Do You want to build a new home and want to save money? Then this blog really helps you to choose the best ways to save money and build a new dream home. So Let’s start the thing you need to follow when start working on the construction.
1: Sell Your Own Home Without a Realtor & Save Money
If you’ve got the time and you lived within the desired neighborhood, consider selling your house purchasable By the Owner (FSBO).
If you have the time and are in a personal relationship, you’ve sold your home for sale through the sale (FSBO).
In this way, you became 6% of the Redeemer. We have these changing directions because we were in no rush to sell the house. We also felt like we were living in a “high stress” neighborhood, and we felt that a front yard sales sign would do the trick.
In the way, because the first weekend we got several years and even an entry. Unfortunately, the buyer was not given an opportunity and the deal failed.
We were totally fertile but didn’t have personal possessions shortly after. Unfortunately, the second deal also failed. At this point, it was decided that being our own real estate agent was a little more work than we’d hoped for.
2: Select a Realtor with a Discount
When the first deals failed, we decided to generate more pedestrian traffic to our house. We’re not ready to hire a real estate agent just yet, so we reached out to FSBO.com. It enabled us to get an MLS listing so that any real estate agent in the market could see our home, and it was listed on the top sites like Realtor.com and Zillow.
If a real estate agent showed our home we would only have to pay a 3% commission; But if someone had found our house right away, we could still sell it without paying a dime to the realtors.
3: Choose an Excellent Real Estate Agent
As we approached our house just before completion, we decided it was time to call in the professionals. We had several “eye-catchers” and in retrospect, we probably had our house a little too high. It was difficult because we had two offers, but the competition beat us.
We found a local agent who really knew our neighborhood and after the first meeting, we realized how little we really knew.
After a planning meeting, we felt much more comfortable with the situation than with previous experiences. It turns out we had an offer two weeks later and our house was in escrow.
4: Visit Many, Many Homes & Save Money
You think you know what your dream home should look like, but do you really know? After searching the house books, we drove around and visited as many houses as possible. We even drove to St. Louis (90 miles away) to get a different perspective. If you find a newly developed area they may have some show homes that can give you tons of ideas.
5: Find a Good Architect
When it comes to having a vision of what something should look like, I’m terrible! We had also bought a lot where the back of the house faced a lake but the front a Culdesac. Essentially, we needed a unique layout that no home book could offer.
Luckily the architect we hired really helped us create a floor plan that was open (really open!) While keeping the lake as the focal point when entering the house. In the end, the floor plan couldn’t have been more perfect, and all thanks to the architect.
6: Hire The Right Builder
I cannot stress this enough! The subdivision in which we bought our property required the use of their builder. In many situations, this can be a really bad business. We had seen his work and visited some of the other houses he had built so we were confident of his ability but were concerned about the total cost. We negotiated with the developer so we could get outside offers to make sure the manufacturer’s costs were within reason (more on this next).
If you have the option to hire your own builder, do your housework! Hiring the wrong builder can be a terrible experience.
Before hiring a contractor, get a reference list, and ask for some work. GET ALL LETTERS. And I mean everything! It’s amazing how quickly people can forget a conversation. This also applies to subcontractors.
7: Create a Budget & Save Money
This is an easy way to save tens of thousands of dollars before you even start the construction process. As I mentioned above, we had to use a specific builder but were still allowed to shop to make sure his offer was fair. To our amazement, the second next bid (out of a total of 4 bids) was $ 40,000 higher!
Yes, that’s forty thousand dollars. That was a HUGE saving from the start.
Why the difference? In all honesty, we don’t know. We have been told that some builders just don’t need the work in order to price themselves out. Our contractor has a 3-man team and then does most of the other work (drywall, paint, concrete, plumbing, etc.).
The most important thing, of course, is that the builder stays within this offer. If the commandment looks too good to be true, let someone else look at it (we did). We found that the allowance for the kitchen and bathroom was a bit low for our ideas, but also for the offers of the other builders.
8: Have a Heart to Heart With Your Builder
Communication with your builder must be stronger than communication in your marriage. Seriously. If you don’t tell them what you want, how will they know? Be specific and make sure you are all on the same page. Trust me – it will save you a lot of headaches and arguments in the end.
9: Find a Good Banker & Save Money
You are the banker and the vehicle that can save you tons of money initially and thousands of dollars in interest over the life of your mortgage. When we started construction, the mortgage rate for 30 years was around 4.5%. I drooled and insisted that interest rates would go up.
When we got 30 days before completion, we were able to set our rate at 5%. The whole time I was in constant touch with him (and I mean constantly) to make sure we pulled the trigger at the right time.
Unfortunately, we were a little early and the prices have dropped a bit. Fortunately, we were able to reset our interest rate at 4.875% through another lender and did not have to pay any additional costs.
10: Take Advantage of Online Stores that Offer Free Shipping
The range of cabinet hardware from our kitchen specialist was $ 450. We were able to purchase the exact cabinet pulls on eBay for $ 135 with free shipping and save money. We also bought the vanities that come with the entire package: vanity, roof, sink, and faucet. By buying on eBay, we were able to get a cheaper price, free shipping, and ask the seller for a discount.
In both cases, the eBay storekeepers gave us discounts: $ 75 off one and $ 195 off another. Proof that it never hurts to ask!
11: Search Online Wholesalers Instead of Buying Retail
We were able to buy a $ 6,000 front door for $ 2,300 that was unfinished and shipped straight to our home. (Savings of $ 3,700!) We just had to find someone to help us dye. Fortunately, my father-in-law is as handy as they come. If you are not so blessed and don’t have a family member handy, ask friends and co-workers and I’m sure you can find someone to help you smear your door for a few hundred dollars.
12: Buy Your Lighting on Sale and Save Money
Compare prices and buy from the place where you can get the best deal. She went through the Sunday newspaper flyers and compared prices for Home Depot, Lowe, and Menard. At least one of them had their lights for sale when we needed them. Don’t forget that you can usually find a discount lighting store online that will beat any household store price.
Example: The chandelier she requested from the local retailer’s catalog was $ 873. While searching online, she found the same chandelier when it was released for $ 174.99. It gets better. See the next tip.
13: Get By With a Little Help From Your Friends
Do you have friends or family that you can save money with building your home? We were fortunate to have friends who made our house plan (architect), kitchen and bathroom countertops, and cabinets. To make sure we were really saving some money, we also posted the cost out and confirmed that we saved a significant amount.
14: Know All Your Tax Credits
Congress has recently passed many laws that are beneficial to many home buyers and home builders. The last update to the first-time buyer tax credit would have given us a $ 6,500 credit, except we were left behind 6 months before meeting the 5-year requirement – Doh! Fortunately, we qualified for good credits to make our home more energy-efficient.
We took off some serious tax credits for our energy-efficient windows and insulation materials. The great merit went to the geothermal system that we had installed. We were lucky enough to receive a 30% tax credit on the price of the unit and installation costs. Previously the loan had a cap of $ 2,000 when installed in 2008.
15: Decide the Furniture you need in Advance
With an expansion of our new home, we knew we had to buy some new furniture, most notably a couch. We headed out months in advance and found a fantastic couch that was released for a fraction of what we would have paid if we missed the sale. Other examples are wall hangings, carpets, and other accessories that we kept looking for good deals on.
Have you recently built a house? If so, how did you save some dough? What have I missed? Also, Share with them who want to start building a new house and want to save money. Thank You Contact Us if you need any Help