Everyone dreams of being able to build a house with an exact design implemented in the blueprints. While it’s exciting to be building a new home, it’s also important to do so responsibly to ensure that it meets your budget and that you’re able to properly maintain it once complete. That’s why we’ve assembled this list of the best ways to save money when building a house.
Standard Costs that Come with Building a House
Per HomeAdvisor, the average cost to build a new house comes in right around $298,000. This can obviously fluctuate when you take different variables into account, so the cost typically ranges anywhere between $150,000 and $450,000. This is a wide range, so you’ll have to do some research and planning when it comes to the area in which you’re looking to build, how much the plot of land you’re interested in costs, and how elaborate you want your new home to being order to get a more accurate representation of your specific costs. The data above is based on actual project costs as reported by 455 HomeAdvisor members.
You might be wondering, what exactly goes into that near-$300,000 average cost for a built house? Well, the standard process that you’re paying for includes selecting or creating your desired floor plan, finding a builder, getting a list of specifications from the builder, getting a loan to pay for the construction, the actual building of the house, and then the closing of the final loan which ends up being your mortgage.
Additional fees can include sewer, electrical, and occupancy permits, depending on the rules of the area you’re looking to live in and the size of your desired house. You can also expect to pay a lot prep fee. This is paid for the preparation of the lot on which your house will be built. This fee could include the clearing of trees and other potential wildlife which can add up to be costly. And don’t forget about utility costs. You’ll need to pay for the electric company to connect to your home, as well as for a connection to the local sewer system and a connection to public water.
If you’ve already done your research and want to cut right to the chase, contact us today and our team of expert designers and contractors will help you build the home of your dreams.
Things to Know Before Deciding to Build a House
Before you make the decision to build a house, there are a few things you should know and expect.
Realize that it’s a marathon, not a sprint. Your house won’t be done overnight. And it’s not going to be something that you sign for and just show up on move-in day. If you’re going to have your house built the way you want, you’ll have to be on-site consistently, ensuring that things are progressing the way you want and that everything is going according to schedule.
Also, expect to spend at least 10-20 percent more than your estimated budget. Building a new house usually costs more than you think it will, with additional and unexpected costs coming into play as things progress.
It’s good to set a schedule for obvious reasons, but your schedule is not set in stone. You might run into issues during the build, such as scheduling conflicts with contractors, or even weather problems that may slow things down. Be prepared for this.
And lastly, be sure to understand the importance of working with a licensed contractor. By working with a licensed contractor, you’ll know that the work is being done right in comparison to a DIY team of friends and family that you might consider for the job. The work will also be completed much faster because of the size of their team, experience and expertise, and resources at their disposal.
Best Ways to Save Money
Set a Budget With Your Builder
After meeting with a financial advisor to determine how much you can spend (this should be the first thing you do), you should work with your builder to set a budget for the build. When building a house, costs can quickly get out of hand, but if you establish a pre-set budget with your builder, you’ll each know where your limits are.
With that being said, when setting your budget, allow for some flexibility. The first price your builder will show you is the base price. This includes the house’s basic structure and finishes as well as the cost of the lot and any landscaping that will need to be done. It doesn’t include upgrades like fireplaces, larger cabinets, and additional interior and exterior upgrades. It’s likely that you’ll want to make at least a few of these which will increase the total cost. So don’t let the base price of your house equal your total budget.
The Layout of the House
While many builders have a set of different layouts for you to choose from, there are some that will allow you to make minor changes to their layouts. These changes aren’t referring to potential upgrades that they let you make such as upgraded windows, tile floors, a finished basement, etc. If this doesn’t work for you, you can also elect to go the custom home route where you work with an architect to design a custom layout of your choosing and then the builder builds that exact layout for you. While you get everything the exact way you want it, the problem with a totally custom home is that it can start to get pricey.
One of the best ways to save money when building a house is to look for or design a layout without many edges. The more exterior corners on a house there are, the more expensive it can be to build. Also, the more square footage, the more expensive. Try to minimize the size of a couple of rooms, such as spare bedrooms or additional bathrooms in an effort to decrease the square footage of the house.
The more square footage you have, the more expensive your build will be. To offset this, consider implementing a layout with an open floor plan while minimizing the size of some less important rooms in the house. An open floor plan can save you thousands by allowing you to design and build a smaller house without having it feel small.
Build for the Future
Be mindful of the future when it comes to building a house. Plan ahead and think about what you might want your home to look like 5-10 years down the line, not just right now. Including everything you want in the build now versus hiring another contractor later on down the line can save you plenty of money as it’ll cost you less to to have the same builder do everything while they’re already building the house.
Remember This Before Building
Before you dive into building your house, you should know where to find a team of experienced designers and contractors to make your dream home a reality.
Our team can provide you with the direction and vision you need when you decide it’s time to begin building. We can also help you with any additional home improvement projects that you might have. Let our team be the ones to give your home the right look and feel.
At Malek Construction, our team works hard to make you feel right at home. Contact us today, and we’ll help you build the home of your dreams.