well. There are some questions you should ask when choosing your builder about their experience, process, and pricing.
Those looking for someone who will take care of every detail might prefer a general contractor. Those who know what they want might want to go with a designer or builder. Research selecting fixtures, finishes, appliances, and more. If you’re not handy or don’t have enough knowledge in these areas, it’s worth hiring someone else to help you manage these choices.
Build quality over size
When you’re planning your custom home, it’s tempting to go big. But the truth is, you don’t need a huge house to live comfortably. What you need is a well-built home that’s the right size for your needs. Building quality into your home will save you money in the long run because you won’t have to make as many repairs or replacements.
Building with energy efficiency in mind can help keep your energy bills down, ultimately saving you money. Also, there are tax credits available for homeowners who build new homes or substantially renovate existing homes.
Construct for resale value
A lot of people think that building a custom home means being stuck with it forever. But that doesn’t have to be the case! If you build with resale value in mind, you can make a profit when it comes time to sell. Talk with your builder about features and finishes that are more likely to hold their value over time.
For example, built-in appliances and granite countertops will likely maintain their price point better than standard fixtures or laminate counters. You’ll also want to consider site placement for your house, as this will affect how quickly you can move it from one location to another.
Select the best location to save money on construction
One of the major steps to saving money on your custom home is choosing the right location. You’ll want to consider things like the cost of land in the area, the climate, and whether you’re near any amenities that you’ll need. Once you’ve found the perfect spot, you can start looking into ways to save money on the construction itself.
For example, if you’re building with a modular design company, then it’s likely that you’ll be able to save up to 50% off the total price of your custom home. In this case, purchasing these prefabricated modules will still give you a house made from quality materials while not costing as much as it would have if built traditionally.
Keep an eye on market trends
The next step to saving money on your custom home is to pay attention to market trends. This way, you’ll know when to buy materials and when to wait for a better price. You can also save money by shopping around for the best deals on materials and labour.
Another way to save money is to build your home yourself or with the help of friends and family. Finally, be sure to get multiple quotes from different contractors before you decide who to hire. By following these tips, you can save thousands of dollars on your custom home.
Look around for the best loan interest rates
One of the most important ways to save money when building a custom home is to shop around for the best loan interest rates. Talk to your local bank, credit union, and other lenders to compare rates and terms. You may be able to get a lower interest rate if you have a good credit score or if you agree to a shorter loan term.
Another way to save money is to negotiate with the builder for a lower price. Tell the builder that you are shopping around and ask for their best price. If they are not willing to lower the price, ask them to include some upgrades or extra features in the price. You may also be able to get a discount if you pay cash for the home.
Consider all costs upfront
The first step to saving money on your custom home is to factor in all costs upfront. This includes the cost of the land, the cost of the materials, the cost of labour, and any other miscellaneous costs. By doing this, you can get a realistic estimate of how much your home will cost and start making informed decisions about where to save money.
For example, if the material costs are higher than anticipated because of rising prices, reconsider some upgrades that require more expensive materials. If you find out that installing solar panels would increase the total cost of your home by 10%, it might be worth waiting until the price of solar panels drops before adding them to your plans.
So, a custom home is a big investment, but there are ways to save money during the process. Make sure that you get competitive bids from several builders before settling on one.
Research everything, every material, and every detail thoroughly so that you know what will fit in your budget and try to consult with professionals like designers or builders early in the design process to help keep costs down. By being mindful of your budget, choosing cost-effective materials, and working with a reputable builder, you can build the home of your dreams without breaking the bank.
By Peter Cheeley
who has been a construction engineer for 15 years and specializes in building custom homes. In his free time, he enjoys photography.