Purchasing a home is one of the biggest investments you will make in your life. If you are building your own home, the costs can easily spiral out of control. It is up to you to rein in those costs to ensure you can afford to finish the project.
Are there ways to save money when building a house? You bet there are. Follow these tips to keep hold of your hard-earned cash while still getting the home you want.
1. Set A Realistic Budget
Before you start looking at plans and deciding where your clawfoot tub will go, you need to set a budget. Knowing what money to spend and where to use it best is key when building a house.
See what cash you have and decide what you are willing and able to borrow. This is the limit of your spending. It needs to be allocated for every stage of the build, from excavation to painting, so decide where to spend it.
Once you have that figured out, stick to it without wavering and then find ways to trim the budget. Work with professional home builders to determine the essentials and differentiate them from the optional features.
2. Pick A House Plan That Has A Smaller Footprint
We all have a dream home in mind, and when you build a house, you want everything on your wish list. Consider downsizing the plan to save some money.
Square footage is expensive, and if you can shave a few 100 or more off, it will help the budget. You probably don’t need all those extra rooms and will be happier without them. Also, consider building up rather than out because adding a second story is cheaper than adding a sprawling rancher. Go for stock plans instead of a custom design when deciding on a house plan. Architects are expensive, and you can put that money to better use.
3. Collect Several Bids From House Builders
You may have a friend who builds homes or admire your neighbour’s new house but going with someone without comparing prices is like shovelling cash into the fireplace.
You need to get at least three construction bids to compare prices. Let each builder know you are getting other bids, so they sharpen their pencils and review every detail on each bid. It’s not wise to go with the cheapest necessarily, though. Do your homework and make an informed, budget-friendly decision.
4. Take On As Much Of The Construction As You Can
Do you have a building skill set that applies to your construction? Anything you can DIY means money saved, and the more you can tackle, the better. Leave the tough stuff like plumbing and electrical to the pros, unless you have a trade ticket, and focus on some drywalling, painting and even landscaping if possible.
Some projects are worth doing yourself, even if they take longer. You will save money, which could go towards other aspects of the build or back in your pocket.
5. Source Your Own Material
As the build starts, trades will bring in their construction material. Some things are part of the quote, like lumber, while other items have different price points.
You can do your leg work to find the prices for things like a hot water tank, appliances, toilets and sinks. Most of the time, you will be able to get cheaper models than the ones a company usually uses. Even if it’s just a few bucks here and there, that adds up fast over the entire build.
6. Start With Standard Items
We all want the best washer and dryer, custom wood blinds, expensive light fixtures, and a smart fridge. These are on most people’s wish lists but if you want to spend less, start with standard models for your build.
You will still get brand new fixtures and appliances, which will serve you well. Then, later down the road, you can upgrade as your income allows.
7. Stick To Standard Sizes
You can easily blow the budget if you opt for custom-sized windows and doors or custom cabinets in the kitchen. Make sure your layout allows for standard material sizes to reduce costs. They are easier to install and readily available, so stay standard and hold on to your money.
8. Choose Cheaper Finishes
You can get Italian marble backsplashes and Brazilian cherry hardwood floors, but will anyone notice unless you tell them? If saving money on your house build is the goal, go for a cheaper finish that looks great.
There are many options for finishes that don’t break the bank, like engineered flooring and standard tiles. Shop around for the best deals and embrace the affordable.
Building a new home is tough, but don’t let the cost be part of the problem. Follow these tips as you embark on your house construction and keep as much money safe in the bank as possible. Then be proud of your hard work and enjoy the frugal fruits of your labour.