Top Tips to Be Money Smart When Building Your Own Home

Posted by MoneySavvy on Aug 3rd, 2010 | no comments home title

What is your dream house like? Maybe you can’t find one that is already built or the right plan in any of the subdivisions. It might be time for you to build your own abode. Here are some tips to help you be smart with the money that you want to spend.

First and foremost, create a budget. It is very easy to go over one if you don’t have one set up in the first place. You can look around at home improvement stores and retailers to get an idea of how much certain things cost: light fixtures, doors, windows, floors and appliances. You know your tastes and what you must have and what you can do without. For some things, like countertops, it is best to bite the bullet now instead of fifteen years from now when you may have to remodel.

Choose a floor plan. There are dozens of magazines on the market that are chock-full of house plans in a variety of price ranges. Find the one that closely fits your needs and go from there.

Find your land. You can’t very well construct a house without this little item. If you want a larger home or a two-story house, you might want a bigger lot than with a ranch style home. What is nearby? Choose an area that is convenient to school, work and stores. No one says that you have to build right away. You can finance the land and pay it down before you start construction on your home.

Choose a builder. Ask friends and family who have not only built their own homes, but also moved into newly constructed ones in subdivisions. Another way is to consult the National Association of Homebuilders. They may have recommendations for good people to work with. Also ask about their suppliers. Are they reliable? Do they get work done on time?

Discuss the buying of building materials. Here is where a lot of your money could be spent. Choose materials that are of good quality but a reasonable price. You can save money if items are purchased as the builder needs them. Ask about returning unused materials for credit at the end of the construction.

Consider being your own boss. If so, you will be the one dealing with the contractors. You can shop around and get estimates of how much certain services cost. It is one way to avoid over budget costs. This is an option for people with construction knowledge and the time to handle all the responsibility.

Building a home doesn’t have to cost a fortune. Talk to people in the business and friends and family members who have gone through it before you. Refuse to settle for less than the best deal.