Tips For Building A House On A Budget
Are you dreaming of building a new home? Are the outrageous pricing stories scaring you away from making that final decision? With the lack of available housing out there many people are paying above asking price for homes and those pricing stories seem to be plentiful. If you want a home and you don’t want to spend too much, you might consider building.
That’s not to say that you don’t have to be careful when building a home. You do. These tips for building a house on a budget can help keep you on budget while building your home as well as avoid the temptation to overspend on a pre-built home.
Tips for Building a House on a Budget
If you are looking for the best ways to keep the budget low on your new home build, these tips will help you.
Set a Budget
Before building your home, you need to find out what you can afford. You can do this buy going through your finances and understanding what your current savings as well as your monthly income will allow as far as a home loan, down payment and monthly mortgage payment. Or, you could go to a mortgage broker and get a pre-approval to find out what you qualify for (Although it’s best to leave a cushion in what the lender says you qualify for to allow for any emergency or changes.)
Keep a Running Price List
Knowing the prices of the supplies that you will be using for your build is important in making sure to stay on budget. It’s best to put these numbers into an excel spreadsheet or other easily editable form because prices do change as do plans and your price list should be updated to show this.
Hire a Contractor with Experience
While you may feel like you could save money by going with a new contractor trying to establish their name, the reality is often the opposite. A contractor that has years of experience can save you money the following ways:
- They are more experienced and their quotes will likely be more accurate than someone just starting out.
- Since they have experience with builds they will be able to tell you where you can save money and where you should spend a little more.
- With years of experience, they know how to avoid common mistakes that often come up.
Make Your Home Design a Simple One
Simplicity is key when building a home. The more simple your home plans, the less it will cost to build. A simple square box is the cheapest design when building a home. Additionally, the general rule of thumb in homebuilding is that building up is cheaper than building out. The simpler the roof, the cheaper it will be. These are all examples of how choosing simple when building can save you money.
Be Your Own Contractor
Do you have any construction experience at all? If so, you might consider becoming your own general contractor. It’s still best to hire out most of the work, but the fact that YOU can do this as opposed to a higher priced general contractor will save you a significant amount of money.
Anything that you can do yourself, do it! Whether it’s a painted wall or specific fixture you want installed. Every single thing that you have done when building a new home will cost money in supplies AND labor. The more you can do on your own, the more you can save on those labor costs. I only recommend this if you have experience though as you do want to make sure that it is done properly.
Research Building Materials
Different building materials have wildly different prices. While some of these materials are known to last longer therefore would be worth the extra price, some are simply more popular right now and that may not be worth the extra cost to you.
Additionally, you can find huge savings by researching where to buy your materials and how. For example, there are many building supply liquidators that sell overstock products from other retailers at steep discounts. They often have very limited supplies of materials though so be sure to grab what you need when you find it!
It’s also worth noting that you can often save money by purchasing used building materials and repurposing it in your build. Many people love the story that comes along with using repurposed materials and most of us love the savings!
Include Energy Efficient Features
Building an energy efficient home is smart. Not only will it save you money on your energy bills in the future, but they also offer huge savings in the form of tax credits and rebates.