When building a new home, home buyers may find themselves over budget and over stressed. Below are some of the most common financial mistakes when building a new home that you can try and avoid.
Don’t overbuild – Most families do not need a 5,000 square foot home, a 2,500-3,000 square foot home could work if designed properly. A larger house is just more expensive and harder to maintain and clean. According to the National Association of Home Builders, a custom home in the U.S. costs an average of $105 per square foot to build. That means by eliminating even 500 square feet in a home that you don’t need, you’ll save over $50,000.
Consider the resale value at the beginning – It’s a simple fact of life : Most of us don’t know for sure where we will be in 10 or 15 years, as much as we’d like to think we do. Buyers take note – Build your dream home, but don’t make it a nightmare for someone else.
Weigh the upgrades – Which upgrade options should make the cut? Buyers may have to be aware between the too conservative and not conservative enough when choosing extras. You’ll be surprised how fast a $200,000 home becomes $400,000 in upgrades. Buyers need to careful consider what upgrades are must haves. For example, carpet can always be switched out to hardwood floors later, but a basement is something you should decide on now rather than later.
Monitor the progress – Visit the site during construction. Make sure that things are matching up to your expectations and ask questions if they don’t. The worst option is to remain quiet and end up with something that you are unhappy with or have to pay to fix after the fact.
