With the housing market these days currently in an inventory deficit, many prospective homeowners or current homeowners looking to upgrade are finding themselves in a challenging situation: pay a premium for a house in a seller’s market or build your dream home. With land and space also coming as a premium, it almost makes sense to purchase a lot and build from scratch.
Before you pull the trigger and decide to build your dream home, make sure you’re taking everything into account and doing your due diligence to avoid making costly mistakes. Here are our top ways to avoid common mistakes when building your dream home.
Cutting Costs by Avoiding a Home Designer or Architect
For all intents and purposes, architecture and home design are practically the same things. While those deep in the field may disagree and you may see industry home designers as a premium service you don’t need to pay for, you’ll likely think twice if you decide to forego hiring a home designer or local architect to help with your new construction.
Depending on where you live, your local municipality may not only require a stamped set of architectural plans but may also require mechanical sheets for plumbing, electrical, HVAC, and other trades. If you think you’re going to save money by working without an architect, this could prove to be a costly move as architects worth their mettle understand basic construction, trades, and dimensions that can help optimize your home, save money on trades, and save (potentially) a fortune on materials.
Avoid the Buddy System
Aspiring homebuilders looking to save a few bucks may want to do so by contracting out skilled friends or family members to do some of the work on your behalf at a fraction of the price. While this may work great for more basic trades such as cabinetry, painting, or laying floors, it’s best to leave your friends and family out of the construction process if possible.
Depending on friends is always nice, but more often than not by crossing the friend/contractor line and allowing your friend to be a sub-contractor, you may find that their motivation may wane and their work may not be quite up to the standards you thought. If you want to save money, then interview prospective contractors, take bids, and choose the contractor that offers the best value for workmanship. Remember, cheaper is not always better.
Upgrading During Construction
Plenty of homeowners looking to build are also looking to potentially maximize the future sale price of their investment. While this sounds like an excellent plan, it often falls short of achieving its goal and may end up costing you tens of thousands of dollars in principal and interest on your mortgage.
Springing for upgrades such as extra space, high-efficiency appliances, or premium interiors such as flooring or cabinets may boost your home’s value over time, but it could also be costly in the wrong way. Unless you’re going to sell your house in the next few years, your style and tastes now may not align with future buyer tastes or future design. Instead, make sure the home has everything you want, but don’t look to the future to dictate your present decisions.
Get Construction Ready
Besides planning a new home, you’ll need to get a little business done before you start construction. Mainly, get in touch with a lender and get pre-qualified for a home loan. Tidewater Mortgage Services’ loan professionals can help you do this as well as help you understand things like construction insurance and other lender-specific aspects of building your dream home.
